The cottage food industry has long been the preserve of entrepreneurial amateurs selling their homemade produce to neighbors. Cutting out big corporations and trading directly with your local community harks back to simpler times.
But with the rise of platforms facilitating home cooks selling to the public on a larger scale and in urban areas came problems. Food safety, unfair competition to restaurants, and the impact on neighborhoods are all legitimate concerns.
The concept of legally selling food produced in home kitchens directly to the public, more formally known as the Microenterprise Home Kitchen Operations (MEHKO) movement, is gaining traction in California and starting to influence policies in other states.
Below, we explore the current landscape, regulatory concerns, the advocates for the movement, and its impact on the shared kitchen industry.
California’s MEHKO Progress
Before 2012, the California Retail Food Code (CRFC) mandated that food sold to consumers be prepared in inspected commercial kitchens. However, the enactment of the 2013 California Homemade Food Act, colloquially known as “cottage food operations,” allowed certain low-risk food products that do not require refrigeration, such as bread, pies, fruit jams, and dried foods, to be made in private home kitchens and sold to consumers under specific conditions.
California’s first MEHKO ruling, Assembly Bill 626, was passed in September 2018, officially known as the California Retail Food Code: Microenterprise Home Kitchen Operations. This bill introduced the “Microenterprise Home Kitchen Operation” (MEHKO) as a new category of retail food facility. It requires local health departments to opt-in to a program before MEHKOs can operate or receive permits.
AB-626 aimed to address the estimated 100,000 unlicensed home cooking businesses in California by allowing counties to opt in and regulate MEHKOs, providing a framework for licensing and inspection. Riverside County in California was among the first to implement the program, issuing permits to home cooks. As of 2019, this groundbreaking law was the first of its kind in the United States, paving the way for similar initiatives in other states.
California remains a pioneer in the MEHKO space. The state has seen multiple counties adopt ordinances allowing home-based food businesses to operate legally.
Recently, Los Angeles County became the 15th jurisdiction to approve MEHKOs, with their ordinance set to take effect on November 1, 2024. The initiative aims to streamline the permit process for over 50,000 home cooks and sidewalk vendors.
The county’s move is bolstered by $600,000 in American Rescue Plan Act funds to cover application fees for 1,000 permittees and an additional $600,000 for outreach and education.
San Diego County is also actively supporting MEHKOs, providing training, grants, and resources to aspiring home chefs. In September 2024, the board of supervisors for Sonoma County, one of around 40 counties yet to opt in, will debate whether to start issuing permits to residents who wish to produce and sell food at private residences.
MEHKO Spreads: Nationwide Interest
Other states are observing California’s moves to legalize the sale of homecooked food and are considering similar legislation. Spring 2018 saw Utah pass a similar MEHKO bill that allowed the production and sale of certain food items directly from home kitchens.
Hawaii is pushing to integrate more home cooks into its food system too. The state aims to enhance local food production and economic growth by lowering the barrier to entry for home cooks. This initiative includes various support mechanisms for home chefs, similar to those being rolled out in California.
The movement has since expanded, with advocacy groups like the COOK Alliance working to promote and support MEHKOs across the country. As of 2022, thirty states had laws supporting some form of home kitchen operations (mostly cottage foods), with Utah becoming the second state after California to fully legalize MEHKOs in 2021.
Concerns and Controversies
Despite the buzz, the MEHKO movement is not without controversy. Several issues and concerns are cause for debate.
Health and Safety Regulations
Health departments are concerned about maintaining food safety standards in private homes. The primary issue is ensuring that home cooks adhere to the same safety regulations as commercial kitchens. There are worries about increased contamination risks, proper food handling, and sanitation practices.
With strict laws on labeling, nutritional, and allergen information for packaged food, legislators must contend with the fact that home kitchens are not sterile, controlled environments and are far harder to regulate than commercial kitchens.
San Diego’s regulations include comprehensive guidelines to address these concerns, offering resources and support for compliance. But concerns remain over the realities of ensuring hygiene and food safety best practices are followed behind the closed doors of private households.
Many local health departments are wary of enacting these new laws due to concerns about the limitations on inspections, increased neighborhood traffic, parking issues, and the proper disposal of oils and grease, which can lead to environmental problems.
Ensuring regulatory compliance, including food safety training and certification for MEHKO operators and their employees, and addressing the safety of inspectors entering homes with pets, children, and other unforeseen risks, adds further complexity.
Residential Areas
Allowing home restaurants could significantly impact sanitation, water systems, trash services, and pest control differently compared to industrially zoned areas.
Home kitchens may lack advanced water filtration systems, leading to potential contamination and health risks from untreated water, and increased water usage could strain residential plumbing not designed for commercial-scale operations. Additionally, increased waste generation could overwhelm residential trash services, leading to more frequent pickups and potential overflow issues. Improper waste management and food scraps could also attract pests, requiring more robust pest control measures.
Neighborhood Impacts
Another major concern is the potential for increased noise, traffic, and other disruptions in residential areas. Critics argue that the influx of home-based food operations could change the character of neighborhoods, raising issues around zoning laws and local ordinances.
Nobody wants a bank of delivery scooters coming and going at all hours in their residential street. And although home cooks are not operating at the scale of ghost kitchens, the impact on streets not suited to commercial activity remains a concern.
Unbalanced Regulations
Restaurants, caterers, and shared kitchen operators are forced to comply with strict hygiene regulations and undergo regular inspections. They also have to pay their overheads, and taxes, and keep up with fire regulations, among many other obligations. All of which cost money and take up resources.
Many view lowering the barrier to entry as unfair to other businesses that will be competing for the same customers. MEHKOs can operate without inspections or many of the same costs as other food businesses.
The counterargument would be that these businesses are often side projects and don’t operate at the same scale. Therefore they are already at a disadvantage and these looser regulations help to level the playing field.
Who is Advocating for these Laws?
The push for MEHKO laws is largely driven by advocacy groups and local government officials who see them as a way to boost local economies and support small, diverse businesses.
Organizations like the COOK Alliance are at the forefront, providing advocacy, training, and resources to home cooks. Their efforts are aimed at dismantling barriers to entry and promoting economic inclusion.
The COOK Alliance, based in Oakland, California, was founded to support and legitimize home food entrepreneurs. It originated from Josephine, a private club and tech platform formed by Matt Jorgensen and Charley Wang in 2014, which aimed to facilitate informal food sales within communities. Josephine disbanded in 2018 due to regulatory pressures, leading to the creation of the COOK Alliance.
Additionally, local governments increasingly recognize the benefits of supporting small-scale food producers. For instance, the Los Angeles County Board of Supervisors’ initiative includes significant financial support and educational outreach, reflecting a broader trend toward supporting small business innovation.
Tech Platforms and MEHKOs
Tech platforms stand to gain significantly from the Homemade Food Operations Act in several ways. The act creates a legal framework for home cooks to sell food, potentially opening up a large new market for tech platforms to facilitate these transactions. We wrote about this back in 2020 in our blog post Is Homecooked Food Delivery a Step Too Far for The Sharing Economy?
With an estimated 50,000 to 100,000 home cooks currently selling food illegally in California, tech platforms could rapidly expand their user base by onboarding these cooks. As intermediaries, platforms can earn fees from transactions between home cooks and customers, and the act’s data-sharing requirements can provide valuable insights for tech companies. Companies like Josephine, who originally lobbied for the legislation, may have an edge in capturing market share.
However, there are concerns about the potential dominance of these platforms. Home cooks might feel compelled to use popular platforms to remain competitive, and critics worry that venture capital-backed companies may prioritize profits over the interests of home cooks. Some advocates propose alternative models, such as community-owned platforms, to ensure benefits are distributed more equitably.
While the act attempts to address some concerns by requiring fee transparency and prohibiting third-party food delivery, the long-term impact on the balance of power between tech platforms and home cooks remains to be seen.
Action Steps for Shared Kitchen Operators
If you’re a shared kitchen owner concerned about MEHKOs and their impact on your business, there are practical steps you can take to alleviate your concerns. Here are some ideas to help you make the most of the growing trend.
Connect with Local Health Departments
To build bridges and make your voice heard, you can start a conversation with your local health department. Inform them you’re happy for your kitchen to be a resource for MEHKO operators looking to formalize their businesses and scale up.
Don’t be afraid to highlight your compliance with health and safety standards to build trust and cooperation. And showcase the benefits for MEHKOs of operating in a shared space where they can network with other business owners, share resources, and find inspiration.
Offer Incubation Programs
The best way to deal with concerns over MEHKOs in your area is to turn a potential problem into an opportunity. Offer support to local small food businesses and even formal programs to help them take the next step.
You could develop programs that help home-based businesses transition smoothly to a shared kitchen environment. This can include mentorship, business planning assistance, and the chance to use commercial-grade equipment that they wouldn’t otherwise have access to.
Although this effort will take up time and resources upfront, the long-term benefits are clear in terms of potential new customers, garnering goodwill, and growth in your local food community.
Stay Informed and Engaged
The best way to protect your business from the potential pitfalls of unregulated competition is to stay informed. Keep up with legislative changes and support initiatives in your area to better serve your community.
Perhaps even reach out and engage with local government meetings and advocacy groups to stay at the forefront of policy discussions. Staying informed and active in the community will give your business and customers a voice and ensure your concerns are heard.
Leverage Community Support
If you’re not already, a great way to expose your business to the best opportunities is to build partnerships with local food producers, farmers’ markets, and community organizations. This will create a network of support for MEHKO operators who will see you as a trusted partner.
Not only does community engagement benefit your business and well-being, but it also helps to enhance the local food ecosystem and provide additional resources for budding entrepreneurs.
Embrace MEHKO for Shared Kitchens
The MEHKO movement is reshaping the landscape of food entrepreneurship, throwing up new challenges as well as growth opportunities. By embracing these changes and positioning your business as an essential resource, you can play a role in supporting a new generation of home-based food businesses.
Shared kitchens offer significant benefits to Microenterprise Home Kitchen Operations (MEHKOs) looking to grow or scale. These kitchens provide access to commercial-grade equipment without the high costs of setting up independent facilities, making them a cost-efficient option for small food businesses. Additionally, shared kitchens offer flexible rental options, allowing businesses to scale their operations based on demand.
Shared kitchens are designed to meet health and safety standards, helping growing food businesses adhere to regulations more easily. And these kitchens foster a community of food entrepreneurs, facilitating networking, collaboration, and knowledge sharing among peers. This supportive environment can be invaluable for MEHKOs looking to grow and succeed in the competitive food industry. If you are interested in searching for kitchens in your community, check out The Kitchen Door.
If you need additional support in your efforts to protect yourself and make the most of the MEHKO opportunities, The Food Corridor is happy to be your trusted partner and resource for information.
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