CASE STUDY FEED Kitchens · CASE STUDY FEED Kitchens Background In cities and countries throughout...

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CASE STUDY FEED Kitchens Background In cities and countries throughout the world, food systems are central to building sustainable local economies and creating jobs 1 . In the United States alone, there is a $1.8 trillion food industry that represents nearly 18% of the economy 2 . 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 capacity 3 . 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 companies 4 . 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 consumers 1,4,5 . 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 support 4,5 .

Transcript of CASE STUDY FEED Kitchens · CASE STUDY FEED Kitchens Background In cities and countries throughout...

Page 1: CASE STUDY FEED Kitchens · CASE STUDY FEED Kitchens Background In cities and countries throughout the world, food systems are central to building sustainable local economies and

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 Kitchens Case Study | 2

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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FEED Kitchens Case Study | 3

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.