SHARED KITCHEN INCUBATORS-- COMMUNITIES SHARING A VISION FOR ENTREPRENEURIAL DEVELOPMENT

A presentation of the Keystone Kitchen Project Team: Winifred McGee, Senior Educator, Penn State Extension, in collaboration withLarry Grunden & Alan McConnell, PENNTAP

Definition of a Shared KitchenA facility set up for commercial food production that is available to multiple users (tenants) on an assigned schedule.

A Shared Kitchen Incubator• approved for commercial production• start-up assistance to value-added producers

and food entrepreneurs • guidance in commercial food processing• education/support:

– business planning and management– sources of financing – marketing and sales – distribution

Quick Facts – Shared Kitchen Incubators• 2004 – no shared kitchens in PA• 2007 – one shared kitchen

– Rural, Western PA (Republic)• Historically, several kitchens opened and

closed in the Commonwealth• The challenge is not starting, but keeping a

kitchen incubator open

Keystone Kitchens Team• PSU Outreach Group

– Penn State Extension– PENNTAP

• Funding sources– PDA Bureau of Marketing– DCED – First Industries Grant – assisted by

Agriculture & Rural Affairs – Vice Chairman (local State Senator)

– NE Sustainable Agriculture Research and Education Grant (Appalachian Initiative)

Keystone Kitchens Project Goals Explore establishment of

one or more shared kitchen incubators in the Commonwealth:

– research established kitchens in other states

– develop BMPs for sustainability

– lead stakeholder meetings– follow-up assistance

Keystone Kitchens Incubator Study Tour

BMPs for Shared Kitchens*• a shared kitchen incubator is a business venture

– conduct a pre-venture feasibility study– write and implement a business plan

• integrate the incubator and community• have a champion – committed to the vision and in

for the long haul• partner with a university for support• community consensus about mission• establish tenant entrance requirements

*Results from NE SARE Keystone Kitchens Project

BMPs for Shared Kitchens (cont’d)*

• start-up funding from grants, not loans• recruit/compensate management

• build an effective advisory team• layout – never too much storage!• lease forms list responsibilities/rights• tenants’ fees that cover operating costs• tenant success incubator success• move from grants to fee support ASAP

*Results from NE SARE Keystone Kitchens Project

BMPs for Shared Kitchens (cont’d)*

• 1-2 anchor tenants for steady revenues• target 35-50 tenants to “break-even”• long-term tenants supply networks• select tenants who can share space• rural/urban tenant types differ• good (kitchen) marketing is essential

• offer value-added services to tenants

*Results from NE SARE Keystone Kitchens Project

Stakeholder Meetings• Philadelphia (24)• York (20)• Wilkes-Barre (48/12)

Republic (12/3) Mercer (45/21) Coudersport (15/3)

On-going Work of the KK TeamProvide assistance to potential kitchen start-ups

– feasibility studies– funding identification– business start-up planning– marketing of shared kitchen concept– triage of would-be tenants– community group skills and process

ConclusionsNecessary for community kitchen building:

– Inclusivity among agencies which creates/builds a common vision

– Willingness to explore and change the vision– Slow and steady growth by investing time and effort –

feasibility studies open communication– Identify one cheerleader/agency who is given authority to

“carry water” others support– Remember the kitchen is a business, first and foremost – Apply and strenuously follow the BMPs to ensure

sustainability

Moving Forward: Why We’re HereLogical Progression and Shared Experience –

Shared Commercial Kitchen Roundtable• History and Context BMPs•Survey Research Needs and Visions•Feasibility Studies/B-Plans Mapping•Financing Strategies Sustainability•Processing and Discussion Inclusivity