HIGHLIGHTS
High demand business that is very hard to find and build due to city and county regulations, zoning, parking, etc. This is a very simple business that is run mostly absentee. The Health Department requires all food businesses(other than a few that can be done at home), to operate out of a licensed kitchen. Most kitchen rental businesses are at or near capacity so getting new renters is easy.
SERVICES / CUSTOMERS
Shared kitchen rental business with 2 locations. Customers sign up for use by the hour or flat monthly rate. Every square inch of the facility is leased separately: Prep and cooking area (by time), and storage in refrigerators, freezers, shelves, and lockers. Also food truck parking is rented by the space. There are electrical outlets for trucks with on-board refrigeration.
MARKETING
No active marketing. Customers find the business through google searches that show his website and a list that the Health Department has of licensed commercial kitchens.
COMPETITIVE ADVANTAGE
There are a limited number of kitchen rental businesses due to the extreme difficulty in finding locations that allow the use and have the parking, as well as the high cost and time it takes to build the kitchens.
POTENTIAL
The current owner is rarely at the kitchens and does not monitor the actual hours used by renters very well. He estimates that up to 20% of hours are not reported. There is also another 20-25% more capacity for more kitchen renters. The busienss is run very loosely and nothing is automated such as the schedule. An new owner should have online signup and monitoring of hours as most other kitchen rental businesses do.
SELLER'S ROLE IN OPERATION
Meeting with new potential renters. The operation is mostly self run by the renters.