Pilotworks, a coworking space for the food industry, unceremoniously shut its doors on Saturday, separating over 175 small business owners from their goods and equipment.
Multiple Pilotworks members told Gothamist that they found out about the abrupt closure in an email the company sent around Saturday evening, over an hour after staff forced members to leave the Brooklyn facility. Now, those displaced small business owners have until Wednesday to collect their belongings and inventory, without any concrete assurance that the company plans to reimburse them for time they can't use, for their security deposits, and for unpaid distribution invoices.
Pilotworks officially opened kitchen doors in 2016, securing $13 million in series A funding in 2017. The idea was to provide burgeoning small businesses in the food service industry with kitchen spaces and facilities they could rent while they launched their ventures. David Roa—co-founder and CEO of Superlost Coffee—was one such business owner, and used Pilotworks' Brooklyn facility for coldbrew production over the past nine to 10 months. He was startled to receive word from the company at 6:42 on October 13th, announcing that the start-up had run out of money and officially closed its doors at 5 p.m. that day.
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"There is no easy way to state this, so we will be direct: After failing to raise the necessary capital to continue operations Pilotworks is forced to cease operations effective immediately," the email read, specifying that the closures affected all Pilotworks kitchen locations: In Brooklyn, Newark, Chicago, Providence, and Dallas. Members can pick up their belongings between 9 a.m. and 5 p.m. on Monday, Tuesday, and Wednesday. After that, they're SOL.
"We realize the shock of this news and the disruption it causes for your business," the company said. "We wish there was another option. We worked up to the last minute to secure funding, though at this juncture, with insufficient capital and none forthcoming shutting down all operations is our only recourse."
By the time Roa saw the message, staff had already cleared out the communal kitchens housed in the Pfizer building between Bushwick and Bed-Stuy. Although he was not present at the time, members have been talking and coordinating since the closure: Security reportedly interrupted pre-paid kitchen time and escorted unwilling members from the premises, obligating them to abandon their products in the middle of the cooking process.
"People wanted to get stuff out!" Anjali Bhargava—founder of Bija Bhar, which makes Resilience Turmeric Elixir and used a temperature-controlled space in Pilotworks to grind and sift spice powder—told Gothamist. Bhargava wasn't present for the shutdown, either, but has spoken to other members who were. "A lot of people had events and markets on Sunday, and couldn't access their inventory or make their products." That, of course, costs money: For the stock wasted on products entrepreneurs couldn't actually sell; for the orders they're now unable to fulfill; and for kitchen space they purchased but cannot use.
A Pilotworks membership contract, obtained by Gothamist, states that the "Company may terminate this Agreement upon ten (10) days' notice to Member." By all accounts, it would appear members had no notice at all, and are now left to wonder whether or not they'll be reimbursed for any of the rental fees they paid Pilotworks. Roa explained that membership pricing varies based on the package a business selects. In short, members pay for 20 hours per month upfront, on top of a security deposit and various usage fees (for things like storage and refrigeration). Pilotworks tracks the amount of time members spent in facilities and tacked on a prorated fee after they exceeded the 20-hour baseline. Roa says he paid $32 an hour, and has no idea if he'll recoup any returns on unused kitchen time.
Bhargava estimates that she paid Pilotworks between $800 to $1,000 per month, and that she paid $1,072 for October. She also paid Pilotworks to distribute her goods to various co-ops, health food stores, and grocers. Even before the shutdown, she says, Pilotworks had failed to pay her money she is owed for sales distributed by the company: One of the outstanding invoices dates back to February, and she has not been given an answer as to whether or not she'll be seeing the sum Pilotworks owes her again. Members have been notified that they can collect whatever inventory they had earmarked for distribution from a warehouse in Queens.
In a closure announcement posted to its website, Pilotworks invites concerned parties to route their comments and queries to questions@pilotworks.com. Both Roa and Bhargava, however, maintain that Pilotworks has so far not responded to member emails. Gothamist has also contacted Pilotworks and its recently appointed CEO, Zach Ware, for comment, but at time of publication, we had not heard back on any of those requests. The lack of transparency, according to Roa, ranks high on the list of the shutdown's most frustrating features.
"People wouldn't be as outraged and angry if we heard anything from the leadership," he said. "It was done very sketchily."
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The affected business owners have been meeting to strategize and pool resources, and put together a website—SupportIndependentFood.com—to help one another weather the disruption, and get in touch with local kitchens willing to offer space to Pilotworks foodpreneurs. A full list of the displaced companies is below:
Superlost Coffee
718 Heat Factory
A Cake Baked in Brooklyn Aida Snacks
Anke's Fit Bakery
August Catering and Events
Auria's Malaysian Kitchen Ava's Lifeline
Awkward Scone
Bad Seed Foods
Baked Cheese Haus Bartelby & Sage
BeReal XO
Better Almond Butter
Bija Bhar
Bite
BKE Bushwick
Black and Bolyard
Blank Slate Kitchen
Blended Day
Bliss Street Creamery Bonberi
Breukelen Rub
Brooklyn Biscuit Company Brooklyn Quality Eats Brookyn Brewed Sorrel Brrrito Daves
Brutus Bakeshop
Btarts
Buckwhat Foods
Caked by Phya
Chew Worthy
Cinta Soul
Clarendon Cuisines
Co Ba Cooks
Craft and Savor
Creative Concepts NYC Crown Jewel Beverages Culture Cream Cup-o-Cockles
Cupeesh
Damihue
Dank Bread
Dolci Di Livia/Dippin' Rings DOSENYC
Drink Jamu
Eat Chic
Eat Drink Think/The Wasted Baker Egunsifoods LLC Elemental Catering
Eye of the Tiger
Farm to People
Food Period
Fora
Forward Roots
Fresh Taste Incorporated Genuine Foods
Get Fed NYC
GoJuice
Grab 'Em Snacks Grandpa's Garden LLC Greening's Fine Foods Grillfire Gourmet
Hany ElDiwany
Healthy Food Cater Hediger Habit LLC
Hog in Black
Hot Spoon Preserves Hungry Island Foods/ Bitchin' Butter
Hungrybird Eats
I Eat Lao Food
Island Medley
Island Pops
Jalapa Jar
Jars of Delight
Jess Puddin'
Jillicious Food and Events Jon Good Chocolates Julia Mae's Southern Bakery
Just Soul
Keepers
Keto-Snaps
Khao'na Kitchen
La Dulce Baker
LAVVA
Le Traiteur
Leave it 2 Leva
Lemontree Foods Inc Lickety Split Banana Pops Lifted Cold Brew LilCoquito
Limoncello
Little Cloud Bake Shop Mac and Son
Malai
Mama Lam's
Mean Street Kitchen
Memphis Seoul
Metabrew
Mi Casa Foods
Milli
Misfit Juicery
Monk Food
Mrs. and Mr. Bakery
Ms. Jackie's
My Sweet
Nikkiikkin Sugar Studio Nolita Natural
Nomad Trading Co
Oak and Honey
OCKA Treats
Oganikk Superfoods
Oni Sauce
Only Hors D'Oeuvres Ventus Trading Corp (DBA Ludwig C)
Orgeat Works
Oven the Rainbow
Paras Organic
Pescatore Seafood
Petit Gastronome
Pistache NYC
Pop Pasta
POPTEA
Portions NY
Promethean Fire
Providore Kitchen/ Pastel NY
Pure Peppers
Real Good Dairy
Red Velvet NYC
Relax & Eat LLC
Robin Blue Hospitality Group, LLC
Rocket Broth
RubyLu Confections Salad Pangea Catering Salted Baked Goods Sanzo
Sattvika Foods
Scoops in Cahoots
Seek Food
Senor Lechuga Hot Sauce Shaquanda Will Feed You SImple But Honest
Smalls
Smushed Organics
Spice Grove
Squared GF
Sunflower Breads
Sunny's
Sweet Dames
Sweet Dough
Sweet Pistachio
Sweet Root Foods
Swig & Swallow
Thaibird
The Bruffin
The Key Patisserie
The Meringue Bakeshop The Old Fashioned Baking Co
Tiny Home Creamery
Top Badger
Twisted Truffles
TYME
Ube Kitchen
Umikah
Unicorn Hummus Vagabond Espresso Veggie Grub
Watermelon Road
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