U.S. Kitchen Incubators: An Appetite for Food-Based Entrepreneurship

Kitchen IncubatorPhoto by Adam Dachis on Unsplash

Economic development organizations seeking to create a more dynamic, entrepreneurial, and inclusive economy would be wise to pay attention to the U.S. kitchen incubator industry.

U.S. kitchen incubators — sometimes characterized as commercially-licensed kitchens, shared-use kitchens, commissary kitchens, kitchen accelerators, or ghost kitchens — are a unique type of culinary micro-enterprise. The terms are used interchangeably, but there are important distinctions between them. The primary distinguishing feature is the degree to which supportive services are provided to wholesale, retail, and catering food entrepreneurs. Shared-use kitchens offer minimal or no support; incubators provide expertise to new and early-stage startups; whereas accelerators look to scale up operations and achieve significant growth for established, investible startups (American Communities Trust, Econsult Solutions, Urbane Development, 2016).

These culinary production facilities are not to be confused with community kitchens, which serve neighborhood stakeholders and institutions, such as St. Mary’s Food Bank Community Kitchen and Local First Arizona Community Kitchen in Phoenix.

Industry surveys indicate that the number of U.S. kitchen incubators grew from no less than 135 in 2013 to more than 200 in 2016, expanding to 600+ across the 48 contiguous states and District of Columbia in 2019 (Econsult Solutions, Urbane Development, The Food Corridor, Catharine Street Consulting, 2020). They operate in urban (52 percent), suburban (27 percent), and rural (21 percent) areas, but are heavily concentrated near large cities (Econsult Solutions et al., 2020). Their popularity stems from the “locavore movement” that connects food producers and consumers within the same geographic region, the creation of food-based makerspace that focuses on handmade products, and a growing recognition that entrepreneurship provides an opportunistic pathway to economic success (The Food Corridor, 2020).

Culinary Entrepreneurship

The relationship between U.S. kitchen incubators, culinary entrepreneurs — chefs, caterers, farmers market and festival vendors, food truck proprietors, bakers, and specialty food producers — and the broader concept of small business entrepreneurship, is powerful.

National Trends

Let’s take a look at the broader picture.

According to the Kauffman Foundation, the rate of new entrepreneurs — or the number of non-business owners that start a new enterprise each month — has fluctuated between 0.27 and 0.34 percent of the adult population during the past two and a half decades. Expressed differently, roughly 300 out of 100,000 adults create a new business.

The rate of new entrepreneurs is highest among Latinos, who have consistently outpaced other races and ethnicities over time. New entrepreneurs who are Asian and White compete closely for second and third position. Comparatively, the rate is slightly lower among African-Americans (see chart below).

Richard Mulligan | The ED Advisor
Source: Kauffman Indicators of Entrepreneurship, Ewing Marion Kauffman Foundation, 2020

Overall, the rate of minority entrepreneurs has increased; while the rate of entrepreneurship among immigrants is significantly higher than for the native-born (see chart below).

Richard Mulligan | The ED Advisor
Source: Kauffman Indicators of Entrepreneurship, Ewing Marion Kauffman Foundation, 2020

This is important because the gap in wealth between immigrants and native-born citizens decreases considerably through business ownership.

Those with the least education have proven themselves to be more prolific when it comes to entrepreneurship in comparison to other groups with higher education attainment levels (see chart below).

Richard Mulligan | The ED Advisor
Source: Kauffman Indicators of Entrepreneurship, Ewing Marion Kauffman Foundation, 2020

Put together, early-stage entrepreneurship is fertile ground for a wide range of ethnic and racial groups looking to grow a business. This is particularly true for U.S. kitchen incubators, where on average, 52 percent of tenants are women and 30 percent are minorities. The diversity of food entrepreneurs is even more prominent in larger metropolitan areas like New York City, San Francisco, Seattle, and Chicago (Econsult Solutions, Urbane Development, The Food Corridor, Catharine Street Consulting, 2020).

U.S. kitchen incubators provide food entrepreneurs with a low-risk opportunity to access their own food production equipment and preparation space — a challenge for startups that is otherwise cost prohibitive. At the same time, entrepreneurs receive training, mentoring, and the opportunity to collaborate with a large network of food companies, while working to refine their business model.

From a “big picture” perspective, kitchen incubators serve as a catalyst for inclusive and equitable economic development.

Business Models

Similar to their tenants, kitchen incubators operate under a diverse set of business models, operating as stand-alone facilities or accessories to markets, community centers, and housing projects, or cloud kitchens. Facility goals are just as diverse, striving to fulfill owner-operated, corporate, non-profit, government, and university-sponsored missions. They can be self-funded, or receive financial support in the form of grants, debt-financing, corporate sponsorship, or investor seed funding. Some are run by culinary entrepreneurs who started their own business and decided to capitalize on the opportunity to lease space and supplement their cash flow. Other facilities are more intentional about supporting entrepreneurs, while providing a living income for their founders. Hence, there is no “standard” kitchen model that can be applied to a region’s culinary ecosystem (Colpaart, 2018).

A key point to remember is that kitchen incubators — like their food business tenants — are startup businesses that need to perform their own due diligence in terms of market research, business model development, financial planning, and marketing. In this regard, it is critically important to customize operations to serve their local communities.

Food Innovation Districts

On a state and regional level, U.S. kitchen incubators are taking root in food innovation districts. A food innovation district is defined as “a geographic concentration of food-oriented businesses, services and community activities that local governments support through planning and economic development initiatives in order to promote a positive business environment, spur regional food system development and increase access to local food,” according to Patty Cantrell of Regional Food Systems Solutions, LLC.

Michigan is a national leader in the establishment of food innovation districts — an outgrowth of the Michigan Good Food Charter, a statewide policy platform that envisions sourcing 20 percent of Michigan’s from Michigan food markets and production, providing 80 percent of the population with access to locally-grown, healthy foods. Several districts have already taken hold in the Eastside Neighborhood, Lansing; Eastern Market, Detroit; Grand Traverse Regional Market, Traverse City; Marquette Food Co-op and Hub, and; Grand Rapids Downtown Market, Grand Rapids.

Food Innovation Districts: An Economic Gardening Tool is designed to help other government and community leaders seize opportunities with local and regional food. Outlined is the process and tools used to create districts, which can be applied elsewhere in the nation. The districts are being put to practical use by fostering regional food hubs, kitchen incubators, farm-to-table retail and restaurants, farmers markets, food festivals, nutrition and cooking education, healthy food assistance, urban agriculture production, and community kitchens.


Culinary Incubator and The Kitchen Door have compiled lists of more than 1,000 kitchens from around the country. Select examples of incubator facilities identified in their respective databases for Greater Phoenix are shown below*:

Chef’s Shared KitchenMesa, AZ
Commissary and Catering KitchenTempe, AZ
Freedom KitchenScottsdale, AZ
NT KitchenPhoenix, AZ
Phoenix Commercial KitchenPhoenix, AZ
Source: CulinaryIncubators.com

National best practices for kitchen incubators include*:

Commonwealth KitchenBoston, MA
Hot Bread KitchenTempe, AZ
Pacific Gateway Center
Culinary Business Incubator
Phoenix, AZ
Source: American Communities Trust, 2016

Phoenix 2025 Food Action Plan

As part of the City of Phoenix General Plan, residents approved a Healthy Food System goal to promote the growth of a healthy, affordable, secure and sustainable food system that makes healthy food available to all Phoenix residents (2015). The 2050 Environmental Sustainability Goals include a Local Food System Goal to maintain a healthy, sustainable, equitable, and thriving local food system (2016).

Incorporated in the Action Plan is a strategy to create a food business rental incubator in the South Central Avenue Corridor, possibly as a food hall. Links to The Shared Kitchen Toolkit: A Practical Guide to Planning, Launching, and Managing a Shared-Use Commercial Kitchen, the Minnesota Institute for Sustainable Agriculture’s Commercial Kitchen Guide, and CulinaryIncubator.com interactive mapping tool are listed as resources under the “Commercial Kitchen” category.

Other resources are identified for community gardens, farm-to-school, farmers markets, food co-ops, food hubs, food waste, healthy living, and urban agriculture.

Included in the Appendix is the South Phoenix Food Action Plan, which taps into the U.S. Environmental Protection Agency’s (EPA) Local Foods, Local Places Program, with management and technical assistance from the U.S. Department of Agriculture, Center for Disease Control and Protection (CDC), and Delta Regional Authority (DRA).

Meanwhile, a development proposal to create a “food innovation center” has surfaced in West Phoenix. Proponents hope to convert an old Kmart building into a center that serves nontraditional food businesses (e.g., food trucks, catering firms, and food delivery businesses). A career training center is also envisioned for the 112,000-square-foot building. Maricopa Community Colleges is conducting a feasibility study for Phoenix’ Community and Economic Development Department.

All of this points to the growing and evolving nature of kitchen incubators, their ability to provide food entrepreneurs with an education in running a business, and a means to provide food industry jobs and education opportunities for those looking to climb the economic ladder.


Editor’s Note: *These are not meant to be all-inclusive lists, but rather a partial sample of kitchen incubator facilities.

The Unsung Progress of Women

The Unsung Progress of WomenPhoto by Jungwoo Hong on Unsplash

The title on her Facebook page reads: “Sara Fried Fitness.” A static banner at the top of the page displays this header: “Sharing My Life * Monthly Online Fitness Groups * Ongoing Personal New Coach Mentorship.” Below is the tagline: “WIFE. Physical therapist turned SAHM to two boys. Fashion lover.” Website visitors are invited to text with questions about fitness, nutrition, or personal development. In a recent post, she laments the impact of a car accident that left her with a herniated disc. She refers to physical therapy as “a career I love…& I mean LOVE,” noting that “Coaching has given me choices. And while I’m going to stay in physical therapy as long as I can, it’s nice to know I have options.” Sara’s social media platform is a living testimony to the unsung progress of women.

Education Gender Gap

She also happens to be my daughter.

Sara is a graduate of Northern Arizona University (NAU), where she earned a Bachelor of Science in Exercise Science. She, along with other female students of the millennial generation (and beyond), make up a majority of full- and part-time students attending U.S. colleges and universities. It’s been this way for quite some time. One has to take a step back in time — 1978 to be precise — to find enrollment records where male students outnumber their female counterparts in postsecondary education. The gender gap has widened considerably in the last four decades.

Richard Mulligan | The ED Advisor Source: National Center for Education Statistics

Click on graphic to enlarge

Education and Earnings

The strong correlation between education, income, and wealth is common knowledge. What is not well known is the extent to which women have leveraged their education to increase their paychecks. Reports show that increases in earnings have favored women over men for decades.

Richard Mulligan | The ED Advisor Source: U.S. Bureau of Labor Statistics, Current Population Survey

Click on graphic to enlarge

On the lower end of the education attainment spectrum, both men and women have experienced declines in weekly earnings. However, the decrease for women was much smaller than for men — a drop of 5 percent for women, compared to a decline of 26 percent for men.

Men with moderate education attainment levels have experienced a decline in weekly earnings of 18 and 11 percent, respectively. At the same time, women with equivalent levels of education increased their earnings by 3 and 5 percent.

Earnings for women with a bachelor’s degree or higher increased 34 percent, while earnings for men rose by 19 percent.

Herein lies the primary evidence for the unsung progress of women.

There is No Gender Wage Gap

“Equal Pay Day” was originated by the National Committee on Pay Equity (NCPE) in 1996. The symbolic day serves as a public relations event to illustrate the pretense of a gender pay gap.

Democratic leaders — President Barack Obama, Hillary Clinton, and others — have mimicked the NCPE’s contention that “In 2018, the median salaries for all full-time, year-round workers showed women earning 81.6 cents for every dollar men earned.” Outlets as politically diverse as HuffPost, Prager University and The Washington Post have explained this statistic and why it is misleading.

The gender gap statistic cites only the average difference between men and women, across all jobs, making no mention of occupation, position, education, number of hours worked, time taken off, or most significantly, the impact of personal life choices. A study by the American Association of University Women (AAUW), a well-known feminist organization, looked at male and female college graduates one year after graduation, and found that when you control for the differences in choice between men and women, the wage gap narrowed to only 6.6 percent.

Choice is the operative word.

Far fewer women choose to work in construction, production, transportation, and material moving occupations, preferring to enter career fields that pay less than those chosen by men. On the other hand, more women choose to occupy a higher percentage of professional and related occupations than men.

Richard Mulligan | The ED Advisor Source: U.S. Bureau of Labor Statistics, Current Population Survey

Click on graphic to enlarge

Impacting women’s decision-making processes is their personal preference for jobs with lower pay but greater benefits (time off to raise children), less physical risk, and more stable work hours.

Those asserting that the gender gap is a product of discrimination against women have invested in faulty logic. Using the same reasoning, young men are being discriminated against by young women. After all, twenty-something females have earnings that exceed men’s income by 10 percent or more, at least in certain disciplines. It must also be true that white men are being discriminated against by Asian-American men, who outearn their caucasian brethren by over 5 percent. Silly, right? Such flawed thinking is ridiculous at face value, which drives home the point.

Epilogue

If you compare men and women who hold the same job, with similar backgrounds and qualifications, the wage gap is virtually nonexistent. This runs counter to our political discourse, much of which is firmly entrenched in 1970s-era feminism. Claims that women are being paid less, and this is key — for doing the same work as men — doesn’t hold up to tighter scrutiny. Fact checkers have consistently rated such claims as “mostly false.” Unfortunately, that hasn’t stopped politicians and well-intentioned advocates from portraying women as chronic and perpetual victims of discrimination.

This does a disservice to the millions of women who, like my daughter, earned a college degree, pursued their passion, built a career, and made tremendous economic strides. They are making personal career and life choices — often in collaboration with their husband, partner, or significant other — to achieve positive outcomes for themselves, their families, and the communities where they live.

Let’s celebrate the unsung progress of women.


Editor’s Note: A report from the U.S. Census Bureau, “The Changing Economics and Demographics of Young Adulthood: 1975 – 2016,” reveals that young women are pulling ahead of many young men in the workforce. At the same time, young men are falling to the bottom of the income ladder, a trend we will explore in a future blog post.

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