It’s likely that you will need a commercially licensed kitchen at one point or another. Therefore, it is important to consider the requirements and location of your facility before making your product.
Xander suggests that you check with your local Health Department to see if they offer a free plan review before you lease a space. The department will be able to make recommendations and provide information before you commit. Xander says that it is a good idea to start the assessment early.
Kansas City has several commercial food kitchens. Give us a call at 812-335-6500, or send us an email, and we will show you were to cook delicious food, such as at the Innovation Center.
Examine Your Regulative Requirements
The correct tax IDs, city and county permits (that can be tricky), state entities, health inspections, correct information on food labels, USDA guidelines, etc. are required.
You will need to file forms for Kansas and Missouri because Kansas City is located between two states. If you have a food truck that sells across state lines, or a restaurant owner looking to expand, you will likely need to file separate forms.
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Get a label for food products
Also, ensure that you meet all applicable state and federal requirements for your food label. These include your company name, product, net weight, nutrition panel (if you sell over $50,000 per year), best by date (in the event of a recall), ingredients (you will also note known allergens), and bar code.
Double-check Your Distributors and Suppliers
Suppliers will deliver all you need to make your product. So yes, you want a fair price. But Xander suggests that you also research potential suppliers to ensure their reliability. Xander recalls a Kansas City entrepreneur who found a great deal for jars but said that the first order was not correct and the second one came without lids. Some jars even had broken lids. adobe illustrator download mac
This advice is also applicable to your distributors, aka those who deliver your products. It is important to be efficient and have reliable suppliers and distributors, especially if your product is perishable.
Do not overlook certain costs
You’ve calculated most of your costs, but have you considered the small costs associated with distribution? This includes fuel (especially if your business is a food truck), vehicle maintenance, and storage costs.
These expenses should not be overlooked. Xander states that some food business owners are confused as to why they don’t make a profit. This is because they fail to account for these important costs.
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