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Starting a business in GA /checked out shared kitchen YIKES!

post #1 of 23
8/23/09 at 4:36pm
Thread Starter 
I recently took a tour of the only "for profit" shared kitchen space that I could find in the entire state of Georgia. WOW - is it ever cost prohibitive! You have 3 levels of membership options - the lowest being $450/month which will give you only 20 hours per month. You must sign a contract for a 6 month commitment. You also must put down 1 month's security deposit. In addition, before you become a member, you must must take a "Serve Safe" course ($150) then take the test to be certified in food safety and sanitation ($100). I addition to that, you must provide proof of liability insurance ($600-$800/year). Then you need to pay the local business license taxes. Is all this normal? That is WAY too expensive for my blood. I'll have to go another route but I'm at my wit's ends trying to figure this out. I lost my job in corporate America and decided now is the time to pursue my dream. Any thoughts on this would be HUGELY appreciated!
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post #2 of 23
8/23/09 at 5:01pm
I can't give you any advice on the business really, but I just graduated from a culinary program and have the servesafe, that is the foodsafety and sanitation course, and it lasts for 4 years, I got a quote for liability insurance for only $250 for a milloin dollar coverage 2 million aggregate, But I think that is a lot of money for only 20 hrs per month you will have to be making a whole lot of cakes to cover all the costs and make a profit, maybe you can look around and see if you can find a reasonable store front, just my suggestion I really don't have much advicw to give, But I am sure some of the business owners will have plenty
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post #3 of 23
8/23/09 at 5:16pm
Not sure what you are expecting? Those are the costs of doing business, not "hobbying". Incubator kitchens are there to help get you launched; meaning enough business orders coming in so you can eventually move into your own space. Things take time to develop, so mass orders won't happen right away anyways. That doesn't sound like a bad setup to me at all.
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post #4 of 23
8/23/09 at 5:27pm
I agree w/CakeForte. You might be able to come up w/cheaper insurance if you shop around.
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post #5 of 23
8/23/09 at 6:48pm
Thread Starter 
It a "bad set-up" if you're unemployed. I guess I was looking for some advice rather than going this route. How do you go from the "hobby" stage to selling your stuff when there isn't a lot of capital?
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post #6 of 23
8/23/09 at 6:59pm
It looks like in GA you don't have a lot of options. You can not bake and sell from your home, so a rental kitchen has to be an option. Other than that, just save your money until you can afford to strike out in your own property, or take out a ton of loans.
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Answers to the most often asked questions re: SPS. SPS instructions are on Page 15 of the Sticky at the top of the Cake Decorating Forum. Supplies can be ordered from Oasis Supply, Global or BakeryCrafts.
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post #7 of 23
8/23/09 at 10:47pm
Those prices all sound about right when working out a commercial establishment. You could price shop for insurance (contact K8 Memphis, she's got 411 on insurance). And like Leahs said, I don't see many other options, unless yoou save and wait or keep looking. I hope it all works out and Good Luck!
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post #8 of 23
8/24/09 at 10:17am
Another option is to contact local coffee shops etc. and see about just renting a little space from them and putting your product in there they may want to add an item or two as well. Also you could approach some restaurants with this idea I know of someone who did cakes out of a kitchen like that.
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I will be working on some projects to raise money for different foundations i.e. Breast Cancer research etc. starting in Jan. that I will give all Cake Decorators a chance to participate in. looking forward to talking to you all soon.
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post #9 of 23
8/24/09 at 12:18pm
I was in your same boat a couple of months ago. I checked that same location and couldn't rationalize what they were charging. I rent kitchen space in my home town for $10.00 and hour. I do have insurance for a lot less. I pay $26/month that covers liability. I wasn't required to take any courses or any additional fees. The law states that in GA you must cook outside your home, but you may decorate in your home (small print says make frostings in licensed kitchens).

I am saving money to renovate part of my basement into a commercial kitchen. I do catering and baking so I don't need a storefront, just a kitchen and a small area for customers. The law states that you must have a separate kitchen with its own entrance.

Good luck, don't give up!
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post #10 of 23
8/24/09 at 4:19pm
Quote:
Originally Posted by kakeladi

I agree w/CakeForte.



Me, too. It works out to about $20 +/- hour, which seems to be the norm. If you're doing this as a business, of COURSE you have to be Food Safe certified and insured and licensed .... why would you NOT want to do those things? icon_confused.gif

And there is a bright side. You don't have to pay $10K-$25K for the build out; you're not laying out $10K to $45K for kitchen equipment; and (it sounds like) you're not responsible for the monthly utility expenses.

Welcome to the World of Business, and all of the expenses and responsibilities that go with it! thumbs_up.gif
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post #11 of 23
8/24/09 at 6:57pm
Quote:
Originally Posted by mscheeks

Another option is to contact local coffee shops etc. and see about just renting a little space from them and putting your product in there they may want to add an item or two as well. Also you could approach some restaurants with this idea I know of someone who did cakes out of a kitchen like that.



I was going to suggest this, too.

Good luck to you! I hope you can find something to suit your needs!
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post #12 of 23
8/25/09 at 11:22am
Sweetriley, what county are you in?
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post #13 of 23
8/26/09 at 9:42am
Hi!

I live in Metro Atlanta. West of Atlanta, actually. I called the Health dept., Dept. of Argt. and I was told I can have a kitchen in my basement. This kitchen COULD NOT be used for "regular" meals. Of, course you have to get it all certified with the state, and get a business lic. However, the one key thing that was told to me is that the Health inspector must enter this kitchen, WITHOUT GOING INTO THE NORMAL living space of your home. Meaning, you must have your own entrance/exit door to this kitchen.

You can also try buying a seperate small building and place it on your property. It would of course have to be set up with electricity, plumbing etc. This is what I am going to do.....eventually. It will take time....and money..

HTH

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post #14 of 23
8/26/09 at 10:22am
Quote:
Originally Posted by Mikel79

Hi!

I live in Metro Atlanta. West of Atlanta, actually. I called the Health dept., Dept. of Argt. and I was told I can have a kitchen in my basement. This kitchen COULD NOT be used for "regular" meals. Of, course you have to get it all certified with the state, and get a business lic. However, the one key thing that was told to me is that the Health inspector must enter this kitchen, WITHOUT GOING INTO THE NORMAL living space of your home. Meaning, you must have your own entrance/exit door to this kitchen.

You can also try buying a seperate small building and place it on your property. It would of course have to be set up with electricity, plumbing etc. This is what I am going to do.....eventually. It will take time....and money..

HTH

=)



Unfortunately, all counties don't allow this. I live in Cobb County and was told by the Cobb County Health Department that I would not be allowed to build a commercial kitchen in my basement, even though it is closed off from the rest of my house and has a separate entrance. I was told that they also don't allow you to bake in another business's commercial kitchen. The only options in Cobb County are to have your own retail shop or to bake in an incubator kitchen. So unless I either win the lottery or an incubator kitchen opens somewhere near me, I am out of luck. Hope that's not true for you too!
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post #15 of 23
8/26/09 at 10:28am
[quote="Kpow"]
Quote:
Originally Posted by Mikel79

I was told that they also don't allow you to bake in another business's commercial kitchen.

Wow, that is odd! icon_eek.gif Wonder what their logic is?
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