bake - October 2016 - 12

labor front

Incubating
New Products
America's cottage industries have spawned thousands of home
bakers and cake decorators over the past decade. But a more
recent development involves a different path for aspiring bakers
and food entrepreneurs to get their businesses off the ground.
This country happens to be on the cusp of witnessing a surge

Food incubator startups like SmashMallow are enjoying early success.

in demand for commercial kitchen incubator space, where
food startups (sometimes called "foodpreneurs") lease kitchen
space or time blocks for a fraction of the cost of owning their

yet small organizations (less than $1 million annual sales) that

own space. Bakeries, restaurants and other food startups use

are providing unique products and solutions across the food

the commercial kitchen space to produce their signature prod-

system. Focus areas include agriculture, food and beverage,

ucts, while culinary professionals working with the incubators

and health & wellness.

lend their expertise in branding and distribution.
Blue Plate Catering, a Chicago event catering company, just
There's an important business distinction between food incuba-

announced the unveiling of Round The Table Hospitality, which

tors and accelerators, another type of service that is experi-

will house a family of independent brands with a common

encing a wave of new interest. According to RealFoodMBA.

culture and vision. RTTH stems directly from CEO Jim Horan's

com, incubators tend to work with earlier stage startups, while

evolved vision of growth for Blue Plate Catering, which started

accelerators often work with companies that have made prog-

more than 30 years ago with a single employee, a van and a

ress and already have customers and revenues.

reputation for delicious fare to its current organization of 1,000
employees and multiple brands.

Incubation programs can last between two and ﬁve years,
while accelerators focus on rapid development over a shorter

With multiple touch points beyond catering, the launch of

time frame, like several months. According to RealFoodMBA.

RTTH will include the opening of a new and improved head-

com, incubators typically expect a large equity stake (up to

quarters, the introduction of an "intrapreneurial" incubator

20 percent) and charge fees, while accelerators are less likely

program and bringing Blue Plate Catering and restaurants

to charge fees and take a smaller equity stake. Both types of

(tesori trattoria & bar and Park Grill) together.

programs tend to provide capital, access to mentors, advisors
and professional services.

Larkin Hall, a state-of-the art facility, will open this fall in
Chicago's West Loop, a neighborhood that Blue Plate has

California-based Sonoma Brands, for example, specializes in

called home for over 25 years. The three-story, 80,000-square-

food incubator startups like SmashMallow (premium marshmal-

foot building, located on Fulton Market, will house all business

lows made with 100% organic sugar and gluten-free ingredients)

operations for RTTH and diversify Blue Plate Catering's capabil-

and plans to launch up to ﬁve new products a year, according to

ities and services. The open ﬂoor plan will house a production

a January report in Forbes. Jon Sebastiani, who sold his startup

and training facility, test kitchens, tasting rooms and private

KRAVE Jerky to the Hershey Company for an estimated $220

event spaces, as well as plans for a retail space.

million in 2015, is the founder of Sonoma Brands.
"We are excited about this next step in our growth which will
Another newcomer founded in 2015, Food Future Inc. bills

translate into new business opportunities, deepening our rela-

itself as a scale-up accelerator in New York City for established

tionship with Chicago," Horan says.

12 < OCT 2016 | bakemag.com
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bake - October 2016

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