Should you start your restaurant with a new kitchen or use a shared space?A co-kitchen is a shared kitchen where you cook with other food businesses. Some co-kitchens have seating areas but most don’t. So it would be completely your decision whether you want a co-kitchen with seating space or just want to provide delivery services.
Read more to find out how this can be beneficial for your restaurant and how you can gain more profits through this. While co-kitchens have a lot of benefits they do come with some challenges.
What Is Co-Kitchen?
A co-kitchen, also called a shared kitchen, is a space designed for multiple food businesses to operate together. Instead of renting or owning your own restaurant space, you share a fully equipped kitchen with other businesses.
Think of it like a co-working space but for food. You get all the facilities of a professional kitchen without the hefty costs of running one alone.
For example, in Malaysia, renting a restaurant space in Kuala Lumpur can cost anywhere between RM 5,000 to RM 15,000 monthly. This doesn’t even include utilities, equipment, and maintenance! A co-kitchen allows you to reduce this cost significantly.
What Is a Shared Kitchen?
A shared kitchen is where different businesses work together in one kitchen. This can include restaurants, food trucks, caterers, or even home bakers looking to expand.
The kitchen is equipped with professional-grade appliances and tools. Each business is given time slots or dedicated areas to prepare their food. It’s a win-win because you get access to everything you need, and the costs are divided among everyone.
Shared kitchens often provide services like:
- Storage space for ingredients.
- Cleaning and maintenance.
- Compliance with health and safety standards.
- Utilities like water, electricity, and gas are included in the rental fee.
Why Is Co-Kitchen Beneficial for Restaurants?
If you’re still on the fence about trying a co-kitchen, let’s look at some of the key benefits.
1. Lower Costs
Running a traditional restaurant means dealing with high rent, staff salaries, and utility bills. In contrast, co-kitchens allow you to:
- Save on rent by paying a shared fee.
- Avoid the upfront cost of buying kitchen equipment.
- Reduce utility expenses since these are included in the shared fee.
For instance, renting a co-kitchen space in Malaysia can cost between RM 1,500 to RM 5,000 monthly, depending on the location and facilities. This is much lower than renting a standalone space.
2. Flexibility
Co-kitchens offer short-term rental options. You can rent a space for a few hours, days, or months based on your needs.
This is perfect if you’re testing a new menu or running a pop-up concept. You won’t be tied to long-term contracts, making it easier to adapt.
3. Access to Professional Equipment
Buying professional kitchen equipment can cost tens of thousands of ringgit. Co-kitchens already have everything you need. This includes ovens, stoves, refrigerators, and dishwashers.
4. Expand Your Delivery Business
If you’re focusing on delivery and takeaway, a co-kitchen is an ideal solution. You don’t need a dine-in space. Instead, you can focus on preparing high-quality food for delivery platforms like GrabFood and Foodpanda.
In fact, according to a 2023 report, the online food delivery market in Malaysia is expected to grow by 8.7% annually there’s plenty of demand for delivery services.
5. Networking Opportunities
Working alongside other food businesses can open doors for collaboration. You can share ideas, cross-promote, or even team up for events.
Who Can Benefit from a Co-Kitchen?
Not sure if a co-kitchen is right for you? Here’s who can benefit the most:
- New restaurants: If you’re starting small and don’t want to risk too much money upfront.
- Food trucks: Prep your food in a professional kitchen before hitting the streets.
- Cloud kitchens: Operate entirely for delivery without needing a dine-in space.
- Caterers: Use the space to cook for events without needing a permanent kitchen.
- Bakers and home-based businesses: Upgrade from your home kitchen to meet larger orders and professional standards.
How to Choose the Right Co-Kitchen
If you’re ready to try a co-kitchen, here are some tips to choose the right one:
- Location Matters
Choose a co-kitchen near your target market or delivery zone. This ensures you can quickly serve customers. - Check the Facilities
Make sure the kitchen has the equipment you need. This includes ovens, fridges, and prep stations. - Flexible Contracts
Look for kitchens that offer hourly, daily, or monthly rentals. Avoid long-term contracts unless you’re sure. - Health and Safety Standards
Ensure the co-kitchen meets all local health and safety regulations. This protects your reputation and keeps your customers safe. - Pricing Transparency
Ask about all costs upfront. This includes rental fees, cleaning fees, and any additional charges.
Co-Kitchen vs. Cloud Kitchen
Co-kitchens provide shared space with other restaurants, but a cloud kitchen might not necessarily provide shared space with other restaurants. Co kitchens might have seating space but cloud kitchens don’t have that.
Challenges with a Co Kitchen
While co-kitchens have many benefits, there are some challenges to consider:
- Limited Availability: Popular kitchens might be fully booked.
- Shared Space Issues: You’ll have to share the kitchen with others, which requires good communication. There can be also competition between your co-restaurants. Customers would want to consider other options while ordering through a takeaway option.
- Rules and Regulations: Each co-kitchen has its own rules, so ensure you understand them. There would be times when some of the conditions wouldn’t meet your expectations.
- Issues with sharing: Issues might arise when it comes to the sharing of equipment. There would be times when you would have to wait while using a particular equipment as some other restaurant might be using it.
Co-kitchen can be your thing if you want to save money on seating and operate more as a delivery restaurant. It might not be apt for you if you’re a comparatively newer restaurant and if you want to function independently. There might be also issues with sharing the kitchen equipment and the ingredients.
