Shared kitchens, food hubs can reduce barriers for startups: Competition Bureau

OTTAWA — A report from the Competition Bureau says shared kitchens and food hubs could help reduce barriers to entry for small businesses in the food sector.

The agency says small- and medium-sized businesses face challenges, such as the high startup costs of a commercial-grade kitchen, processing equipment, and dealing with complex food safety regulations.

It says shared infrastructure, such as shared kitchens and food hubs — which usually come equipped with tools and are licensed by local health authorities for businesses like meal-kit providers, caterers and pop-up restaurants — could help lower costs for starting a new business while allowing people to test new products.

However, the bureau says shared kitchens and food hubs often face regulatory hurdles, which discourage their multi-region operations — confining businesses to operate in local markets only.

It says a balanced approach to regulations could help protect food safety while keeping the markets open and supporting small- and medium-sized businesses.

The bureau recommends policymakers align food safety rules across jurisdictions, standardize inspection procedures and use existing facilities to pilot new regulatory innovations, such as AI-supported compliance guidance.

OTTAWA — A report from the Competition Bureau says shared kitchens and food hubs could help reduce barriers to entry for small businesses in the food sector. The agency says small- and medium-sized businesses face challenges, such as the high startup costs of a commercial-grade kitchen, processing equipment, and dealing with complex food safety regulations.  Business 

OTTAWA — A report from the Competition Bureau says shared kitchens and food hubs could help reduce barriers to entry for small businesses in the food sector.

The agency says small- and medium-sized businesses face challenges, such as the high startup costs of a commercial-grade kitchen, processing equipment, and dealing with complex food safety regulations.

It says shared infrastructure, such as shared kitchens and food hubs — which usually come equipped with tools and are licensed by local health authorities for businesses like meal-kit providers, caterers and pop-up restaurants — could help lower costs for starting a new business while allowing people to test new products.

However, the bureau says shared kitchens and food hubs often face regulatory hurdles, which discourage their multi-region operations — confining businesses to operate in local markets only.

It says a balanced approach to regulations could help protect food safety while keeping the markets open and supporting small- and medium-sized businesses.

The bureau recommends policymakers align food safety rules across jurisdictions, standardize inspection procedures and use existing facilities to pilot new regulatory innovations, such as AI-supported compliance guidance.