This programme has been funded with support from the European Commission

1. Module 3 - Food Incubator Business Operations This programme has been funded with support from the European Commission

2. In this module, learners will learn the nuts and bolts of running a food incubator. It covers:- 3.1 Creating a community 3.2 Managing an incubator 3.3 Licensing models for operators 3.4 Kitchen management protocols 3.5 Adding value to your incubators – additional services Click Here to Type "The European Commission support for the production of this publication does not constitute an endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsi­ble for any use which may be made of the information contained therein."

3. Click Here to Type 3.1 Creating a community

4. Obviously, a food incubator’s physical facilities and services (basic and advanced) are critical to an incubator’s success, but creating an entrepreneurial community atmosphere is an essential ingredient. There are two elements drive the atmosphere:- • Nurture a Culture of Collaboration. Aim to create a dynamic environment that fosters lots of adhoc and pre-arranged networking, spontaneous conversations and innovation. Sharing equipment, helping each other tackle problems, introducing sales and leads and even product development leads to powerful results • Entrepreneurial Leadership. The incubator is an economic powerhouse of food innovation and job creation – share your vision of why and how it is working hard to be a leader of food entrepreneurship

5. Creating a culture within the incubator can be advanced through some simple tactics:- • A welcoming environment – some incubators no longer use the term “tenant” preferring the terms “membership” and “members” which implies being part of a collective of like minded people and brands with similar objectives. • Provide a language guide which deciphers the terminology used in the incubator and a welcome guide for non native members • Prominently display and consistently reinforce your Mission Statement • Share incubator wins – celebrate success of your members both internally and externally through the regional media. Be marketing savvy – See Module 4.

6. From Enquiry to Membership The culture begins from that initial enquiry and how you attract and convert quality enquiries. From enquiry to membership, it is about creating that cultural ethos from the get go. High value enquiries treated with priority as seen in this Food Incubator low chart on dealing with initial enquiries. RESOURCES DOWNLOAD OUR RESOURCES PACK WITH EMAIL AND INFORMATION TEMPLATES TO HANDLE ENQURIES FROM ENQUIRY TO MEMBERSHIP

7. Resource 1 – Pack Download • Customise these valuable resources for your own use • Enquiry flowchart • New Member Inquiry Tracking Sheet - Keep track enquiries in order to build your database of food producers in your region and their interests. This is also the foundation of your marketing efforts. • Email response templates for initial enquiry and subsequent steps including New Member Enquiry - Culture starts with Hello. • Application form templates – booking form and terms & conditions - Submission of the application can be followed by an interview. This allows managers to determine whether the kitchen is a good fit for the tenant and if the tenants’ activities align with the kitchen’s goal/mission. • Membership grading matrix

8. Some kitchens require tenants to have a business plan, and might provide assistance in creating or developing one. This is more common for incubator‐type kitchens which focus on developing businesses and entrepreneurs. Most kitchens have a mandatory training session with new tenants so that they learn about the rules and regulations of the kitchen.

9. Click Here to Type 3.2 Managing an Incubator

10. The general management of a food incubator requires organizing, overseeing, and directing the facility’s day-to-day operations. Management typically combines duties from other roles, including stimulating initial sales contacts for the food incubator and working through customer enquiries which can take considerable time from enquiry to lease/user agreement. The function of Manager may have many titles, e.g. – Business Development Manager, but they role needs to encompass many facets including: • Member Coordination - an essential role in the operation of a food incubator. In the case of shared use, this would include scheduling and operations supervision.

11. Food Safety Oversight Depending on what food safety certifications the food incubator intends to acquire, this role entails maintaining compliance, including records and plans, as well as readying the incubator for any audits or inspections included in acquiring the certifications. • MarketingDevising and implementing a consistent high impact marketing campaign and carrying out various marketing activities related to community awareness or attracting more tenants/users. See Module 4. • Financial Oversight Much like any other business entity, proper tracking information management can provide key information for managerial decisions.

12. Office Management Food is a highly regulated area – be assured there will be a significant volume of records and documentation to administrate. Where possible, streamline paperwork and operate a paperfree environment. • IT/Web Management Whether the incubator uses proprietary management software or third-party software to track tenants, scheduling and billing, managing a decent information system’s infrastructure will be necessary. • Bookkeeping and Accounting Maintaining and tracking financial information is an essential role within any entity. Often, this role includes general administration functions such as filing, recordkeeping, tabulating sales, and maintaining customer files. Depending on scale of operation, you may choose to employ a dedicated administrator or it is also a role that is frequently contracted to an outside person). Resource 2. Download our Job Descriptions Template

13. Checklist of Key Management Functions

14. Other Key Roles For shared use incubators, the role of the kitchen stewartis critical. They are responsible for the cleanliness, food safety and workplace safety of the incubator. Their role is focused on details, executions, cleanliness, safety and positive members interactions. They should work to a daily check list and are trained on repeated on a standard 8 hour shift. They must be able to be self directed and also ready to assist members with unexpected events that occur. In addition to being detailed orientated in their cleaning and safety environment, as the daily interface with members, they need great interpersonal and customer service skills.

15. Examples of their tasks (not in order):- • Food safety inspections and logs e.g, temperatures, sanitizer levels, • Unit review for cleanliness – see next slide • Read thermometers in all fridge and freezers • Thermometer calibration • Grease trap check • Refuse • Replenish cleaning materials • Check toilets • Review all storage shelves for any issues. • Sluice room cleaning • Preventative maintenance and repairs • Newmarket Kitchen have kindly shared their template • Resource 3: Download our Simple Daily Tasks Template

16. Example of Daily Walk Through

17. Click Here to Type 3.3 Rental and Licensing Models for Operators

18. As explored in Module 2, different formats of food incubators require different approaches to tenancy and tenancy agreements. • Multi tenant food processing centres Given the level of investment the tenant/member has to make in customising their own unit, a formal lease of circa 5 years (4 years 9 months in many cases) is a typical time period for a first tenure. This gives security and medium term certainty to the tenant to make that investment and see a return from same. For this reason, food is not like any other sector enterprise centre.

19. Multi tenant food processing centres Typically, following a € rental rate review, the lease is renewed for the same period again. Our Module 2 example of Loughry the Food Business Incubation Centre (FBIC) tenancy is currently is 4+ years. Resource 4: Download Sample lease

20. 2 Shared Use Food/ Kitchen Incubators It is important to create a variety of packages to suit different member needs. From casual use to fixed arrangements (e.g. one, two or three day a week passes), your timetabling need to be flexible and fair. Also offer 24-7 access where possible. In Module 2, we looked at 3 different business models and fee formats that can apply to Shared Use Food/ Kitchen Incubators.

21. Spotlight on Pricing Strategy of Newmarket Kitchen, Ireland Resource 5: Download Sample Agreements

22. Click Here to Type 3.4 Kitchen Management Protocols These apply more to shared use incubators.

23. Food Safety Of absolute and critical importance, establishing robust systems and protocols are a MUST from the outset – for everybody’s sake. Recall the concerns of potential tenants in Newmarket Kitchen’s initial research- cross contamination and cleanliness concerns were much greater than cost concerns. Hence a facility Safety Management System is critical and professional advice should be sought in setting this up.

24. Food Safety One of the first steps to starting a shared-use incubator is connecting with the local Food Safety and Health Inspector. In addition to food safety, the incubator also has to comply with local building and fire safety regulations, the implications of which and adjustments necessary to comply with regulations should be taken into account in the feasibility study.

25. New Members – what you need from same? • New Member Checklist • Check their food business is registered with the relevant authorities. Their product and process will guide the risk profile which will then determine your level of inspection and be based on your HACCP plan and Food Safety Management System. • Insurance – all kitchen members are required to have their own insurance and you need a copy of same. This should cover public, product and employer’s liability. This is separate to the insurance cover required for the actual food incubator • Newmarket Kitchen have kindly shared their Resource 6 - Download New Member Checklist Template

26. As important as the system, the training members receive in same. We mentioned Orientation Training for new members and food safety there is critical. Do not assume that all members will know this information. This should include:- • The WHY of food safety - Cross-contamination avoidance and high standards need to be monitored and controlled • Regulations and Standards – just some of the regulations yoy need to be fully au fait with • Regulation (EC) No 852/2004, requires food producers to inform their official agency across a range of factors including premises • Traceability, under Regulations (EC) No 178/2002 means “the ability to trace and follow a food, ……., through all stages of production, processing and distribution“. • Regulation (EC) No 1935/2004 concerning materials and articles intended to come into contact with food • Regulation (EC) No 852/2004 regarding the training required by food handlers

27. Food Safety Management System/HACCP plans explained Our resources download exercise that follows provides a Food Safety Management System that was kindly shared by Newmarket Kitchen Ireland • Training • On-line and classroom courses (e.g. chemicals/manual handling/) • Continuous professional development • Records • Orientation on cleaning and emergencies

28. Managing the Kitchen Incubator Involves constant checklists ! • Checklists for everything from cleaning to temperature logs to activities to preventative maintenance • Daily walk-throughs • Roll calls – important to ensure you know everyone’s storage requirements regularly check • Daily task templates • Cleaning logs – toilets/HVAC/general/equipment/fridge/ freezer/blast chiller etc • Equipment logs – calibration and temperature • Sick policy – any displays of sickness not allowed in kitchen and individual has to be removed immediately • Visitor logs • Preventative maintenance checklist • Kitchen and facility signage – helps with culture creation

29. Pre Membership Preparation and New Member Orientation and is a very important step. Use this checklist to guide you through what the orientation needs to cover and information to be collected.

30. Many incubator find it useful to create a video covering preparatory and clean-up processes. For shared use incubators, depending on how familiar clients are with commercial equipment, there may be a period of induction where staff may also work with them the first time they use the kitchen, and be on hand to help if needed in the initial period. Also Member Meetings are important:- • This is an integral part of kitchen management • It reinforces the shared environment ethos that ‘fences make for bad neighbours’ • It ensures all members are aligned in the same objectives of operating in a clean high standard kitchen • It ensures the burden for cleaning does not rely solely on the incubator operator to manage

31. Resource 7 – Resource Pack Download • Customise these valuable template resources for your own use • 1. Equipment and HVAC Log • Example visitor log • Facilities Monthly checklist • Facilities Morning Shift Task Lists • Facility Safety Management System • Kitchen Stewart daily schedule • Membership monthly checklist • Orientation doc, general cleaning hygiene • Example kitchen cleaning log • Example Restroom Cleaning Log • Roll call flowchart • Example glass policy

32. Click Here to Type 3.5 Adding value to your incubator – additional services

33. Value Added Adding value to the member’s experience within the incubator, not only builds stronger member businesses but some can also create additional income for your incubator. Shared Purchasing/Group Buying Harnessing the buying power of many different food businesses can be exploited to get better rates for members for everything from legal to branding and marketing, bulk ingredients, transport and distribution and even banking. Shared Co-Packing An incubator can help entrepreneurs access both packaging equipment or build relationships with reliable and affordable co-packers.

34. Distribution Distribution can often be the biggest challenge facing any food producer. Breaking down the seemingly daunting barriers that create challenges can be done collectively within an incubator. Incubators may provide connection to small-scale distributors, or even invest in a distribution co-operative, where users share refrigerated trucks. In any scenario, it is important that the incubator assist entrepreneurs with determining the most efficient and cost effective route, and helping them take that step.  An example …

35. Incubator plays a sales and shared marketing role. Identifying and inviting potential buyers (the “market”) in to the incubator to meet producers scheduled for an allocated timeslot with the buyer. • Benefits to the buyer – one sales contact – one delivery • Incubator makes sales, collects orders. Relays same back to member • Incubator driver picks up member’s product from incubator • Delivers directly to retailers, others • Refrigerated van ensures maintained temperatures • If something happens in transit, incubator assumes liability • Pricing xx% of wholesale price paid to incubator. Travel expenses included

36. Selling the concept to the members Benefits of the incubator’s distribution model: Without With

37. Other income sources Consultancy – a food incubator nurtures new food entrepreneurship. The expertise gained through running a food incubator is hugely valuable. Hence, once up and running consider sharing your expertise as a consultant or trainer