Starting A Business In Ga /checked Out Shared Kitchen Yikes!

Business By Sweetriley Updated 21 Aug 2013 , 9:01pm by PREPATL

Sweetriley Posted 23 Aug 2009 , 11:36pm
post #1 of 24

I recently took a tour of the only "for profit" shared kitchen space that I could find in the entire state of Georgia. WOW - is it ever cost prohibitive! You have 3 levels of membership options - the lowest being $450/month which will give you only 20 hours per month. You must sign a contract for a 6 month commitment. You also must put down 1 month's security deposit. In addition, before you become a member, you must must take a "Serve Safe" course ($150) then take the test to be certified in food safety and sanitation ($100). I addition to that, you must provide proof of liability insurance ($600-$800/year). Then you need to pay the local business license taxes. Is all this normal? That is WAY too expensive for my blood. I'll have to go another route but I'm at my wit's ends trying to figure this out. I lost my job in corporate America and decided now is the time to pursue my dream. Any thoughts on this would be HUGELY appreciated!

23 replies
Uniqueask Posted 24 Aug 2009 , 12:01am
post #2 of 24

I can't give you any advice on the business really, but I just graduated from a culinary program and have the servesafe, that is the foodsafety and sanitation course, and it lasts for 4 years, I got a quote for liability insurance for only $250 for a milloin dollar coverage 2 million aggregate, But I think that is a lot of money for only 20 hrs per month you will have to be making a whole lot of cakes to cover all the costs and make a profit, maybe you can look around and see if you can find a reasonable store front, just my suggestion I really don't have much advicw to give, But I am sure some of the business owners will have plenty

CakeForte Posted 24 Aug 2009 , 12:16am
post #3 of 24

Not sure what you are expecting? Those are the costs of doing business, not "hobbying". Incubator kitchens are there to help get you launched; meaning enough business orders coming in so you can eventually move into your own space. Things take time to develop, so mass orders won't happen right away anyways. That doesn't sound like a bad setup to me at all.

kakeladi Posted 24 Aug 2009 , 12:27am
post #4 of 24

I agree w/CakeForte. You might be able to come up w/cheaper insurance if you shop around.

Sweetriley Posted 24 Aug 2009 , 1:48am
post #5 of 24

It a "bad set-up" if you're unemployed. I guess I was looking for some advice rather than going this route. How do you go from the "hobby" stage to selling your stuff when there isn't a lot of capital?

leah_s Posted 24 Aug 2009 , 1:59am
post #6 of 24

It looks like in GA you don't have a lot of options. You can not bake and sell from your home, so a rental kitchen has to be an option. Other than that, just save your money until you can afford to strike out in your own property, or take out a ton of loans.

LaBellaFlor Posted 24 Aug 2009 , 5:47am
post #7 of 24

Those prices all sound about right when working out a commercial establishment. You could price shop for insurance (contact K8 Memphis, she's got 411 on insurance). And like Leahs said, I don't see many other options, unless yoou save and wait or keep looking. I hope it all works out and Good Luck!

mscheeks Posted 24 Aug 2009 , 5:17pm
post #8 of 24

Another option is to contact local coffee shops etc. and see about just renting a little space from them and putting your product in there they may want to add an item or two as well. Also you could approach some restaurants with this idea I know of someone who did cakes out of a kitchen like that.

sew4children Posted 24 Aug 2009 , 7:18pm
post #9 of 24

I was in your same boat a couple of months ago. I checked that same location and couldn't rationalize what they were charging. I rent kitchen space in my home town for $10.00 and hour. I do have insurance for a lot less. I pay $26/month that covers liability. I wasn't required to take any courses or any additional fees. The law states that in GA you must cook outside your home, but you may decorate in your home (small print says make frostings in licensed kitchens).

I am saving money to renovate part of my basement into a commercial kitchen. I do catering and baking so I don't need a storefront, just a kitchen and a small area for customers. The law states that you must have a separate kitchen with its own entrance.

Good luck, don't give up!

indydebi Posted 24 Aug 2009 , 11:19pm
post #10 of 24
Quote:
Originally Posted by kakeladi

I agree w/CakeForte.




Me, too. It works out to about $20 +/- hour, which seems to be the norm. If you're doing this as a business, of COURSE you have to be Food Safe certified and insured and licensed .... why would you NOT want to do those things? icon_confused.gif

And there is a bright side. You don't have to pay $10K-$25K for the build out; you're not laying out $10K to $45K for kitchen equipment; and (it sounds like) you're not responsible for the monthly utility expenses.

Welcome to the World of Business, and all of the expenses and responsibilities that go with it! thumbs_up.gif

cakesweetiecake Posted 25 Aug 2009 , 1:57am
post #11 of 24
Quote:
Originally Posted by mscheeks

Another option is to contact local coffee shops etc. and see about just renting a little space from them and putting your product in there they may want to add an item or two as well. Also you could approach some restaurants with this idea I know of someone who did cakes out of a kitchen like that.




I was going to suggest this, too.

Good luck to you! I hope you can find something to suit your needs!

Kpow Posted 25 Aug 2009 , 6:22pm
post #12 of 24

Sweetriley, what county are you in?

Mikel79 Posted 26 Aug 2009 , 4:42pm
post #13 of 24

Hi!

I live in Metro Atlanta. West of Atlanta, actually. I called the Health dept., Dept. of Argt. and I was told I can have a kitchen in my basement. This kitchen COULD NOT be used for "regular" meals. Of, course you have to get it all certified with the state, and get a business lic. However, the one key thing that was told to me is that the Health inspector must enter this kitchen, WITHOUT GOING INTO THE NORMAL living space of your home. Meaning, you must have your own entrance/exit door to this kitchen.

You can also try buying a seperate small building and place it on your property. It would of course have to be set up with electricity, plumbing etc. This is what I am going to do.....eventually. It will take time....and money..

HTH

=)

Kpow Posted 26 Aug 2009 , 5:22pm
post #14 of 24
Quote:
Originally Posted by Mikel79

Hi!

I live in Metro Atlanta. West of Atlanta, actually. I called the Health dept., Dept. of Argt. and I was told I can have a kitchen in my basement. This kitchen COULD NOT be used for "regular" meals. Of, course you have to get it all certified with the state, and get a business lic. However, the one key thing that was told to me is that the Health inspector must enter this kitchen, WITHOUT GOING INTO THE NORMAL living space of your home. Meaning, you must have your own entrance/exit door to this kitchen.

You can also try buying a seperate small building and place it on your property. It would of course have to be set up with electricity, plumbing etc. This is what I am going to do.....eventually. It will take time....and money..

HTH

=)




Unfortunately, all counties don't allow this. I live in Cobb County and was told by the Cobb County Health Department that I would not be allowed to build a commercial kitchen in my basement, even though it is closed off from the rest of my house and has a separate entrance. I was told that they also don't allow you to bake in another business's commercial kitchen. The only options in Cobb County are to have your own retail shop or to bake in an incubator kitchen. So unless I either win the lottery or an incubator kitchen opens somewhere near me, I am out of luck. Hope that's not true for you too!

indydebi Posted 26 Aug 2009 , 5:28pm
post #15 of 24

[quote="Kpow"]

Quote:
Originally Posted by Mikel79

I was told that they also don't allow you to bake in another business's commercial kitchen.


Wow, that is odd! icon_eek.gif Wonder what their logic is?

Kpow Posted 26 Aug 2009 , 5:31pm
post #16 of 24

[quote="indydebi"]

Quote:
Originally Posted by Kpow

Quote:
Originally Posted by Mikel79

I was told that they also don't allow you to bake in another business's commercial kitchen.

Wow, that is odd! icon_eek.gif Wonder what their logic is?




They told me that they just don't allow two businesses at one address.

cakegrandma Posted 27 Aug 2009 , 1:08am
post #17 of 24

Kpow,
I do not understand the answer you got as I lived in Cobb and I rented space from a Caterer and they came in and inspected her place and gave me my license and I worked out of her place for 2 years. You may want to call them again and see if you can get someone else. I had to have a letter on the businesses letterhead stating that I would be baking out of that location. Hope this helps you.
evelyn

Kpow Posted 27 Aug 2009 , 1:11pm
post #18 of 24
Quote:
Originally Posted by cakegrandma

Kpow,
I do not understand the answer you got as I lived in Cobb and I rented space from a Caterer and they came in and inspected her place and gave me my license and I worked out of her place for 2 years. You may want to call them again and see if you can get someone else. I had to have a letter on the businesses letterhead stating that I would be baking out of that location. Hope this helps you.
evelyn




Evelyn,
Can you tell me how long ago that was when you used the caterer's space? I have spoken to two different people at the Cobb Health Dept. and both told me the same thing. I'm wondering if it's a new regulation.

Sweetriley Posted 29 Aug 2009 , 1:47am
post #19 of 24

I was told that in GA you could use another facility providing that your hours never overlapped. So you would have to use the kitchen when the other business wasn't using it. There is just SO much misinformation out there - even coming from the Department that licenses.

GatuPR Posted 29 Aug 2009 , 3:31am
post #20 of 24

I once got an e-mail from a bakery in Roswell that offered kitchen space for rent. Not sure if they still do that but if you want more info., let me know and I will pm you the name/number. Since they have a legal business they will know about the law and requirements needed to rent from them. Good luck.

emma_jada Posted 29 Aug 2009 , 6:02pm
post #21 of 24

I live just east of Macon, in a very small town. Who do I contact to find out the laws and regulations in my county? The health department? Is it statewide laws or determined by county or districts?

DougMarranci Posted 24 Jul 2012 , 11:40am
post #22 of 24

Http://TheSharedKitchen.com

The Shared Incubator Kitchen @ Bella Cucina has a less expensive option for those just starting out.

Up to 10 hours per month for 250.00

Check them out!

MimiFix Posted 24 Jul 2012 , 12:30pm
post #23 of 24
Quote:
Originally Posted by DougMarranci

Up to 10 hours per month for 250.00



Looks like a beautiful facility! This rate ($25 hour) may be great for a professional who can work efficiently. But it's steep for a new entrepreneur. Another option for people just starting out, is to find a commercial kitchen in a restaurant, deli, coffeeshop, bakery, VFW, firehall, church, school, etc. and see if you can rent from them in their off-hours. You can negotiate an affordable rent which may be far less.

PREPATL Posted 21 Aug 2013 , 9:01pm
post #24 of 24

Hello everyone, 

700

 

PREP is a state of the art co-working facility providing Shared Kitchens, Dedicated Commissary Kitchens for Mobile Food Service Operators, Studio/Event Kitchen and Wholesale Food and Supply Procurement.

 

PREP was established with one goal in mind – help build and support small food businesses in Metro Atlanta by providing state-of-the-art commercial kitchen space, resources, food procurement and guidance to a talented and creative class of entrepreneurs. Specialty food producers, caterers and mobile food service operators, along with the next generation of food artisans will have all of their needs met in on place. Welcome to PREP!

 

PREP offers membership packages to all of it's kitchens, which vary in price, initiation fee and applicable amenity offerings, and is based on either hourly usage of the shared-use commercial kitchen and catering kitchen or size of the dedicated commissary kitchen being rented.

Check out our website – www.prepatl.com - for more details, or call us at # 404-920-4150

 

 

 

 

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