Many restaurant and cooking-related startups begin in the kitchen. One such story was Starry Kitchen, which began in an apartment in Los Angeles. A married couple was making incredible Asian fusion food and selling (by donation) from their apartment in North Hollywood. They soon landed some restaurant space, thanks to a partnership, added some items to the menu and went mainstream. In the competitive climate of Los Angeles, they didn’t last long term. The kitchen did close, but the experience spawned something more for the couple.
Stories like that one drive entrepreneurs to pursue these ventures. The challenge is bridging the gap from home business to professional venture.
New owners may struggle following health codes, finding real estate, or investing in kitchen supplies like commercial refrigerators and gas range stoves to accommodate the orders the restaurant will take. That takes capital, smart investing, and the ability to navigate the many demands of ownership.
Consider Your State’s Business Climate
Some states are more business-friendly than others. In California, there are health codes and food guidelines specifically for food trucks and carts, allowing anyone with a modest budget to get into the business of making and selling food publicly.
Meanwhile, Connecticut has some of the most restrictive laws. They have outlawed the sale of food produced in any room that has been used as a sleeping or living quarter, unless that home is owned by a residential farmer. So that means no bake sales to fundraise, as well as strict laws on getting into business.
Find Alternative Ways Into the Market
One of the side effects of the California law that authorized home-based cooking businesses was the new market it has created. A growing market online encourages users to place orders for meals either sent in a box, to be prepared quickly and easily, or sometimes by a chef who shows up at one’s house.
Food trucks, where legal, also provide a cost-effective way to enter the restaurant business without being chained to a location. The freedom to remain mobile is a major advantage, because restaurant locations rely on foot traffic and good advertising, whereas food trucks have a variety of methods to promote and provide a product to entirely different audiences each day.
Source Local Suppliers When Possible
Buying local cuts down on transportation costs, which is a major factor in the final price of a product. Even in batch orders, you can still spend a lot on shipping costs. Bulk orders can be heavy, and moving heavy items is expensive. Even small products, like utensils or ingredients, can be a lot less expensive when you source local suppliers. Especially when it comes to fresh vegetables and fruits that are in season.
A local supplier might even provide in-person pickup so you absorb the costs and pay less by doing it yourself. It might be a chore to drive out to a specific location each day, but the revenue can help you launch. Plus, enough business will help you secure better distribution deals so you can have product delivered to you.
The Risks to Offering a Competitive Service
One of the risks in this budding market is that you might break some rule you’re unfamiliar with. For that, you need to remain vigilant and secure some legal aid in the event the worst happens. Remember the guidelines for transporting and storing most major foods you’re likely to sell. Most importantly, if you don’t know then you should ask.
