Renting commercial kitchens is becoming a popular strategy among food manufacturers, as a way of getting new products off the ground while avoiding the associated start-up costs.
Stew manufacturing company, Stewed! recently hired commercial kitchens to launch a new range of four stews into a national retailer. The range includes: chorizo, chickpea and pork stew; zesty chicken tagine; Persian chicken; and Moroccan stew.
"Hiring commercial kitchens meant that we were able to avoid making a huge investment in premises of our own," said Alan Rosenthal, md of Stewed! "Setting up a commercial kitchen is a costly and potentially high-risk investment, particularly in today's environment. It simply wouldn't have been a sensible business decision to do so.
"Not investing in our own premises means we were able to ramp up production to satisfy growing demand and increase the number of stores stocking our products."
The manufacturer hired kitchens from London-based The Olive Grows: a firm that lets out commercial kitchens to food and drink businesses that need extra production space. The Olive Grows also rents kitchens to companies that do not have the money to invest in their own, fully equipped premises.
Credit has been tight since the recession hit the industry. Manufacturers that are lucky enough to be offered bank loans for investment in new premises are now paying over the odds for the loans, which is why renting is becoming more popular, according to a spokeswoman for The Olive Grows.
"But as well as helping smaller firms get their new products off the ground, we also hire out the kitchens to larger manufacturers that want to use the space to develop new products," she said.
Its kitchens have been used to develop a number of products including cupcakes, African snacks, health drinks, frozen meals, Vietnamese delicacies and rum cake.