Capstone – Project

8. Commissary Kitchen Financial Viability Report

A Collaboration Between

Engagement Synopsis

Since 2010 the number of commercial grade semi-public kitchens, also known as Commissary Kitchens, has grown almost exponentially. A big reason behind this is the extraordinarily high start ups costs associated with running a food business. These Commissary Kitchens provide a relatively safe location for small food businesses to grow and become financially viable themselves.

One of the primarily responsibilities of the E3 team is to engage with residents of South Bend and listen to what they need to help improve their communities. A recent survey by a local food business entrepreneur shows that there is a rising interest in having a Commissary kitchen in South Bend but there is currently no central focusing force guiding the interest. There are currently four different groups that are asking us for more information about Commissary Kitchens and what the city can do to assist. 

We need the assistance of Mendoza students to determine the rough financial viability of a Commissary Kitchen. This will require sifting through market analysis and qualitative studies to determine if the need within the communities can be profitably connected to the placement of a key business. There are currently no exact locations picked but the general idea has been to take an existing property in a neighborhood commercial corridor and rehab it into a semi sustainable location for food businesses to grow and thrive. The students will be asked to determine what the price tag would be needed for food businesses to rent space from a Commercial Kitchen to at least break even with the operating costs. If that is not possible suggesting a few ways to supplement income to make the kitchen viable. There are a variety of models available in other cities, included shared kitchens, cloud kitchens, and various shared-used agreements with restaurants/churches/community centers.

Food businesses operate at notoriously thin margins. This makes introducing any food business to economically challenged areas much more difficult. This project has actors who are interested in making this project a success but need the right plan to coordinate existing resources for the greatest possibility of profit and long-term sustainability. This is an opportunity for students to engage their analytical and creative sides in coming up with solutions.

Learning Objectives:

  • As a result of this course, students can expect to understand the basics of how to start a commercial communal kitchen and how the model can be made to work for small and medium sized food businesses.
  • By participating in this case, students can expect to compile data into a financial viability report which can then be used to help convince local investors to invest in local projects with thin profit margins.
  • By participating in this immersion opportunity, students will learn more about food manufacture/catering/sales at the lowest end of the scale – home kitchens – who are poised for growth into a more commercial space.

Company Information

CompanyCity of South Bend Department of Community Investment
HQSouth Bend, Indiana
RevenueUnlisted
EmployeesUnlisted
StagePre-Revenue Startup
Hiring PotentialFollow-on Projects
Websitehttps://southbendin.gov/department/community-investment/

Company Overview

The Engagement & Economic Empowerment Team (E3) is a division within the South Bend’s Department of Community Investment. The mission of E3 is to address income and opportunity disparities in the neighborhoods of South Bend, primarily those on the West and South sides who have experienced decades of neglect and historic lack of investment. Our mission for 2020 was to identify and support development opportunities in low- to middle-income (LMI) neighborhoods on the South and West sides of South Bend. One potential project that was noticed was the lack of semi-public commercial grade kitchens; after some research into those kitchens we determined the next step would be to determine the financial viability of a shared commercial kitchen in South Bend. This is the area where we need the help and assistance of students from Mendoza.

Industry Mentors

Company Admin

Marty Mechtenberg

[email protected]

Course Info & Engagement Details

SchoolMasters in Business Administration (MBA)
Engagement Format -
CourseMBA Interterm (SPRING 2021)
LevelGraduate
Students Enrolled120 enrolled, 3-5 students per team per project
Meeting Day & Time3/22-25/2021
Student Time Commitment30+ Hours Per Week
Company Time Commitment5+ Hours
Duration0.43 Weeks

Project Topics

Operations

Academic Mentors

There are currently no supervisors assigned.

Assigned Students

Student

Jack Gargan

[email protected]

Student

William Johnson

[email protected]

Student

Emilia Lispi

[email protected]

Program Timeline

Touchpoints & Assignments Due Date Submission
OFFICIAL PROJECT KICKOFF

OFFICIAL PROJECT KICKOFF

Each company will provide a web conference link and time for scheduled kickoff meeting
March 22 Event na
PROJECT COMPLETE: UPLOAD FINAL DELIVERABLES PROJECT COMPLETE: UPLOAD FINAL DELIVERABLES
Please upload your final presentations and/or any final reports you delivered to the company.
March 25 Submission Required submission-required
Final PEER Evaluation Due

Final PEER Evaluation Due

March 28 Event na
Final SELF Evaluation Due

Final SELF Evaluation Due

March 28 Event na
Temperature Check #1 Due by 5:00 PM ET

Temperature Check #1 Due by 5:00 PM ET

March 22 Event na
Temperature Check #2 Due by 5:00 PM ET

Temperature Check #2 Due by 5:00 PM ET

March 23 Event na
UPLOAD STATEMENT OF CONFIDENTIALITY UPLOAD STATEMENT OF CONFIDENTIALITY
During this program, you'll be working on a real project posed by a real industry partner. Please download, sign, and then upload the Statement of Confidentiality. If your industry partner requires an additional NDA, that will be loaded as a Project Resources
March 20 Submission Required submission-required
Final Interterm Feedback Survey

Final Interterm Feedback Survey

March 28 Event na

Key Milestones & Project Process