food business

Good To Eat Dumplings: An example for us all...

A few months back, we introduced one of our favorite pop-up restaurants, Good-to-Eat-Dumplings, to our buddies over at Pixar. Pixar is coming out with a new short film focused on dumplings, called Bao, and we thought it would be a great idea for these two companies to work together on the film’s launch. They did, and it was terrific! In fact, it was so successful that now they’re going to be working together on all press events for the movie. It’s really exciting to see how Good-to-Eat has blossomed since starting out at Forage Kitchen. They do pop-ups all over the Bay and sell out at every BatchMade Market on First Fridays.

It’s not an accident that they’re so successful.

Yesterday I was talking to Angie, one of the owners of Good-to-Eat, and I was really impressed by how methodical she and her team are. They pop up everywhere, mostly at breweries in Oakland and SF, but their focus at these events isn’t just on profit. Angie explained to me how intensely they document the experience for market research, with the end goal of identifying a future brick and mortar location.

Who comes to the events? What do they buy? Where do their customers come from? Did they just stop by, or did they travel a long way to sample their food? What was well received, what wasn't, and how can it be improved? What dish is most popular at each location? They focus on these questions and then meet as a team for hours to discuss each of these data points.

Their focus on their recipes is no less intense. Right now, they’re developing a new bao (which we’ll keep a secret for now). Instead of limiting themselves to what seems good the first time around and then serving it, they spend weeks testing the recipe, getting feedback from the other chefs in the kitchen, and they meet again to discuss how to improve it.

We in the food world too often lose this focus, and I’m no exception. I would organize an event, hope it went well, and then move on to the next one. I was intensely focused on what I wanted to create, and on making people happy, but it was always through the lens of my experience rather than an objective look at the event itself.  I never took the time to step back and look at the other factors shaping my success. In my case, it was underground dinners and food markets, but the lessons still apply.

A lot of us in the food world think of what we create as our art, and often our attitude is, “If people don't like it, that's their problem.” Of course, it’s important to focus on what you want to create, rather than being vulnerable to the changing winds of opinion. If you take advice too freely, you won’t create anything unique. But I think we can learn a lot from Good-to-Eat’s mentality. They want to create something great, and they use the information around them as fuel to help them get there, rather than as a challenge to their vision. That’s definitely a lesson I could have used over the years.

Iso Rabins
Co-founder: Forage Kitchen

how to start a food business in Oakland : City and county permits

This is our second post in the series on how to start a food business in Oakland. This post is written by Matt Johansen, co-founder of Forage Kitchen. Our first is written by co-founder Iso Rabins, and covers the existential crisis of what to decide to focus your business on.

 

Starting a new business can be hard. And starting a new food business can be downright overwhelming.  Working with food comes with a unique set of challenges due to the multitude of permits that can be required by city, county, state or even federal entities. These administrative requirements can stop anyone in their tracks and kill their dream.

I’ve started a number of businesses in my life, ranging from educational non-profits to restaurants. While each one had its own complexities, the food-related businesses by far outweighed the others in terms of the sheer number of rules, regulations, and just plain unknowns that I initially found very frustrating to navigate.

Below is a step-by-step process, with corresponding resource links, that I hope will make it a little easier to chart your course when you venture into your dream of ownership. The bureaucrats don’t make it easy to navigate the labyrinth of permits and licenses (which need to be obtained in a specific order), but following this guide will put you on the right path! At Forage Kitchen, we pride ourselves on being a resource for our chefs, so if you have any questions, definitely feel free to reach out.

 

CITY & COUNTY PERMITS

Step 1: Business Name & EIN Number

Fictitious Business Name: What’s the name of your business? If you plan on giving your business a name different from your own, you’ll need a fictitious business name statement. If you’re going to use your own name, you are exempt from this step.

1)    Below is a link to an overview about how to file a fictions business name in Alameda County. Link:  https://www.acgov.org/auditor/clerk/filefbn2.htm

2)    It’s recommended that you search the fictitious name directory to see if anyone else has the name you have in mind.

       Link: https://www.acgov.org/auditor/clerk/fbn.htm

3)    Once you’ve chosen your business name, here is the form you’ll need to fill out and send in, along with a check.

Link: https://www.acgov.org/auditor/clerk/fbnforms.htm

Employer Identification Number (EIN): Below is a link to the IRS website where you can obtain an EIN number. You will need this if you are applying for a business license in Oakland.

Link: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

 

Step 2: California Seller’s Permit

If you are engaged in business in California and wish to sell products, then you are subject to sales tax and you’ll need to obtain a seller’s permit. Please find the link below that will guide you through the process. This is essential if you are applying for a business license in Oakland.

Link: https://www.cdtfa.ca.gov/services/#Overview

 

Step 3: Insurance

Insurance is always a challenging thing to figure out. The Food Liability Insurance Company (FLIP) is an inexpensive and straightforward general liability insurance company for new food businesses. Below is a link that will guide you through the signup process.

Link: https://www.fliprogram.com/

 

Step 4: Oakland Business License

Every business operating out of Oakland must have a business license. To obtain a business license, you will need to do two things. First, obtain a Zoning Clearance Number. Second, file an Oakland business license application. Please note that you will need to have a state seller’s number and an EIN number before taking this step.

Zoning Clearance Number: This is required for all Oakland-based businesses and notifies the City of the type of business you are operating. Simply fill out this form and return it to: 250 Frank Ogawa Plaza, 2nd Floor, Oakland.

Link: http://www2.oaklandnet.com/oakca1/groups/ceda/documents/form/oak037285.pdf

Oakland Business License: Once you receive your Zoning Clearance Number, head downstairs to the Business License Office and file your New Business application. The link below will give you a rundown of how it works and a link to the application.

Link:  https://www.oaklandca.gov/services/business-tax-applications-1

 

Step 5: California Food Handler Certificate

If you work with food and sell to the general public in California, you are required to have a California Food Handler Certificate. There are two different types of certificate: one for managers and one for employees. In Oakland, every business needs at least one person with a manager certificate.  I won’t lie to you, this one’s a hassle. Unlike the employee certificate, this requires taking an all-day class. Plus, they’re not often available, so don’t delay in signing up— you might have to wait as long as a few months before you get a spot.

You will need this when you apply for an Alameda County Health Permit. Look for information about both certificates and a link to classes that are required in order to obtain your certificate.

Food Safety Certification for Managers: California State Law requires that at least one person operating a food business be in possession of a Food Safety Manager Certificate (Cal. Retail Food Code, §113947.1) and has trained his or her employees in the correct food safety practices. This person should be on the premises of a food business during operation, or should designate a different person in charge of food safety when absent. The Food Safety Manager Certificate is good for five (5) years, and is offered in many different languages. Please find a link to classes below.

California Food Handler Certificate (Food Handler Card-Employee): All employees that handle food must have a food handler card, except for the Person in Charge (PIC) (see above). Training to receive a food handler card is available online, and is good for three (3) years. Once completed, the employee should print his or her certification card. Every food-handling employee needs to have a Food Handler Card, but only one person needs to have his or her Food Safety Manager Certificate (see above).

Link: https://anabpd.ansi.org/Accreditation/credentialing/certificate-issuers/AllDirectoryListing?prgID=228,238&statusID=4

 

Step 6: Alameda County Health Permit

Obtaining a county permit can be complex and depends on the type of business you’re operating and the way in which you sell your product to the public (retail, wholesale, farmers markets, etc.).  In some cases, you will fall under state programs, sometimes under county programs, and sometimes under a combination of both. I would love to tell you exactly what you’ll need here, but since there are so many different permits for different types of businesses, I’ve provided the best (and most clear) info from the Health Department, with links below:

This is the home page for mobile food permits and is a great place to start. Please note that you will need the following items when applying for a health permit: a Food Handler Management Certificate and a City of Oakland business license. You may be required to obtain specific state licenses depending on your product.

Catering Registration: This registration is for caterers hired for private events only. Catering, in this context, means that an order is placed prior to the event, and the caterer prepares the food and delivers it to the venue. The order transaction needs to be done prior to the event.

Mobile Food Facilities Application: If you are catering at public events, or selling to the general public, then you need to obtain and file a Mobile Food Facilities application. Please note that you may fall into a state program that is more applicable to your needs. This is a gray area within the state and the county depending on the type of food you are selling and how you are selling it. Please see state permits below. Below is a link to the county application.

Hope that helps you in your journey to becoming a legit business. If you ever have any questions or are looking for kitchen space, feel free to reach out to me directly at matt@foragekitchen.com

Matt Johansen
Partner: Forage Kitchen

Next up: A step by step on navigating the labyrinth of state licenses.

How to start a food business in Oakland #1: Figuring out what to make

At Forage Kitchen, we’ve created a space where people with or without a food background can fulfill their dream of starting a food business. To that end, I thought I’d write up a no-nonsense guide on how to get started. Here goes!

1.     What to make:

If you don’t know what you want to make, starting a food business can seem daunting. I suggest picking something you really love and which—in your opinion—you haven’t seen done well. Running a business is hard, and it’s even harder if you’re making something that you’re not really excited about. Don’t worry if you can’t see yourself making it for the rest of your life, just make sure you’re excited about it RIGHT NOW.

Most of the success of any business rests on the passion of its owners. People want to support people who are excited about what they’re doing. That excitement will show though in all kinds of ways, from the way you talk about it and how good it tastes, to your marketing and the employees you hire, so make sure the excitement is there, or your chances of success will probably be slim.

If you’re still stuck, go to a market you see yourself selling in and observe what they have. Is there anything you LOVE that you’ve never seen sold? Look at what’s out there, but most importantly, at what’s not there.

2.     Start at home with a Cottage Food Permit:

As much as I’d love to tell you that, as soon as you find your idea, you should come to Forage Kitchen, it just wouldn’t be true. Start at home. With all the costs of renting a kitchen (even the much-reduced costs of being in a shared space like ours), it’s very hard to get a brand new business off the ground. You want to be 100% certain of your product before making that investment.

We’re lucky in California to have access to Cottage Food permits, which allow you to make products at home to sell at farmers markets and to local stores.

Unfortunately, this permit doesn’t cover all food products, only “non-potentially hazardous foods.” (Basically, you can’t make anything that you’d need to store in a refrigerator).  I’m not an expert on this, but the great folks over at SELC (a group that was VERY instrumental in getting the law passed) have an FAQ section that should answer any questions you have on this issue.

For everything else, you’ll need to use a commercial kitchen before you start selling. I’d still recommend being insanely over-prepared before taking this step. Have everything ready: your branding,. your packaging, your consumer trials. Get people to try your product (and not just your friends, because they’ll all tell you “IT’S AMAZING!!!”)

I’m not suggesting that your product isn’t amazing, but you’ll save a lot of time and cash by getting second opinions. Forage Kitchen organizes a great venue called “Tasting Table” at BatchMade Market (each first Friday of the month), where you can drop off your food items and get consumer feedback, which is super helpful. But you can go even further. Set up a table down the street from a farmers market and offer samples. Go on Craigslist and offer free food in exchange for feedback. Email food makers you love and ask for their opinion. Come up with your own clever ideas! In my experience, food veterans love to help passionate newbies—but you need to ask. Don’t be shy! I had knots in my stomach cold calling folks when I first started (I still do!), but I can’t overstate the importance of putting yourself out there. You won’t be sorry.

Just make sure you know what you’re doing before paying for a kitchen. Money burns fast once you get to that step.

Here’s a link to the cottage food permit: https://deh.acgov.org/index.page

SELC FAQ: https://www.theselc.org/cottage_food_law_faq

Next post: Brass tacks! My business partner Matt will give a step by step layout of what permits you'll need and where to get them.

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How to succeed on kickstarter #4: Running a successful campaign

This is the fourth and final post in my series on kickstarter.

Planning how your campaign is actually going to run is as important as creating a great video. Too many people create a great campaign page, press go, and just hope it will all work out. Don't do that! When pledges don't come in as quickly as you'd hoped, you want a real plan of action to make it happen. If you wait to think of this until your kickstarter is running, you'll be stressed and make bad decisions.

Plan exclusive events

During my campaign, I organized many events to which I only invited those who had pledged their support. Whenever I did this, I saw a spike in our pledges. Try to keep down the production costs of these events, as you’ll be paying for them out of your own pocket during the campaign.

Beat the doldrums

You will notice that you receive the most pledges in the first and the last weeks of your campaign. Things tend to sag in the middle, but you should do everything you can to combat the slump. I firmly believe that, when it comes to a funding drive, people need to be reminded about something many times before they will act upon it. There is so much noise being thrown at everyone; if you wish to break through it, you will have to be quite persistent. I think we can agree that there is a fine line between reminding people and annoying them to pieces. To be honest, I'm pretty sure I crossed that line during my campaign. Try to keep in mind that the relationships you have with the people in your network will extend beyond the campaign. You want people to respect you even when this is all over.

Create a team

Do not attempt to do all of this by yourself. If you don’t have partners working with you on the project, you should recruit some volunteers to help you with the campaign. There is plenty of work that you can delegate: contacting reporters, sending out personalized e-mails to your Facebook friends, posting flyers around town, and so on. Involving other people will help to make the whole process seem a lot more fun and social. Even if you're pulling your hair out, you won't be doing it alone.

Run a shorter campaign

In the supporting materials, Kickstarter recommends running a campaign that lasts for between 15 and 30 days, as these tend to be the most successful. I would have to agree with this. I chose to launch a 45-day campaign. Apart from the fact that this did nothing to preserve my sanity, I could see that it would have been easier to maintain the momentum if it had been slightly shorter. People lose interest if the doldrums last too long. If you are setting a high goal, I'd recommend running a 30-day campaign. This gives people enough time to hear about it a few times, and when they receive the “Our campaign is almost over!” e-mail, they will still remember who you are.

That’s about it. Again, this was my experience, and it will be slightly different for everyone. Kickstarter is great platform on which to raise funds, and to get your idea out into the world, but running a campaign is also one of the most stressful experiences you’ll ever have. It’s a big deal to send your idea out into the world for people to judge with their hands on their wallets. If it works—great! You will have raised some cash, gathered some momentum, and gotten a lot of folks to stand behind your dream. If it doesn’t work, it can really have a chilling effect on your confidence. You may have failed to meet your goal because you didn't run a tight campaign, but it may be seen as a sign that your idea lacks viability or potential.

So, now it's time for you to go out and make your dreams come true. I wish you all the luck in the world!

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How to succeed on kickstarter - post #2 - nuts and bolts of creating a campaign

Across the next few posts, I’ll be sharing a step-by-step guide to launching a Kickstarter campaign, based on my own experience. I didn’t come up with all of these ideas by myself; I received a ton of help from Whately. He had recently completed his campaign, and he gave me some great tips on how to run a successful one.

Read, read, read

Read everything you can get your hands on about how to launch an amazing campaign. Check out people's blogs, which can offer helpful tips and warn you about common pitfalls. Read Kickstarter's How To page. This provides invaluable insight into how to craft a successful campaign and how to create an application that's more likely to be accepted. It contains some really great info about the success rates of different lengths of campaigns, the optimum length for a promotional video, and tons of other useful stuff. Since Kickstarter operates on a commission basis, it's in the company's best interests to help you to run a successful campaign, and that's why they’ve taken the time to create a great overview.  Read it!

Conduct thorough research

Before starting my campaign, I spent weeks on the site just looking at other folks' campaigns. I paid attention to which strategies and techniques seemed to be working and which ones didn’t seem to be working quite as well. It's worth spending time on this phase of the project. Also, try to be a sport. Pledge on a few projects you think are neat or worthwhile, as it helps to create good karma. It makes you look a little hypocritical if you're trying to raise money, yet your profile says you’ve never helped out anyone else.

Compose a strong application

It's essential that you submit a strong application, otherwise your campaign will not be approved. You may be tempted to put this off until just before you are ready to launch. I would strongly advise you against leaving it until the last minute, because there may be something in your pitch that doesn't mesh with the Kickstarter rules and regulations. If, for example, you say you're aiming to start up a business or to raise a portion of the funds you'll need in order to complete the process, your application may be rejected.

If your application is rejected, don't lose hope. First, make sure you understand why you've been rejected. Then, redraft your proposal and resubmit it. If you've submitted your application early, then you'll have plenty of time to rework it; however, having to do this under time pressure can be an incredibly stressful experience. Try to have your application approved before you make your video. If you make the video first and there is something in it that doesn't pass muster with Kickstarter, it will be a hassle to fix.

In my next post I'll talk about creating the perfect campaign video!

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Our first six months

 

It’s been six months since we opened Forage Kitchen, so it’s a good time to reflect on where we’re at and where we’re going. It still seems surreal that the space is actually open. After years of pushing, starting with our Kickstarter campaign almost five years ago, to when Matt (my cousin and business partner, an indispensable part of this enterprise) and I started working together in 2013, to our search for investors (it’s amazing how hard it is to get someone to invest in an actual building in the tech capital of the world), to the seemingly endless search for a location (we were so close to acquiring one of over a dozen spaces that we were designing the interiors before the deals fell through), to the delays with our construction (the project was more than a year behind schedule). It’s been quite an experience.

What kept us going through all that was a concrete faith that someday it would exist. We weren't sure how long it would take, or how we would afford it, or where it would be, only that it would eventually happen. I really feel that’s the recipe for success—just convincing yourself that there’s no other option.

Six months after opening, the space still has that new car smell. At the end of the day I sometimes sit alone in the café, with a beer and a cookbook, and I just revel in the reality of the space. How unlikely it was that it would actually work—how often it felt like it would never happen.

We’ve been really happy about the crew of chefs that are using the space.  We thought it was going to fill up a lot faster than it did, which caused some financial hand wringing, but we’ve come to see that these things just take time. In fact, it usually takes several months from the moment people email us to when they actually start booking, a multi-part process that involves obtaining permits and negotiating the amount of hours needed, among other things. Some people just disappear, but the good ones sign up. I’ve always said that in shared spaces, it’s always one person that ruins it for everyone: that one chef who doesn’t clean up, or uses more space than he or she needs, or brings in too many people. To be honest, that chef was sometimes me. That’s why I know the type so well!

Thankfully, no one in our space fits that bill. Our crew consists of friendly, open, interesting, and ambitious folks, including our friends at Thistle, who cook 10K meals per week, to Eat Nibble, run by Sally, a first-time food entrepreneur.  We like to emphasize that our space is perfect for novices, that there is no stupid question about how to use equipment or scale up a recipe, and that Matt will sit down with anyone who has permit questions. Likewise, I’m happy to give feedback on recipes or to lend a hand with cooking.

When I first walked into a shared kitchen, I had no professional experience, and it struck me as a pretty scary place: huge equipment I’d never used before, serious busy folks running around with no time to lead me through the finer points of emptying a fryer (I’m still not 100% sure how to do it well…). I want our space to be different, a space where people support each other and aren’t scared to ask questions. Everyone was a newbie at some point. Open communication is a treasured virtue at Forage Kitchen. The more I push for candor and openness, the more I enjoy being in it.

BatchMade Market, our monthly event when our chefs sell and sample food in the kitchen on First Fridays, has been a high point. I loved running the underground market, with the exception of the huge production and constant wrangling with the Health Department over legality. What made it so worthwhile was the community of eager chefs, all so excited to share what they made, and seeing how happy it made them to have an adoring public sample and purchase their food.

BatchMade represents what’s best about running a market. We get between 400-600 people per month, and currently five to seven companies are set up (which may expand as the weather improves), preparing everything from fresh oysters to BBQ pork sandwiches to heritage bacon. I get to bartend, which is one of my favorite things to do because it puts me in touch with people who are excited to discover the space. Meanwhile, all-night crowds roll through for food and drink. It’s always a great night.

There’s something about that event that feels like the culmination of my vision: tons of happy people working hard to realize their dream, with Forage Kitchen as their foundation. I think of the Kitchen as a real platform for other people’s ideas. Sure, we have our own projects, like the meat curing room I’m building and the temp-controlled fan/cooling system. But we really want it to be a space that other people use to create what they want to see. Whether that’s a pop-up, a product, a cooking class, or something we haven’t even imagined, the Kitchen is an amazing resource that should be used as much as possible. If you have an idea, we want to hear it!

It’s been a wonderful, sometimes stressful, six months. An important lesson I’ve learned throughout this time is that things work out as they should when you trust yourself and your intentions. I can’t wait to see how this space will change six months from now!

Iso Rabins
Partner: Forage Kitchen