There has been a surge in demand for commercial kitchens throughout the world, including in Malaysia, as many restaurant owners see them as a cost-effective way to keep their businesses afloat and profitable in these uncertain times. Since the kitchen spaces can be shared by numerous brands, businesses that have multiple eateries under their name can move into these units and start grabbing a share of lucrative markets.
With many commercial kitchen spaces available for rent, it is crucial to be aware of all the dos and don’ts before moving in.
Do you have enough space?
When looking for a commercial kitchen space for rent, it is important to judge what size the unit needs to be so that you can complete all your orders. If there is a lot of demand for your food, you will likely need a bigger space to accommodate more equipment and employees. But, if your eatery only has a small number of orders coming in on a daily basis, there is no need to waste money on renting out a bigger kitchen.
DO: Consider your business’s requirements for the foreseeable future before deciding on the size of the commercial kitchen space you want to rent.
DON’T: Assume you will need a bigger kitchen unit as it can result in less money going towards other aspects of your business that are more important.
Will you use the space all the time?
When moving into your kitchen space, you should have a good idea of how long you will need to use it on a daily basis. For example, pizza delivery businesses will likely have longer working hours than regular eateries serving up appetising Malaysian cuisine.
DO: Think about whether your business needs to rent the kitchen space on a full-time or part-time basis.
DON’T: Occupy a unit needlessly as it will hurt your finances in the long run.
Work out how much you need to sell
Upon pinpointing the ideal commercial kitchen space for rent, you should already have a clear idea of how much food you need to sell, and at what prices, in order to keep your business profitable. Depending on this, it will have an impact on the size of the kitchen space you rent and the amount of equipment you will need.
DO: Work out how much food you need to sell in order to adhere to your revenue and profit margins. This will also enable you to get a general understanding of what your business hours need to be.
DON’T: Make too much food with the assumption that you will be able to sell it all. This is especially important for new businesses that can’t afford to see money going to waste.
Purchase all the equipment needed
Even though most commercial kitchen spaces for rent do come with the basic essentials, it is important to take note of what is already there, along with the equipment you have to buy. In addition to general items like fridges, freezers, pots and pans, you also need to figure out if you require any specialist equipment that may be used to prepare certain types of dishes for specific kinds of cuisine.
DO: Identify what apparatus is already present in your kitchen unit so that you purchase only what you need.
DON’T: Overspend on equipment, which is a trap many business owners fall into.
Choose the best location
Before moving into a commercial kitchen space, one of the first things you should do is research the area and identify whether your particular type of cuisine will be in demand. For example, if you sell mouth-watering Malaysian delicacies, you will want to be near residential and office areas, along with schools and universities. It’s also imperative to be in close proximity to your suppliers and in a location where your food may be underrepresented so that your business has a greater chance of succeeding.
DO: Pick the right area when moving into a commercial kitchen space for rent as it can result in your business prospering.
DON’T: Choose a location without doing any research as it may not be the right area to grow your business.
Pick the right type of commercial kitchen
Commercial kitchens are large premises that are shared by many eateries, but in actual fact, there are a few different kinds out there that may be better suited to specific types of F&B businesses. Some of the common types of commercial kitchens include:
Catering kitchens – Best for businesses that have orders involving a lot of food. Due to this, more staff and space are required. In many cases, restaurants utilise these facilities as an off-site venue since their on-site kitchens can keep up with demand.
Ghost kitchens – Ideal for businesses that mainly prepare food to be delivered to their customers. At KitchenConnect, our ghost kitchens facilities are in strategic locations in Malaysia so that businesses can hit the ground running right away.
Central production units – Perfect for businesses that prepare meals which are then delivered to other locations and served. Restaurateurs pick these types of kitchens in order to reduce the size of their workspace or don’t have the necessary permission to cook hot food on their premises.
DO: Assess what type of commercial kitchen space for rent meets your business’s needs. It is important to note that catering kitchens can be rented full-time or part-time, and can be shared or privately owned. As for ghost kitchens, be sure to find the best size and location.
DON’T: Have the mindset that every commercial kitchen space for rent is the same. There are major differences and you need to know about them before moving in.
Obtain all your licences
Before opening your doors, you need to have all the necessary licences on hand so that you don’t run the risk of breaking the law. At KitchenConnect, we take care of these procedures, so that you can focus your time and effort on other parts of your business.
DO: Find out which licences you need and apply for them.
DON’T: Assume you already have all your licences. Do a thorough check to protect yourself from getting into trouble.
Safety equipment is a must
When it comes to workplace safety, you must have all the necessary equipment available in order to protect your employees and ensure they can deal with all types of emergencies.
DO: Check all the safety equipment is present and that it works.
DON’T: Cut corners as it can come back to haunt you.
Study your rental contract
Before completing your move into a commercial kitchen space for rent, be sure to have read through the terms of your rental contract carefully and thoroughly. The following are things that you should be fully aware of:
- When the rent is due
- Does it come with a break clause
- How much is the deposit
- Do any hidden costs exist
It can be tempting to sign your rental agreement right away, but in order to protect yourself and your business, it is worth reading through it and pinpointing any troublesome terms and conditions.
DO: Conduct an in-depth examination of your contract before signing it.
DON’T: Sign right away as potential problems could start popping up down the line.
Time to move in
Moving into a commercial kitchen space for rent is an exciting time for any restaurant owner. Now that you are aware of all the dos and don’ts, you can take the steps required to ensure your business scales to new heights. Intrigued about opening a cloud kitchen at one of our facilities in Malaysia? Fill out the form below or contact us today.