Commercial kitchens are drawing an increasing amount of attention and interest from business owners in the F&B industry as not only are they cheaper alternatives to traditional restaurants, but they also deliver huge profits. In India, many more restaurateurs are embracing this new model and are actively seeking commercial kitchen spaces for rent.
Given the plethora of benefits and opportunities that await businesses looking to tap into new, lucrative markets, it’s obvious to see why there is rising demand for commercial kitchens. However, before renting one, there are numerous dos and don’ts that you should be aware of.
Know how much space you will need
Before venturing out and finding a commercial kitchen space that is available for rent, you have to know how big you need the unit to be. When considering this, think about the number of orders you expect to get on a daily basis and how many members of staff need to be in your kitchen to keep up with all the demand. Simply put, stay within your means and have a budget in place for this.
DO: Think about the size of the kitchen space and whether it will help you fulfil your business needs.
DON’T: Pick the biggest space as it can lead to your business suffering from severe financial ramifications.
How long will you use the kitchen unit?
There’s no point renting a commercial kitchen space full-time if you only intend to use it for a few hours. For example, if you run a traditional Indian restaurant, it’s likely that you won’t need to be open as late as a pizza delivery business.
DO: Consider how long you need the kitchen space for as it will save you money in the long run.
DON’T: Find a commercial kitchen space for rent and assume you need to work out of it 24/7.
Know how much you need to sell
When you move into a commercial kitchen space for rent, you should have a clear idea of how much food you need to sell, and at what price, in order to achieve the profit margins you need to keep your business afloat. This will have a direct impact on the size of the kitchen space you need, along with the equipment you will need.
DO: Consider the amount of food you need to prepare to hit your revenue and profit goals as this will give you a clear indication of how many hours your business needs to operate.
DON’T: Make too much food and assume it will sell. No business wants to throw produce into the bin as it is a massive waste and will hurt them financially as well.
Have all your equipment on hand
When moving into any kitchen space, you should take a good look at what equipment is already available and whether it is in good working order. Upon assessing that, you can determine what apparatus you need for your business. Make sure you have all the basics, such as pots, pans, fridges and freezers, along with specialist equipment that will be needed to make certain dishes for particular types of cuisine.
DO: Make a note of all the equipment your kitchen unit comes with and purchase only what you truly need.
DON’T: Buy too much equipment as it will harm your finances.
Is the location the right one?
Picking the right location is essential to the success of your business as you need to be in an area where there is good demand for your food. If you specialise in delicious Indian delicacies like biryanis, curries, and scrumptious snacks like crispy samosas, you will definitely want to be in an area that is in close proximity to homes, offices, and educational institutions. It’s also essential to be near your suppliers and in an area where your food stands out so that it becomes a hit with the locals.
DO: Spend the time finding the right location when searching for a commercial kitchen space to rent as this will allow your business to tap into a lucrative market.
DON’T: Select a location without doing your research as it can do more harm than good.
What type of commercial kitchen adheres to your requirements?
A commercial kitchen is a space that is shared by multiple businesses, but there are numerous sub-variants available. These include:
Catering kitchens – Restaurants that operate out of these units usually have to fulfil massive orders, thus requiring more staff and a larger space. In most cases, they are usually off-site facilities for businesses as their on-site kitchens can’t meet the huge demand for their food.
Ghost kitchens – Eateries with a delivery-only business model will find this the best kitchen space to rent. At KitchenPlus, our ghost kitchens are located in some of India’s biggest cities, so that restaurateurs can start delivering food to an established customer base right from the get-go.
Central production units – Businesses that use these facilities usually prepare meals that are subsequently taken to another location and served to customers. Most restaurateurs that opt for these premises do so in order to cut down the size of their workspaces or don’t have the necessary permission to make hot food in their own kitchens.
DO: Research which type of commercial kitchen space for rent is best for your business model. Just note that catering kitchens can be used part-time or around the clock, and can be shared or privately owned. In regards to ghost kitchens, it is imperative to choose the correct size and location as it will have a major impact on how well your business fares.
DON’T: Believe that all kitchen spaces available for rent are exactly the same. There are key differences between them, and you should do your homework before moving into any unit.
Get the necessary licences for your commercial kitchen
All businesses in India, including traditional restaurants and commercial kitchens, require certain licences to operate. At KitchenPlus, we take care of all the paperwork so that you can focus on getting ready for business.
DO: Check you have all the required licences to run your business, so that you don’t breach any laws.
DON’T: Be careless and simply assume you have everything in place. It is important to check all your licences and permits are in order, along with knowing when they will need to be renewed.
Have you got all the necessary safety equipment?
When it comes to safety, there is no room for error. You must have all the required equipment present in your kitchen space so that your employees can handle any situation that may arise.
DO: Conduct a thorough inspection of your safety equipment to ensure everything is there and working properly.
DON’T: Neglect the safety of your staff by cutting corners when it comes to safety equipment.
Read through the terms of your contract
When you find the ideal commercial kitchen space for rent, it is essential to check through the terms of your contract so you don’t get any nasty surprises down the line. Keep a close eye on the following:
- When rent needs to be paid
- Does a break clause exist
- The deposit requirement
- Potential hidden costs
It’s obviously enticing to sign right away and get started on your F&B adventure, but you can protect yourself from getting burned just by checking what is included in your rental contract.
DO: Go through your contract properly to ensure you know about all the terms and conditions listed.
DON’T: Jump the gun and sign your agreement as you could end up regretting it in the future.
Ready to move in to your very own commercial kitchen?
With all the dos and don’ts we have covered, you now know everything you must do when moving into a commercial kitchen space for rent. These pointers provided will ensure you have all the pieces in place to let your business blossom.
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