Site Search and Project Management

Finding the right property and managing the build-out of your shared kitchen is one of the most exciting milestones in your journey, but it’s also one of the most complex. Before embarking on this phase, it’s critical to have a well-defined business model, clear financial projections, and a solid kitchen design concept in place. These foundational steps will guide you in identifying the right location, ensuring that your site search aligns with your operational goals and financial capabilities.

This chapter delves into the key factors to consider when selecting a property for your shared kitchen. We explore the pros and cons of buying versus leasing, how to establish site criteria, and what to look for when vetting potential locations. The choices you make here will significantly impact not only the layout and functionality of your kitchen but also your long-term success and flexibility. Additionally, we’ll introduce essential elements of project management, helping you navigate the construction process, work with contractors, and stay on track with timelines and budgets.

Whether you’re retrofitting an existing space or building from the ground up, this chapter equips you with the tools and insights to make informed decisions, manage risks, and ensure a smooth transition from planning to opening day. With careful planning and strategic site selection, you’ll set the stage for a successful shared kitchen that meets the needs of your community and thrives in the long run.

Be sure to read the Fork Food Lab Case Study for insights into the complexities of this process.

Several considerations remain constant, whether funding is private or through grants and donations. These include financial flexibility, control over the property, and the project’s long-term sustainability.

When deciding to buy, consider the advantages of having complete control over the property, capturing the value of improvements made, and the potential for real estate appreciation. However, buying requires significant upfront capital, and loans may be difficult to qualify for without a track record of success. Additionally, ownership may come with more responsibilities for property maintenance and repairs.

Leasing, on the other hand, can be less capital-intensive initially and offer flexibility to relocate if necessary. Depending on the terms of the lease, it may also transfer some maintenance responsibilities to the landlord. However, leases can include restrictions on property modifications and come with the risk of rent increases and non-renewals of the lease down the road.

If you decide to lease a property, take time to understand and negotiate the lease terms. Important areas for negotiation include rent, common area or triple net fees, lease term, cancellation, tenant improvements, maintenance responsibilities, security, and liability. Recruit the help of an experienced real estate attorney to review the lease, flag any clauses that may be concerning, and offer alternate language. Brokers can also assist with explaining and suggesting lease terms based on the market conditions and how much leverage you have in negotiations. However, keep in mind that brokers are incentivized to make deals happen, so they may not scrutinize the terms as thoroughly as an attorney.

Determining Your Site Criteria

At this stage, you should have a clear sense of your facility’s location, size, features, and budget to guide your search. Balancing and prioritizing these considerations is crucial, as they depend on the types of businesses you aim to serve. Your site criteria must align with local licensing, zoning, and building requirements, so it’s essential to research these regulatory aspects first. As you delve deeper, consider the following key site factors:

By thoroughly considering these factors, you can identify and prioritize potential sites that meet both your operational needs and regulatory requirements, ensuring a successful and sustainable shared kitchen facility.

Vetting Sites

Once you have found a potential site, validate if it meets your site criteria and investigate potential hurdles to building out the kitchen before committing to the property. Work with your broker to negotiate as much time and access to the property as possible to vet the site so you can do walk-throughs with your design and construction team, inspectors, and engineers. Whenever possible, try to make purchase agreements or lease deposits contingent on feasibility factors so you can back out of the agreement if the project proves infeasible.

Construction and Renovations

After touring a promising site, bring in your design and construction team to vet it before negotiating final terms. Because costs can vary greatly depending on site and building conditions, getting estimates on development/renovation costs before settling on a site or price is crucial. Arrange for your construction and design team to walk through the property with you to discuss potential floor plans, review major cost

items, and identify any concerns. Consult with an electrical engineer/electrician, plumber, and heating, ventilation, and air conditioning (HVAC) technician to discuss your requirements and the costs of improvements. Engage a structural engineer, if necessary, to evaluate the property condition and give estimates for the design plans. You may also want to hire an inspector to help identify potential issues that must be addressed.

This team can develop estimates for construction/renovation costs, helping you stay realistic in your budget and inform your lease negotiations. Be prepared to pay for professional services, such as inspections and architects, during the vetting process. Investing in quality and knowledgeable contractors early on will help avoid problems and ensure the site meets your project goals within budget.

Land Use and Permitting

Once you have met with your design and construction teams, investigate critical local regulations and permitting to validate that your vision is feasible at the site before committing to it. This might involve investigating if the kitchen is allowed under the area’s zoning, confirming if a mixed-use facility is allowed, and inquiring what parking ratios are required. Since shared kitchens are uncommon, you may need to contact the land use department and discuss your project to learn specifics. If a change of use is necessary, ask about the process and how long it may take to get approved. Additionally, if you are planning new construction or significant renovations, request a preliminary meeting with the local permitting department to discuss your plans. This will allow you to discover any additional improvements or requirements they may impose and any other departments you will need approval from, such as the fire marshal or wastewater management. Ensure that you understand the food licensing rules that apply to your kitchen.

Environmental Site Assessment

Existing buildings, particularly industrial buildings previously used for production or repairs, can have site contamination that complicates construction and adds to costs. Additionally, older buildings can have toxic materials such as asbestos and lead-based paint that require special remediation during construction. Environmental site assessments are critical when purchasing a property, but doing environmental research and/or testing when leasing an older building that will be renovated is also wise. Contractors, remediation companies, and local environmental laboratories may be able to assist you with standard tests.

If you are doing any renovation work, ensure you are familiar with safety precautions for lead and asbestos hazards. The Environmental Protection Agency (EPA) has an Asbestos website and a Lead-Safe Renovations for DIYers website with additional information on identifying, testing, and protecting yourself from these hazards.

Whether a formal environmental assessment is needed (and the type required) will vary depending on several factors, including the extent of development planned, local regulations, the previous uses or known contamination of the property, and whether the bank requires one for a commercial loan. Consult with planning departments or an environmental consultant for additional guidance.

Property Insurance

Ensure you also verify the availability and affordability of property insurance if you are buying or the landlord requires you to carry it. With disasters increasing due to climate change, property insurance is becoming more expensive and difficult to obtain in some areas. Verifying coverage early gives you peace of mind and an accurate insurance premium estimate.

By considering these factors and consulting with professionals, you can ensure a thorough evaluation of potential sites, aligning them with your operational needs and regulatory requirements. For more information on creating a budget for construction, see the Financial Planning and Management chapter.

Working with an Existing Building

Some projects start with a pre-identified space, often an existing asset of the organization or a partner entity, such as a government agency or university, offering it at below-market value. These “building-driven” projects need thorough vetting to ensure the space is suitable and aligns with your goals. Renovations can have hidden costs, including required upgrades to bring the space into compliance with newer codes and regulations. Structural changes, which may be unforeseen, can be extremely costly. Engaging a structural engineer early in site evaluation helps inform building decisions and highlight unknowns.

Evaluate the size, layout, condition, and infrastructure of an existing building to determine accommodation capacity. If the building has an existing kitchen, assess whether the layout can support the number of concurrent users needed to meet demand and your financial goals. Obtain estimates for necessary upgrades.

If the building needs conversion, compare renovation costs to constructing a new building. Renovations can trigger requirements for upgrading to current code standards or zoning, so check with the local land use and permitting departments. Seek help from experienced developers or contractors to evaluate the building’s investment potential for your program.

Key Investigation Areas for Existing Buildings:

• Suitability for intended uses: Can it accommodate all priority activities and vital revenue streams?
• Size: Is it right-sized for your expected number of clients, ensuring you meet demand without underutilization?
• Location: Is it appropriately located near target businesses and market opportunities? Consider transportation, traffic, and neighborhood safety
• Condition of the property: What is the condition and energy efficiency of the property? What is the remaining life of equipment, systems, and finishes?
• Cost of renovations: What are the costs for completing renovations, including kitchen build-out and system upgrades (electrical, plumbing, wastewater)? Consider significant ADA upgrades, installation of floor drains (high-cost concrete cutting), and whether the renovation scope will trigger additional building upgrades or streetscape improvement requirements.

It’s easy to underestimate the construction budget and time involved in developing a commercial kitchen facility. Older buildings may require replacement of degraded materials during construction. Ensure you have surplus funds for these contingencies in your capital/construction budget. See the Financial Planning chapter for more information on establishing a capital budget.

Establishing a Capital Budget

If you still need to develop a capital budget, refer to the Financial Planning and Management chapter for detailed guidance. This will help you identify all potential expenses and ensure you clearly understand your financial needs. The Funding Strategies chapter also offers insights into possible capital funding sources, which can be invaluable as you seek to finance your project.

Managing Construction

As you move out of the design phase and into construction, your team will finalize your preliminary designs into final drawings and specifications and pull permits to begin work. The contract and construction phase is about managing budget, performance, and time risk. Firm contracts, warranties, insurance, and continual monitoring are all crucial to managing the uncertainties and risks of the construction period. Since there is considerable financial commitment at this stage, aim to complete all your research and planning before starting construction to avoid as many unforeseen hurdles as possible. Once construction begins, you will likely be faced with unanticipated changes requiring you to make decisions that balance immediate budget and time constraints with your long-term operating and leasing goals.

Final Contracts

During this process, you will negotiate final contracts and agreements with contractors, designers, engineers, consultants, or project managers. You will want to be sure your contracts delineate roles and responsibilities for each party and provide recourse in case a party does not perform their duties. Contracts should also detail what is included and what will incur additional fees. In your contracts, you will be balancing the need for firm, clear terms and the flexibility needed to respond to unexpected changes due to construction or market factors. Be sure to review the Contracts, Risk Management, and Insurance chapter.

During this time, you may also secure funding, such as loans, angel investments, or grants. Some contracts and agreements may be contingent on other contracts and/or be required to receive the funding you need to begin. If necessary, you will want to understand these interrelationships and shepherd final signatures simultaneously. If your management team is inexperienced with construction projects, make sure you have advisors and lawyers with experience in development to help you negotiate, enforce, and time the contracts to protect your interests.

Project Management

The more complex your project, the more factors you must monitor during construction. You will likely manage the performance of numerous parties in your construction team and respond to the demands of permitting departments, inspectors, and funders. Depending on the scope of your project, it may be helpful to hire an experienced project manager to oversee the construction and keep the project on track. Effective project management is essential for maintaining accountable and collaborative relationships among designers, contractors, funders, and inspectors, ensuring smooth coordination of the many moving parts during construction.

Depending on the scope of the project and any construction loan drawdown requirements, teams may designate in-house or outside parties to inspect the work and ensure the project is completed to the owner’s satisfaction. Founders may assign a project manager from their organization to oversee construction, task the architect with certifying the work, or hire an outside construction manager to inspect the work.

Building a Timeline

Kitchen founders often find that the construction and final approval process takes longer than anticipated, and there are many hurdles to overcome before the facility opens. As you draft your design and construction timelines, give yourself ample time to tackle unanticipated hurdles. Overpromising your opening day to prospective clients and stakeholders will add stress and frustration. You also want to ensure you have contingency funds to cover any unexpected costs and overruns.

Once the construction work is complete, there will be a series of inspections before you receive a certificate of occupancy from the local building department and licenses from the local health department and/or department of agriculture. This process can take time and sometimes results in additional work or changes.

As you approach your opening day, you will also need time to install signs, turn on utilities, set up internet services, and establish contracts for pest management, cleaning supplies, and landscaping, if necessary. Because there is so much uncertainty in these final stages, it is best to build some “float” in your construction timeline and not overpromise your opening date to renters.

Visual aids like a Gantt chart can help outline the project schedule and dependencies, avoiding delays and managing resources efficiently. Tools like Microsoft Project, SmartSheet, Asana, Trello, and Basecamp can assist in planning, scheduling, and tracking project progress. Additionally, creating a “punch list” at the end of construction ensures that all necessary modifications are addressed before finalizing the project. Below is an example of a project timeline in Gantt chart form showing the start and duration of project tasks. Note that the time frames shown are for illustrative purposes only and should not be used for estimating your project’s timeline. Your timeline and tasks will depend on your facility design and the scope of construction work needed.

Final Thoughts

Securing the right site and managing the construction process is a major step in bringing your shared kitchen vision to life. Your choices regarding location, layout, and construction will directly impact your kitchen’s functionality, efficiency, and long-term success. By thoroughly evaluating potential sites, vetting contractors, and staying on top of project management, you’ll create a space that not only meets the current needs of your members but can also adapt to future growth.

In the next chapter, we delve into Facility Management , an equally important aspect of running a successful shared kitchen. Here, we’ll explore how to maintain equipment, manage shared storage, enforce cleaning protocols, and integrate security and emergency planning into your day-to-day operations. Effective facility management ensures that your kitchen remains a safe, organized, and efficient environment for all members, allowing your business to run smoothly and fostering a positive community atmosphere.