Checking Entrepreneurial Privilege- The Case For Home Based Culinary Businesses

An article was published a few months ago in Ottawa, followed by a similar one in Toronto ,both of which kicked off a firestorm of controversy.  The article outlined home based business “undercutting” legitimate ones.  Angry culinary entrepreneurs took over my social media feeds from every direction, fuming that they had more at stake with licenses, commercial rent, and staff and that these home based folks were taking money out of their pockets.  

This is simply not the case.

Home based culinary businesses have been a reality since the dawn of time, and it seems that the anger and controversy bubbling under the surface has only come to light recently due to the emotional extremes and vulnerabilities covid has brought upon small business owners.  Who better to take out the pent up anger that comes with an uncontrollable situation like covid on the small, home based businesses just trying to make ends meet?  So many of the comments smacked of the “well I had to suffer, and so should you” attitudes we see from some folks online.  I will never understand that mentality. 

You will find me more sympathetic than most to the home based cooking business, and not just because I was a home based business owner myself from 2003-2006 with my baking.  In those days there were hardly any social media channels which meant no locations listed really, and the attitude of many showrunners and distributors was “don’t ask, don’t tell”. The city at that time had bigger fish to fry- unless you had caused injury or illness to a client or someone had taken the time to call in a complaint about you.  To this day I marvel at the fact that I was able to produce from my less than 100 square foot galley kitchen. 

Had I known that it was a thing, I would have begun incubating much sooner than I did. For those of you new to the term, incubating is when a small business rents space in a commercial kitchen by the hour as a registered city business.  They are insured, inspected and legitimate.  It’s an amazing way to pilot a business idea without having to take a financial risk or beg for a  loan. 

My sympathies also stem from the fact I have taken emails and questions from many of the home based crowd over the years as a trusted ally, and the demographic is almost always the same.  Nearly always women.  Some are new Canadians, some are stay at home mothers of multiple children, some are caregivers, some are disabled, and some are a combination of all of these. What they all have in common is that they are looking for a small, additional stream of income. Income for presents for their children. For savings. For that extra bag of groceries this week.  For the bus pass.  You truly don’t know unless you have been in their shoes.  

As I watched the angry comments and debates spin out of control, all I could think was;

“Why is it that culinary entrepreneurship is set up only for the privileged few?”

My business journey began when I was a barista / cashier in the early aughts.  Working 20-30 hours a week for $6.85 an hour, and living off of credit cards made me the worst candidate for a business loan.  Setting up a full culinary business - even with used equipment- can run you six figures or higher, not including the legal fees and permits required.  If that doesn’t get in your way there are credit checks that can disqualify you immediately if you’re young, new to the country, or have a poor / no rating.  These obstacles can quickly squash any chance you have of getting a loan to start up.  I personally was lucky that Futurpreneur was there to offer me a micro loan of 15K at a very low repayment rate over 3 years, and that I found a small kitchen on Bronson Ave. that came with it’s own equipment.  Otherwise my stand alone bakery would have never existed.  

So, what can we do as a community to help ensure anyone who wants to can actually access culinary entrepreneurship?

Aspiring

Want your chance at setting up?  First off, do your research- write a business plan (folks like myself or Futurpreneur can help you with this) and be prepared. Ask around at culinary businesses you frequent if you could share kitchen space at an hourly rate during off times.  Join as many industry groups as you can on Facebook and ask there too.  No luck?  Your local place of worship or community center is probably set up with a full commercial kitchen.  I once helped a client get set up to be legit in a place of worship.  You’ll have to check with your municipality as each one is different, but usually they will require your business to be licensed with the city, proof of insurance, a written agreement between you and the business outlining terms, a letter from the businesses insurance company stating they are aware of your presence, and a letter from the commercial landlord stating that they are aware you’re there. It’s a lot of paperwork and waiting around, but not a lot of cost. 

Setting up a mass commercial preparation space at home is costly and tricky in most cases as zoning and neighbourhood associations can crush your idea before you even get going, so tread lightly and really research before you attempt it and start spending money. 

While some provinces have announced they’ll be loosening the home based regulations for low risk food products, but this is only if your municipality agrees to play ball.  Ensure you call or email your city offices before you proceed with any home preparations.  If there are no plans in place to make home based businesses for low risk items legitimate, call your councillor and ask them what they are doing to help expedite this process.  

Business Owners

Covid has probably caused a drop in your business and sales, so what better way to recoup some costs then kitchen sharing?  You’ll have yet another draw to your business, more rent coming in during time the space won’t be in use anyways, as well as someone to help purchase materials with and split the utility bills.  It’s not right for everyone, but I urge you to consider it.  As senior businesses owners it is our duty to assist the new ones. 

Municipalities and Councillors

I was advising on the City of Ottawa Economic panel earlier this year, and was pushing hard for more city financed incubator spaces.  Libraries, community centres, shelters- all of these places have potential to house commercial kitchen space so anyone who wishes to attempt culinary entrepreneurship may do so under the direct supervision of the city and their health inspectors.  It should be the responsibility of our municipalities to facilitate these types of setups, so everyone gets a fair crack at their business dreams. Most modern municipalities have already taken steps to set up home based businesses, some have been set up as not for profits, and some provide incubator spaces. 

Now that the province of Ontario is encouraging municipalities to open up for low risk, low production home based culinary businesses, I beg anyone working with the cities to consider what you can do to meet these producers halfway.  Create a permit and inspections for the home based folks- it’s more cash for the municipality and can keep everyone safe and healthy.  These home based producers businesses will always be a reality, so let’s legitimize and support them as best we can. 

So before we take our anger out on the small home based businesses owners- or spiral them into panic attacks as a few journalists have done by placing legitimate appearing orders with them online and then blindsiding them by announcing that they’re with the press- let’s stop and review the reasons why they are home preparing and what we can do to help them become legitimate- without breaking the bank.

*I have not linked the Ottawa article in this piece as I find it deeply damaging, and not helpful to the community or the industry as a whole.*

I spoke of this issue on CBC Ottawa last week in specifics to eastern Ontario with a dear friend Clare, a former home based Chef in the UK.  You can listen to it here.