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

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.