Food Production Tag

What It Takes to Build a Thriving Food Economy

The Strathcona Business Improvement Association in collaboration with Dunefield and other local stakeholders, are championing an initiative that explores the potential opportunities and barriers of further developing a food business cluster in Strathcona. This project aligns closely with the goals of the Strathcona BIA’s Economic Vision and Implementation Plan developed in 2023, combining the plan’s focus areas of industrial lands, retail spaces, and community engagement. An economic cluster in an urban industrial business district refers to a concentration of interconnected businesses in a particular industry, ranging from manufacturers and suppliers, to service providers, retailers, and institutions. Further developing a business cluster can help lead to increased innovation, productivity, and competitiveness among the businesses within the cluster, driving economic growth, attracting investment, creating jobs and fostering collaboration within the local economy.

Focusing on the district’s food cluster was a natural choice for this economic development initiative. There is already a strong presence of food businesses in Strathcona, spanning from manufacturing, logistics, product innovation, unique restaurants, and cultural foods, showcasing all kinds of specialized food and beverage skills. This cluster includes both industrial and retail businesses, leveraging our district’s unique blend of industrial and retail zoning and proximity to residential. Many of the challenges faced by food businesses are macro-level challenges. Looking at how to address these shared challenges within the food cluster will not only benefit food businesses but also other business sectors in the area. In particular, a strategic effort to maintain the neighbourhood’s capacity to support both production and manufacturing as well as sales is crucial for retaining a competitive edge for businesses here. 

The early stages of this project have focused on engaging and interviewing food businesses in the area to uncover the key barriers and challenges businesses have been experiencing. This project aims to help connect the dots about how collaborative approaches could address some of these common challenges and capitalize on opportunities. The following interview with project leads Wilco van Bemmel and Vincent Kwan dives deeper into the exciting work of this project. Read on to learn more about the significance of establishing a stronger food cluster in Strathcona and discover some of the early findings and recommendations.

What are the key characteristics of a successful food cluster?

There are a few key aspects, and some of these are present here in Strathcona, which is good news. The first key thing is what we’re calling the ability to make and sell. Businesses need to have the ability to both create and innovate food products, as well as test them in the market. That includes getting immediate feedback from wholesalers, stockists, or customers. Which leads to the importance of the proximity to employees and residents. The cluster should be located near both employees and residents to facilitate easy access and interaction. A strength that Strathcona uniquely offers.

From our engagement in the community, businesses have shown us that for them to thrive here they need to develop a diverse business model. For example, including elements of wholesale, retail, and product innovation, or even just being smart in utilizing your space, such as allowing other businesses to use space during off-hours can be important. Only relying on foot traffic is often not enough. Another important factor is stability in land use and lease rates, which is essential for businesses to have the confidence to invest in their operations and logistics for the long term. If people feel like they don’t have any certainty of what the future is going to look like, it can deter investment and growth.  

What kinds of support or policy should we expect a municipal government to have in place for the healthy development of this kind of cluster? 

One thing that is really threatening these kinds of businesses is the way we have defined “highest and best use” for properties and land. In practice, the types of light industrial businesses where people make and sell things are not the kind of use that can generate the highest property values and taxes. In the current system they’ll often be the second pick for a landlord, especially considering barriers around required tenant improvements and the length of time to get permits. What if we shifted the conversation on the highest and best use being where people actually make healthy, nutritious, and culturally interesting foods that the local community desires and can afford? Then we can start to look at policy and incentives aimed towards making sure that is actually possible. At the moment, it’s not a level playing field. The businesses that have a connection to the local neighbourhood, that want to hire locally, be good neighbours, source their materials or ingredients locally, and want to add value to the communities, are often the businesses having the hardest time to make it work in terms of upfront investment required and length of time to get their permits. So this is an important area to look at in terms of where the government can step in with incentives. 

What are some other pressing issues facing food-related businesses right now?

One thing to keep in mind is that a lot of challenges that food businesses face are macro-challenges as well. Many businesses are still dealing with the impacts of COVID and are still recovering. The pandemic really demonstrated the argument for having a diverse business model, because it’s these businesses that had some built-in resiliency and could more easily pivot to new opportunities. There is a big concern about the loss of industrial land and also the quality of remaining or new industrial spaces. If spaces are replaced by something that on paper is still industrial but in practice is supposed to be quiet and tidy, then it loses that true industrial use. We also heard from businesses that city-permitting is taking a very long time. The whole process can feel very uncertain, a bit like a black box. Another challenge we’ve identified is the difficulty of scaling. For example, scaling up from a small-scale commissary kitchen space to your first retail front is challenging and expensive. There is a big need for smaller stepping stones and support mechanisms in scaling and growing businesses. There is a lot of food that is produced in Strathcona by talented people, but you cannot always enjoy it here – it has no outlet. It highlights the potential for more opportunities for businesses to develop, incubate, and test their products locally before expanding to other communities, without having to take too much of a risk.   

What are some of the potential economic impacts of developing an even stronger food cluster in Strathcona? Why is this work important?

Food businesses have a high percentage of economic spin-off that stays within the vicinity of the community compared to other business sectors. This is evident in the sourcing of ingredients, packaging, staffing, and menu items, all of which contribute to the local economy. Some of the practical reasons for the local economic impact are cost-effectiveness and logistical advantages such as ensuring product freshness. For example, sourcing locally reduces financial risks associated with sourcing from distant locations. So there is something intrinsic in food businesses that make them have a local footprint. Which is great, because if we want to build strength as a cluster, that’s exactly what you want to see. When businesses are actively seeking opportunities to collaborate and source locally this enhances the return on investment in the food cluster.   

Food as a sector is an important one because it serves all categories of end-users in the economy, including residents, workers, and visitors. While sectors like high tech and green technology often receive a lot of attention, the food cluster is essential due to its direct impact on a wide array of end-users. Especially given the City’s current interest in supporting small businesses, it makes a lot of sense to prioritize the food cluster in local economic development strategies. This should include setting industrial land targets to preserve and support the sector. 

A big consideration is what is the role of different stakeholders within the ecosystem? We are actively asking ourselves what is the role of government, community entities, and then of course BIAs in filling those current gaps in economic support, and how can BIAs be empowered more to play a stronger role in filling those gaps. Focusing on the food cluster work helps expose a lot of those opportunities.  

What are some of the early findings and recommendations for creating a supportive ecosystem for food businesses in the neighbourhood?

Firstly, we should engage in a debate with the city about the highest and best use for the area, ensuring that the types of food businesses we actually want have a fair chance to thrive here. Discussions with the city should also include long-term things like land-use and zoning. In the shorter-term, we should be thinking about the relaxation of rules. This could involve challenging rules and processes that make it difficult to experiment and innovate. For example, could we streamline the process for someone with a successful commissary kitchen product to transition to a retail setting, by identifying a suitable location and obtaining necessary permits within one month. We should be encouraging pilots that push some of these existing boundaries, and involve multiple stakeholders, like landlords and banks, for support and funding opportunities. 

We have also heard that businesses have a hard time connecting to innovation. Many feel like existing support programs are geared toward larger companies, and so there’s a lot of potential in providing support for small businesses here to connect with innovation so they can implement it into their processes. The connection to education is another area to explore. It seems like there is a lot of potential in helping bridge the gap between businesses and educational institutions that are addressing topics like food security and food systems. 

Finally, there is a large need to address the high costs of running a food related business, whether that be startup costs, operational expenses, or scaling. The lack of coordination between government and other stakeholders is inevitably leading to inefficiencies and higher costs. A more structured approach to incentivize collaboration and improve coordination is needed to support businesses more effectively.  

What role do you see technology and innovation playing in the development of a food business cluster?

Quite a few businesses are very interested in the connection between food and health. There are businesses out there challenging the way we think about the ingredients in our foods. I think we’ll see innovation around plant-based foods, customer education, and changing people’s food habits towards more healthy foods. Another interesting area is the production process itself. We’re seeing a focus on making the production process more sustainable and circular, even on a smaller scale by sharing waste streams and resources within the community, with interesting opportunities for technology there. When thinking about the stepping stones required for scaling, the connection between digital and physical space will also be really interesting. In what ways can businesses build a customer base even without having a physical presence yet, or use digital as a way of connecting with suppliers and bring down the costs of starting your business? The connection between digital and physical will be an interesting angle for more businesses to be experimenting with.

Connecting the Dots and Creating Opportunities

Part of the aim of this project is to identify gaps and make meaningful connections within the food business cluster ecosystem in Strathcona. By helping articulate gaps and connecting dots the Strathcona BIA can work with stakeholders to understand the actionable steps needed to further develop a strong food cluster in Strathcona. Acting as a nimble connector, the SBIA strives to facilitate collaboration with key players and government to drive new initiatives and policy changes that will benefit the food business sector. Together, we can build a thriving and sustainable food business cluster in Strathcona, leading the way for innovation and economic development. 

Next Steps

One concrete next step is that we will be supporting food talent in Strathcona towards a food retail (pop-up) presence. We want food entrepreneurs who today work in commissary kitchens and small production spaces, to have a low-risk, affordable way to reach a new customer base and test their readiness for a permanent retail space. We hope this will create new food options that Strathcona residents and workers need and crave, like fresh greengrocers, more lunch options, a greater variety of local and cultural foods, and food experiences in the late afternoons.

We recently interviewed some exciting Strathcona businesses as part of our focus on the local food economy.

Learn more about Tommy’s Whole Grain Bakery, a new bakery in the district committed to redefining baking with whole grains here.

Dive into the world of shared kitchen spaces in this interview with B3 Collective Commissary Kitchen here.

In the heart of Strathcona’s industrial district you’ll find B3 Collective Commissary Kitchen, a dynamic food hub that’s been at the forefront of supporting Vancouver’s culinary entrepreneurs since 2010.

B3 Collective Commissary is Vancouver’s largest and longest operating commercial kitchen, and have been at their space in Strathcona at 1205 East Hastings since 2021. B3 Collective serves as the launchpad and home to an incredible range of food producers, from ghost kitchens to food truck operators. Led by owner Chris McKenzie, B3 Collective not only provides space for food production, but a culture of mentorship and guidance for those embarking on their small business journeys.

We sat down with Chris to learn more about his experience and gain insight into the world of operating shared kitchen spaces in this city.

What is it that inspired you to open a commissary kitchen? 

I started back in 2010 when the food truck pilot program launched. The City had designed the pilot program, but hadn’t looked at the back end needs, like a commissary space – somewhere to do your prep. At the time that kind of space wasn’t really available. I had someone coming by looking for space and it just evolved from there. Farmers markets were just starting to emerge. So it was just kind of the right place at the right time.

What role do you think commissary kitchens play in the local food ecosystem?  

If there were no commissary kitchens, I’d say three quarters of food entrepreneurs wouldn’t be operating. It’s just too expensive in Vancouver in terms of rent for their own space. So if you don’t have commissaries, you don’t have a lot of the businesses at farmers markets, you don’t have a lot of the ghost kitchens, and I don’t think you’d have a lot of food trucks. It’s often too expensive in terms of rent to be able to start something in Vancouver and survive. So they’re a really vital piece of the puzzle. Our space alone has over 100 employees from all the different businesses we support, and I would say 80% of those people are residents of Vancouver, so it’s a big economic impact for the City.   

How do you support the local food businesses and entrepreneurs in this space? Any ones that you’re really proud of that call B3 Collective home? 

Oh they’re like children, I can’t get to pick a favourite one! But we’ve had some good success stories over the years. Some that have gone on to open multiple locations. The Juice Truck is a famous example. I think they have 80 employees now, and six locations and they started with just one food truck back in 2010. Spread ‘Em Kitchen is another one, her products have now gone national. So there’s a few that have become a huge success story in their own way, but they needed a commissary kitchen to start. The goal is trying to help those in here succeed. It’s not just a matter of signing them on and leaving them alone. I look to provide mentoring and guidance, and assist those starting out as best as I can, whether that be sales or any other way.

How do you see the future of food manufacturing and food production evolving? 

Vancouver is changing in terms of property and property use, so I think it’s going to be even more difficult going forward in this industry to survive. With commercial property supply shrinking, and rents going up due to rising property taxes I think long-term it’s going to be hard.

Any ideas around policy changes that could help shape a more viable future? 

I think it all boils down to the property taxes. You’d think we could get some kind of break in this area and be more supported by the City.

What are the opportunities and challenges of being in Strathcona? 

I find Strathcona authentic. Compared to some other neighbourhoods, people are more grounded here I think. It’s just a neat neighbourhood. And that’s not always known unless you’re here. Everybody around here knows each other and supports each other. For example, I’ve taken stuff over to the metal recycling guys around the corner, and we’ve got a good relationship with the brewery behind us. Everyone helps everybody out. Development and growth in this area is good, but it also comes with its costs. Property taxes are going to be impacted by new residential developments and that is a challenge.

What advice would you give to aspiring entrepreneurs looking to start a business in this district?

I would say do your homework. With new entrepreneurs interested in coming in, I’ll sit down with them and give them the advantages and the disadvantages and tell them what they are up against. For anybody getting into new space you have to consider that it can typically take a year before you are operating. You could be paying full rent or property taxes while you go through the permitting process of the building, so that’s a tough go. A problem with the process is you often don’t find out what’s required in terms of upgrades until you start. So you have to have a contingency fund set aside if things take longer than anticipated. A bulk of the frustration with opening a new business can be planning for the unknown, and then dealing with what feels like independently operating departments at the City.   

When you envision the future of Strathcona, what do you see?

I hope Strathcona doesn’t turn into what the other neighbourhoods are. Like I said, Strathcona to me is more authentic. It’s the old historic Vancouver neighbourhood. You’ve got these older commercial buildings that have been around for decades, and a unique community feel here and I hope that doesn’t change. I hope with the new development that comes, it can at least be consistent to the current feel of the neighbourhood.

What more would you like to see from the Strathcona BIA?

You guys do an excellent job of being involved with the businesses here. It’s almost like having a parent. If there’s any issues, or if I hit a dead end, I feel like I can call and explain what I’ve got going on, and some new directions can be opened up. It’s great you reach out right when businesses open up, so they know you exist. 

Learn more about B3 Collective Commissary on their website.

Tommy’s Whole Grain Bakery, located at 338 Powell Street, is a new bakery in the district with a special mission.

This bakery is all about experiencing and celebrating the rich flavours and incredible benefits of whole grains. They purchase grain from local sources, mill them in-house, and use every part of the grain to maximize flavour and nutrition, and reduce food waste. First and foremost their focus is creating great-tasting products. Their mouthwatering breads and treats will have you coming back for more. 

Owner Tommy Aird’s love for baking began as a child, influenced by his mother’s great baking and grandmother’s love for delicious pastry. He started cooking in restaurants as a young adult, later moving to Toronto to pursue culinary school and a career in baking. Over the years working in various kitchens he developed a deep appreciation for food and where it comes from. Attending a grain conference in Montreal was a pivotal turning point, sparking a passion for heirloom grains and supporting small-scale, organic agriculture. 

We sat down with Tommy to learn more about his story and his experience of running a business in Strathcona.

How does your work impact or engage with the community:

As a food producer, I think about the social and environmental impacts of what I do. The decisions you make as a food producer when you choose a purveyor is in fact a decision for thousands of people. So it really does matter for me to educate myself and have good reason to be partnering with certain purveyors or growers. Things I think about are making sure that farmers are getting paid a living wage, that employees are getting paid a living wage, and that the product I’m purchasing is nutritious and contains the building blocks for life. For environmental impacts, it’s making sure these businesses have integrity and are using water responsibly for example. We’re also trying to create as little food waste as possible. It’s what we’re trying to put into practice – be leaders in the industry, not heroes, because it’s not about being the only one, but setting an example and trying to inspire others to engage with the kind of work we do. Increasing the nutrition in our community, and reducing food waste, these are things that should be top of mind for us.  

What are the opportunities and challenges of being in this neighbourhood? 

I’ve been spending a lot of time in this neighbourhood, even pre-opening, since we started construction in August. This community has such a wonderful fabric to it and we feel so welcome and supported by our neighbours and the community at large that I wouldn’t want to be anywhere else in the city, even given the opportunity. But at the same time, it does come with its challenges. Just looking across the street, there are vacant lots, and there is vacancy next door to us that likely won’t be transitioned into anything until it’s torn down. Upgrading and preserving heritage buildings, and also tapping into the kind of energy we see in the neighbourhood during events like the Powell Street Festival, I can see what it could become. This is a fantastic neighbourhood. I think it might not be obvious to those who look from far away, but when you spend time here, you realize there are families here, there’s community here, and it does have deep roots. 

Any advice for aspiring entrepreneurs who might be looking to start a business in this distinct?

Get here. Don’t be scared. I think it’s so fulfilling and rewarding. Entrepreneurship is just hard in general, so I don’t know if it’s any harder here necessarily. But I do feel we have such a warm response from the community and the neighbourhood, and from the people who choose to come visit us. And I think that we are able to add to the community in different ways as well. If we’re driving people here from the North Shore, or from Langley for example, I think we’re giving the rest of the neighbourhood an opportunity to be seen. There’s a lot of spaces that we could be putting some really impactful and meaningful concepts to keep contributing to the fabric of the neighbourhood.  

What is your favourite baking ingredient right now and why do you love working with it?

My passion is grains. It makes up almost 70 percent of our diets, and so often we’re just kind of missing the mark. They say 98 percent of people exceed their recommended grain intake, and only two percent of people achieve the recommended whole grain intake. It just demonstrates how much white flour we’re consuming and the shadow side of that is how much healthy food in the process of creating that white flour is being wasted in our food system. 15 to 45 percent of the crop is commonly discarded, and 20 of the 21 micronutrients and grains come out during sifting. You discard 15 percent and lose 95 percent of the nutrition. So I get excited about something that is just flour, water, and salt. It doesn’t need fancy imported ingredients. We love the flavour of the organic grains we get from the Fraser Valley, and how they transform during fermentation, and then further during the bake, all adding different layers of flavour. I also think the impact of whole grains is compounding and cascading in such a meaningful way, so that for me is the most exciting ingredient. 

Can you tell us a little bit more about the milling on site that happens here?

We have a little mill, called a Meadows Mill, and it has two eight inch stones, which is quite small. It’s about the size of a mini fridge. It’s actually on loan to us from the Bread Lab at Washington State University because they’re generous and supportive of our mission and aligned to our goals to perpetuate the whole grain movement. As an eight inch stone, I sometimes joke it’s like going on a bike tour with a single speed. But for us, we’re two and a half months old, and we have a lot of growing to do, so in the meantime is perfectly adequate for our needs. It’s straightforward – the grain goes in the hopper, comes out the boot, goes into the chamber and gets pushed between the two millstones and comes out the bottom. Ours comes out as a whole product and that’s how we use it. It’s where we create all our flour. 

Can you tell us about what products are available from Tommy’s Whole Grain?

So you can come in for coffee and buy the baked goods (breads, cakes, brownies, cookies, croissants and more). We get our beans from Honest to Pete Coffee, a wonderful little roaster in Olympic Village, so we’re proud to brew and sell his beans here as well. We have a roast beef sandwich and ham sandwich with meats that we get from Oyama Sausage. We use a 36 month old compte cheese on our ham sandwich that we get from Benton Brothers. We also have a quiche and a vegan flatbread that we do daily. Aside from the daily bakes, we have two products that are more shelf stable. We have a whole grain sourdough cracker that I just get really excited about. Then we have a granola, something I’ve been making for years. It’s bougie, it’s 50 percent nuts, so it is very protein and nutrient rich and very filling. While we’re not able to provide milled flour as a product line right now, we know a lot of our patrons are interested in supporting the farm Cedar Isle in Agassiz where we purchase a lot of our grains. They have a CSA program and grains available directly as well. This is very much still our phase one, we have so much more that we are looking forward to showing people once we grow our business. 

What more would you like to see from the Strathcona BIA?

The BIA has been interested in and supportive of this project since I first reached out in summer. So I think just knowing they are there is helpful. If there was ever an opportunity for the BIA to help outline or navigate grant writing, funding applications, or program opportunities that could benefit businesses, that would be nice to have. And then just amplifying our work, just like this, to help attract people to come here and to support us. Finally on the policy side, helping get policy created that encourages more businesses to adopt more sustainable practices, since there’s currently a lack of consequences for unsustainable practices in the industry. 

Learn more about Tommy’s Whole Grain Bakery on their website.

You can also follow them on Instagram here.