Cottage Food Operations(CFOs):
Frequently Asked Questions
We are working to compile an FAQ for Cottage Food Operators similar to our FAQ for Home Restaurants.
Please find general information below and if you’d like clarification on the differences between MEHKOs & CFOs, please post a question in our Facebook group or email hello@cookalliance.org and we will do our best to reply with an update as quickly as possible.
Last updated: June, 2022.
GENERAL INFORMATION (California)
People often ask us about the differences between a MicroEnterprise Home Kitchen Operation and a Cottage Food Operation. In summary:
Cottage Food Operations (CFOs) were enabled in California by AB 1616 in 2012, California being the 33rd state to enact such a law. Cottage Foods are shelf-stable foods, from a list of permissible foods kept by the California Department of Public Health (CDPH). Think breads, jams and the like. Cottage food products are required to be labeled in accordance with specific state and federal labeling regulations. All California counties issue CFO permits in two flavors: Class A allows for direct sales to eaters, while Class B allows indirect sales through stores.
MicroEnterprise Home Kitchen Operations (MEHKOs) were enabled in California by AB 626 in 2018, amended by AB 377 in 2019. California is the first state to permit MEHKOs, and allow the sale of home cooked food, including meat. MEHKOs produce different types of hot and cold food, often thought of as meals, for consumption on the day of production. Counties must opt in to the law to permit MEHKOs in their areas, and as of 2022 Riverside, San Diego, Alameda, San Mateo, Santa Barbara, Solano, Sierra, Imperial, and Lake Counties are issuing permits. One of COOK Alliances main tasks is to encourage and help other counties to opt in to the law.
The list of permissible Cottage Foods is rather limited. CFOs often assume that foods that are not permitted under the Cottage Food Law can be sold by MEHKOs, but this is not necessarily so. Sauerkraut, for example, takes multiple days to make and so qualifies under neither law (it must be made in a commercial kitchen). Cupcakes with certain buttercream frostings are not permitted Cottage Foods, but may be made by MEHKOs as part of a meal, for same day consumption, but not sold off the shelf as packaged goods on subsequent days.
New CA Cottage FoOd Legislation (AB1144)
On September 16, Governor Newsom signed AB 1144, the bill to amend California’s Cottage Food Law. The bill, which will go into effect on January 1, makes a number of improvements to the successful law, which has been operating since 2013. The most notable changes of this law include:
An increase in the gross sales cap. Class A Cottage Food Operators will now be able to make up to $75,000 per year in gross income, while Class B Cottage Food Operators will be able to make up to $150,000 per year. Moreover, this cap will be adjusted each January for inflation.
Cottage Food Operators will be able to sell their products in all other counties.
Cottage Food Operators will be able to ship their products within California.
We’re very gratified to have participated in getting this law passed and thrilled to have made good partners along the way. One of them, bill sponsor David Crabill, of Forrager, has written a great blog post which takes you Behind The Scenes Of A Cottage Food Bill.