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Module 2
Different Models of
Food Incubators
This programme has been funded with support from the
European Commission
By completing Module 2, learners will learn how to synthesize
best practices models of food incubators. We share the workings
of four key different formats from which learners can improve
their understanding of the best fit for their circumstances and
acquire valuable insider information. The four formats are:-
1. Multi tenant food processing centres
2. Shared-use food incubator kitchens
3. Shared-use agricultural processing facilities, which are
designed for use by farmers for collective grading, processing and
packaging of farm produce or other commodities.
4.Mobile incubators, e.g. can go to primary producers premises
or other locations and act as’ in situ’ production units
"The European Commission support for the production of this publication does not constitute an
endorsement of the contents which reflects the views only of the authors, and the Commission cannot be
held responsi­ble for any use which may be made of the information contained therein."
2.1 Multi-tenant
food processing
centres
CAFRE - Loughry Campus, Northern Ireland,
UK
2.1 Multi tenant food processing
centres
This format of food incubator provides a number of
independent, own door production units for start up
or growing food businesses.
While the development of such centres are costly and
capital intensive, they provide food companies with
production capacity of scale.
Their operation is best explained by reviewing best
practice examples ….
Opened in 1998, t
he Food Business Incub
offers eight
purpose-built, stand alone food
processing factory
units finished to
the highest standards in two sizes:-
•4 smaller units of 175m2 - rent £1250/ month
•4 larger units of 225m2 – rent £1608/month
FBIC is an integral part of CAFRE (College of
Agriculture, Food and Rural Enterprise) and DARD
and was developed at a cost of £3.9 million (jointly
funded by Special Support Programme for Peace and
Reconciliation (SSPPR) and DARD).
Case Study Food Business Incubation Centre
(FBIC) Loughry, Northern Ireland, UK
Each of the eight units are ‘stand alone’ and contain:
•a segregated arrival bay, ambient store and chill
•a temperature controlled production area
•a dispatch bay and chill
•a low pressure cleaning system, air handling system,
compressed air supply, 180Kw electricity supply (3
phase and single phase), water
•office, changing rooms and toilet facilities
Communal facilities include
•packaging, chill and freezer storage facilities
•blast freezer
•canteen services, board room and meeting rooms
•technical assistance when required
•environmental management systems
FBIC offer a very unique proposition. On the same campus,
there is a 4,000m2 hi-tech Food Technology Centre which
incorporates four mini food processing areas; meat, bakery,
fruit & vegetable and dairy sectors and is designed to
accommodate best practice in food manufacture.
This unique facility is equipped with an extensive range of
modern pilot and industrial scale food processing and product
development facilities.
The Food Enterprise Development Programme is a 6 month
programme to provide enterprise skills. It also gives
participants limited production runs to test-market demand
for a new product using the unique food technology facilities
and resources at the Food Technology Centre .
The overall progression pathway is presented as ….
Key Learning Points
While the original concept was that companies would
‘incubate; their business for circa 6 -18 months, the reality
of getting a food business off the ground is that is can take a
startup up to 3 years to get a new product to a level of scale.
•From 1998-2010 the average ‘stay’ was 29 months.
•The current company profile is 4+ years.
Typical of most food incubation centres, occupancy levels
fluctuate, they start at a low base and build over time.
•Up to 2010 average occupancy rate was 50% (4 units)
or less.
•2010 onwards 78-100% occupancy (7 to 8 units).
•2011-2015 100% occupancy + waiting list
The bottom line - Occupancy Rate over last 5 years
is 80%.
Key Learning Points
FBIC completed an interesting analysis of their enquiries.
From 250+ enquiries:-
•100 made declarations of interest
•41 progressed to the submission of a business case
•24 businesses have taken up units
The reasons why companies did not take up a unit:-
• Size of units -smaller units are required for start
ups.
• Cost of units
• Location
• Too big a step
Key Learning Points
FBIC identified their main challenges as:-
•Debt Management
•Costs
•Exit Strategy and planning for same
•Marketing
Innovation pathway at Loughry
Stage 1:
Food Innovation Centre
Concept/Idea
Investigation and
kitchen scale
production.
Stage 3: Food Enterprise
Development Programme
A six-month programme allows companies
to manufacture and sell their products
produced in the Food Technology Centre
and determine the feasibility of their
business before committing to major capital
investment.
Stage 2:
Food Technology Centre
Pilot processing and
scaling up.
Stage 4: Food Business
Incubation Centre
Time bound
commerical
manufacturing.
Stage 5:
Commercial manufacture
Outside Loughry
A Tenant
Perspective
Sean Mc Gloin,
Food Hub tenant
(Ireland) and
advocate of Multi
Tenant Food Centres
www.thecheesehub.ie
Sean’s approach is
best summarised as
….
The Cheese Hub was established in 2012 by Sean
McGloin as Ireland’s first dedicated subcontract
cheese ripening/ maturing and cutting & packaging
service.
With a modest investment of € 25,000, it converted
and equipped 2 units in The Food Hub as a cheese
maturing facility for the premium cheese market.
Spanning 1,600 sq ft, the facility consists of a food
grade “ageing cave”, a processing room and
packaging room with an overall capacity of 35 tonnes
of cheese.
It created employment for 3 staff - 1 permanent and
2 part time
Why food
incubators make
sense on every
level ?
The business could not have progressed
without access to food grade facilities – the
investment would have been too much.
Sean highlights that it is than production
space, it is a community and a support
group! From borrowing a forklift to
collaborating with an alcohol producer to
take their waste boiling water, the benefits
are very practical.
Why did The SHED Locate in Drumshanbo,
Co Leitrim, Ireland ?
•The People – “Meitheal”, attitude &
community.
•Ready to go food grade infrastructure –
The Food Hub and lorward looking Local
Authorities who worked with us: Leitrim
County Council.
•The road less travelled – “its all real”.
•Great location to build a “brand”
•Competitive costs & “hungry/helpful”
local suppliers.
•Access to resourceful, ambitious &
enthusiastic local work force.
•Access to Dublin – 2 hours
Some final thoughts
The inclusion of highly attentive management seems to
provide the basis for business incubation
and support across the 3 critical needs of
their tenants:
• business training
• access to capital
• technical assistance
But that management comes at a cost. How can it be
resourced?
See Module X
2.2
Shared
Use
Food/
Kitchen
Incubators
Newmarket Kitchen, Ireland
A kitchen incubator is a culinary
production facility
that can
accommodate
multiple tenants
and is dedicated to
growing early stage
wholesale, retail
and/or catering
food businesses.
While the concept of a shared-use
incubators is not
new, the growth of
different kitchen
incubator formats
demonstrates
increasing diversity
and creativity of
approaches and
The main selling points of shared use kitchen
incubators  
•They provide the essential kitchen infrastructure to allow
specialty food businesses like processors, farmers,
caterers and street food entrepreneurs the opportunity to
start from a recipe and grow a business.
•They help remove the restrictive barriers of the high cost
capital investment associated with leasing or purchasing a
kitchen and kitchen equipment.
•Legislation is making it increasingly hard for producers to
operate out of their domestic facility.
•They can reduce the risk of failure by removing
start up barriers associated with no, or low
skills in managing and maintaining a commercial
kitchen.
• They allow people to separate business and home life.
• They instil a sense of community, natural networking
and practical information sharing on areas such as
sales and marketing, support, packaging or labelling
Research conducted by University College Dublin, UCD
for an Irish kitchen incubator (in 2014) provides
interesting insight into the barriers to scaling their
food business.
Of 100 businesses interviewed:-
80% cited lack of capital
37% cited inability to scale production in
current location
36% cited inadequate equipment at home
 
Interestingly, they questioned potential barriers to
adoption
 
Raw meat and bakery
section would have to be
kept separate as I have
no idea who used the
facility before me, did
they use nuts or gluten?”
People have different
standards of cleanliness.
Place needs to be kept
clean and someone should
be employed to keep track
of who comes and goes
and how they maintain
their space
A kitchen incubator is a
good idea but cost is the
biggest issue and the
price would have to be
all inclusive and not
have any hidden
charges”
Union Kitchen, UK
Added Value
More than being just rental space, food incubators can
offer full-service business assistance whereby
participants have access to information and training
regarding all aspects of starting a business. They can
help would-be entrepreneurs with understanding the
food business, navigating licensing and other
regulations, and making connection with both suppliers
and customers. Other value added resources include
branding, marketing account, insurance, and financing
mechanisms.
The decision of which value added services to
provide should be based on the needs of the local
businesses and partners as well as on space
availability and cost benefit analysis – use the
research guideline and tools in Module 1.
Operations
Typically, kitchen incubators are very lean operations
with few employees and modest operating budgets.
Costs - rent or mortgage, salaries with lesser amounts
to utilities and maintenance.
Largest Operating Costs Are Rent and Salary
The highest operating costs for incubators are rent/mortgage, salaries and benefits, and other costs, with utilities,
maintenance, insurance and debt service making up smaller, but still significant portions of costs
20
%
18
%
14
%
7
%
6
%
27
%
30
%
Average Total Operating Cost by Type
Maintenance
Utilities
Other
Rent/Mortgage
Salaries and Benefits
Debt Service
Insurance
Operations
Revenue - generated from renting shared or
permanent space, or through a variety of smaller
revenue producing activities. Rental fees are by far the
biggest revenue source for incubators. The “US
Kitchen Incubators: An Industry Snapshot” report
share income breakdown as ..
Average Percent of Total Revenue by Revenue Source
Leasing Shared Space
58%
28
%13
%9
%
Othe
r
Leasing
Permanent
Space
24%
Event Space
Rental Retail /
Market
Classes
/
Training
9%
Non-
Food
7%
Copacking 6%
Distribution 6%
Insights into Operations
•High demand is likely at the end of the week which could
lead to logistical headaches and the facility lying idle during
off peak times.
•Fluctuating demand for some users –
– “It is impossible to plan longer than on a short term
business, I could be cooking for 100 people one week
and 800 the next”
– “It is all dependent on orders, at times it can be
overwhelming”
•Success can lead to stagnation ! Satisfaction with facilities
could result in a reluctance to switch to an alternative.
•Marketing lead times can be longer than you expect–
building awareness takes time . Ensure you have an
adequate marketing and PR budget from the outset.
9. Space for production and meeting/offices
10.Wide hallways for moving pallets/bulk storage
11.Floor drains
12. Structural stability to support fridges/freezers/storage
on 2nd floor & up (depending on floor area)
13.Changing rooms and bathrooms
14.Wifi connectivity
To be truly successful, food incubators need to be more
than landlords, hence:-
Tenants will also need/expect
•Support services e.g.
photocopying, reception
(depending on size)
•A sense of community Canteen
facilities
•Meeting and training rooms
•Events and education
Tenants would benefit from
•A product development kitchen
•Onsite food technologist
•Group purchasing schemes
•Logistics support
•Extra storage facilities (not
necessarily food grade)
Operations – Pricing
The very basis of the shared use kitchen model is that it is meant
to be flexible...and affordable.  The most important factor for your
target customer is often price and convenience. Therefore, it is
important to create a variety of packages to suit different member
needs. From casual use to fixed arrangements (e.g. one, two or
three day a week passes), your timetabling need to be flexible and
fair. Also offer 24-7 access where possible.
 
Can’t decide what to charge?
Assess the membership fees of other incubators, and combine
that information with the local knowledge you’ve gained through
market research (Module 1). This will help you determine a
reasonable price point for member packages as well as short-term
daily, weekly and monthly bookings.
Operations – Size
Insider Tips …
Kitchens need to be of sufficient size to accommodate more than
one user at a time. The key to developing a revenue stream that
can fund staff expenses and utilities (the two single largest
expenses) is simultaneous, multiple occupancy and keeping the
facility open 24 hours a day.
Storage – Most facilities have underestimated the amount of
storage space their tenants will require. Aside from limiting
storage income, inadequate storage facilities result in fewer
tenants than a facility can reasonably accommodate
Operations – Size
Insider Tips … Anchor tenants provide stability to the facility –
especially in the early days.
Most successful kitchens have what have become known as
anchor tenants. Anchor tenants are distinguished from other
tenants in two important ways.
1)Anchor tenants are notable by the substantial number of hours
of kitchen time they rent. In exchange for the certainty of large
blocks of time, facilities offer favourable rates to these tenants.
2)This block of rented time usually underlies a business that is
well managed and successful. Anchor tenants are renting large
amounts of kitchen time because they are successful. Successful
tenants develop into sustained rent
revenue for the facility and provide role models for
others starting off.
Operations
There are 3 different pricing models can be applied:-
In the US, the pricing formats used by incubators break down as
1. Hourly fee
charge only
for time used
2. A basic
monthly fee +
per use charge
3. Blanket fee
that covers all
usage
60% charge
an hourly
fee- charge
only for
time used
30% charge
a basic
monthly fee
+ per use
charge
10% charge
a blanket fee
that covers
all
usage
Equipment Provided A typical shared used kitchen
incubator would offer the following
equipment schedule at a minimum:-
• Preparation Tables
• Industrial scale Mixers
• Industrial scale Food Processors
• Hob cooker – 8 rings minimum
• Oven – Convection and Rack Oven
• Walk-in Fridge & Freezers
• Dishwasher
• Water boiler
• Pots, pans, utensils
Photos: Newmarket Kitchen
Learning from Best Practice Kitchen Incubators
Newmarket Kitchen, Dublin La Cocina San Francisco
Hope & Main LA Prep
Best practice kitchen incubators
Newmarket Kitchen, Ireland
http://www.newmarketkitchen.com/
An
interesting business model,
for profit but with a strong
social entrepreneurship ethos.
Snapshot (November 2016)
Founded: 2015
Sq. Feet of Kitchen Space: 5,500
Members 23
of whom % of Minority Operated: 25%
% of Female Operated: 60%
Members + Alumni: 30
Jobs Total Onsite (Nov 2016): 54
Jobs Created (incl. Alumni): 65+
https://youtu.be/SLvUdqzJjzk
Their selling proposition is interesting …..
Newmarket kitchen
Newmarket Kitchen provides members with both core and
value-added services
Newmarket Kitchen gives food entrepreneurs a leg up into the food industry providing
better likelihood of survival and growth opportunities
Core Services
Value-Added Services2.
1.
Newmarket kitchen
Newmarket Kitchen serves a wide range of members
• Central commissary and office
• Secure, overnight parking
• Easy access to van cleaning and
maintenance
• Frozen cold and dry storage
• Event and catering opportunities
• Supply rental discounts
• Staffing and logistics solutions
• High-volume production and access
to markets
• 20- and 40- quart mixers
• 5 convection ovens
• 24/7 access to the building
• Distribution to coffee shops,
markets, and other retail
opportunities
• Bulk and pallet storage
• Packaging and labeling space
• Distribution services
• Staffing solutions
Catererers Bakers Packaged Food Producers
Newmarket kitchen
Newmarket Kitchen is different
• Being For Profit our interests are aligned with those of our Members
• Incentive to cultivate and develop successful members that act as brand ambassadors
for Newmarket Kitchen
• Members are in it for the money. Newmarket Kitchen exists to drive business to them and us
• Added 54 jobs and numerous new businesses to Wicklow and Dublin area community
and economy
• Our small contribution to turning around the massive job losses seen in Bray in recent years
with the closure of big employer’s like Dell
For Profit Mission with Aligned Incentives
Community Impact


Newmarket kitchen
Challenges faced and overcome
Newmarket kitchen
Current challenges
USA population 318 million = 200 Food Incubators
1,500,000 people = 1 Food Incubator
Ireland population = 5 million
Relative to USA = 3 and 1/3 Food Incubators to 5 million people
Newmarket Kitchen Best Practice by Example
Newmarket Kitchen Membership begins with an intensive 4-
week orientation. This serves not only to educate new
members on proper use of the shared kitchen space and
equipment, but also as a crash-course in small business
ownership. Topics covered include food safety, access to
financing, hiring, licensing, and finances.
Newmarket Kitchen also offers ongoing classes for members,
for example through an entrepreneurship class that covers
marketing, legal issues, strategy, and management.
Finally, Newmarket Kitchen offers technical assistance to
members as needed, including preparing them for
health and safety inspections through mock
inspections.
It is clear the US is leading the way in Kitchen Incubators
https://makefoodyourbusiness.org/
Hope & Main, Rhode Island, US is
a not for profit operator of over
6,600 sq. ft. of production space. It
offers a true incubator experience
and targets early-stage food/food-
related businesses that are not yet
ready to occupy professional
facilities of their own.
Every space is outfitted to function
independently, allowing makers to
prep, cook and clean within the
same space
each shift.
Hope & Main
Each kitchen is staged to accommodate various processes,
including gluten free, artisan baking, bottling, catering and more.
The equipment inventory is ever-evolving based on needs of
members.
Added value through
•Acceleration programmes combined with investment
•Expertise
•Selling opportunities
Online application process:-
https://makefoodyourbusiness.org/apply/
https://youtu.be/pQNVwQN1zag
Incubators as Social Innovators
The mission of La Cocina, San Francisco is to cultivate low income
food entrepreneurs as they formalize and grow their businesses by
providing affordable commercial kitchen space, industry-specific
technical assistance and access to market opportunities. They
focus primarily on women from communities of colour and
immigrant communities. La Cocina is a home for 30 up-and-coming
businesses.
Their vision is that entrepreneurs gain financial security by
doing what they love to do, creating an innovative, vibrant
and inclusive economic landscape.
http://www.lacocinasf.org/
L.A. Prep, Los Angeles
L.A. Prep has 54 licensed food production spaces, each is
leased exclusively to one tenant. It is rich with added value
with on-site access to :
• flexible cold, dry and frozen storage;
• a demonstration kitchen;
• co-working space
• staffed warehouse to assist with receiving and logistics
• Food Safety Intern on site
They have an interesting presentation of the services available
across the various membership types:-
L.A. Prep, Los Angeles
Innovative European Approaches
http://cphfoodspace.dk/
Copenhagen Food Space
has been developed in a
former abattoir in the
meat packing district
Now home to a
community of
entrepreneurs, creatives
and all sorts of people
who work in the food
industry
#kitcheneurs
2.3 Shared-use agricultural
processing facilities
2.3 Shared-use agricultural processing facilities
• Typically referred to as Food Hubs in the US, this type of
incubator is typically provides shared aggregation,
processing, marketing and distribution of products. to
realise greater control and financial return.
• USDA defines a food hub as “a business or organization that
actively manages the aggregation, distribution, and marketing
of source-identified food products primarily from local and
regional producers to strengthen their ability to satisfy
wholesale, retail, and institutional demand.”
• Promoters span various types of cooperatives such as
farmer marketing cooperatives, producer, worker owner,
purchasing/shared services, and consumer coops.
• Main objective - realise greater control and financial
return for farmers, growers and producers
Shared-use agricultural processing facilities can:
• Provide a link between farmers, producers, and buyers.
• Give individual farmers and producers the means to
market and sell their products together as one larger
entity, allowing them the opportunity to sell to high-
volume buyers.
• Offer farmers and producers the ability to receive fair
and consistent pricing for their products.
• Provide larger buyers with a supplier that can not only
meet high levels of demand, but can also consistently
provide fresh local foods.
• Educate buyers about food and facilitate information
flow and sharing.
• Help farmers extend their season which, in turn,
helps provide buyers with
a more consistent supply of
Facility clients add value to food through one of two primary
means:-
1)Processing either raw or processed food into a packaged
food product that is sold either wholesale or retail.
Examples of food processors include jam makers, cider
makers, bakers and manufacturers of a variety of packaged
foods, such as condiments (pesto).
2)Processing for catering.
They fulfil an important role. In many cases, individual
farmers and producers do not have enough product on their
own to satisfy a large buyer, such as supermarket chains,
restaurants or institutions (e.g. health, schools, and
government institutions). Consolidation as a group
provides volume and economies of scale.
Successful value-added food processing centres tend to
share the following characteristics:
•They are large facilities (recommended at 5,000 square feet or
more) with a wide range of food processing systems able to
accommodate multiple users at the same time
•They are regional in nature, able to serve multiple counties
and communities, with a minimum geographical service area
radius of circa 80kms.
•They rely on the participation of multiple service providers
and are usually intensely collaborative in nature.
•Their mission typically includes training and educating its
clients to professionalize their operations – they play the role
of food-business incubators
•They require at least one full-time executive/facility director.
Successful value-added food processing centres tend to share the
following characteristics:
•To succeed, these projects must have a relatively large number of
users, with at least one or two anchor tenants using the facility 10 or
more hours a week.
Equipment schedule :
Given the shared processing capability, they are typically well
equipped with major pieces of equipment used for food processing
and preparation including:-
Convection ovens Industrial mixers
Gas ranges w/ovens Roll-in rack oven
Cutter mixer Steam kettle
Reach-in rack dryer Cider press w/holding tanks
Deep fryers Juice pasteurizer
Single-head piston filler Weigh-filling machine
Fruit elevator and grading table Blast freezers
Vacuum sealer Label printer
Shrink-wrap bottle sealer Label applicator
Receiving Scales
Walk-in freezers and coolers (large scale )
Income Generation: Rental Fees
Typically the fee structure is based on a graduated
rental rate fee :
€xx / hour first 40 hours
€xx/ hour 41-80 hours
€xx/ hour 81-plus hours of rental
Some operate a per-unit produced cost structure, rather
than on an hourly basis e.g. for cider production, which
is set at a rate per per gallon. However, this can be seen
to discourage production efficiency from clients.
Income Generation: Processing Fee
Given farmers may not have the time or expertise to do
the processing themselves, some facilities offer co-
packing services which charges farmers processing
services.
In this approach, farmers retain ownership of the value-
added food products to wholesale or retail themselves or
sell same through a co-operative structure.
Income Generation: Storage Fees
Storage fees are an important component of the project’s
overall cash flow, accounting for up to 25% of all fees.
These fees are very important as they tend to be more
consistent and predictable on a month-to-month basis,
whereas fees generated from production hours can vary
widely.
Different storage fees for pallets apply between dry, chill
and freezer. Typically they are charged on a monthly
basis.
Insider Insights
•These project can receive substantial grant support based on
the premise that they serve as an economic catalyst for farm-
based producers and add value to primary production.
•The number one challenge facing this business model is
attracting and keeping clients. Converting enquiries into
tenants is a time consuming yet crucial task if the facility is to
sustain it’s operations. A key lesson learned is that farmers
need intensive outreach in order to recognize the opportunities
in value-added food production.
•Given the high level of equipment, it is not surprising
that keeping the facility and equipment needs
constant attention - access to maintenance
personnel or expertise is very important.
Insider Insights
•Lead project managers need to combine knowledge of
mentoring food businesses, facility maintenance, construction
and grant writing.
•A supportive board of directors with a high degree of
creativity and strong relationships with the key development
and funding agencies.
•A problem can arise to find an architect team to understand
what the project entailed.
•There can be a considerable time lag between engaging the
architect and tendering the project, during which time
material costs can increase.
2.4 Mobile Food Incubators
Mobile Fruit Processing Unit
A mobile fruit processing plant is a compact, movable
juice extraction system designed for insertion on to the
back of a moving heavy-duty truck.
 
It is a fully integrated unit built on a skid mounted frame
complete with non-slip durbar plate floor, canopy frame
and heavy duty tarpaulin cover. 
The concept of operation is to be able to transport this
facility remotely, over long distances to where ever
required, for on-site processing in the growing
area of fruit .
Mobile Cheese Making
Units
This is a self-contained
production facility, entirely
housed in a semi trailer. It’s an
economical means to produce
various dairy products on a
small scale – on the farm or
remotely as a means of dairy
promotion. While primarily
focused on cheese, it can also
be used for bottled milk,
yogurt, ice cream, and butter.
In the UK, a branded unit
called The Little Cheesery was
launched in 2013.
http://www.thelittlecheesery.com/
Mobile Cheese Making
Units
See technical specification on
http://www.thelittlecheesery.com/?/specifications
And another example-
https://www.slideshare.net/jongia/mobile-cheese-making
2.4 Mobile Food Incubators
Mobile Food Incubators are commercial kitchens on
wheels offering a licensed kitchen for producing
commercial products, testing new recipes and product
and teaching food safety. Often, they go to primary
producers premises and act as’ in situ’ production
units.
They are equipped to meet all the specifications for a
commercial kitchen and are charged our per day.
They are often product specific and examples include:-
Mobile Food Incubators
Mobile Food Incubators are commercial kitchens on
wheels offering a licensed kitchen for producing
commercial products, testing new recipes and product
and teaching food safety. Often, they go to primary
producers premises and act as’ in situ’ production
units.
They are equipped to meet all the specifications for a
commercial kitchen and are typically charged out per
day.
They are often product specific and examples
include:-
Mobile Butchery Unit
A Butchery Unit can be built in various lengths, but generally
comprises of two compartments within the unit – a chiller and a
processing area and they can be divided either equally or off-set to
suit the requirement of the business. These units are generally
designed with
•Two compartment units with carcass chiller and butchery/de-
boning area.
•Meat rail options available, including aluminium twin track system.
•Size range from 4mtr x 3mtr up to 14mtr x 3.6mtr
•Temperature controlled chillers to suit product throughput
•Wash down systems are fitted and can include hand wash basin,
equipment sink, knife sterilisers, hot and cold running water
•All units are ready to be connected to services on site
•Single or three phase units
Mobile Abattoirs
Example Floor Plan for Mobile Poultry Unit Layout
2.5 Business Structure of a Food Incubator
Business Structure of a Food Incubator
The business structure of a food incubator —will
determine many aspects of the operation, including it’s
funding mix/ sources of capital, tax liability,
information flow and sharing, and it’s approach to for
growth and expansion.
Food incubators can have as much, if not more, variety
in their operational structure as other businesses. A
food hub can be privately held or publicly held; can be a
non-profit or for-profit. Ownership can be divided, just
as any other business, into sole proprietorships,
partnerships, corporations, cooperatives, or
LLCs (limited liability
companies).
There is no single clear choice for the “best” or
“preferred” structure or operational model when
forming a food incubator. The “best” for any
individual situation can be chosen by closely
examining the needs of the food hub owners and
stakeholders, as well as the business environment in
which the food hub will operate.
For-profit private enterprises
Advantages Drawbacks
The interests of the owners and
members are closely aligned
profit generation is king.
Greater independence, not
working to anyone else’s
agenda
Less grant funding to establish
Return on investment means
that reinvestment can be
limited
Not For-profit private enterprises
Advantages Drawbacks
More generous capital funding
Opportunities and often can
avail of paid staff through
various schemes
Entirely focused on food
sector, community and societal
benefit
Typically champions
community engagement and
education
Can accept donations or
sponsorships
Can be divergence between the
promoter and the profit focused
members.
Often built on community and
voluntary effort, which can,
over time run out of steam!
Stages of Food Hub Lifecycle
Each growth stage of an organisation has opportunities and
challenges
Development Startup Growth Expansion Maturity
Development Startup Growth Expansion Maturity
Viable Business
Plan
Cash Liquidity Sacling Revenue New Markets New Markets
Defining
Market
Customers/Sales Scaling
Customers
New Products New Products
Business
Structure
Managment Growth
Management
Expansion
Management
Innovation
Management
Funding Market Presence Competition Increasing
Competition
Increasing
Competition
Financial
Management
Financial
Management
Financial
Management
Financial
Management
Financial
Management

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Module 2 different_models_of_food_incubators (2)

  • 1. Module 2 Different Models of Food Incubators This programme has been funded with support from the European Commission
  • 2. By completing Module 2, learners will learn how to synthesize best practices models of food incubators. We share the workings of four key different formats from which learners can improve their understanding of the best fit for their circumstances and acquire valuable insider information. The four formats are:- 1. Multi tenant food processing centres 2. Shared-use food incubator kitchens 3. Shared-use agricultural processing facilities, which are designed for use by farmers for collective grading, processing and packaging of farm produce or other commodities. 4.Mobile incubators, e.g. can go to primary producers premises or other locations and act as’ in situ’ production units "The European Commission support for the production of this publication does not constitute an endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsi­ble for any use which may be made of the information contained therein."
  • 3. 2.1 Multi-tenant food processing centres CAFRE - Loughry Campus, Northern Ireland, UK
  • 4. 2.1 Multi tenant food processing centres This format of food incubator provides a number of independent, own door production units for start up or growing food businesses. While the development of such centres are costly and capital intensive, they provide food companies with production capacity of scale. Their operation is best explained by reviewing best practice examples ….
  • 5. Opened in 1998, t he Food Business Incub offers eight purpose-built, stand alone food processing factory units finished to the highest standards in two sizes:- •4 smaller units of 175m2 - rent £1250/ month •4 larger units of 225m2 – rent £1608/month FBIC is an integral part of CAFRE (College of Agriculture, Food and Rural Enterprise) and DARD and was developed at a cost of £3.9 million (jointly funded by Special Support Programme for Peace and Reconciliation (SSPPR) and DARD). Case Study Food Business Incubation Centre (FBIC) Loughry, Northern Ireland, UK
  • 6. Each of the eight units are ‘stand alone’ and contain: •a segregated arrival bay, ambient store and chill •a temperature controlled production area •a dispatch bay and chill •a low pressure cleaning system, air handling system, compressed air supply, 180Kw electricity supply (3 phase and single phase), water •office, changing rooms and toilet facilities Communal facilities include •packaging, chill and freezer storage facilities •blast freezer •canteen services, board room and meeting rooms •technical assistance when required •environmental management systems
  • 7. FBIC offer a very unique proposition. On the same campus, there is a 4,000m2 hi-tech Food Technology Centre which incorporates four mini food processing areas; meat, bakery, fruit & vegetable and dairy sectors and is designed to accommodate best practice in food manufacture. This unique facility is equipped with an extensive range of modern pilot and industrial scale food processing and product development facilities. The Food Enterprise Development Programme is a 6 month programme to provide enterprise skills. It also gives participants limited production runs to test-market demand for a new product using the unique food technology facilities and resources at the Food Technology Centre . The overall progression pathway is presented as ….
  • 8. Key Learning Points While the original concept was that companies would ‘incubate; their business for circa 6 -18 months, the reality of getting a food business off the ground is that is can take a startup up to 3 years to get a new product to a level of scale. •From 1998-2010 the average ‘stay’ was 29 months. •The current company profile is 4+ years. Typical of most food incubation centres, occupancy levels fluctuate, they start at a low base and build over time. •Up to 2010 average occupancy rate was 50% (4 units) or less. •2010 onwards 78-100% occupancy (7 to 8 units). •2011-2015 100% occupancy + waiting list The bottom line - Occupancy Rate over last 5 years is 80%.
  • 9. Key Learning Points FBIC completed an interesting analysis of their enquiries. From 250+ enquiries:- •100 made declarations of interest •41 progressed to the submission of a business case •24 businesses have taken up units The reasons why companies did not take up a unit:- • Size of units -smaller units are required for start ups. • Cost of units • Location • Too big a step
  • 10. Key Learning Points FBIC identified their main challenges as:- •Debt Management •Costs •Exit Strategy and planning for same •Marketing
  • 11. Innovation pathway at Loughry Stage 1: Food Innovation Centre Concept/Idea Investigation and kitchen scale production. Stage 3: Food Enterprise Development Programme A six-month programme allows companies to manufacture and sell their products produced in the Food Technology Centre and determine the feasibility of their business before committing to major capital investment. Stage 2: Food Technology Centre Pilot processing and scaling up. Stage 4: Food Business Incubation Centre Time bound commerical manufacturing. Stage 5: Commercial manufacture Outside Loughry
  • 12.
  • 13.
  • 14. A Tenant Perspective Sean Mc Gloin, Food Hub tenant (Ireland) and advocate of Multi Tenant Food Centres www.thecheesehub.ie Sean’s approach is best summarised as ….
  • 15.
  • 16. The Cheese Hub was established in 2012 by Sean McGloin as Ireland’s first dedicated subcontract cheese ripening/ maturing and cutting & packaging service. With a modest investment of € 25,000, it converted and equipped 2 units in The Food Hub as a cheese maturing facility for the premium cheese market. Spanning 1,600 sq ft, the facility consists of a food grade “ageing cave”, a processing room and packaging room with an overall capacity of 35 tonnes of cheese. It created employment for 3 staff - 1 permanent and 2 part time
  • 17.
  • 18.
  • 19. Why food incubators make sense on every level ?
  • 20. The business could not have progressed without access to food grade facilities – the investment would have been too much. Sean highlights that it is than production space, it is a community and a support group! From borrowing a forklift to collaborating with an alcohol producer to take their waste boiling water, the benefits are very practical.
  • 21.
  • 22.
  • 23.
  • 24. Why did The SHED Locate in Drumshanbo, Co Leitrim, Ireland ? •The People – “Meitheal”, attitude & community. •Ready to go food grade infrastructure – The Food Hub and lorward looking Local Authorities who worked with us: Leitrim County Council. •The road less travelled – “its all real”. •Great location to build a “brand” •Competitive costs & “hungry/helpful” local suppliers. •Access to resourceful, ambitious & enthusiastic local work force. •Access to Dublin – 2 hours
  • 25. Some final thoughts The inclusion of highly attentive management seems to provide the basis for business incubation and support across the 3 critical needs of their tenants: • business training • access to capital • technical assistance But that management comes at a cost. How can it be resourced? See Module X
  • 27. A kitchen incubator is a culinary production facility that can accommodate multiple tenants and is dedicated to growing early stage wholesale, retail and/or catering food businesses. While the concept of a shared-use incubators is not new, the growth of different kitchen incubator formats demonstrates increasing diversity and creativity of approaches and
  • 28. The main selling points of shared use kitchen incubators   •They provide the essential kitchen infrastructure to allow specialty food businesses like processors, farmers, caterers and street food entrepreneurs the opportunity to start from a recipe and grow a business. •They help remove the restrictive barriers of the high cost capital investment associated with leasing or purchasing a kitchen and kitchen equipment. •Legislation is making it increasingly hard for producers to operate out of their domestic facility. •They can reduce the risk of failure by removing start up barriers associated with no, or low skills in managing and maintaining a commercial kitchen.
  • 29. • They allow people to separate business and home life. • They instil a sense of community, natural networking and practical information sharing on areas such as sales and marketing, support, packaging or labelling Research conducted by University College Dublin, UCD for an Irish kitchen incubator (in 2014) provides interesting insight into the barriers to scaling their food business. Of 100 businesses interviewed:- 80% cited lack of capital 37% cited inability to scale production in current location 36% cited inadequate equipment at home  
  • 30. Interestingly, they questioned potential barriers to adoption   Raw meat and bakery section would have to be kept separate as I have no idea who used the facility before me, did they use nuts or gluten?” People have different standards of cleanliness. Place needs to be kept clean and someone should be employed to keep track of who comes and goes and how they maintain their space A kitchen incubator is a good idea but cost is the biggest issue and the price would have to be all inclusive and not have any hidden charges”
  • 31.
  • 32.
  • 34. Added Value More than being just rental space, food incubators can offer full-service business assistance whereby participants have access to information and training regarding all aspects of starting a business. They can help would-be entrepreneurs with understanding the food business, navigating licensing and other regulations, and making connection with both suppliers and customers. Other value added resources include branding, marketing account, insurance, and financing mechanisms. The decision of which value added services to provide should be based on the needs of the local businesses and partners as well as on space availability and cost benefit analysis – use the research guideline and tools in Module 1.
  • 35. Operations Typically, kitchen incubators are very lean operations with few employees and modest operating budgets. Costs - rent or mortgage, salaries with lesser amounts to utilities and maintenance.
  • 36. Largest Operating Costs Are Rent and Salary The highest operating costs for incubators are rent/mortgage, salaries and benefits, and other costs, with utilities, maintenance, insurance and debt service making up smaller, but still significant portions of costs 20 % 18 % 14 % 7 % 6 % 27 % 30 % Average Total Operating Cost by Type Maintenance Utilities Other Rent/Mortgage Salaries and Benefits Debt Service Insurance
  • 37. Operations Revenue - generated from renting shared or permanent space, or through a variety of smaller revenue producing activities. Rental fees are by far the biggest revenue source for incubators. The “US Kitchen Incubators: An Industry Snapshot” report share income breakdown as .. Average Percent of Total Revenue by Revenue Source Leasing Shared Space 58% 28 %13 %9 % Othe r Leasing Permanent Space 24% Event Space Rental Retail / Market Classes / Training 9% Non- Food 7% Copacking 6% Distribution 6%
  • 38. Insights into Operations •High demand is likely at the end of the week which could lead to logistical headaches and the facility lying idle during off peak times. •Fluctuating demand for some users – – “It is impossible to plan longer than on a short term business, I could be cooking for 100 people one week and 800 the next” – “It is all dependent on orders, at times it can be overwhelming” •Success can lead to stagnation ! Satisfaction with facilities could result in a reluctance to switch to an alternative. •Marketing lead times can be longer than you expect– building awareness takes time . Ensure you have an adequate marketing and PR budget from the outset.
  • 39.
  • 40. 9. Space for production and meeting/offices 10.Wide hallways for moving pallets/bulk storage 11.Floor drains 12. Structural stability to support fridges/freezers/storage on 2nd floor & up (depending on floor area) 13.Changing rooms and bathrooms 14.Wifi connectivity To be truly successful, food incubators need to be more than landlords, hence:- Tenants will also need/expect •Support services e.g. photocopying, reception (depending on size) •A sense of community Canteen facilities •Meeting and training rooms •Events and education Tenants would benefit from •A product development kitchen •Onsite food technologist •Group purchasing schemes •Logistics support •Extra storage facilities (not necessarily food grade)
  • 41. Operations – Pricing The very basis of the shared use kitchen model is that it is meant to be flexible...and affordable.  The most important factor for your target customer is often price and convenience. Therefore, it is important to create a variety of packages to suit different member needs. From casual use to fixed arrangements (e.g. one, two or three day a week passes), your timetabling need to be flexible and fair. Also offer 24-7 access where possible.   Can’t decide what to charge? Assess the membership fees of other incubators, and combine that information with the local knowledge you’ve gained through market research (Module 1). This will help you determine a reasonable price point for member packages as well as short-term daily, weekly and monthly bookings.
  • 42. Operations – Size Insider Tips … Kitchens need to be of sufficient size to accommodate more than one user at a time. The key to developing a revenue stream that can fund staff expenses and utilities (the two single largest expenses) is simultaneous, multiple occupancy and keeping the facility open 24 hours a day. Storage – Most facilities have underestimated the amount of storage space their tenants will require. Aside from limiting storage income, inadequate storage facilities result in fewer tenants than a facility can reasonably accommodate
  • 43. Operations – Size Insider Tips … Anchor tenants provide stability to the facility – especially in the early days. Most successful kitchens have what have become known as anchor tenants. Anchor tenants are distinguished from other tenants in two important ways. 1)Anchor tenants are notable by the substantial number of hours of kitchen time they rent. In exchange for the certainty of large blocks of time, facilities offer favourable rates to these tenants. 2)This block of rented time usually underlies a business that is well managed and successful. Anchor tenants are renting large amounts of kitchen time because they are successful. Successful tenants develop into sustained rent revenue for the facility and provide role models for others starting off.
  • 44. Operations There are 3 different pricing models can be applied:- In the US, the pricing formats used by incubators break down as 1. Hourly fee charge only for time used 2. A basic monthly fee + per use charge 3. Blanket fee that covers all usage 60% charge an hourly fee- charge only for time used 30% charge a basic monthly fee + per use charge 10% charge a blanket fee that covers all usage
  • 45. Equipment Provided A typical shared used kitchen incubator would offer the following equipment schedule at a minimum:- • Preparation Tables • Industrial scale Mixers • Industrial scale Food Processors • Hob cooker – 8 rings minimum • Oven – Convection and Rack Oven • Walk-in Fridge & Freezers • Dishwasher • Water boiler • Pots, pans, utensils Photos: Newmarket Kitchen
  • 46.
  • 47. Learning from Best Practice Kitchen Incubators Newmarket Kitchen, Dublin La Cocina San Francisco Hope & Main LA Prep
  • 48. Best practice kitchen incubators Newmarket Kitchen, Ireland http://www.newmarketkitchen.com/ An interesting business model, for profit but with a strong social entrepreneurship ethos. Snapshot (November 2016) Founded: 2015 Sq. Feet of Kitchen Space: 5,500 Members 23 of whom % of Minority Operated: 25% % of Female Operated: 60% Members + Alumni: 30 Jobs Total Onsite (Nov 2016): 54 Jobs Created (incl. Alumni): 65+
  • 50. Newmarket kitchen Newmarket Kitchen provides members with both core and value-added services Newmarket Kitchen gives food entrepreneurs a leg up into the food industry providing better likelihood of survival and growth opportunities Core Services Value-Added Services2. 1.
  • 51. Newmarket kitchen Newmarket Kitchen serves a wide range of members • Central commissary and office • Secure, overnight parking • Easy access to van cleaning and maintenance • Frozen cold and dry storage • Event and catering opportunities • Supply rental discounts • Staffing and logistics solutions • High-volume production and access to markets • 20- and 40- quart mixers • 5 convection ovens • 24/7 access to the building • Distribution to coffee shops, markets, and other retail opportunities • Bulk and pallet storage • Packaging and labeling space • Distribution services • Staffing solutions Catererers Bakers Packaged Food Producers
  • 52. Newmarket kitchen Newmarket Kitchen is different • Being For Profit our interests are aligned with those of our Members • Incentive to cultivate and develop successful members that act as brand ambassadors for Newmarket Kitchen • Members are in it for the money. Newmarket Kitchen exists to drive business to them and us • Added 54 jobs and numerous new businesses to Wicklow and Dublin area community and economy • Our small contribution to turning around the massive job losses seen in Bray in recent years with the closure of big employer’s like Dell For Profit Mission with Aligned Incentives Community Impact  
  • 54. Newmarket kitchen Current challenges USA population 318 million = 200 Food Incubators 1,500,000 people = 1 Food Incubator Ireland population = 5 million Relative to USA = 3 and 1/3 Food Incubators to 5 million people
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  • 56. Newmarket Kitchen Best Practice by Example Newmarket Kitchen Membership begins with an intensive 4- week orientation. This serves not only to educate new members on proper use of the shared kitchen space and equipment, but also as a crash-course in small business ownership. Topics covered include food safety, access to financing, hiring, licensing, and finances. Newmarket Kitchen also offers ongoing classes for members, for example through an entrepreneurship class that covers marketing, legal issues, strategy, and management. Finally, Newmarket Kitchen offers technical assistance to members as needed, including preparing them for health and safety inspections through mock inspections.
  • 57. It is clear the US is leading the way in Kitchen Incubators https://makefoodyourbusiness.org/ Hope & Main, Rhode Island, US is a not for profit operator of over 6,600 sq. ft. of production space. It offers a true incubator experience and targets early-stage food/food- related businesses that are not yet ready to occupy professional facilities of their own. Every space is outfitted to function independently, allowing makers to prep, cook and clean within the same space each shift.
  • 58. Hope & Main Each kitchen is staged to accommodate various processes, including gluten free, artisan baking, bottling, catering and more. The equipment inventory is ever-evolving based on needs of members. Added value through •Acceleration programmes combined with investment •Expertise •Selling opportunities Online application process:- https://makefoodyourbusiness.org/apply/
  • 60. Incubators as Social Innovators The mission of La Cocina, San Francisco is to cultivate low income food entrepreneurs as they formalize and grow their businesses by providing affordable commercial kitchen space, industry-specific technical assistance and access to market opportunities. They focus primarily on women from communities of colour and immigrant communities. La Cocina is a home for 30 up-and-coming businesses. Their vision is that entrepreneurs gain financial security by doing what they love to do, creating an innovative, vibrant and inclusive economic landscape. http://www.lacocinasf.org/
  • 61. L.A. Prep, Los Angeles L.A. Prep has 54 licensed food production spaces, each is leased exclusively to one tenant. It is rich with added value with on-site access to : • flexible cold, dry and frozen storage; • a demonstration kitchen; • co-working space • staffed warehouse to assist with receiving and logistics • Food Safety Intern on site They have an interesting presentation of the services available across the various membership types:-
  • 62. L.A. Prep, Los Angeles
  • 63. Innovative European Approaches http://cphfoodspace.dk/ Copenhagen Food Space has been developed in a former abattoir in the meat packing district Now home to a community of entrepreneurs, creatives and all sorts of people who work in the food industry #kitcheneurs
  • 65. 2.3 Shared-use agricultural processing facilities • Typically referred to as Food Hubs in the US, this type of incubator is typically provides shared aggregation, processing, marketing and distribution of products. to realise greater control and financial return. • USDA defines a food hub as “a business or organization that actively manages the aggregation, distribution, and marketing of source-identified food products primarily from local and regional producers to strengthen their ability to satisfy wholesale, retail, and institutional demand.” • Promoters span various types of cooperatives such as farmer marketing cooperatives, producer, worker owner, purchasing/shared services, and consumer coops. • Main objective - realise greater control and financial return for farmers, growers and producers
  • 66. Shared-use agricultural processing facilities can: • Provide a link between farmers, producers, and buyers. • Give individual farmers and producers the means to market and sell their products together as one larger entity, allowing them the opportunity to sell to high- volume buyers. • Offer farmers and producers the ability to receive fair and consistent pricing for their products. • Provide larger buyers with a supplier that can not only meet high levels of demand, but can also consistently provide fresh local foods. • Educate buyers about food and facilitate information flow and sharing. • Help farmers extend their season which, in turn, helps provide buyers with a more consistent supply of
  • 67. Facility clients add value to food through one of two primary means:- 1)Processing either raw or processed food into a packaged food product that is sold either wholesale or retail. Examples of food processors include jam makers, cider makers, bakers and manufacturers of a variety of packaged foods, such as condiments (pesto). 2)Processing for catering. They fulfil an important role. In many cases, individual farmers and producers do not have enough product on their own to satisfy a large buyer, such as supermarket chains, restaurants or institutions (e.g. health, schools, and government institutions). Consolidation as a group provides volume and economies of scale.
  • 68. Successful value-added food processing centres tend to share the following characteristics: •They are large facilities (recommended at 5,000 square feet or more) with a wide range of food processing systems able to accommodate multiple users at the same time •They are regional in nature, able to serve multiple counties and communities, with a minimum geographical service area radius of circa 80kms. •They rely on the participation of multiple service providers and are usually intensely collaborative in nature. •Their mission typically includes training and educating its clients to professionalize their operations – they play the role of food-business incubators •They require at least one full-time executive/facility director.
  • 69. Successful value-added food processing centres tend to share the following characteristics: •To succeed, these projects must have a relatively large number of users, with at least one or two anchor tenants using the facility 10 or more hours a week.
  • 70. Equipment schedule : Given the shared processing capability, they are typically well equipped with major pieces of equipment used for food processing and preparation including:- Convection ovens Industrial mixers Gas ranges w/ovens Roll-in rack oven Cutter mixer Steam kettle Reach-in rack dryer Cider press w/holding tanks Deep fryers Juice pasteurizer Single-head piston filler Weigh-filling machine Fruit elevator and grading table Blast freezers Vacuum sealer Label printer Shrink-wrap bottle sealer Label applicator Receiving Scales Walk-in freezers and coolers (large scale )
  • 71. Income Generation: Rental Fees Typically the fee structure is based on a graduated rental rate fee : €xx / hour first 40 hours €xx/ hour 41-80 hours €xx/ hour 81-plus hours of rental Some operate a per-unit produced cost structure, rather than on an hourly basis e.g. for cider production, which is set at a rate per per gallon. However, this can be seen to discourage production efficiency from clients.
  • 72. Income Generation: Processing Fee Given farmers may not have the time or expertise to do the processing themselves, some facilities offer co- packing services which charges farmers processing services. In this approach, farmers retain ownership of the value- added food products to wholesale or retail themselves or sell same through a co-operative structure.
  • 73. Income Generation: Storage Fees Storage fees are an important component of the project’s overall cash flow, accounting for up to 25% of all fees. These fees are very important as they tend to be more consistent and predictable on a month-to-month basis, whereas fees generated from production hours can vary widely. Different storage fees for pallets apply between dry, chill and freezer. Typically they are charged on a monthly basis.
  • 74. Insider Insights •These project can receive substantial grant support based on the premise that they serve as an economic catalyst for farm- based producers and add value to primary production. •The number one challenge facing this business model is attracting and keeping clients. Converting enquiries into tenants is a time consuming yet crucial task if the facility is to sustain it’s operations. A key lesson learned is that farmers need intensive outreach in order to recognize the opportunities in value-added food production. •Given the high level of equipment, it is not surprising that keeping the facility and equipment needs constant attention - access to maintenance personnel or expertise is very important.
  • 75. Insider Insights •Lead project managers need to combine knowledge of mentoring food businesses, facility maintenance, construction and grant writing. •A supportive board of directors with a high degree of creativity and strong relationships with the key development and funding agencies. •A problem can arise to find an architect team to understand what the project entailed. •There can be a considerable time lag between engaging the architect and tendering the project, during which time material costs can increase.
  • 76. 2.4 Mobile Food Incubators
  • 77. Mobile Fruit Processing Unit A mobile fruit processing plant is a compact, movable juice extraction system designed for insertion on to the back of a moving heavy-duty truck.   It is a fully integrated unit built on a skid mounted frame complete with non-slip durbar plate floor, canopy frame and heavy duty tarpaulin cover.  The concept of operation is to be able to transport this facility remotely, over long distances to where ever required, for on-site processing in the growing area of fruit .
  • 78. Mobile Cheese Making Units This is a self-contained production facility, entirely housed in a semi trailer. It’s an economical means to produce various dairy products on a small scale – on the farm or remotely as a means of dairy promotion. While primarily focused on cheese, it can also be used for bottled milk, yogurt, ice cream, and butter. In the UK, a branded unit called The Little Cheesery was launched in 2013. http://www.thelittlecheesery.com/
  • 79. Mobile Cheese Making Units See technical specification on http://www.thelittlecheesery.com/?/specifications And another example- https://www.slideshare.net/jongia/mobile-cheese-making
  • 80. 2.4 Mobile Food Incubators Mobile Food Incubators are commercial kitchens on wheels offering a licensed kitchen for producing commercial products, testing new recipes and product and teaching food safety. Often, they go to primary producers premises and act as’ in situ’ production units. They are equipped to meet all the specifications for a commercial kitchen and are charged our per day. They are often product specific and examples include:-
  • 81. Mobile Food Incubators Mobile Food Incubators are commercial kitchens on wheels offering a licensed kitchen for producing commercial products, testing new recipes and product and teaching food safety. Often, they go to primary producers premises and act as’ in situ’ production units. They are equipped to meet all the specifications for a commercial kitchen and are typically charged out per day. They are often product specific and examples include:-
  • 82. Mobile Butchery Unit A Butchery Unit can be built in various lengths, but generally comprises of two compartments within the unit – a chiller and a processing area and they can be divided either equally or off-set to suit the requirement of the business. These units are generally designed with •Two compartment units with carcass chiller and butchery/de- boning area. •Meat rail options available, including aluminium twin track system. •Size range from 4mtr x 3mtr up to 14mtr x 3.6mtr •Temperature controlled chillers to suit product throughput •Wash down systems are fitted and can include hand wash basin, equipment sink, knife sterilisers, hot and cold running water •All units are ready to be connected to services on site •Single or three phase units
  • 84. Example Floor Plan for Mobile Poultry Unit Layout
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  • 86. 2.5 Business Structure of a Food Incubator
  • 87. Business Structure of a Food Incubator The business structure of a food incubator —will determine many aspects of the operation, including it’s funding mix/ sources of capital, tax liability, information flow and sharing, and it’s approach to for growth and expansion. Food incubators can have as much, if not more, variety in their operational structure as other businesses. A food hub can be privately held or publicly held; can be a non-profit or for-profit. Ownership can be divided, just as any other business, into sole proprietorships, partnerships, corporations, cooperatives, or LLCs (limited liability companies).
  • 88. There is no single clear choice for the “best” or “preferred” structure or operational model when forming a food incubator. The “best” for any individual situation can be chosen by closely examining the needs of the food hub owners and stakeholders, as well as the business environment in which the food hub will operate.
  • 89. For-profit private enterprises Advantages Drawbacks The interests of the owners and members are closely aligned profit generation is king. Greater independence, not working to anyone else’s agenda Less grant funding to establish Return on investment means that reinvestment can be limited
  • 90. Not For-profit private enterprises Advantages Drawbacks More generous capital funding Opportunities and often can avail of paid staff through various schemes Entirely focused on food sector, community and societal benefit Typically champions community engagement and education Can accept donations or sponsorships Can be divergence between the promoter and the profit focused members. Often built on community and voluntary effort, which can, over time run out of steam!
  • 91. Stages of Food Hub Lifecycle Each growth stage of an organisation has opportunities and challenges Development Startup Growth Expansion Maturity Development Startup Growth Expansion Maturity Viable Business Plan Cash Liquidity Sacling Revenue New Markets New Markets Defining Market Customers/Sales Scaling Customers New Products New Products Business Structure Managment Growth Management Expansion Management Innovation Management Funding Market Presence Competition Increasing Competition Increasing Competition Financial Management Financial Management Financial Management Financial Management Financial Management