These are the boom times for food entrepreneurs. Between the growing desire for organic food, the rise of localvores, a broad acceptance of ethnic cuisine, the prevalence of foodie culture, the food truck craze, and more, it's hard to imagine a better time to start a food company.
So what's holding some back? Perhaps it's a shortage of capital. Or, more likely, a shortage of kitchen space.
But incubators can solve these problems. These workspaces/investors arose from the tech industry, but now the food industry is generating incubators of its own. According to Econsult Solutions, a firm that consults on the creation of food incubators, there are at least 150 places in America now where potential food businesses can get commercial kitchen space and professional advice on marketing, accounting, sales, etc. - sometimes in exchange for a fee, but usually in exchange for equity in the new company.
The terminology in the space can be a bit confusing. There are accelerators, which tend to serve businesses that are still new, but have some sales. There are shared-use kitchens, which offer the use of large ovens, large sinks, large fridges, etc., but little in the way of advice or training.
And there are full-blown incubators, which offer equipment, expertise, and help with funding, either through direct investment or access to low-interest loans.
Here are five of the more interesting incubators we've come across:
Organic Food Incubator (Long Island City, NY)
There are more than 40 food companies working out of the facilities of Organic Food Incubator, part of New York City's "Made in New York" program. Among the more interesting things about OFI is that its facilities accept only vegetarian and gluten-free food products. OFI also offers a coaching program to help entrepreneurs obtain organic certifications. OFI is also one of the first incubators to expand its offerings to include packaging services.
City Cookhouse (New York, NY)
One of the higher profile incubators in America is City Cookhouse, the first certified commercial kitchen in Manhattan to offer rental space to entrepreneurs. Cookhouse is probably best known for offering a wide variety of healthy cooking classes for residents near its location in Spanish Harlem.
Union Kitchen (Washington, DC)
The incubator world is dominated by nonprofits. One notable exception is Union Kitchen, which markets itself as "low-cost, low-risk, full-service kitchen" for startups in the nation's capital.
The UK approach seems to work. A slew of early stage companies are based in its 7,300 square foot warehouse, including Apinya Thai Food and Capital Kombucha.
Local Food Lab (Palo Alto, CA)
In the heart of Silicon Valley is an incubator with an unusual approach. The core of LFL's original offering was a six-week course aimed at helping startups and farmers create a business plan. Eventually, the Lab created an online platform on which would-be food companies could share ideas. Modern Farmer called it a "Pinterest for food start-ups," and named it on a list of "8 Hot Farm Tech Start-Ups."
Chobani (New York, NY)
You'd be hard-pressed to name a food startup that rose to riches as quickly as Chobani, the company that helped give us the Greek yogurt craze. Presumably the company learned a few things along the way that other entrepreneurs would like to know, and soon a lucky few will have a chance.
Chobani plans to open an incubator in New York City and use it to find, coach, and invest in the next generation of industry disrupters. Chobani's also been the talk of some "conflicting reports" as of late.