NICK Feature Question: Who offers both Incubator Pricing Models & Traditional Hourly Usage memberships?

The Network for Incubator and Commissary Kitchens (NICK) is the largest network of shared kitchen professionals sharing their knowledge and insights daily. Below is a summary of a recent conversation regarding tracking company success and utilizing performance indicators. Answers may have been edited for readability.

Question:

How many of you out there offer both Incubator Pricing Models & Traditional Hourly Usage memberships? What’s that proportion of incubator vs. membership look like for each of you? What’s the price break you typically offer an incubator, in return for how much profit sharing? — Incubator Pricing Models: When a business is in the upstart phase and will trade profit sharing opportunities for a reduced rate for kitchen time.

Responses:

  • There are a number of models attempting to provide value this way including Union Kitchen and some of the corporate food accelerators. Doesn’t work for everyone but is an emerging model for certain programmatic kitchens and clients who aim to grow a big company that aims to exit.
  • I can see where a corporate accelerator can subsidize this pricing structure, as they already betting on the come. I would presume this would need corporate sponsorship and backing.
    • Yes, these models require more systemic support and resources and oftentimes that comes from partners with corporate or venture investors
  • We do straight hourly but also offer a separate incubator program that jump starts the efforts to either get going or to launch a new product- we call it our Bootstraps Program and it’s discounted access to a variety of services. More details at genuinelocal.org.
  • We are 100% hourly. I have enough to worry about without thinking about whether I will ever see that money promise.
  • We only do monthly with year lease.
  • We do not provide hourly usage memberships. Ours is structured with 6 month lease increments with a maximum time up to 3 years. Currently working on signed contracts as we do not open until July here in Texas, and most leases look to be a year+ long. In the lag time between chefs moving out and new ones coming in, smaller memberships/pop up shops might be the answer. Our kitchens rent out at 2K a month and the only profit sharing is their choice when they’re ready to launch brick and mortar.

Additional Resources:

  • The Food Corridor software can help manage your different clients with flexible billing plans. Clients can pay by the month, the hour, or some combination of the two. Schedule a demo and one of our Gnomes in the know will show you how easy it is.
  • The Shared Kitchen Toolkit is a comprehensive guide to starting a new shared-use or incubator kitchen and managing day-to-day operations. Check out the sections on Financial Planning and Rental/Membership Rates for more info on pricing models for your kitchen.
  • The Shared Kitchen Operations Manual is the most comprehensive set of policies and procedures out there – based on the most successful shared kitchens in the industry.

Join the Community!

Subscribe to our newsletter to get the latest in shared-use kitchen news, events, and opportunities.

Focus on growing your business. Not writing policies.

Avoid health department violations, lawsuits, mismanagement, and whatever else could come up with most comprehensive set of policies and procedures out there.