Bakery from a shared commercial kitchen

Local cafes, coffee shops, small grocers, farmers market shoppers and customers who pre-order for pickup or delivery.

Wholesale orders at a set price per item or per dozen, market and pre-order retail sales, and recurring weekly supply deals with cafes.

• Baking in larger batches
• Scheduling production and deliveries
• Pricing for wholesale and retail
• Selling to local businesses

• Check which permits you need from your health department, since you may need your own food permit even in a shared kitchen
• Check whether the kitchen requires proof of liability insurance and food handler cards
• Wholesale buyers may ask for product liability insurance and proper labeling
• Kitchen hourly fees can eat into margins, so price with them included
• Check state sales tax rules, and resale certificates for wholesale sales

Startup costs are typically around $3,000 to $15,000, depending on kitchen rental hours, equipment, packaging, insurance and permits. Hourly kitchen fees can eat into margins, so include them when you price your products.

Monthly revenue is typically around $1,500 to $7,500, depending on how many cafes, markets and pre-order customers you serve and the hours you bake. These are estimates and will vary with your pricing and volume.

Check which permits your health department requires, since you may need your own food permit even in a shared kitchen. Also check whether the kitchen requires liability insurance and food handler cards, and state sales tax and resale certificate rules for wholesale sales.