Monday, April 25, 2016

Allergen Free Cooking

Allergen Free food production can seem daunting at first, but with the proper precautions in place it is definitely do-able!




The main focus should be on preventing Cross-Contamination - the easiest way to deal with this is to use separate equipment whenever possible and schedule your cooking so that you can do your allergen free products at a separate time so there is no risk of accidentally contaminating an allergen-free food with an allergen from a different product. For example, if you make toffee with almonds and you also make nut-free products - make your toffee one day, clean and sanitize everything, then make your nut-free product another day. You may think you'll be fine making both at once but there is too much risk for contamination - better safe than sorry!


It should go without saying, but it is vital to take all allergies seriously! If you have ever seen someone go into anaphylactic shock, you know what I'm talking about





Here are some things to remember:

Keep equipment separate, clean everything thoroughly
Do not guarantee that your product is free of an allergen unless you are absolutely confident that no cross contamination has occurred
Label your products with a disclaimer stating that they are produced in a facility shared with Dairy, Eggs, Wheat, Soy, Peanuts, Tree Nuts, Fish & Shellfish (if that is the case)


Friday, April 22, 2016

Resale ID for Food Businesses

Yes I know, another piece of paperwork - but this one has some major benefits for the food business!

In Illinois you will file the Reg-1 Form which can be found on https://mytax.illinois.gov/_/ (Click on "Registration" then "Register a New Business") I highly recommend submitting this form through the website rather than mailing it in.

Whether you are a wholesaler(selling to a retailer who will then re-sell your product to the final consumer) or reseller(selling directly to the final consumer) - you will want to fill out the Reg-1 Form. Once you file this form you will get your IL Business Authorization (AKA Business Registration AKA Resale ID AKA Tax Exemption -- don't ask me why there are so many names for this, it seems like everyone calls it something different but they are all the same thing)




You will have the option to list different locations for your Resale ID. Vendors that cook at United Kitchen must include our address as one of the locations because they will also be selling their product at our location. Some other locations to include would be your company address and any farmer's markets where you are selling your product. You will also create an account on the MyTaxIL Website which is where you can file your sales tax quarterly.

Pro-Tip: If your corporation is located in Illinois you will need to put a "D" before your IL file number, if it is located in another state you will put an "F" - for some reason no one tells you this but it is necessary because you won't be able to submit your form without one of those letters before your file number! The D stands for Domestic and the F stands for Foreign, if you're curious


Once you have this little blue certificate you will be able to purchase your ingredients without paying sales tax on them! This is a particularly big bonus in Cook County where the sales tax can be 10%! The reason for the sales tax exemption is that you will be charging sales tax to your customers on your final product - so if you paid sales tax on your ingredients as well it would essentially be double-taxed.

In order to make a tax exempt purchase you will first want to talk to customer service at the retailer - every store seems to have a different way of handling this. For example, Restaurant Depot will not even allow you to shop there unless you have a Resale ID - the first time you shop there they will make a new account for you and give you your own Restaurant Depot card (Be sure to bring your blue Resale ID certificate with you the first time you go to any store!) Whole Foods on the other hand just enters in the number from your certificate at the register each time you want to make a tax exempt purchase so you need to bring that with you each time. Sam's club operates like Restaurant Depot where your Resale ID is on your Club Card, but you can choose at the register if you are making a sales tax exempt purchase or not. At Walmart you will need to go to Customer Service to get registered as tax exempt, they give you a paper card that has their reference number for your tax exempt account, you will need to bring that card with you each time and give it to the cashier when you make a purchase.




Let me know if I forgot anything, or if you have further questions about this topic! :)




Operating In Illinois as a Corporation from Another State

You can operate in Illinois if your corporation is located in another state. For example, my corporation was filed in Delaware. You should look into the pros and cons of the corporation laws in each state to decide what works best for you and your company.




In order to operate in Illinois you must file for permission to do business in Illinois. The IL Secretary of State will then assign you an Illinois File Number which you will need to complete the Reg-1 Form for your Resale ID.  When you complete the Reg-1 you will put the letter "F" before your file number, denoting foreign. If your corporation was located in Illinois you would put a "D" before your file number, denoting domestic. You will still file your sales tax in Illinois for sales made within the state, but you will renew your corporation annually in the state where it is filed. You can also obtain the Illinois DBA name for your corporation.


Any other questions? Let me know in the comments!



Wednesday, April 6, 2016

Gluten Free Food Production

While some people choose to only eat gluten free food if it has been produced in a dedicated gluten free facility, it is possible to produce safe gluten free food in a shared kitchen as long as you take precautions and follow the proper procedure.


Many people are gluten free and it is important to understand how to safely produce gluten free food in a shared kitchen, even if you are not producing the gluten free product yourself you must be respectful of other gluten free kitchen users. Some gluten free customers may become very ill if they eat food that has been contaminated by gluten, and that is the last thing anyone wants.

I highly recommend the GREAT program by BeyondCeliac for an in-depth training program for foodservice professionals to learn how to safely make gluten-free food in a non-gluten-free environment.
Ingredients to be careful of:
Wheat, Barley, Rye and Malt are the main sources of gluten, however other products that you might not suspect can also contain gluten so you must be careful to read the labels on all of your ingredients when you are cooking gluten free items. Some of the usual culprits include, Spices, Soy Sauce, Oats, and Soups.



Preventing Cross Contamination:
Sanitation is crucial to gluten free food production. Bleach or another sanitizing agent must be used before and after each kitchen use on all surfaces including but not limited to: tabletops, sinks, sink handles, faucets, refrigerator doors etc.(basically anything that you may have touched with gluten). It is important that all kitchen users understand this process and carefully clean up after themselves.

Separate equipment is ideal for gluten free food production. United Kitchen has dedicated gluten free utensils, bowls, pans, mixers, and ovens. Gluten free equipment is kept in an area away from the regular equipment to prevent contamination. Kitchen users who handle flour and other gluten ingredients must be aware that they cannot use the gluten free equipment and know not to go near the gluten free area while wearing an apron with flour or other messy gluten ingredients on it.

Another important thing to remember is that you must wait 24 hours for flour to settle out of the air. This is something you must be aware of when using a shared kitchen, the manager must keep track of when gluten-free vendors are using the kitchen so that there is enough time for the flour to settle and to sanitize all surfaces.

Friday, April 1, 2016

Benefits of A Shared Kitchen

How can a shared kitchen help my business?

Shared kitchens are a great stepping stone between the Cottage Food Law or Home Kitchen Law in Illinois and investing in a brick-and-mortar production facility of your own. Instead of paying upwards of $4000 per month for rent and utilities, you can pay just $25 an hour for use of a commercial kitchen. This greatly decreases start-up costs for a new business and lessens the barriers to entry in the market.

At United Kitchen we also have a retail storefront where renters can offer their products for sale. This is less common among shared kitchens but it offers another opportunity for new businesses to get their products on the market and test out their popularity. 




Another benefit of a shared kitchen is the opportunity to network with fellow entrepreneurs. United Kitchen hosts monthly meetings for our vendors to get to know one another, ask questions and bounce ideas off of each other. Everyone has different experiences and knowledge to bring to the table, and this is invaluable when you are just starting out.