Small-Batch Frozen Meals From a Shared Kitchen

Local shoppers at farmers markets, subscribers to local delivery or pickup, and independent grocers, specialty shops and cafes.

You sell packaged items direct at a retail price, or to shops at a lower wholesale price. Your margin depends on ingredient costs, kitchen rental hours and packaging.

• Cooking and recipe testing in consistent batches
• Costing and pricing products
• Selling and building relationships with local stores
• Keeping careful records

• Cottage food laws often do not cover frozen meals, so check your state's rules before using a home kitchen
• Products with meat, poultry or egg may fall under USDA inspection rules or state equivalents, check which agency applies
• Food labeling and allergen rules, including nutrition facts unless you qualify for an exemption
• General liability and product liability insurance, which shops and markets often require
• Keeping product frozen during transport and storage, and the cost of freezer space
• Local business license and sales tax registration requirements

Startup costs are typically around $3,000 to $15,000, depending on your kitchen rental, packaging, insurance and freezer space. Also check local business license and sales tax registration requirements.

Monthly revenue is typically around $1,500 to $8,000, depending on your product range and how many markets, shops or subscribers you sell to. The estimate assumes roughly 15 or more hours a week.

Cottage food laws often do not cover frozen meals, so check your state's rules before using a home kitchen. Products with meat, poultry or egg may fall under USDA or state inspection, so also check food labeling and allergen rules.