Services Planning

Creating a well-rounded services plan is one of the most impactful steps a shared kitchen can take to support its members and generate sustainable revenue. A successful kitchen offers more than just space; it can become a thriving hub of business resources, education, and community development. The services you choose to provide—whether in-house advising, third-party consulting, or online courses—directly shape the value your kitchen brings to the local food ecosystem. Each service presents an opportunity to meet specific needs, help entrepreneurs overcome hurdles, and build a loyal membership base

In this chapter, we explore the art and strategy behind designing service models that add real value to your kitchen and its members. You’ll learn how to assess demand, determine which services to offer, and create partnerships that enhance your offerings. From technical workshops to business development services, we’ll guide you through how to plan services that align with your kitchen’s mission, maximize resources, and contribute to the long-term success of both your kitchen and the food entrepreneurs you support. By the end, you’ll have the tools to develop a robust services plan that makes your kitchen an indispensable resource in your community.

Service Models

When we refer to “services” in the context of shared kitchens, we’re talking about the range of support options that go beyond simply providing kitchen space. These services can include business advising, mentorship, technical assistance, marketing support, and product development. The way these services are delivered varies—some kitchens offer them in-house through dedicated staff, while others rely on third-party partnerships or online platforms to provide resources. By understanding the various service delivery models, kitchen operators can create offerings that meet the specific needs of their members and generate additional revenue.

In-House Services

Establishing in-house incubation services within a shared kitchen requires meticulous planning and strategic staffing to ensure success. From a planning standpoint, it is crucial to define the scope of the incubation program, including the types of businesses to be supported, the range of services offered, and the program’s overall objectives. Conducting a needs assessment to understand the specific requirements of potential incubator participants can guide the development of tailored support services, such as business coaching, access to funding, marketing assistance, and technical training.

Staffing is another critical component. It is essential to hire a dedicated incubation manager or coordinator well before the program’s launch. This role involves overseeing program development, managing day-to-day operations, and providing one-on-one support to participants. Additionally, consider bringing on board industry experts and mentors who can offer specialized knowledge and guidance. Providing staff with comprehensive training on incubation best practices ensures they are well-equipped to support the diverse needs of food entrepreneurs.

The benefits of in-house incubation services are significant. They can attract high-potential food businesses to your kitchen, foster innovation, and contribute to a vibrant entrepreneurial ecosystem. Successful incubation programs can also enhance your kitchen’s reputation, making it a sought-after space for aspiring food entrepreneurs. Moreover, incubation participants who graduate and scale their businesses often remain loyal members, providing a steady revenue stream and promoting word-of-mouth referrals.

Best practices for developing incubation services include setting clear milestones and evaluation criteria for participants, fostering a collaborative environment where participants can share resources and knowledge, and regularly updating the program based on feedback and emerging industry trends. Establishing partnerships with local business organizations, financial institutions, and educational institutions to provide comprehensive support to incubator participants is also beneficial. By implementing these strategies, you can create a robust incubation program that supports individual business growth and strengthens the broader food business community.

Third-Party Services

It is common for kitchens to offer services through a referral network and/or by inviting outside advisors, such as business coaches, lawyers, accountants, or marketing firms, into the facility to provide classes or drop-in hours. Many advisors will provide this service free of charge or for a nominal fee because it falls within their mission or business development/marketing goals. Working with outside advisors or organizations can be a cost-effective way to expand your services. However, coordinating and hosting classes and other events can take time, so you will still need to budget for this. It is important to screen service providers and partners carefully to ensure their services meet your standards. Check referrals of past members and peers to find out if they provide quality services in a fair and trustworthy manner. Sit in on a class or ask to see presentations before they teach. Consider writing up an agreement with these providers to make your expectations clear.

Online Offerings

There are a growing number of quality online programs to support aspiring food entrepreneurs and small-scale food businesses. These programs offer a range of classes, resources, mentorship, and guidance to help participants develop their food products and businesses. Incubators can leverage these programs for start-up education, freeing up staff resources for specialized education or individualized coaching.

Researching Services

If you intend to offer services, especially if you will be counting on revenue from these services, you should research what is available in your community and online. The goal is to identify service gaps and look for opportunities to differentiate your offerings from other service providers. This will help you avoid developing redundant services that may not be well-utilized. If you are not planning to provide services, you should still research services to develop your resource network for future referrals.

Focus your service research on assessing:

• What services are most needed?
• What services are offered by other providers and what is the quality of those services?
• How well are existing services meeting needs?
• How much interest/demand is there for services?
• What are the cost of services and willingness to pay?
• Are there opportunities for service partnerships?

 

This will give you the information needed to design compelling service offerings to advance your goals. Time spent researching services is beneficial even if you decide not to offer the services on-site. Knowing what is available to entrepreneurs and community members will enable you to make valuable referrals. Developing your network will also build awareness of your kitchen and help with future marketing.

Identifying Service Needs

Service needs are often discovered through your surveys, interviews, and/or focus groups. Interviews with entrepreneurs and producers will reveal common hurdles or pain points that create an opportunity to assist. These discussions also provide insight into their perception of a problem’s importance and how valuable they believe a given service would be to them. Entrepreneurs have many competing priorities. Understanding what they value will help you evaluate how likely they are to use and pay for different services.

Interviews will also help you understand if there are barriers for certain groups to access services, such as cost, location, transportation, childcare, computer access, or language. It will help to make a list of what you hear and classify the needs into categories so you can more easily compare them to existing services and design your own services.

Talking to others who work with your target businesses, such as service providers, business banks, licensing departments, and suppliers, can also reveal helpful information about service needs. Make notes of what preferences entrepreneurs have for service delivery, such as one-on-one or classroom learning, in-person cohorts, or virtual coaching. You can use the Value Proposition Canvas tools to help you focus your inquiry and distill your findings.

Remember that entrepreneurs can often benefit from services they do not know they will need. New entrepreneurs sometimes need to learn what is required or what will be needed in their next growth stage. For example, an entrepreneur may need the help of a process authority to be able to sell their product to retailers, but they may need to learn the term for this, what a process authority does, and where to find that kind of help. Because startups do not always know what to ask for, you will need to rely on your team and advisors in the food industry to identify additional needs.

Evaluating Existing Services

Service providers often recognize that businesses that are just starting need help navigating licensing requirements, developing a business plan, and/or managing their finances. As a result, there are often a number of organizations providing classes and services focused on the needs of startup businesses in a community. Some may focus specifically on food businesses, while others cover general business planning.

You should research these organizations to understand what they offer, whether they have food-industry-specific services, and what business stage(s) they focus on. There are often more services for launching than scaling a business. In your research, make a note of the following:

• Whether the service is tailored specifically to the food industry or small businesses in general
• The formats and delivery methods (one-on-one, online, classroom, etc.)
• The fee structure and available subsidized rates
• Their funding sources and/or business model

Reflect on how well these offerings match the needs, values, and delivery preferences you gathered in your research. Sometimes classes are abundant, but there is a lack of one-on-one assistance. A mentoring program may be the missing link in your entrepreneurial ecosystem. Sometimes, the classes are too general and do not address food industry concerns, such as licensing, food safety, margins, and packaging, as discussed in the Business Incubation Programs chapter.

Businesses need technical assistance on a wide array of food industry topics, from food testing to food photography, and there are often gaps in these services. This is where your services can stand out both in value and need. Consider the life cycle needs that businesses will have as they grow past the start-up stage. Market- and growth-oriented services are particularly beneficial if you are aiming to support scaling businesses to create jobs. Think about how to differentiate and avoid duplication, particularly if you are a nonprofit seeking funding for services.

Assessing Demand and Willingness to Pay for Services

In your research, try to determine how much the other services are being utilized. Are there several open slots or waiting lists? Entrepreneurs often recognize their need for help more than they act on it. As a result, it is common for businesses to express interest in more services than they will take advantage of. Try asking them to rank their interest in addition to their level of commitment to different services in surveys or interviews, which can help clarify their interest.

Asking survey and interview participants why they do not use existing services can provide an indication of whether it is a matter of awareness, time, location, or interest. As mentioned, discerning how important a problem or goal is to them also will give you insight into how likely they are to seek help with it and influence how likely they are to pay for it.

While some kitchens provide certain services for free, either to improve access or as part of their marketing, many service providers feel that charging a fee, either nominal or market rate, is necessary for entrepreneurs to recognize the value of the service and invest time in it. Use your fee research, insights from other kitchens/incubators, and your interviews and surveys to develop a proposed fee structure. Then, gather additional feedback from businesses about their willingness to pay. Showcasing success stories from your kitchen is a good way to validate your services to the public.

Cultivating Service Partnerships

Since you’re unlikely an expert in every area, it’s important not to attempt to provide all services on your own. Researching local service providers will help you build a strong network of referrals, experts, and potential partnerships. If you’ve identified a capable service or education organization in your area, consider forming a more formal partnership to offer valuable services. This could take the form of a preincubation course to prepare entrepreneurs for launching in your kitchen, a workshop on applying for business loans, or specialized coaching services tailored to help businesses grow.

Developing Ecosystem Partners

Regardless of your service model, you will want to develop strong networks within your local community
and the food industry. Successful kitchens do not operate in a vacuum. They are integral players in their
community’s economy and food system. Depending on your mission, business model, and programming,
you will want to develop a wide range of relationships that may include:

 

 

These partners will help you understand the needs in your community and among the businesses you seek to serve. Cultivating partnerships will also expand your ability to offer programming and services in a cost-effective way. Ideally, your partnerships will deepen the impact of your project and create efficiencies that make your work easier and more valuable to members. Collaborations can also raise the profile of your kitchen and build a reputation that attracts renters and special users. Additional benefits of partnerships include:

• Expanding your capacity: Partnerships can help you achieve your mission and provide valuable services with limited staffing and budget.
• Skill and knowledge sharing: If there is a strong demand for services, such as food safety classes, that are outside your expertise or business model, take the opportunity to let other kitchens and service providers in your area know so they can help meet the need.
• Increased buying power: Collectively sourcing ingredients and bulk ordering supplies can often reduce costs and help make local purchasing more viable.
• Increased visibility: Leveraging partners to market your services, events, and rental opportunities can help build awareness of your kitchen.

Tips for creating partnerships:

• Make it mutually beneficial: Ensure both parties bring value to the table. What are each of you receiving? What are you able to give in return?
• Be efficient: Forging new partnerships can take time, which is a hot commodity when launching a kitchen.
• Define expectations: Be clear about who will bring what to the table. If necessary, create a memorandum of understanding or a contract stating each party’s responsibilities.
• Spread the word: Once you have formed a working partnership, tell those who may be interested. Did your kitchen just partner with a labeling company for discount pricing? Did you develop a sourcing relationship with a local producer network? Have you developed a new co-packing service with a workforce training program? Make sure you communicate this to your members to maximize the impact.

 

Shared Kitchen Ecosystem

According to the 2023 Shared Kitchen Operator Survey, successful kitchens frequently collaborate with a diverse array of partners, each contributing vital resources and support to the kitchen’s ecosystem. Below are the types of partners named most often:

 

The good news is you don’t have to tackle all of this alone. Shared kitchen operators have access to a wide range of resources designed to support their growth, enhance their competencies, and foster continuous learning. These resources include specialized training programs, mentorship from industry veterans, and educational materials that cover everything from food safety regulations to advanced business strategies. Industry associations and societies offer additional support, providing operators with the latest insights and best practices. Networking events and business development services, such as those provided by SBDCs or chambers of commerce, also play a crucial role in connecting operators with peers and experts who can offer guidance and support. Seeking out these relationships and building a robust support system is essential, as it empowers operators to stay ahead of industry trends, overcome challenges, and drive the success of their kitchen. By actively engaging with these resources, operators can ensure they are well-equipped to manage their facilities, support their members, and contribute to the broader food entrepreneurship ecosystem.

 

Food Entrepreneurship Ecosystem

 

These resources reflect the diverse support systems available to shared kitchen operators, emphasizing the importance of networking, mentorship, educational support, and community engagement. See the References chapter of this Shared Kitchen Toolkit for listings and links to resources that can help support your success.

Take the time to understand service needs, existing services, and service delivery models to craft a distinctive, competitive offering. See the above section, Researching Services, for further guidance. You may be able to differentiate by serving a different customer segment or delivering the service in a superior or more efficient way. As previously discussed, many kitchens add value through partnerships or a trusted referral network.

• Think carefully about what assets you can bring to make your services a compelling option for your target businesses. Consider how the services align with your organization’s strengths and your management team’s knowledge. If your team has experience scaling a product for national distribution, services leveraging that experience and sales network will be a natural fit. Focusing on technical services can be an excellent way to leverage those assets if you are a university or organization with food science expertise. Co-packing might be a viable addition if your team has food production experience.
• Think also about organizations you can partner with to create valuable synergies and bring additional expertise to your project. For example, The Hatchery in Chicago, IL, is a partnership between a microlender, Allies for Community Business, and an incubator/business development program, Industrial Council of Nearwest Chicago. This partnership supports a wide array of food business growth services as well as access to microloans, in addition to their new 67,000-square-foot production facility.
• Think about how the proposed services align with the goals and outcomes you outlined at the beginning of your planning process. Resist the temptation to veer into new activities that do not serve your ultimate aims. Use the strategy screen you created to filter service options. Use the Business Model Canvas to work through the different service options, revenue, and funding approaches. This will help you consider what resources and partnerships they would require and keep you focused on refining your value proposition.

Monetizing Services

There are a variety of ways to generate revenue from services, depending on your market and business model. Shared kitchens and incubators often use a variety of fee structures for different services. Some of the variations include:

• Bundled services. Services are included as part of a package. For example, a set of advising hours included with a membership or a standard storage unit provided with a block of hours rented monthly.
• Membership-based services. Charging for the opportunity to belong, participate, or have access to membership benefits.
• Hourly fees. Time-based billing is common for advising/consulting services.
• Monthly fees. Recurring monthly fees are often charged for optional, ongoing services such as mailboxes or receiving.
• Flat rate fees. Special fees for specific activities such as product testing services or events.
• Volume-based pricing. Prices that go down with volume, such as co-packing unit costs or purchasing discounts.
• Percentage or margin. Distributor markup or a percentage of equity or sales for accelerators, etc.

 

Estimating Profitability

When designing your services and business model, be realistic about what it will cost you to provide the service and whether it will break even, make money, or need to be subsidized by other revenues. Revenue sources require inputs of time and other resources, and it is easy to overlook or undervalue these costs when planning. Calculate the net income for each service to figure out how a service contributes to your bottom line. Here are a few tips:

• Identify service coordinators. Determine which position(s) will be responsible for coordinating or delivering the service. This could include an operations manager, kitchen staff, or external consultants.
• Calculate staff time and costs. Assess how much time the staff will dedicate to providing the service. Include their salary or wages in your calculation, factoring in additional costs such as benefits, taxes, and insurance. If you, as the owner, are the only one involved, estimate an annual salary for yourself to use in the analysis.
• Consider additional support. Factor in any extra time or resources needed to support the service, such as planning, bookkeeping, or cleaning costs.
• Compare costs with revenue. Compare the total staffing and resource costs with the estimated revenue generated from the service to determine the net income.
• Evaluate resource use. Reflect on how this compares to alternative uses of those resources, such as staff time or space. Plot the service on a sustainability matrix to assess whether it’s worth the investment, considering both profitability and impact on your goals.

Collecting Outcome Data

Nonprofit and incubator kitchens often collect demographic and business data needed to evaluate whether they are meeting their mission and to report outcomes to funders and stakeholders. It is a good idea to collect this during the intake process so you have baseline data for measuring the impact of your program over time. Demographic data often includes gender, race, ethnicity, immigration, language(s), income/assets, household composition, education, and public benefits received. Baseline business data often focuses on years in business, revenues/profits, sales channels, training, previous businesses, capital raised, business plans, and goals. Reflect on your kitchen’s mission, expected outcomes, and funding requirements to determine which information you need. La Cocina Nonprofit Incubator’s application provides an example of a comprehensive data collection effort aimed at qualifying applicants for incubation and reporting on mission-related outcomes. It is available on their website.

If you are asking for sensitive data, explain why the information is vital to your mission and how you will use it. Include a confidentiality statement on the form, and be sure to safeguard their privacy when storing and reporting data. If you are requesting information on a recurring basis, such as annually, for outcomes reporting, explain these requirements during the onboarding process so there are clear expectations for the future.

Final Thoughts

Developing a comprehensive services plan is essential for maximizing the impact and sustainability of your shared kitchen. By understanding the needs of your members and carefully planning your offerings— whether through in-house services, third-party partnerships, or online platforms—you can create a support system that fosters growth for food entrepreneurs while generating valuable revenue streams for your kitchen. Thoughtful planning, resource allocation, and building strategic partnerships will position your kitchen as a vital resource in your community. Check out the Alchemist Kitchen Case Study for a great example of how to plan, test, and iterate on services that eventually led to a physical kitchen space.

In the next chapter, we turn to market research. This essential step will guide you in understanding local market conditions, identifying your target audience, and analyzing the competitive landscape. You’ll learn how to conduct surveys, interviews, and focus groups to gauge demand for kitchen space and services, as well as how to assess entrepreneurial activity and real estate trends in your area. Thorough market research will provide the foundation for strategic planning, ensuring that your kitchen is well-positioned to meet the needs of local entrepreneurs and thrive in its market.