Why NOW is the Right Time to Start a Home-Based Restaurant

If you have a passion for cooking and have ever thought about starting a culinary business, we have amazing news for you! Thanks to the California Homemade Food Act, you can start a home-based restaurant and make money doing what you love by selling meals to your neighbors, right from the comfort of your own home. Rather than investing significant amounts of time and money into opening a traditional restaurant, AB-626 is opening up a new category in the gig economy that allows anyone with a genuine love for cooking to start selling food on their own terms with minimal risk and startup capital. Needless to say, if you’ve been thinking about starting your own cooking business, the homemade food economy might just be the answer to your prayers! 

 

Now don’t get us wrong — starting a home-based restaurant requires time, investment, and hard work. Being a home-based food entrepreneur also provides flexibility and a much lower level of risk to get started, creating an evolutionary shift in the food industry that opens it up to so many people with big dreams of sharing their amazing food with the world. Thanks to tools like the HomeMade App, there are so many resources out there to guide you in the process every step along the way. 

 

If you’re thinking about starting a home-based restaurant, here are 5 reasons why there’s no better time than NOW to get started right away!

 

 

Freshly baked pie taken out of the oven by older women for her home-based cooking business

 

 Starting a Home-Based Kitchen is Still a New Market with Low Competition

 

California Assembly Bill 626, A.K.A. the Homemade Food Act, was signed into law on September 18, 2018 and went into effect on January 1, 2019. What does this mean for you? It means that joining the homemade food economy now would make you an early adopter in navigating this exciting new industry! It also means that you get first dibs on all of the tools, information, and resources like the HomeMade App that have been designed to guide home-based cooks in how to succeed. Plus, you have a competitive edge to test out the market, master it, and market your delicious food in your local community. Sounds like a win, win if you ask us, wouldn’t you agree?

 

 

Woman chopping up fresh vegetables on a cutting board

 

Opening a Home-Based Restaurant is a Low Risk Business Model

 

On average, opening a brick and mortar restaurant can cost upward of $375,500 (RestautantOwner.com). In comparison, the cost to get all of the certifications required to operate a home-based restaurant is less than $1,000.That’s a HUGE difference! By opening a microenterprise home kitchen, your home is your office — meaning that you do not have to invest in real estate space or pay for all of the expenses that come with it. Plus, if you have aspirations of opening up a restaurant in the future, a microenterprise home kitchen is a great stepping stone to help you hone your entrepreneurial skills without the six-figure price tag.

 

Although the initial cost of your microenterprise home kitchen will be far less than opening a traditional restaurant, it’s still important to invest in the success of your home cooking business. You’ll need to invest in cooking supplies, packaging materials, delivery expenses and a few extra helping hands, but once the dough starts rolling in from your sales, it will be well worth the investment!

 

Freshly baked goods prepared to go in the oven with eggs, flour, and roller for home-based cooking business

 

A Home Cooking Business Gives You the Flexibility to Work on Your Own Terms

 

Over the past few years the gig economy has been exploding, and for very good reasons. Who can resist the temptation of being able to clock-in and clock-out whenever they want while making money on their terms? Whether you’re a stay-at-home parent who is looking for ways to make money while you take care of your children, or someone who already has a career they love and wants to make a little extra cash on the side from their hobby, launching a home cooking business is an alternative in the gig economy that allows anyone to turn their cooking skills into profit. With the proper level of time management skills and prioritizing, your home-based cooking business can become a side hustle that you can be proud of!

 

White iphone showing homemade food app in front of fresh vegetables in home-based restaurant

 

Resources like the HomeMade App Make Starting Your Home-Based Restaurant Simple

 

All of the permits and certifications required to start a home cooking business may seem overwhelming, but you don’t have to do it all alone! The introduction of the Homemade Food Act has created a high demand for tech startups that are specifically designed to help future home-based cooks like YOU succeed — and the HomeMade App is one of them! Not only do we walk you through every single step of getting your microenterprise home kitchen permit, but we provide resources to help you learn the tools of the trade including creating your menu and taking high quality photos of your meals. Plus, the HomeMade Food App is a social dining platform that connects you with local hungry customers while helping you manage your orders. HomeMade brings customers to you, and all you have to worry about is making delicious meals!

 

Starting Out as a Home-Based Cook Will Help You Hone Your Culinary Skills While Testing the Market

 

If you plan on opening your own traditional restaurant in the future, opening a home-based restaurant now is an amazing way to hone your culinary skills, test out the market, and cultivate your core customer base before making that big investment. Although your microenterprise home kitchen will be a home-based operation, it is still a business that will help you learn the ropes of entrepreneurship with real world experience. According to a study conducted by The Restaurant Brokers, 90% of independent restaurants close during their first year in business, so being able to test out your success in the industry before making a large investment is an amazing edge over fellow aspiring restaurateurs.

 

Ready to get rolling with your home-based restaurant today? Check out our ultimate guide to AB-626 Microenterprise home kitchen operations in Riverside County and let us help you get started today!

 

 

 

 

Sources: https://www.restaurantowner.com/public/Survey-How-Much-Does-it-Cost-to-Open-a-Restaurant.cfm

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