As whispers of an economic slowdown grow louder and fears of rising prices for food and equipment continue to rise, many shared kitchen operators are asking the same question: How can we stay resilient if a recession hits?
The key? Focus on fundamentals. Stay nimble. And build for sustainability—not just survival.
Whether you’re running a nonprofit kitchen incubator or a for-profit commissary, now is the time to strengthen your foundation. And here is the good news: we’ve done it before—and thrived.
Shared Kitchens Are Recession-Resilient—We’ve Seen It Firsthand
In 2020, The Food Corridor published a national analysis of how shared kitchens responded to the COVID-19 crisis—a time of extreme uncertainty, disrupted supply chains, and massive layoffs across the food industry.
And what we found was remarkable.
📊 Key data from our industry-wide survey (source):
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66% of shared kitchens remained operational through the height of the pandemic.
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New entrepreneur activity increased, with many turning to food businesses after being laid off or furloughed from traditional jobs.
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Kitchens adapted rapidly with increased delivery models, off-site meal prep, and flexible rental agreements.
“The shared kitchen sector has proven to be a strong, adaptable, and collaborative space for food entrepreneurs, even during extreme uncertainty.” – The Food Corridor, 2020
Many kitchens became lifelines—launchpads for new ventures and resilient hubs for local food systems. As we brace for potential economic challenges ahead, the same principles apply: focus on flexibility, serve your community, and double down on what works.
1. Revisit Your Business Model and Reaffirm Your Value
Start with what’s working. In uncertain times, it’s critical to identify your highest-margin, most in-demand services and double down on them.
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Prioritize profitable offerings like peak-hour rentals, cold storage, and private production space. Consider pausing offerings that drain staff time or bring in low return.
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Communicate your value clearly: Shared kitchens are the affordable alternative to brick-and-mortar costs. Make that front and center in your messaging.
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Offer tiered plans so members can scale up or down as needed without leaving your kitchen ecosystem.
2. Streamline Costs and Tighten Operations
Small leaks sink big ships. Recessions magnify inefficiencies—so now’s the time to tighten the bolts.
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Track your key metrics: utilization, revenue per square foot, staff hours, delinquent invoices. Small improvements here can have big payoffs.
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Renegotiate recurring contracts (waste, linens, cleaning, etc.). Vendors know budgets are tight—you might be surprised what they’re willing to do to retain you.
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Delay large purchases if possible, or seek refurbished or lease-to-own equipment options to preserve cash.
3. Diversify and Strengthen Your Revenue
The more flexible your revenue streams, the more resilient your business.
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Bundle services like cold storage + rental hours or certification support + marketing exposure.
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Offer add-ons like member spotlights, bulk purchasing, business mentorship, or “next stage” support for brands ready to scale.
- Explore partnerships with local organizations—like economic development agencies, workforce programs, or food access nonprofits—to generate revenue through training programs, community food programs, or kitchen incubator collaborations.
4. Stay Close to Your Members
Your members are the heartbeat of your kitchen. And in times of economic stress, they need to know you’re in it with them.
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Survey your community to identify changing needs, budget sensitivities, and ideas for improvements.
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Hold regular check-ins or town halls to maintain trust and gather feedback.
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Celebrate small wins: shout-outs, success stories, and social media highlights keep morale up and engagement high.
5. Build for Flexibility
Now is not the time to overcommit. Stay nimble and ready to pivot quickly.
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Avoid long-term financial entanglements like multi-year leases or big capital projects without clear ROI.
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Cross-train your team so people can wear multiple hats if needed.
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Maintain access to liquidity: whether through cash reserves or a pre-approved line of credit, financial agility is key.
6. Be Strategic About Borrowing: Rising Interest Rates Matter
As interest rates remain high or potentially rise further, borrowing becomes more expensive—both for shared kitchen operators and for the entrepreneurs you serve.
Here’s how to approach it wisely:
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Delay large loans if possible: If you were planning major renovations, expansions, or new equipment financed through loans, consider pausing or phasing them until rates stabilize.
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Explore non-debt capital sources: Grants, economic development partnerships, and equipment lease-to-own models are lower-risk alternatives. (Pro tip: monitor local and federal programs aimed at food infrastructure or workforce development.)
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Lock in lower rates: If you do plan to finance, act sooner rather than later to secure a more favorable rate—and consider fixed vs. variable loan terms. If rates start to go down, consider refinancing.
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Support your members’ financing needs: Many of your food entrepreneurs may also struggle to access affordable capital. Connect them with local lenders, CDFIs (community development financial institutions), or crowd-funding platforms designed for small food businesses.
High interest rates shouldn’t stop your growth—but they should make you more intentional. Choose investments with clear, measurable ROI and protect your cash flow in the process.
7. Focus on What You Can Control: Build Local Resilience
Rising interest rates, inflation, and global uncertainty may be out of your hands—but local action is not. Shared kitchens are deeply rooted in place, and that’s where your greatest power lies.
“I often say, shared kitchens are the heart of their local food system.”
We saw this with clarity during COVID-19, when many became epicenters for food production, relief efforts, and community nourishment. That moment revealed what’s always been true: shared kitchens are critical infrastructure—not just for entrepreneurs, but for entire food ecosystems.
Here’s how to take control by investing in your local food economy:
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Strengthen local partnerships: Collaborate with farms, regional distributors, and food hubs to reduce reliance on long-distance supply chains and negotiate more stable pricing.
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Source smart, source small: Help your members find affordable, local, or cooperative suppliers for ingredients and packaging—keeping dollars in the community while reducing risk.
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Engage food policy councils or economic development groups: Position your kitchen as essential infrastructure for food access, entrepreneurship, and workforce development. These connections can open the door to funding, technical assistance, and long-term support.
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Build a resilient food pipeline: Partner with job training programs, culinary schools, small-scale manufacturers, co-packers, restaurants, grocers, or local co-ops to create clear pathways from training to kitchen membership to business launch. This reinforces your kitchen as a hub for economic opportunity—not just rental space.
Be a Local Connector
As an operator, you can amplify your kitchen’s impact by proactively connecting your members to market channels, buyers, and community events. For example:
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Coordinate with local farms to help absorb bumper crops and funnel them into value-added products like jams, sauces, or meal kits.
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Partner with local grocery stores’ purchasing departments to enroll your entrepreneurs in “buy local” programs.
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Build relationships with farmers market managers to help your members establish sales outlets for packaged goods or pop-up dining.
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Add your kitchen to catering lists at event centers, universities, and large venues to help promote your caterers and food trucks.
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Stay tuned into local festivals and civic events—many need food vendors, and you can act as the bridge connecting them to your kitchen community.
Shared kitchens thrive when they operate not as silos, but as bridges. By helping your members tap into local infrastructure and audiences, you reinforce your kitchen’s value and empower your community at every level.
Bonus Tip: Invest in Smart Automation
Even in a recession, the right tech can save time, reduce labor, and increase transparency for members.
Whether it’s automating bookings, billing, or compliance tracking, tools like The Food Corridor‘s kitchen management platform can streamline operations and free up your team to focus on what matters most—supporting your members.
In Summary: Build Resilience Through Fundamentals
Recessions are challenging—but they’re also clarifying. They remind us to lead with purpose, build leaner systems, and serve our communities with empathy and agility.
Shared kitchens are uniquely positioned to be part of the solution during economic downturns. With thoughtful planning and a flexible mindset, your kitchen can not only weather the storm—but emerge stronger on the other side.
Want more tips on kitchen resiliency or recession strategy?
Join our newsletter or reach out to talk shop with our team at The Food Corridor.
