[2] These early investments may have ignited a new sector of community-driven food businesses, with a supporting infrastructure of technical assistance partners.
As a result, between August 2013 and March 2016 the number of kitchen incubators (providing technical assistance to food entrepreneurs) in America increased by more than 50% to over 200 facilities.
All three business models rely on the fact that FDA and state regulation prohibit the sale of food that is not produced in a licensed facility.
[4] Culinary start-ups are unlikely to receive venture capital or bank financing, as profit margins are too slim and volatile for such a highly competitive market.
Even once proven viable, the entrepreneur must navigate a complex network of regulation, packaging and distribution before running a profitable enterprise.