A kitchen incubator, also known as a culinary incubator, is a business incubator dedicated to early-stage catering, retail and wholesale food businesses, the kitchen incubator enables a business to develop to the stage where it can invest in its own kitchen facilities.
Kitchen incubators share the wider business ideals operated within business incubators and will usually assist their tenants with business planning, access to finance, mentoring, and other business facilities.
The concept relies on the fact that FDA and state regulation prohibit the sale of food that is not produced in a licensed facility. Culinary start-ups are unlikely to receive venture capital or bank financing, as profit margins are too slim and volatile for such a highly competitive market. Food products must be tested and tweaked over time before they are economically viable. Even once proven viable, the entrepreneur must navigate a complex network of regulation, packaging and distribution before running a profitable enterprise. This entrepreneur often lacks a business background and an understanding of what is involved in the start-up process. A study of individual demand for kitchen rentals reveals that start-up costs and licensing complications are the two main deterrents to opening a private kitchen. Availability and reliability are listed as the two major deterrents for aspiring entrepreneurs.