California Cottage Food Laws and Regulations: How to sell your homemade foods in California

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California Cottage Food Laws and Regulations: How to sell your homemade foods in California

California Retail Food Laws, Regulations and Facts

Retail food businesses, that fall outside the "Cottage Food Operations" exemptions and rules are regulated under the California Retail Food Code (CRFC), which is under the California Health and Safety Code.

Retail food businesses, that fall outside the "Cottage Food Operations" exemptions and rules, are regulated under the California Retail Food Code contains the structural, equipment, and operational requirements for all California retail food facilities. Provisions of the California Retail Food Code are primarily enforced by 62 local environmental health regulatory agencies. The California Department of Public Health, Food and Drug Branch, plays a supporting role in the enforcement of the California Retail Food Code by providing technical expertise to evaluate processes and procedures and to answer technical and legal inquires for local agencies, industry and consumers.
General steps

Of course there are general steps required to start ANY type of business (you can see them further down the page here) But let's look at food-related requirements first.

When is a Health Permit Required?
Any storing, preparing, serving, manufacturing, packaging, transporting, salvaging, or handling food for dispensing or sale directly to the consumer requires a health permit. The health permit has an annual fee based on the type of business and the size of the facility.

What are the details of your business?
Are you planning on a wholesale or retail operation? Will you be in a building, or will you be mobile? How large is the facility? What are you planning on selling? Are you catering? Are you processing? Each answer to these questions help to determine the specific type of permit required.

Retail vs. Wholesale:
"Retail" means the storing, preparing, serving, manufacturing, packaging, transporting, salvaging, or handling food for dispensing or sale directly to the consumer -- This office regulates retail facilities. "Wholesale" is the sale of food in quantity especially for resale by a retailer - The California Department of Public Health, Food & Drug Branch regulates wholesale facilities. Your business could be both, requiring a permit from this Department and another permit from the State.
Mobile Food Facilities:
There are different types of mobile food facilities, with different requirements. Please talk to an Environmental Health Specialist for review and approval. All mobile food facilities are required to operate out of an approved commissary.
Caterers:
See the "Catering Guidelines" handout for more information. All caterers are required to operate out of an approved commissary.

!!! Please be aware that it is unlawful to operate
any retail food business from your home !!!

What about Food Handler Certification?
State law mandates that certain food facilities are required to have at least one owner or employee who has successfully passed an approved and accredited food safety certification examination. Anyone involved in the preparation, storage or serving of food must obtain a California Food Handler Card or a Certified Food Protection Manager certificate. The certification is valid for five years, and is issued to the individual who passes the exam. If that person leaves employment, the facility must obtain another certified person within 60 days. The certified owner/employee is responsible for the safety of food preparation and service, including employee education.
To obtain a CFH Card or a CFPM certificate, commercial kitchen owners and employees must complete a safety-training course and pass an exam. The CFH program requires three hours of training and the certificate is valid for three years. The CFPM program requires eight hours of training and the certificate is valid for five years. The California code for commercial kitchens also requires prospective owners to obtain licenses depending on the kind of food they will be serving.
What is Required in a Change of Ownership?
If you are the new owner of a retail business, you are required by this office to apply for a new health permit. You will be asked to submit a health permit application and pay an annual permit fee. As a new owner, you may be required to upgrade the facility. (It is strongly suggested that you review the facility file prior to closing the deal - there may be specific requirements that demand correction upon new ownership).

If there are any changes to occur, the district EHS should be notified so the proposed changes can be reviewed and approved. There may need to be a plan review. Some examples of these changes are:

Change of menu - May require additional equipment, such as a preparation sink.
Changing the floor, walls, or ceiling - Only certain materials are approved.
Installation of new equipment - All new or replaced equipment needs to be commercial-grade and be approved by this office before installation.
Removing equipment - May not be approved if the equipment is needed for operation.

What is "Plan Review"?
Submission of plans is a requirement upon the proposal of a new or remodeled retail food operation. The plans need to be reviewed and approved by this office before any construction takes place.There is a plan review fee involved. Some examples of when a plan review is required are:

A food facility is brand-new or is being remodeled -- Complete plans shall be submitted to this office for review and approval prior to any construction. (Other agencies, such as the Building Department, may also be involved). See the "Plan Check Guide" handout for further details.
An individual is proposing a new retail food operation (e.g., catering).
There are extensive changes in an existing facility, operation, or menu.

Other requirements

Get a Business License

Another of the important commercial kitchen regulations California is that you must obtain a business license from the city, register your business name with the Secretary of State's Office, obtain a federal tax ID number from the IRS, and apply to the California State Board of Equalization for a sales tax license. While this is a California code that applies to all businesses, the sales tax is specific to businesses that will sell products and services for direct pay.

Learn Food Safety Practices

You obviously need to ensure that the food you serve to patrons is safe. Unless you like being the subject of lawsuits and prison. To do this you must comply with the regulations established by the U.S. Food Safety and Inspection Services. These are specific guidelines for caterers, box lunch delivery and kiosk operators, food trucks, and commercial kitchens. CDPH food safety inspectors use these guidelines when they inspect commercial kitchens. Typical food safety issues are about making sure your food is prepared and stored at the appropriate temperature, and that food is check at appropriate intervals to determine whether it is still safe and fresh.

Safety Inspections

The commercial kitchens are also subject to frequent (and usually unannounced) inspections conducted by officials at CDPH. They examine cooking surfaces, cooking equipment, floors, storage areas, and refrigeration. Violations result in fines or even suspension until the violation is corrected.

Fire Marshals also inspect for hazards related to grease, flames, electrical wiring, faulty smoke detectors, faulty fire extinguishers, or the lack of fire extinguishers.

Code compliance

Your kitchen's appliances and the plumbing system must comply with the Uniform Mechanical Code. Your county may also require that your facility complies with energy-saving regulations and green initiatives.

General Steps for starting a business

When starting a new business, there are many important decisions to make and many rules and procedures that must be addressed. While there is no single source for all filing requirements, the following steps have been developed to assist you in starting your business.

Step 1

It is helpful to begin with a business plan. A business plan is a blueprint of every aspect of your business. Sales, Marketing, Advertising, Promotion and Location are just some of the categories to consider when creating a plan. Go to the U.S. Small Business Administration website to find a tutorial on how to create a business plan.

Step 2

If you would like help deciding on a location for your business, contact the California Business Investment Services unit of the Governor's Office of Economic Development (GO-Biz). The California Business Investment Services unit provides tailored site selection services for businesses, real-estate executives, and site selection consultants.

Step 3

Choose a business structure. Select a business entity type from the following list for a brief overview of the principal types of legal business structures available in California. Private legal and tax advisors should be consulted before making a determination as to the type of business entity to form.

Step 4

Your next step will be to file your tax and employer identification documents.

Step 5

Most businesses require licenses or permits in order to operate. Please click on each of the resources below to determine if your business requires any licenses or permits.