Throughout the years, the food service industry has changed significantly thanks to modern and innovative technology in restaurants. In addition to technologies, new business models have also become popular. For example, during the COVID-19 pandemic, ghost kitchens have become some of the most profitable businesses in the restaurant sector. Furthermore, our busy schedules have made convenience one of the most important factors when it comes to eating. That’s why fast food restaurants, mobile food vendors, and food deliveries are on the rise. Commissary kitchens play an important role in these niche markets. They allow proprietors to easily start small businesses without the need for large investments in kitchen equipment and restaurant supplies. In this post, we’ll share more about the business model of commercial kitchens and what businesses use them. We’ll also go through the pros and cons of commissary kitchens.
Key takeaway: Commissary kitchens are professionally equipped kitchen facilities that can be hired by caterers, mobile food vendors, and other businesses. They are a good alternative for small companies that don’t have the capital to invest in their own kitchen facilities.
What Are Commissary Kitchens
Commissary kitchens, also known as commercial kitchens, are businesses that have all licenses and permits to prepare food products. These facilities are rented by businesses that need to prepare and sell dishes but don’t have the necessary equipment or storage facilities. Commissary kitchens are fully equipped with appliances, cookware, and utensils. That makes them a great option for small and starting businesses in the food service industry that don’t want to invest tens of thousands of dollars in professional kitchen equipment.
Types of Commissary Kitchens
There are two main types of commercial kitchens – shared and private ones. Private commissary kitchens are used by a single company that leases the place and uses it to prepare meals. Shared kitchens are used by multiple businesses, often simultaneously. In fact, various institutions like schools and retirement homes have up-to-code and well-equipped kitchens. Since these facilities are not used 24/7, they might rent out their commercial kitchens during certain hours of the day. Some restaurants also rent out their kitchens to small food service businesses, organizers of cooking classes, and other companies that need to rent a commercial kitchen for only a couple of hours.
What Businesses Use Commissary Kitchens
Various types of companies can benefit from using the services of a commercial kitchen. Let’s examine what types of businesses use commissary kitchens.
- Catering companies. Caterers often hire commissary kitchens to prepare food for weddings or corporate events.
- Food trucks and other mobile food vendors. Many of these businesses don’t have an up-to-code facility where they can prepare food. Instead, they make meals in commercial kitchens and sell them from a food truck or a mobile stand.
- Commercial bakeries. Most businesses that sell wholesale baked products have their own facilities. However, if they have large orders or want to expand, these companies might still benefit from using a commissary kitchen.
- Delivery-only restaurants. As deliveries of food continue to gain market share, ghost kitchens have become very popular. Instead of equipping their own facility, starting businesses might hire a commercial kitchen for a few hours a day.
- Culinary schools. The foodie culture has led to an increased number of food enthusiasts. That’s why cooking classes have become a very popular hobby. Organizers of such courses and full-scale culinary schools can partner with commissary kitchens instead of spending tens of thousands of dollars on equipment.
- Producers of jams, different types of canned food, and other cottage food products. Many states require sellers of cottage food goods to prepare them in a commercial kitchen. That’s why small producers of jellies, cookies, and other cottage food products might hire a commercial kitchen.
Pros and Cons of Commissary Kitchens
Benefits of Commissary Kitchens
- They are a cost-effective way for small businesses to start their operations without the need to invest in commercial kitchen equipment;
- Operators of commercial kitchens know the local regulations and keep their facilities up-to-code;
- Commissary kitchens allow businesses to grow without the need to invest in a new kitchen facility;
- Commercial kitchens often have well-established partnerships with distributors of various products. Thus, businesses might benefit from wholesale prices instead of finding suppliers on their own;
- Commissary kitchens are like coworking spaces for food professionals. This creates networking opportunities and potential partnerships with other renters of the facility.
Disadvantages of Commissary Kitchens
- Although commercial kitchens are a good short-term solution, already established businesses should consider investing in their own kitchen facilities;
- These facilities are often located in areas with more affordable real estate. That means they are often in remote locations outside city centers and might not be convenient for mobile food vendors;
- When it comes to shared commercial kitchens, it’s not uncommon for scheduling conflicts to occur.
Frequently Asked Questions about Commissary Kitchens
Whether you want to read about the latest restaurant technology trends or wish to know how to increase your company’s wholesale sales, you’re at the right place. You’ll find plenty of tips and resources on our website. Below we’ve answered some of the most common questions regarding commissary kitchens.
What Is the Cost of Renting a Commissary Kitchen?
The price for renting a commissary kitchen ranges between $15 and $50 an hour. It depends primarily on the location – commercial kitchens in urban areas can be more expensive. Operators of commissary kitchens offer a variety of discount options and membership plans. Thus, business owners who are interested in renting a commercial kitchen in the long term can negotiate much better terms. Commissary kitchens might also charge extra for additional services. Examples include the usage of storage space and special equipment. Tenants are often required to carry liability insurance and pay a security deposit.
Are Commissary Kitchens and Ghost Kitchens the Same?
Although commissary and ghost kitchens are often considered to be the same thing, there are differences between them. The main one is that ghost kitchens are used by businesses that don’t have a brick-and-mortar location. Instead, they offer only deliveries. Ghost kitchens are usually owned and operated by restaurants or fast food chains. They choose this approach as it allows them to streamline their food preparation and deliveries. On the other hand, the primary goal of commissary kitchens is to help companies like catering businesses or food trucks prepare their food.
How to Open a Commissary Kitchen?
The first step in starting a commissary kitchen business is to look for suitable locations. They can either be fully equipped or empty spaces that need to be equipped with appliances and kitchen supplies. Once the premise is equipped and prepared, the next step is to get all necessary licenses and permits to operate a commercial kitchen. Once you are good to go, the main goal will be to focus on sales and marketing. Search for customers in the restaurant industry and attract them with better terms compared to competitors. Make sure to adapt your business model and terms based on the demand and the changes and innovations in the food service sector.
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