CASE STUDY FEED Kitchens · CASE STUDY FEED Kitchens Background In cities and countries throughout...
Transcript of CASE STUDY FEED Kitchens · CASE STUDY FEED Kitchens Background In cities and countries throughout...
CASE STUDY
FEED Kitchens
Background
In cities and countries throughout the world,
food systems are central to building sustainable
local economies and creating jobs1. In the
United States alone, there is a $1.8 trillion food
industry that represents nearly 18% of the
economy2. Given the magnitude of the market,
a range of community and economic
development models leverage food systems to
create economic opportunities and to increase
community capacity3. One such approach to
food systems is a business incubator model.
Incubators provide wrap-around support to
startup and early-stage businesses with the goal
of developing financially viable companies4.
Services within a food incubator model can
include: skills training, food safety and
regulation education, business and technical
assistance, resources around access to capital,
as well as space and equipment for food
preparation, packaging, storage, distribution,
retailing in stores and online and connections to
potential buyers and consumers1,4,5. Food
incubators are appealing to start-ups because
they remove many of the upfront costs of
leasing or purchasing a commercial kitchen
space and equipment and lower the risk of early
failures be providing wrap-around support4,5.
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FEED Kitchen’s Story
In November of 2013, Food Enterprise & Economic
Development (FEED) Kitchens opened, offering food vendors
an accessible, affordable and professional commercial
kitchen space. Located on Madison’s Northside, FEED
Kitchens is a project of the Northside Planning Council (NPC),
and home to nearly 80 food businesses including bakers,
caterers, professional chefs, coffee roasters, meat smokers,
sauce makers, spice mixers and cake decorators. FEED
Kitchens is managed by Adam Haen, an experienced
Wisconsin chef and expert navigator when it comes to
helping food businesses complete licensing and approval process, as well as finding markets and making
connections for their products and services. In 2016, NPC added the FEED Bakery Training Program and Healthy
Food for All, providing additional opportunities and resources to low-income residents on the Northside and
beyond.
However, getting FEED Kitchens up and running has been no small undertaking. In addition to the specialized
nature of building a commercial kitchen, FEED Kitchen’s business model is unique, and not all lenders got it
when it was first pitched to bankers. Fortunately, Invest in Wisconsin partner Forward Community Investments
(FCI) saw the potential right away and was able to provide a $265,000 loan. Reflecting on her experience with
FCI, NPC’s Executive Director, Abha Thakkar, says that the relationship is FEED Kitchen’s “most valuable
partnership”.
“At every turn, FCI has provided everything we need –consolidation and refinancing,
support, great interest rates, New Market Tax Credits, staff time, and sound advice. The
staff at FCI treated us with such respect – even when I didn’t have the financial
vocabulary. We love our relationship with FCI because we never have to worry; they never
try to sell us anything. Rather, they work to facilitate our mission, and we wouldn’t be
here without them”.
Moreover, a second Invest in Wisconsin partner, the Wisconsin Women’s Business Initiative Corporation
(WWBIC), has developed a unique partnership with FEED Kitchens. While WWBIC provides financial and
technical support to several FEED Kitchens vendors, Haen delivers food business development training to several
WWBIC clients – even if they are not FEED Kitchens vendors – through NPC’s MarketReady Program. Thakkar is
pleased with the collaboration between FEED Kitchens and WWBIC noting the “symbiotic relationship” between
the organizations. For Invest in Wisconsin, FEED Kitchens serves as a unique example of how our partners have
come together to provide a myriad of financial and technical assistance services to support a thriving
neighborhood program.
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Social Impact
The socioeconomic benefits of FEED Kitchens are many. “The
members of FEED Kitchens are deeply invested in the space”, says
Thakkar. “In many instances, FEED Kitchens literally facilitates
[members’] livelihood”. The model for FEED Kitchens focuses on
building the local food economy from the bottom-up and
including a diverse group of vendors. Nearly half of the vendors
are owned by people of color, women and veterans, which is
consistent with findings from other food incubators that have had
success in promoting racial and gender equity in the food
industry. In general, over a third of food incubator participants
are minorities and over half are female4.
Research also suggests that shared-use commercial kitchens:
can have many positive local economic impacts on the community. Since all parts of the food system are
dramatically affected by the creation of a shared-use kitchen (farmers, suppliers, marketers, printers, packagers,
buyers, and consumers), the economy is impacted in all parts of the process…A shared-use commercial kitchen
can also heighten social well-being and emphasize the importance of local public engagement. These kitchens
can increase food security by making locally grown foods available year round. Since locally produced products
are likely to be fresher and less processed, increasing community access to these foods is better for human
health. These kitchens can also provide work opportunities for community members in need 3(p10).
Invest in Wisconsin partners are proud to support FEED Kitchens and their vendors, and we look forward to their
continued success!
References
1. The World Bank. (2017) Future of food: Shaping the food system to deliver jobs,
http://www.worldbank.org/en/topic/agriculture/publication/the-future-of-food-shaping-the-food-system-
to-deliver-jobs. Access date: September 5, 2017.
2. Marguerite Casey Foundation & Policy Link. (2016). An equitable food system: Good for families,
communities, and the economy, http://www.policylink.org/find-resources/library/casey-equal-voice-series-
equitable-food-system. Access date: September 6, 2017.
3. Conover, Rubchinuk, Smith, & Cortez. (2015). History of shared-use commercial kitchens: A case study
analysis of kitchen success. Community Engaged Research Reports. 30,
http://scarab.bates.edu/community_engaged_research/30/. Access date: September 5, 2017.
4. National League of Cities. (2016). Food-based business incubator programs,
http://www.nlc.org/sites/default/files/2017-02/Food-Based_Business_Incubator_Programs.pdf. Access
date: September 5, 2017.
5. Topaloff. (2014). The shared-use kitchen planning toolkit. Leopold Center Pubs and Papers. 33,
http://lib.dr.iastate.edu/leopold_pubspapers/33. Access date: September 6, 2017.