Starting a commissary kitchen can generate solid profits while serving food entrepreneurs in your area. This business model requires careful planning but offers steady income potential.
You will get find 5 steps on How to prepare for kitchen renovation. However the steps are 1. Establish your parameters, 2. Look for properties, 3. Learn rules and regulations , 4. Kitchen Design,5. Install equipment.
Commissary kitchen profitability
Commissary kitchens generate revenue through multiple streams:
• Hourly kitchen rentals ($15-50 per hour) • Monthly memberships ($200-800 per month) • Storage fees ($50-200 per month) • Equipment usage fees • Utility surcharges
Your profit margins depend on occupancy rates and operational costs. Well-run facilities achieve 60-80% occupancy within two years.
Who are your renters?
Your target customers include:
• Food truck operators • Catering companies • Meal prep businesses • Online food sellers • Pop-up restaurant owners • Food product manufacturers • Bakers and pastry chefs
These businesses need commercial kitchens to meet health department requirements. They can’t operate from home kitchens legally.
How much do commissary kitchens make?
Revenue varies by location and size:
• Small facilities (1,000-2,000 sq ft): $5,000-15,000 monthly • Medium facilities (3,000-5,000 sq ft): $15,000-35,000 monthly
• Large facilities (5,000+ sq ft): $35,000-75,000 monthly
Net profit margins typically range from 15-25% after covering rent, utilities, insurance, and maintenance costs.
Location matters. Urban areas with active food scenes generate higher revenues than rural markets.
how to prepare for kitchen renovation? Step by Step
1. Establish your parameters
Define your business scope first:
• Target market size and demographics • Budget for startup costs ($50,000-300,000) • Desired facility size (minimum 1,500 sq ft recommended) • Services offered (just kitchen space vs full-service facility)
Research your local market. How many food businesses operate in your area? What kitchen facilities already exist?
Survey potential customers. Ask about their current challenges and pricing expectations.
2. Look for properties
Find the right location:
• Industrial or commercial zones (residential areas prohibited) • Ground floor access for easy loading • Adequate parking for customers • Public transportation accessibility • Proximity to your target market
Property requirements:
• High ceilings (minimum 10 feet) • Multiple electrical outlets (220V and 110V) • Strong ventilation systems • Floor drains in kitchen areas • Separate entrance from other businesses
Negotiate lease terms carefully. Include provisions for kitchen modifications and equipment installation.
3. Learn rules and regulations
Contact your local health department first. Requirements vary by city and state.
Common regulations include:
• Commercial kitchen licensing • Food handler permits • Fire department approvals • Building permits for renovations • Zoning compliance • ADA accessibility requirements
Some areas require commissary-specific licenses. Others treat them as standard commercial kitchens.
Build relationships with inspectors early. They become valuable resources during the approval process.
4. Kitchen Design
Design for efficiency and compliance:
• Separate prep areas for different food types • Hand washing stations every 20 feet • Three-compartment sinks for dish washing • Adequate refrigeration and freezer space • Dry storage areas • Office space for administrative tasks
Work flow matters. Design logical paths from receiving to storage to prep to cooking to packaging.
Hire a commercial kitchen designer. They understand health codes and can prevent costly mistakes.
5. Install equipment
Essential equipment includes:
• Commercial ranges and ovens • Refrigerators and freezers • Prep tables and cutting boards • Dishwashing equipment • Food storage containers • Cleaning supplies
Buy used equipment to reduce startup costs. Restaurant supply auctions offer quality pieces at lower prices.
Consider lease-to-own options for expensive items like walk-in coolers.
Install equipment in phases. Start with basics and add specialized tools as demand grows.
Kick the commissary kitchen and instead go ghost: The benefits of ghost kitchens
Ghost kitchens might work better for your situation:
• Lower startup costs ($20,000-75,000 vs $50,000-300,000) • You control the food operation directly • Higher profit margins per square foot • Growing market with delivery apps • Less regulatory complexity
Ghost kitchens focus on delivery-only food service. You cook and fulfill online orders without a dining room.
Consider your skills and interests. Do you want to manage property and tenants? Or would you prefer running your own food business?
Both models can succeed. Choose based on your strengths and market conditions.
FAQ
What is an example of a commissary food service?
A commissary food service might be a central kitchen that prepares meals for multiple school districts. The commissary cooks thousands of meals daily, then distributes them to individual schools for serving.
Another example: A restaurant chain uses a commissary to prep ingredients and sauces. Each location receives pre-portioned items to ensure consistency across all restaurants.
What is a commissary kitchen?
A commissary kitchen is a licensed commercial kitchen space that multiple food businesses share. Renters use the facility to prepare food legally for sale to the public.
These kitchens provide equipment, storage, and prep space that individual food entrepreneurs can’t afford alone. They meet health department requirements for commercial food production.
What is another name for a commissary kitchen?
Commissary kitchens go by several names:
• Shared commercial kitchen • Rental kitchen • Co-op kitchen
• Community kitchen • Incubator kitchen • Cloud kitchen (when focused on delivery)
Now , We believe you know well , how to prepare for kitchen renovation.
