Hamilton’s home-based businesses are heating up
The pandemic created seemingly optimal conditions for launching home-based food enterprises. People used their isolate at home time" to turn passion projects into profits, using social media to sell food prepared in their home kitchen.
Have established businesses felt threatened by this trend? Jason Cassis, co-owner of Equal Parts Hospitality (including Aberdeen Tavern, The Diplomat and The French), is a fan of home-based businesses which he says supplement incomes in these tough times and get people primed for entrepreneurship. For many, he adds, home is where the dream begins.
So it was with Madam Bonbon a.k.a. Sara Wiseman. Since her culinary training in British Columbia, her kitchen experiences have often involved baking (she currently makes pastries for Detour Coffee). But making chocolate had been on her mind for years. Bringing focus to her passion, she completed chocolatier training at George Brown College, studied at the Chocolate Academy and with the award-winning chocolatier, Melissa Coppel.
The manifestation of her skills and training are bonbons that offer clever flavour combinations. Think - Earl Grey caramel ganache with a layer of caramelized milk chocolate and cookie crunch, or vanilla bean marshmallow and malted chocolate ganache. Enrobed in mirror-like shells that are artfully decorated, they are as irresistible as they are delicious.
Wiseman's first public exposure was a Christmas Market. The overwhelming positive response made her realize it was time to go pro" with respect to regulations. She also moved her production to a commercial kitchen - at Cafe Baffico where they are sold along with Cafe Baffico's delectable bakery specialties.
Wiseman's dream is on track. There are many home-based entrepreneurs with their eyes on that same track, and their creativity and gumption are exciting and inspiring. But there is a but." Not all have jumped through the legal and public health hoops. Richard MacDonald, Food and Water Safety Manager for Hamilton Public Health explained that Ontario's Health Protection and Promotion Act requires compliance with food premises regulations. Tiffany Gardner, Licensing & Bylaw Services for the City of Hamilton, confirmed that a food-based home business licence is a requirement under city bylaws.
A common pathway for home-based entrepreneurs has been to make their product at home, post photos on Instagram (IG), take orders on IG Direct Messaging, followed by pickup or delivery. Some, it seems, are surprised that regulations apply to their food preparation. One might ask how are they to know?" Advice is available, but if a home-based business does not apply for a business license they may be intentionally or unintentionally flying under the radar."
One might be tempted to call this an underground economy, except they are operating out in the open, on social media - more like an aboveground underground. Can and will regulators foster this food economy that consumers seem to be embracing? Will regulations stifle home-based enterprises or enable them to flourish? Both MacDonald and Gardner stressed that conversations with new small businesses are not punitive, focusing instead on education and support.
What is the scope of this home-based trend? While experts agree it is not unprecedented, Felix Arndt, the J.F. Wood Chair in Entrepreneurship at Guelph University agrees the scope is hard to quantify. What he calls the informal/neighbourhood economy can be hard to find" if nothing triggers disclosure. Applying for a business license, connecting with regulatory authorities or paying taxes is what, says Arndt, puts home businesses on the radar, making them countable."
Recent provincial directives suggest that authorities are noticing this trend, and their responses appear to be supportive. In a January 2021 Government of Ontario news release, two Ministries had upbeat remarks. Prabmeet Sarkaria, President of the Treasury Board since June, and Associate Minister of Small Business and Red Tape Reduction said that For many local entrepreneurs, they start with a love of food and a cherished family recipe ... and try and turn their passion into a successful business. Our government applauds them for their vision and effort and we are doing everything we can to help them seize new opportunities without compromising Ontario's high standards for food safety."
Ernie Hardeman, Minister of Agriculture, Food and Rural Affairs added, Starting a home-based food business is an excellent opportunity for people across Ontario to share their culinary creativity, build a business for themselves and be part of the province's agri-food sector. Our government is committed to encouraging this growing part of the economy and to support all the good things that are grown and produced right here in Ontario."
Linked to the January news release was a December 2020 provincial Guide to Starting a Home-based Food Business," updated on the premise that most of these businesses are focusing on low-risk" food items such as baked goods, chocolates and candies.
Whether or not regulated businesses resent or feel threatened by this home-based trend, Cassis maintains that the pot is big enough that we can all share it." He feels that immense benefits ensue from entrepreneurship, and since home-based businesses may be seeding the future of the devastated hospitality sector, oversight should appropriately minimize barriers. Regulations, for example, should be risk-based and tiered since a full-service restaurant or banquet hall is not the same as a small scale-home business.
Madam Bonbon is an example of one pathway to small business legitimacy. In Hamilton, City Hall's Business Centre offers a service described as a one-stop source for business information, guidance and professional advice on starting and running a successful business." These services include one-on-one consultations and business plan coaching - services that benefit a home-based business startup that may know little about licensing, insurance, food safety, public health inspections, zoning, GST, and paying taxes.
Meanwhile, home-based food services seem to pop up regularly on social media. If you are a home-based food business start-up, let us know. We'd love to hear your story.
Diane Galambos is a food writer who shares stories and recipes at her blog kitchenbliss.ca. Follow her on Instagram https://instagram.com/kitchenblissca
Madam Bonbon
Currently located in Cafe Baffico,
1375 King St. E., Hamilton
Hours: Friday, Saturday 10 a.m. to 6 p.m. and Sunday 10 a.m. to 4 p.m.
What you'll pay: Box of 16 is $30; box of 9 is $20; box of 4 is $10
Hamilton Business Centre