CASE STUDY OF AN INCUBATOR KITCHEN

STUDENT

CÁRDENAS SÁNCHEZ PAULA ANDREA – 18172011

TEACHER
BLANCO MEDINA ROBERT TELESFORO

Universidad de La Salle

Facultad de Ciencias Agropecuarias

International Trade

Bogotá D.C. 07/04/2021

 1. WHAT IS THE CASE

The case of incubator kitchens consists of a business that serves emerging food companies, facilities
with permits and licenses for their operation, an arrangement that saves customers the cost of
building their own kitchens and have higher yields.

This case explores the strategic challenges faced by Ron Steiner, incubator kitchen manager to
improve the long-term viability of the facility. As a strategy, Steiner drew on a series of interests and
talents to develop the commercial kitchen, relying on extensive networking at every step and a
collective skill set for building the initial block.

2. WHERE DID THEY DO IT

The Starting Block is a kitchen incubator in Hart, in the rolling countryside of the state of Michigan,
located in the north central US It was founded in the rural area.

Customers produce a variety of products including jams, granola, cookies, spice mixes, and
chutneys. The clients' businesses are private companies that operate independently of the Starter
Block.

The area is an important producing region of a great variety of fruits and vegetables of temperate
climate.

3. WHEN THEY DID

The Starting Block opened in 2006 and is incorporated as a non-profit organization. The facility
measures 10,900 square feet. About half contain rented offices and meeting rooms.

4. WHY DID THEY DO IT

Steiner director Starting Block after living in California and later moving to Michigan, found a region
rich in business opportunities but with an economy that had been in decline for years, and even its
diverse and vibrant agricultural areas were affected, in addition to business activity It had recently
been limited by lack of access to a licensed commercial kitchen facility.

From seeing this panorama he dedicated himself to economic development and was hired as
Director of the Oceana County Economic Development Corporation. His first impulse was to respond
to the economic needs of the area with high-tech businesses but he quickly changed his mind by
focusing his attention on the possibilities of ovation of posadas in food and agriculture, taking a
second job with Michigan State University Extension (MSUE) and joining state efforts to respond to
challenges in the agricultural sector.

In Michigan, growing and processing food is the economic engine of the place, but it was necessary
to give it an "added value" (not only by growing things, but by creating goods of greater value
through specialized processing) that is why incubator kitchens were considered a means of creating
added value possibilities.

5. HOW DO I INTERVENE

Forming the Organization

In the first Departure Block, Steiner and Elaine Brown, Executive Director of MIFFS, worked on
locating a facility, selecting equipment, and securing additional funding. He and Elaine stressed the
importance of trust and flexibility in these early stages of the project. In the same way, Steiner
highlighted collaboration as an important part, for him the willingness to associate with people and
not think that you can do everything by yourself is part of the strategy of the creation of the Starting
Block.

Steiner at this stage was also dedicated to staffing the facilities, for which he assigned Dosemagen
and Henley. For Steiner the philosophy of human resources: It was not only hiring cheap, but finding
the right and flexible people, agility not only as a business, but also not having a fixed idea.

Equipar la cocina
Used equipment was purchased for the assembly of the kitchen. When asked if it might make more
sense to buy new equipment that is less likely to need repair, Steiner simply replies, "Hire people
who can fix it themselves." Steiner also subscribes to the belief that some kitchen equipment should
not be purchased until the customer has indicated a specific need for it. Steiner insists that there is
no cookbook formula for outfitting a kitchen.

For Steiner, this “decision not to make a decision right away” is part of a larger philosophy. “Don’t
think you’ve got to have everything in place right away,” he advises.

And thus, the project begins in 2006 adapting to a third of what was initially estimated in the
feasibility study. Steiner, Dosemagen and Henley thus pooled their interests and talents to develop
a commercial kitchen on a tight budget. The key was extensive networking at every step and a
collective skill set including building renovation, equipment repair, institutional food service
management, fundraising, etc.

6. WHERE THE CASE HAPPENED

Currently the Starting Block serves 30 clients. For many of them, the economic recession they were
experiencing created a final incentive to turn product ideas into marketable goods that could
generate supplemental income.

Finally, the starting block offers a range of services that guides the company to generate a range of
benefits and businesses such as:

• Train clients

• Provide basic services

• Expand services based on the customer's demonstrated need while diversifying income streams
for the incubator.

• Create an atmosphere that makes everything work.

CONCLUSIONS

• The Starting Block allows entrepreneurs in Michigan to have commercial-quality kitchens under
licensed facilities that allow them to develop and offer products legally in a fast way, considering
the pressures of regulators of sanitary standards associated with food.
• Incubator kitchens allow customers to produce on a larger scale than is normally possible when
using restaurant kitchen space or other interim facilities.

• Third, many small entrepreneurs have limited business experience and seek the expertise and
guidance provided by incubator kitchen staff. (Buckley et al., 2014)

• Reduce the risk of the operation. These facilities provide you with a series of steps that will guide
you to be successful and experience how viable the product or project you are planning is. This
knowledge and experience reduces the risks that each client has for managing with people who do
not have the required skills.

Bibliografia

Buckley, J., Peterson, H. C., & Bingen, J. (2014). The starting block: A case study of an
incubator kitchen. International Food and Agribusiness Management Review, 17(1),
163–186.