Updated Jan 2026
Starting a food business but can't use your home kitchen? You're not alone. Every Canadian province and over 85% of US States prohibit selling food prepared in home kitchens due to health codes. But the good news is that you no longer need $100,000 to build your own commercial kitchen.
Commercial kitchen rentals let you start legally for as little as $20 per hour.
This guide covers everything you need to know: the 3 kitchen types, costs, requirements, and how to book your first space.
Why You Can't Use Your Home Kitchen
Most inspection agencies prohibit commercial food sales from home kitchens because they lack:
✗ Proper separation from living areas
✗ Commercial-grade equipment
✗ Required ventilation systems
✗ Health department certification
✗ Three-compartment sinks
✗ Commercial refrigeration
Cottage food laws allow limited home sales, but only for:
- Non-perishable items (baked goods, jams)
- Sales under $25,000-$50,000/year
- Direct-to-consumer only (no wholesale)
Bottom line: To prepare perishable foods, sell wholesale, or scale your business, you need a certified commercial kitchen.
The 3 Types of Commercial Kitchens (Quick Comparison)
Option 1: Shared Kitchens (Best for Beginners)
What It Is
A fully equipped commercial kitchen where multiple entrepreneurs rent hourly time slots.
Think of it as: Airbnb for commercial kitchens.
What's Included
✓ All commercial equipment (ovens, mixers, stoves)
✓ Health department certification
✓ Refrigeration and storage
✓ Facility insurance
✓ Maintenance and repairs
Costs
- Evening and Highly Saturated Area: $20-$35/hour
- Large spaces with additional equipment: : $25-$50/hour
- Average: $30/hour
Example: 12 hours/week = $360-$480/month
Perfect For
✓ Testing your food business idea
✓ Side hustlers with day jobs
✓ Seasonal businesses
✓ Anyone needing under 20 hours/week
✓ Minimal financial risk
Pros & Cons
Advantages:
- Zero upfront equipment costs
- Pay only for time used
- No maintenance responsibilities
- Easy to walk away
- Network with other food entrepreneurs
Limitations:
- Must work around others' schedules
- Limited storage space
- Can't customize equipment
- Peak times book quickly
Option 2: Commissary Kitchens (For Growing Businesses)
What It Is
Large, purpose-built facility designed for multiple food businesses with monthly memberships and dedicated storage.
Think of it as: Co-working space for food businesses.
What's Included
✓ Large-scale commercial equipment
✓ Dedicated storage (dry, refrigerated, frozen)
✓ Loading docks and parking
✓ 24/7 or regular access
✓ Commercial dishwashing
Costs
- Basic: $800-$1200/month
- Standard: $1,500-$3,000/month
- Premium: $3,500-$7,500/month
Perfect For
✓ Food trucks needing daily prep
✓ Catering companies
✓ Meal prep/delivery services
✓ Wholesale producers
✓ 20-40 hours weekly needs
✓ Significant storage requirements
Pros & Cons
Advantages:
- Dedicated storage space
- Predictable monthly costs
- Regular workspace
- Professional facilities
- Established food business community
Limitations:
- Monthly commitment (even slow months)
- 3-6 month contracts typical
- Still shared space
- Can't modify facility
Option 3: Ghost/Cloud Kitchens (For Established Businesses)
What It Is
Your own private commercial kitchen space. Basic shell where you install your own equipment.
Think of it as: Your own kitchen without the restaurant storefront.
What's Included
✓ Four walls with commercial finishes
✓ Ventilation and hood system
✓ Gas/electrical hookups
✓ Plumbing and drainage
✓ Fire suppression
✓ Health approval
What YOU Provide
✗ All cooking equipment
✗ Refrigeration units
✗ Prep tables
✗ Kitchen tools
✗ Storage shelving
Costs
Monthly lease dependent on facility
Plus:
- Equipment: $10,000-$50,000+
- Utilities: $300-$800/month
- Realtor or Brokerage costs
Perfect For
✓ Delivery-only restaurants
✓ Established businesses ready to scale
✓ Very specific equipment needs
✓ 40+ hours weekly
✓ Multiple virtual brands
Pros & Cons
Advantages:
- Complete control
- Custom equipment setup
- No sharing space
- Unlimited hours (24/7)
- Your own address
Limitations:
- Highest financial commitment
- 1-5 year lease obligations
- You handle repairs
- Large upfront investment
- Rent during slow seasons
How to Choose the Right Kitchen Type
Start with a Shared Kitchen if you:
- Are testing your business idea
- Work part-time or have another job
- Need fewer than 20 hours/week
- Want minimal financial risk
- Aren't ready to buy equipment
Move to a Commissary Kitchen when you:
- Have consistent customer demand
- Need 30-40 hours/week
- Require dedicated storage
- Operate a food truck or catering business
- Have outgrown hourly rentals
Scale to a Ghost Kitchen when you:
- Have established revenue stream
- Need 40+ hours/week
- Require specific custom equipment
- Are ready for long-term commitment
- Have $15,000-$50,000 for equipment
5 Costly Mistakes to Avoid
1. Underestimating Time
Mistake: "My recipe takes 2 hours at home, so I'll book 2 hours."
Reality: Add 50% buffer time initially. Unfamiliar equipment and cleanup take longer.
Fix: Book 3-4 hours for your first sessions.
2. Skipping Insurance
Mistake: "I'll skip insurance to save money."
Reality: One lawsuit costs $50,000-$500,000+.
Fix: Get insurance from day one ($115-$210/month).
3. Not Reading Contracts
Mistake: Skimming rental agreements.
Reality: Hidden fees, auto-renewals, and penalties trap you.
Fix: Read everything and ask questions
4. Improper Labeling
Mistake: Storing food in unlabeled containers.
Reality: Unlabeled items get thrown away in shared facilities.
Fix: Label everything with name, date, and use-by date.
5. Going Solo Too Long
Mistake: "I can't afford help."
Reality: Helper producing 2× output for $120 = $380 extra profit.
Fix: When selling everything you make, calculate if help increases net profit.
Quick FAQs
Q: Can I use my home kitchen?
A: No, unless you qualify under cottage food laws (limited to non-perishable items, $25K-$50K caps).
Q: How much does it cost to rent a commercial kitchen?
A: Shared kitchens: $15-$65/hour. Commissaries: $500-$2,500/month. Ghost kitchens: $1,500-$5,000/month + equipment.
Q: What insurance do I need?
A: General liability ($1-2M coverage) and product liability ($1-2M). Total: ~$50-$210/month.
Q: Can I bring my own equipment?
A: Usually yes to shared/commissary kitchens (check policies). Ghost kitchens require you to provide everything.
Q: What licenses do I need?
A: Food handler certification, business license, and health permits (varies by product/province/state).
Q: How do I find kitchens near me?
A: Search "commercial kitchen rental [city]," ask at farmers markets, contact food business incubators, check with local health department.
Every successful food business started exactly where you are: with a recipe and a commercial kitchen rental.
The only difference between them and you? They took the first step.
