Atlanta Company Builds Out Large Commissary Space in Scottsdale
Atlanta Company Builds Out Large Commissary Space in Scottsdale
From the Phoenix Business Journal, Aug 27, 2024
Prep Kitchens, an Atlanta-based commercial kitchen company, has taken over a former "ghost kitchen" site and wants to offer Phoenix-area restaurants, caterers, bakers and other food and beverage industry customers a place to prep their food.
Prep Kitchens is building out a nearly 17,000-square-foot space next to a BevMo retail outlet at Scottsdale Commons shopping center at the southwest corner of Shea Boulevard and Scottsdale Road in Scottsdale.
The space was formerly occupied by a similar concept – Kitchen United, which started selling and closing all its physical stores in late 2023 as the company pivoted to developing software rather than making its real estate play.
An increasing number of local multi-unit restaurant operators have switched to a commissary model in recent years, including Spinato’s, Gadzooks, Salad and Go, Venezia’s and Morning Squeeze. Having large portions of the food prepped in one location helps restaurants maintain consistency as well as keeps down labor costs.
Inside the space, Prep Kitchens plans on having a large, shared kitchen space, as well as15 private kitchens. Amy Mariucci, Prep Kitchens’ sales and community manager for Scottsdale, told the Business Journal there will be space for 21 members to rent space in the kitchen. Private kitchen spaces range from 300 square feet to 760 square feet.
Depending on the size of the space rented, Prep Kitchens estimates monthly costs start as low as $3,650 with an upfront cost somewhere between $2,500 to $3,500.
Mariucci said Prep’s model differs from Kitchen United because it is more of a space for multi-unit restaurant operators to use as a commissary, for personal chefs to prep and prepare meals, or for smaller operators to use, rather than a space for Door Dash and Uber Eats drivers to pick up orders. She said that bakers, pizza makers and other businessowners that need special equipment can be accommodated.
The Prep Kitchens space in Scottsdale is smaller than the 60,000-square-foot facility the company is looking to open in early 2025 in Dallas, but Mariucci said that if the Scottsdale location gets enough traction and interest, an expansion in the Phoenix market is likely in the coming years.
“There's a lot of growth potential. We really do want to capture the market,” Mariucci said. “We've got such a unique product compared to any and all other type of either ghost kitchens or commissaries in town – this is going to work.”
Prep Kitchens brought on 41 North Contractors as the general contractor for the renovation project. Mariucci is already talking with interested operators and the facility is expected to open in October.
Written By Brandon Brown – Senior Reporter, Phoenix Business Journal
Aug 27, 2024
