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OAKLAND Food Policy Council
“HUSTLE GUIDE”
A"Step'by'Step"Instruction"Booklet"for"Oakland'Based"Entrepreneurs""
Looking"to"Start"a"Mobile"or"Cottage"Food"Business"
"
Commissioned by the HOPE Collaborative, Inner City Advisors, and the Alameda County Public Health
Department to support the work of the Oakland Food Policy Council.
ACKNOWLEDGEMENTS
We wish to thank the following individuals who provided key information in the
development of this guide:
Authors: Nan Cramer and Megan Arneson
Advisory Committee: Jose Corona, Navina Khanna, Esperanza Pallana, Diane Woloshin,
and Sabrina Wu
Jackie Greenwood, ACEH
Don Atkison-Adams, ACEH
Heather Klein, City of Oakland
Alisa Shen, City of Oakland
Rich Fielding, City of Oakland
Leonardo Rivera, City of Oakland
Judy Cardiff, From Garden to Jar
Mollie Dutton-Starbuck, Mollie Rose Baking Co.
Karen Hester, Bites off Broadway
Joan Kiley, Dragonfly James and Marmalades
Zak Silverman, Docs of the Bay
Nikki Silvestri, Green For All
Camille Pannu, United States Federal Courts
Citation: Oakland Food Policy Council. Hustle Guide. A Step-by-Step Instruction
Booklet for Oakland-Based Entrepreneurs Looking to Start a Mobile or Cottage Food
Business. http://oaklandfood.org/food-hustle-guide/ July 2014
Photo Credit: Upper left, Miss Arepita, photo by Carolina Abolino; Upper right, photo by Carolina
Abolino; bottom left, S.O.S. Juice photo by Ashel Eldridge; bottom right, El Taco Bike photo by
Alfonso Dominquez.
TABLE OF CONTENTS
TABLE OF CONTENTS ...................................................................................................................2!
1. INTRODUCTION.........................................................................................................................1!
Why"This"Guide?"....................................................................................................................................."1!
Types"of"Business"Models"This"Guide"Addresses"..................................................................................."1!
2. STARTING A FOOD BUSINESS................................................................................................3!
STEPS"1'10:""Starting"an"Oakland'based"Food"Business"........................................................................."4!
3. MOBILE FOOD FACILITIES (MFFS) CARTS & TRUCKS ....................................................9!
Overview"................................................................................................................................................"9!
Where"Do"I"Start?"..................................................................................................................................."9!
WHAT"Do"I"Want"To"Make?"(Plan"Your"Menu)"....................................................................................."10!
WHERE"Can"I"Prep"My"Food?"(Commissaries"&"Commercial"Kitchens)"................................................"10!
WHICH"Kind"Of"MFF"Do"I"Want"To"Operate?"(MFF"Types"&"Requirements)"........................................"10!
About"Trucks"........................................................................................................................................"13!
WHERE"in"Oakland"Can"I"Set"Up"My"MFF?"..........................................................................................."13!
STEPS"1'4:"The"Oakland/Alameda"County"MFF"Permitting"Process"....................................................."16!
About"Each"Part"of"the"ACEH"MFF"Application"Form"..........................................................................."17!
MFF"Estimated/Sample"Startup"Costs".................................................................................................."21!
MFF"Steps"Flow"Chart"..........................................................................................................................."22!
4. COTTAGE FOOD OPERATIONS (CFOs)...........................................................................23!
What"is"a"Cottage"Food"Operation?"....................................................................................................."23!
Given"The"Restrictions,"Why"Should"I"Start"A"CFO?"............................................................................."23!
List"of"Approved"Cottage"Foods:".........................................................................................................."24!
Class"A"vs."Class"B"Permits"...................................................................................................................."25!
Geographic"Boundaries"........................................................................................................................"25!
Sales"Limits"..........................................................................................................................................."26!
Limited"Number"of"Employees"............................................................................................................."26!
Structural"Requirements"......................................................................................................................"26!
Operations"............................................................................................................................................"26!
Labeling"................................................................................................................................................"27!
Training"................................................................................................................................................."28!
STEPS"1'10:"The"Oakland/Alameda"County"CFO"Permitting"Process"..................................................."28!
CFO"Estimated/Sample"Startup"Costs".................................................................................................."31!
CFO"Steps"Flow"Chart"..........................................................................................................................."32!
"................................................................................................................."Error!%Bookmark%not%defined.!
APPENDIX A. GLOSSARY.............................................................................................................33!
APPENDIX B. BUSINESS PLAN BASICS ....................................................................................36!
Why"should"I"write"a"business"plan?"...................................................................................................."36!
What"should"I"include"in"my"business"plan?"........................................................................................."36!
Where"can"I"find"more"information?"...................................................................................................."37!
APPENDIX C. BUDGET WORKSHEETS...................................................................................38!
MOBILE"FOOD"FACILITIES"BUDGET"WORKSHEET"................................................................................."38!
COTTAGE"FOOD"OPERATIONS"BUDGET"WORKSHEET".........................................................................."39!
APPENDIX D. SELLING FRESH OR PREPARED FOODS.....................................................40!
Who"should"I"talk"to"and"what"do"I"need"to"do?".................................................................................."40!
What"kinds"of"food"do"I"want"to"sell?"..................................................................................................."40!
What"kind"of"equipment"does"my"facility"need?".................................................................................."40!
Can"I"display"products"on"the"sidewalk"outside"my"store?".................................................................."41!
Health"&"Safety:"Only"Buy"Produce"from"Approved"Sources"..............................................................."42!
Packaging:"Buy"Properly"Packed"Produce"or"Buy"at"Farmers’"Markets"................................................"42!
Sourcing"Directly"from"Urban"Gardeners"&"Farmers"..........................................................................."43!
STEPS"1'4:"Preparing"to"Sell"Fresh"or"Prepared"Foods"........................................................................."44!
APPENDIX E. GENERAL RESOURCES ......................................................................................46!
Page%1%of%47%
1. INTRODUCTION
Why%This%Guide?%
This “Hustle Guide” is meant as a primer for anyone interested in starting a small food business that would operate
within the City of Oakland. This guide is intended to save you time and money while you explore your options for
starting a small food business.
A collaboration between the HOPE Collaborative, Inner City Advisors, the Alameda County Public Health
Department, and the Oakland Food Policy Council (OFPC), this document has been created with the shared goals
of supporting household incomes, improving access to healthy foods, and strengthening local communities.
Nearly all of the information and forms mentioned in this guide are available online. Wherever possible website links
have been included, in addition to phone numbers and addresses to key city or county offices. Access to the
internet is key to being able to complete the steps outlined in this guide in an efficient manner. If you do not have
internet access at home or via a mobile device, you might use the Oakland Public Library.
Oakland Public Library
125 14th Street
Oakland, CA 94612
510. 238.3134
www.oaklandlibrary.org
Types%of%Business%Models%This%Guide%Addresses%
Mobile%Food%Carts%&%Trucks:%
This section refers to any number of mobile food facilities (from a small push, or pull cart to a large truck or
bus) designed to sell or serve food and/or drinks. Food may be prepared in a commissary or commercial
kitchen and then taken somewhere else for sale, or it may be prepared and cooked onsite inside the
mobile food facility depending on the set-up and permitting.
Cottage%Foods:%
A cottage food operation (CFO) is the only type of food business that can use a home kitchen
for processing food. The types of foods that a cottage food operation can sell are limited to “non-
potentially hazardous foods,” meaning foods that are unlikely to grow harmful bacteria or other toxic
microorganisms at room temperature.
In addition to these two main types, there are several other ways to get started as a small food entrepreneur in
Oakland, including, but not limited to:
Prepared%Foods%(takeIaway):%%
Prepared food refers to food that is ready to serve or use with little or no further preparation. It has been
processed by cleaning, cooking, and/or wrapping for sale. Some prepared foods may be produced by
cottage food operators. Prepared foods may be sold by mobile food vendors, or they may be sold by
licensed corner stores or bodegas, or at certain temporary events. Depending on the type of food and the
way you decide to sell it, different rules could apply. For instance, if you are in the business of making
prepared foods but you are going to sell said food to a corner store, then that’s indirect sales and may be
considered catering. For advice on how to set up a business selling prepared foods, and answers about
whether you need a CFO permit, or simply a temporary events permit, please contact Carmen Barrie at
the Alameda County Environmental Health Department (ACEH): 510.567.6700.
Stands/Kiosks/Booths%(i.e.:%produce%stands):%
Food stands, kiosks, or booths can be classified as either temporary (such as a stand at a farmers market
that happens only once per week), requiring a temporary events permit, or permanent (such as a road-
side produce stand), that requires a different, season-long type of permit. You may find the application for
a temporary events booth here: www.acgov.org/aceh/food/TFF-Application-Food-Booth-
FillableToPublic.pdf
1.%Introduction%
"
Page%2%of%47%
Corner%Stores/Bodegas:%
There are a number of corner stores, or bodegas, in the City of Oakland that may wish to offer their
customers more options in terms of fresh or prepared foods (as opposed to only foods that are pre-
packaged.) Doing this may not only increase revenue to the store, but may also provide a beneficial
community service by increasing access to fresh, healthy foods in areas of the city where larger grocery
stores are not within easy reach.
Corner stores may be an outlet for food entrepreneurs including CFO’s to market their products. If a corner
store is interested in selling fresh food or prepared foods, the guide in Appendix D at the back of this
document is designed as a primer to help owners identify and comply with the requirements to do so.
In addition to consulting that document, however, it is highly recommended that you contact the
Alameda County Environmental Health Department (ACEH) for a site evaluation before taking any steps
toward converting your corner store. Call them at: 510.567.6700 for a consultation.
Page%3%of%47%
250 Ogawa Plaza is along Clay Street
between 14th St. and 16th St. The entrance is
in the Plaza, to the right of City Hall if
you’re looking at the front of City Hall. The
Permit Center is least busy before 11 am.
2. STARTING A FOOD BUSINESS
The basic steps to starting any small business are listed below, along with steps specific to certain food businesses.
The Oakland Business Assistance Center is a great resource for entrepreneurs wanting to start any business. You can
check them out online at www.oaklandbac.com/
or visit them in person:
Oakland Business Assistance Center
270 Frank H. Ogawa Plaza
Oakland, CA 94612
510.238.7952
www.oaklandbac.com/
Hours: M-F, 9:00 a.m. – 5:00 p.m.
If you need additional help, please see the
resources section at the end of this guide for additional organizations or web sites.
Chapter%2:%Starting%a%Food%Business%
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STEPS%1I10:%%Starting%an%OaklandIbased%Food%Business%
%%STEP%1:%%Choose%a%Business%Name%
COUNTY%database%search%
Before you fill out any official form, you need to name your business! When choosing a name, think about:
• How easy is it to say?
• How easy is it to remember?
• How will it look on signs and advertisements?
• Is it unique – will you stand out from other vendors selling similar food?
• Does it give a clue as to what kind of food you’re selling?
• Does it sounds like something else you may not want it to sound like?
You need to make sure your business name isn’t already taken by someone else in Alameda County by checking
the Fictitious Business Name database at the County Clerk-Recorder's website: rechart1.acgov.org/
search.asp?cabinet=fbn. You can also go in person to the County Clerk’s office (address below), or request a
search by mail for $25. There is also a database you can use at any branch of the Alameda County Library to do a
national search.
County of Alameda County Clerk Recorder
1106 Madison Street
Oakland, CA, 94607
510.272.6362
www.acgov.org/auditor/clerk/fbn1.htm
If you’re going to create a website or a Facebook page, you may want to see if any other business has that
domain name and think about how you may name your web site address if someone else has that domain name.
You can search domain names with the “WHOIS?” database: www.networksolutions.com/whois/index.jsp.
%%STEP%2:%%File%a%Fictitious%Business%Name%Statement%
COUNTY%ClerkIRecorder’s%Office%process%&%form%
So that your business will be listed on the City/County/State record books as your business name instead of your first
and last name, you must file a Fictitious Business Name Statement with the County Clerk-Recorder's office in
Oakland. It is also called a DBA (Doing Business As) statement.
To file Fictitious Business Name Statement:
• Review County web page: www.co.alameda.ca.us/auditor/clerk/filefbn2.htm
• Print form: www.acgov.org/forms/auditor/275-321.pdf, or get in person at address below
• File within 40 days of starting business
• File in person or by mail
• Present or submit copy of current and valid government-issued identification
• Have a physical address (not a P.O. Box)
• Pay $40 for 1 business name with 1 owner (additional owners are $7 each)
o To pay in person, you may use cash, check (personal, bank, or cashier’s), money order, or a debit
card
o To pay by mail, you can pay by check (personal, bank, or cashier’s), or money order. No cash or
debit/credit cards are accepted by mail
• Publish the statement in a local newspaper once a week for 4 weeks, with 5 days between each date of
publication – meaning you can’t publish on Friday, then again on Monday. Choose the same day of the
week each week to publish the statement for the 4 weeks. It costs $62 to publish all four weeks at the
Oakland Tribune. The announcement should cover the information below: You’ll fill in your information in
the […] spaces.
Statement File # [123456] The following individual is doing business as [BUSINESS NAME. Address:
1 Main St., Oakland, CA 94XXX]. Mailing Address: [same as above] is hereby registered by the
following owner(s): [BUSINESS NAME 1 Main St., Oakland, CA 94XXX]. This business is conducted
by a Sole Proprietor. The registrant began to transact business under the fictitious business
name listed above on [DATE]. This Statement was filed with the County Clerk-Recorder of
Alameda County on [DATE]. [BUSINESS NAME]: publication date #[1], #[2], #[3], #[4].
Chapter%2:%Starting%a%Food%Business%
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• THEN, you need to tell the county you published the notice by filing an “affidavit of publication” with the
County Clerk within 30 days after the completion of the publication.
• The Statement expires 5 years from the date it was filed and a new statement must be filed BEFORE the
expiration date.
County of Alameda County Clerk Recorder Oakland Tribune
1106 Madison Street 1970 Broadway #100
Oakland, CA, 94607 Oakland, CA 94612
510.272.6362 510.208.6300
www.acgov.org/auditor/clerk/fbn1.htm www.insidebayarea.com/oakland-tribune
%%STEP%3:%%Employer%Identification%Number%(EIN)%
FEDERAL%process%&%form%
For the purposes of tax administration, you CAN
get an Employer Identification Number (EIN) if
you’re not going to have employees, but you
HAVE to get it if you are going to have
employees.
IRS EIN Information & Form
www.irs.gov/Businesses/Small-Businesses-&-Self-
Employed/Apply-for-an-Employer-Identification-
Number-(EIN)-Online
%%STEP%4:%%CA%Sellers%Permit%
STATE%Board%of%Equalization%process%&%form%
To sell items or goods in California, you must get a Seller’s Permit, through the California Board of Equalization (BOE).
There is no fee for a Seller’s Permit. The State’s process is mostly paper-free, you can usually get your permit right
away, whether you apply online or in person. To apply:
1. go to the web site: efile.boe.ca.gov/ereg/index.boe
- or -
2. visit the BOE office (below) in person to use their computers to apply online.
BOE Field Office
1515 Clay St., Ste. 303
Oakland, CA 94612-1432
510.622.4100
www.boe.ca.gov
What You Need:
• Social Security Number
• Date of Birth
• State Driver’s License or Identification
• Name and location of bank account
• Names of Suppliers, Bookkeepers, Personal
References
• E-mail address
• Projected Monthly Sales
• Federal Employer Identification Number (EIN)
if you are going to have employees
As a permit holder, you are required to:
• Report and pay sales and use taxes • Keep adequate records
You are also required to notify the BOE if you:
• Change your business address
• Change the ownership of your business
• Add or drop a partner
• Sell your business
• Buy another business
• Discontinue your business
Note
If you need an Individual Taxpayer Identification
Number (ITIN) visit the IRS web site: www.irs.gov/
Individuals/International-Taxpayers/Taxpayer-Identification-
Numbers-(TIN)#itin.
Here is the form: www.irs.gov/pub/irs-pdf/fw7.pdf.
Chapter%2:%Starting%a%Food%Business%
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Page%6%of%47%
If you are going to make more than $100,000 in gross receipts you will also need a Use Tax Account. That’s probably
a ways down the road for most people starting out. When you need that, you would go back to the BOE for that
additional license.
%%STEP%5:%%Oakland%Zoning%Clearance%
CITY%processes%&%forms%
You need Zoning Clearance from the City of Oakland in order to operate your business where you want to operate
it. Cottage Food Operators and Mobile Food Vendors get this Clearance and their Alameda County Environmental
Health (ACEH) Permits in opposite order of each other. Either way, you need the Zoning Clearance before you can
get your Oakland Business Tax Certificate (see #5 below).
COTTAGE FOOD
Zoning Clearance happens AFTER
you get ACEH Permit
MOBILE FOOD
Zoning Clearance must happen BEFORE
you get ACEH Permit
1. finish ACEH CFO Permit process
2. apply for Oakland Zoning Clearance
3. apply for Oakland Business Tax Certificate (see #5
below)
1. apply for Oakland Zoning Clearance (involves
Site Evaluation and $157.21 fee).
2. apply for Oakland Business Tax Certificate (see #5
below)
3. start ACEH Permit process
Zoning Clearance Form: www2.oaklandnet.com/oakca1/groups/ceda/documents/form/oak037285.pdf
For this form:
• Business Name, Address, & Phone Number
• Description of Activities
• Hours of Operation, Number of Employees
City of Oakland Permit Center
250 Frank H Ogawa Plaza, 2nd Floor
Oakland, CA 94612
510.238.6402
www2.oaklandnet.com/Government/o/PBN/OurOrganization/BuildingServices/o/Permits/
%%STEP%6:%%Oakland%Business%Tax%Certificate%
CITY%process%&%form%
Oakland New Business Application form & instructions: www.oaklandnet.com/government/fwawebsite/
revenue/pdf/Newbizapp.pdf
For this form:
• $61 first time registration
• State Seller’s Permit #
• Zoning Permit #
• SSN or ITIN#
• Driver’s License #
Also, by March 1st of each year, you will have to pay a City Business Tax to renew your License. If your gross receipts
are less than $50,000, the fee is $60. If your gross receipts are $50,001 or more, you will multiply your gross receipts by
.0012. For example: $56,000 x .0012 = $67.20.
The Oakland Business Assistance Center is also a helpful resource for people starting a business in Oakland.
City of Oakland Business Tax Section Oakland Business Assistance Center
250 Frank H. Ogawa Plaza, Suite 1320 270 Frank H. Ogawa Plaza
Oakland, CA, 94612 Oakland, CA 94612
510.238.3704 510.238.7952
www.oaklandnet.com/government/
fwawebsite/revenue/revenue_biztax.htm
www.oaklandbac.com/
Hours: M, Tu, Th, F: 8 am-4 pm; W: 9:30 am-4:00 pm Hours: M-F, 9:00 a.m. – 5:00 p.m.
Chapter%2:%Starting%a%Food%Business%
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Morsel
ACEH suggests you review the “NSF
Healthguard Workbook” before
attending class; you can find it here:
www.nsf.org/newsroom_pdf/preview_
healthguard_restaurant.pdf
%%STEP%7:%%Register%Your%Business%with%the%California%Secretary%of%State%
STATE%requirement,%forms,%and%processes%
Depending on the type of business you form, you may have to file formation documents with the California
Secretary of State (SOS). There are generally six different kinds of business types in California. Below is a brief
explanation of the three that will most likely apply to your food business and you can read more here:
www.business.ca.gov/StartaBusiness/DefiningaBusiness.aspx.
Sole Proprietorship: You will most likely operate your business as a sole proprietorship. A sole proprietor has total
control, receives all profits from and is responsible for the taxes and liabilities of the business. California does not
require formation documents from sole proprietorships. Business income is reported on the individual’s annual state
and federal taxes and the business entity does not pay an annual fee or tax to the State for doing business in
California.
General Partnership: where two or more people go into business together, but the business is not a separately taxed
entity. By either verbal or written agreement, partners decide how profits will be shared. Each individual partner’s
portion of the profits is taxable state and federal annual income; the business entity does not pay an annual fee or
tax to the State for doing business in California. All partners are responsible for legal and financial obligations of the
business. Filing a Statement of Partnership Authority ($70) with the California SOS is optional; if partners do file,
copies of the forms are documentation of the agreement in addition to any other written agreements. Any
changes to the Statement or business must be filed also. Find the form and read more here: www.business.ca.gov/
StartaBusiness/DefiningaBusiness/GeneralPartnership.aspx.
Limited Partnership: where two more people go into business together, but one person acts as the general partner
with management authority and personal legal and financial liability. At least one other person is a limited partner
participating as an investor or operator but without management authority or control of the business. The general
partner takes on more risk than the limited partner in this partnership. Each individual partner’s portion of the profits
is taxable state and federal annual income; but the Limited Partnership must pay an annual $800 tax to conduct
business in California. A Certificate of Limited Partnership ($70) must be filed with the California SOS. Find the form
and read more here: www.business.ca.gov/StartaBusiness/DefiningaBusiness/LimitedPartnership.aspx.
When you file any optional or required forms with the California SOS, the Franchise Tax Board (FTB) will also receive
the information and send you information and forms regarding what the FTB will require of your business. Any
changes to the registrations listed above involve additional forms and fees. You can find that information here:
www.sos.ca.gov/business/be/forms.htm.
CA Secretary of State
California Business Portal
1500 11th Street
Sacramento, CA, 95814
916.657.5448
www.sos.ca.gov/
%%STEP%8:%%Food%Safety%Certification%for%Managers%
COUNTY%process,%form,%class%&%test%
CA Law requires that at least one person operating a food business has a Food Safety Manager’s Certification. As
the owner-operator, you need this certification and need to take an approved class and pass a test. As the “Person
In Charge,” you will need to train any employees you hire and they will also need a Food Handler Card.
Food%Safety%Manager’s%Certification%
The Alameda County Environmental Health Department
(ACEH) offers classes in English, but tests are available in
English, Spanish, Chinese, Vietnamese, Arabic, Korean,
and Japanese. If you need a test in one of these
languages, you must make the request two weeks before
the date of the class you take. ACEH’s web page with this
information is here: www.acgov.org/aceh/food/.
Chapter%2:%Starting%a%Food%Business%
%
Page%8%of%47%
For Certification:
• 1 full 8.5-hr workday training, includes workbook and exam
• Classes available in English or Spanish
• Tests are available in English, Spanish, Chinese, Vietnamese, Arabic, Korean, and Japanese – to take your
test in a language other than English, you must make the request two weeks before the class
• $141 first time;
• You must pay by check 30 days before the day you take the class, the workbook will be sent to your
address when check is received
• $38 if you didn’t pass the test the first time and have to take the test again
• Certification lasts 5 years; $95 to renew
There are also several other places around the Bay Area or online to take a class and the test; the list is here:
www.acgov.org/aceh/food/Food_Safety_Class_Provider_List.pdf.
Employee%Food%Handler%Card%
New food handlers must get their Food Handler Card within 30 days of hire. You can find Food Handler classes on
the list provided above, or there are a few online courses listed here: www.ansica.org/wwwversion2/outside/
ALLdirectoryListing.asp?menuID=212&prgID=228&status=4.
• Approximately 2-hour course and exam
• Classes available in English several languages
• Classes should run between $10 and $20
• Cards last 3 years
Alameda County Environmental Health
1131 Harbor Bay Pkwy
Alameda, CA 94502-6577
510.567.6700
www.acgov.org/aceh/food/mobile_food_units.htm
%%STEP%9:%%Register%with%the%CA%Employment%Development%Department%(EDD)%
STATE%process%&%forms%
If you will pay any employee more than $100 in a three-month period, you will be required to pay state payroll
taxes. Read more about the requirements and how to register here: www.edd.ca.gov/
payroll_taxes/am_i_required_to_register_as_an_employer.htm.
%%STEP%10:%%Liability%Insurance%
Liability%Insurance%Requirements%
Pushcarts & Trucks Cottage Food Operations
Oakland requires that you carry the same insurance
as companies that do business with the City,
including General Liability, Auto, Workers’
Compensation (if you will have employees), and
Professional Liability. Review “Schedule Q” and take
it to your insurance agent to get a policy that meets
the requirements.
Find Schedule Q here:
www2.oaklandnet.com/oakca1/groups/contracting
/documents/form/oak023255.pdf
California does not require that you have a liability
insurance policy, but some places where you can
sell (like farmers’ markets) may require you to carry
insurance. Either way, entrepreneurs are strongly
encouraged to get a policy to protect their
business and personal assets. Talk to your home or
auto insurance agent about getting a liability
insurance policy – it should cost $300-$500 per year.
The Food Liability Insurance Program (FLIP) is an insurance company just for food vendors including carts,
trucks, and CFOs, policies are available for $299. Visit www.fliprogram.com/ for more information.
Insure My Food Truck (www.insuremyfoodtruck.com/) and Insure My Food Trailer
(www.insuremyfoodtrailer.net/) are two other resources for liability insurance created just for food vendors.
Page%9%of%47%
3. MOBILE FOOD FACILITIES (MFFS)
CARTS & TRUCKS
Overview%
Mobile food carts and trucks are two ways to enter the food business and they are becoming very popular in urban
areas. Alameda County Environmental Health (ACEH) uses the term “Mobile Food Facility,” or MFF to generally refer
to carts, trailers, and trucks.
Each option has very different start-up costs. You can find used carts that need work for as low as $700, or find new
deluxe options for upwards of $5,000. Used trucks, without the kitchen installed, can cost anywhere from $9,000 to
$20,000 and new trucks can cost as much as or more than $100,000. And the kinds of foods you can offer and/or
prepare depends on the kind of cart or truck you choose and the equipment installed in the unit.
This chapter is about the process of getting permitted to operate an MFF on your own – as opposed to participating
in a “street food park” or special cart or truck event.
You will want to get a copy of the CA Retail Food Code (CRFC) and get to know it very well, especially Chapter 10
Mobile Food Facilities. The CA Retail Food Code is long and looks intimidating, but it is actually pretty
straightforward. You can find a copy here: www.cdph.ca.gov/services/Documents/fdbRFC.pdf, or at the ACEH
office.
The ACEH is there to help you. They really do want people to do mobile food vending correctly from the beginning
so that you can pass inspection and don’t have to deal with citations or fines after you open your business.
Alameda County Environmental Health
1131 Harbor Bay Pkwy
Alameda, CA 94502-6577
510.567.6700
www.acgov.org/aceh/food/mobile_food_units.htm
In this chapter, we’ll cover the steps in the process of getting permitted and starting to sell from a cart or truck in
Oakland. There are two permits you need:
1. Alameda County Environmental Health (ACEH) Mobile Food Facility (MFF) Permit
2. City of Oakland Pushcart or Vehicular Vending Permit
First, though, you need to establish your business in Oakland, then apply for the ACEH MFF Permit, and then get the
applicable permit from Oakland. This journey is not a straightforward path, but referring to the flow chart at the end
of this chapter should be helpful as you move through.
Where%Do%I%Start?%
The first four things to consider when thinking about a mobile food business are:
1. WHAT do I want to make?
2. WHERE can I store and prep my food and store and clean my MFF?
3. WHICH kind of MFF do I want and what can I afford?
4. WHERE in Oakland can I set up my MFF?
The answers to these four questions help answer each other and it may feel like you’ll be working on answering
them all the same time! You need to know what you want to make before choosing your MFF, where you can prep
and/or cook the food and store and clean your MFF, and where you can sell may which kind of MFF you can or
want to purchase and may affect what you make. For example, if you’re thinking your want a truck, but it won’t be
approved where you thought you’d like to sell, you may have to choose a cart instead. Understanding and getting
your desired location approved can be tricky, and is something you need to know BEFORE you purchase any
equipment or start the entire permitting process, so we’re going to start there. You may also remember from
Chapter 7: Article 3 Mobile Water
and Wastewater Tanks is another
important section of the CRFC for MFFs.
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
%
Page%10%of%47%
Chapter 2: Starting a Food Business, this is the first step in getting your Oakland Business Tax License, which you need
before you can apply for the ACEH MFF Permit, and we’ll talk about more later.
WHAT%Do%I%Want%To%Make?%(Plan%Your%Menu)%
What you want to serve will impact which kind of MFF business you decide to do, and more important, what
equipment your MFF requires. The more complicated the menu, the more storage, utensils, serving materials,
refrigeration your MFF will need – and your shopping list and costs could grow quickly.
Questions%to%Consider%
1. What foods are popular in your town, county, city, or region?
2. What foods are ideally suited to your (or your partner’s/employee’s) culinary expertise?
3. What ingredients are easy to get from wholesalers, markets, or farms in your area?
4. What foods are easy to transport to and from an off-site commissary or commercial kitchen?
5. What can you prepare and/or heat up without much difficulty?
6. What foods can customers easily carry around with them and eat on the go?
7. What foods are potentially cost-effective for you to sell?
8. What foods are not being sold at most of the other food carts or trucks in your area?
9. What times of day would you ideally be open for business? Breakfast? Lunch? Dinner? Late night?
10. Are you going to focus on one or two foods with several variations (like pizza, tacos, or ice cream?)
11. Or do you want a larger menu with a central theme? (Remember this may require more space, and may
move you from the cart category to a truck.)
Test Your Food: Don't start out with foods you have not thoroughly tested. This means you need to practice and
perfect each recipe to be sure your menu:
• is easy to make repeatedly in large quantities
• tastes consistently good
• is easy to serve
• travels well
WHERE%Can%I%Prep%My%Food?%(Commissaries%&%Commercial%Kitchens)%
Carts and trucks require access to Commissaries or Commercial Kitchens to store and prepare food, and to store
and clean equipment. Which one you need depends on what you need to store, your equipment, the kind of food
preparation you will be doing, etc. As stated in the glossary, some commercial kitchens may be also be able to
serve as a commissary where you can store a cart, trailer, or truck (MFF), store and prepare your food, etc., but they
may not all be appropriate. ALSO, not all commissaries may be proper commercial kitchens.
You’ll want to start looking for your commissary/commercial kitchen as your considering what you’ll make, where
can you store your MFF, how much will it cost, where is it in relation to where you want to sell, etc. The level of
service individual commissaries or commercial kitchens offer varies, and your needs will depend on the type of
mobile food facility you choose. For example, trucks need a secure place to plug in overnight, access to a sewer to
empty dirty water tanks, and access to potable water for refilling tanks, etc.
You need to have an agreement in place with a commissary/commercial kitchen for the ACEH MFF Permit. You
may not have to be using or paying for the space/access to the site yet, but you need the manager’s signature
and some other things explained more in Step 3 of the MFF Permitting Process.
ACEH has a list of permitted commissaries in or around Alameda County posted on its main MFF site,
www.acgov.org/aceh/food/mobile_food_units.htm, or you can find it here:
www.acgov.org/aceh/food/List_of_Permited_Commissaries.pdf.
Also, sometimes certain schools, churches, Veterans of Foreign Wars (VFW) Halls, Elks Clubs, or granges may have
commercial kitchens that you can use for lower rates than at a private business. You’ll still want to be sure the
facility can meet the ACEH requirements. Your commissary does not need to be in Alameda County, but ACEH
requires that you get the signatures of the County Health Department verifying that facility is to code. If you use
more than one commissary or commercial kitchen, you must fill out and get signatures on a Part D form for each
facility.
WHICH%Kind%Of%MFF%Do%I%Want%To%Operate?%(MFF%Types%&%Requirements)%
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
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The first and foremost thing to remember when you are considering purchasing or customizing a cart, trailer, or truck
is that ACEH is there to help you. Again, they really do want people to do it correctly from the beginning so that you
can pass inspection and don’t have to deal with citations or fines after you open. Read more on Page 17 about
having ACEH inspect an MFF before you buy it (involves a $162 fee).
The chart below will help you consider which MFF type is right for you if you’re not sure. Because you will want to
ensure you can sell with the equipment you want in the place that you want to sell BEFORE you make any big
purchases, we’re going to talk more later about the different requirements carts and trucks each have in order to
pass inspection.
%
Compare%Carts,%Trailers,%&%Trucks%
Pushcart/Bike Cart/
Unenclosed Trailer Cart
Enclosed Trailer Truck/Bus
equipment Least (depending on food) Middle
High: most sophisticated
equipment for storing, serving,
cooking, and preparing foods
typical foods
“Basic:” Hot Dogs, Tamales,
Roasted Corn, Prepackaged Fruit
“Limited Cooking:” Espresso Drinks,
Crepes, Churros, etc.
Pizza, Hamburgers, Stir-fry, Sandwiches, Salads, Soups, Tacos,
Burritos, Fried Foods, Sushi, Chicken Teriyaki, etc.
accessibility
Easiest to move around in a small
area
Harder to move by hand -
usually needs car or truck
Easiest to move long distances
carrying
capacity
Lowest Middle Highest
parking
Least issue – can usually be on the
sidewalk if there is adequate
clearance for pedestrians
Depends on how big/heavy it
is, whether it is possible to move
by hand if necessary
Limited both on and off-duty
weather
Most affected by weather – the
most protection you might have is
an umbrella
Medium since food and employees are inside. Awnings may
come with unit or could be added
cost to buy <$1,000-$12,000 $5,000-25,000 $25,000-$200,000
cost to run Low Med-High High
profitability Depends on costs Depends on costs
Can be very profitable, based
on menu and whether items
can be customized
immediately prior to serving
reliability
Typically doesn't run on a motor, so
can't break down
Depends on reliability of vehicle
moving trailer. Will likely need a
generator to run electricity,
which can affect reliability.
Most complicated since it
requires an engine to move it,
plus a generator to run
electricity.
permitting
ACEH & Oakland Mobile Vending
Permits
DMV Registration
ACEH & Oakland Mobile
Vending Permits
DMV Registration
ACEH & Oakland Mobile
Vending Permits
DMV Registration
Morsel
Learn about getting your trailer ready for the road from CA DMV:
www.dmv.ca.gov/pubs/dl648/dl648pt12.htm.
Learn about registering commercial vehicles here:
www.dmv.ca.gov/vr/commercial.htm
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
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Morsel
The CA and ACEH inspection standards are
built of the very detailed “NSF International
Standard 59.” If you’re curious, search on-line
for that term and you should find 1-2 year old
versions of it – the real thing costs $105.
Foods that do not require ware-washing/
3 compartment sink:
• boiled or steamed hot dogs,
• tamales in original wrapper (corn husk, banana leaf or
other wrapper that can’t be eaten), or
• food that is just heated, popped, shaved (ice), baked,
portioned, or assembled
…as long as there are adequate spare serving and preparation
utensils that have been washed and sanitized at your
commissary on a daily basis.
%
New,%Used,%Or%DoIItIYourself%“DIY”?%%Buyer%Beware!%%%%
ACEH must inspect all carts and trucks (MFFs) and to pass inspection, your MFF needs to be in compliance with a
number of different CA Retail Food Code regulations and some other very detailed industry standards. The
standards have to do with what materials are used, how seams are joined, and other details designed to ensure
units can be easily cleaned and made sanitary.
Buying a new MFF, while usually the most expensive option, could be the best bet for ensuring you will pass
inspection. The next best thing would be a used MFF that the previous owner didn’t re-build or change a lot. You
should ask the seller if his or her MFF passed inspection in its current condition. If you are brave enough to take on
building your own MFF, you must build it according to the CA Retail Food Code Chapters 7 & 10. You may find
dozens of “DIY” resources on the web, but beware of resources that tell you ways to get around certain rules or
regulations.
You can have ACEH “pre-inspect” an MFF you’re
thinking of buying for the $162/hr consultation fee.
Call 510.567.6700 to find out how to make an
appointment. See the Page 17 for more about
ACHE consultation appointments.
About%Carts:%Push,%Bicycle,%&%Unenclosed%Trailer%Carts%
There lots of different kinds of carts. Carts or unenclosed trailers are facilities that you operate and sell to customers
while standing on the ground, behind the cart (as opposed to standing inside an enclosed trailer or truck). Carts
generally fit into two categories – 1) those you push or pull by hand or bicycle carts and 2) trailers that need to be
towed by a vehicle. The kind of equipment you need depend on the kind of food you will be selling.
Having a refrigerator and a 3-
compartment ware washing sink to wash,
rinse, and sanitize utensils is required to do
limited food preparation. Examples of
“limited preparation” foods are espresso
drinks, crepes, churros, etc.
Limited Food Preparation is restricted to:
1. Heating, frying, baking, roasting, popping,
shaving of ice, blending, steaming or boiling
of hot dogs, or assembly of non-
prepackaged food.
2. Dispensing and portioning of non-potentially hazardous food.
3. Holding, portioning, and dispensing of any foods that are prepared for satellite food service by the onsite
permanent food facility or prepackaged by another approved source.
4. Slicing and chopping of food on heated cooking surface during the cooking process.
5. Cooking and seasoning to order.
6. Preparing beverages that are for immediate service, in response to an individual consumer order, that do not
contain frozen milk products.
See the glossary for the definition of what is not included in “limited food preparation,” according to the CRFC
Section 113818.
Carts must also have potable water and wastewater tanks, depending on you’ll be cooking. Refer to the CRFC
Chapter 7 Article 3 Mobile Water and Wastewater Tanks for the details and the ACEH can help you understand
what you need.
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
%
Page%13%of%47%
Morsel
Most mobile food vendors do better by
selling in fewer, consistent locations rather
than moving constantly or “roaming.”
Morsel
You will need pictures of
your cart (or truck) and
samples of your signs for
the Oakland Permit, so
you’ll want these done by
the time you’re applying
for the Oakland Permit.
Cart%Signage%Rules%
The City of Oakland requires that:
• City and County Permits must be posted and easy to
see at all times.
• Your signs are no more than 5 ft. sq. total – that can be
one 5 ft. sq. sign or two signs that together are within 5
ft. sq. total
• You have a “Not in Service” sign
About%Trucks%
This category includes trailers that you stand inside of to operate and sell to customers. Except where there are
exceptions, “trucks” will refer to both enclosed trailers and trucks for the rest of this chapter. The City of Oakland
defines them as trucks with take-out counters that sell ready-to-consume prepared foods, in disposable containers,
located on private property on a semi-permanent basis during hours of operation. Trucks can built to be bare
bones or be as complete a kitchen that can make cupcakes from start to finish.
Because trucks are enclosed, they can have more built-out kitchens and cleaning (including ware-washing 3-
compartment sinks) and refrigeration equipment, you are not limited to “limited food preparation” like carts. You
can serve pizza, hamburgers, stir-fry, sandwiches, salads, soups, tacos, burritos, fried foods, sushi, chicken teriyaki,
etc.
If you are going to customize a truck that was not a food truck before or make a lot of changes to an existing food
truck, you must have it inspected by the CA State Housing and Community Development (HCD) department to get
an “HCD Insignia.” So you have the best chance of passing ACEH inspection, you should submit the plans for your
build-out to ACEH. This costs $572, but will help ensure you’re having it built correctly. There is an office of HCD in
Alameda County and you can arrange for HCD to come inspect your truck and approve your retrofitted or re-
modeled truck. We’ll tell you more about the ACEH inspection later, in Step #3 of the permitting process.
Truck%Signage%Rules%
The City of Oakland requires that:
• Business Tax Certificate & City Truck Permit must be posted on or next to front passenger window
• ACEH Permit & Decal must be posted on left rear of truck
• You have only 3 signs that all together are within 30 ft sq. total. One of those signs must be a sign that says
loitering is not allowed.
WHERE%in%Oakland%Can%I%Set%Up%My%MFF?%%
Oakland’s Permit Center has a map of the areas where you can sell with your cart. Visiting the Permit Center is your
best bet for getting this information directly from the staff that are there to help you. You can call or visit the office
(below), or the map is posted on the web at: www2.oaklandnet.com/oakca1/groups/ceda/documents/
report/oak038359.pdf
City of Oakland Permit Center
250 Frank H Ogawa Plaza, 2nd Floor
Oakland, CA 94612
510.238.6402
www2.oaklandnet.com/Government/o/PBN/OurOrga
nization/BuildingServices/o/Permits/
The charts on this page and the next pages give the
details from the Oakland Municipal Codes about where you can sell from a cart or truck in Oakland. Getting to
know this information will prepare you for the first step in the permitting process – getting your City of Oakland
Zoning Clearance. We’ll explain that step more when we start walking you through the steps of the permitting
process.
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
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When%&%Where%You%Can%Sell%In%Oakland%
Carts Trucks
When Monday-Friday: 7am-10pm
Saturday & Sunday: 8am-10pm
You may set-up for an hour before or
break-down for an hour after those times.
Check with the Permit Center. Hours are likely
the same as for carts, but the Code for trucks is
not as specific as it is for carts. The Code says,
“Hours of operation shall be determined by the
city but shall not exceed: seven a.m. to three
a.m., everyday.”
Where You can sell on sidewalks along the street
sections below:
• Fruitvale Ave. & High Street from
Interstate 880 to Foothill Blvd.
• Foothill Blvd. from 19th Ave. to 23rd Ave.
& from 47th Ave. to MacArthur Blvd.
• International Blvd. from 1st Ave. to 23rd
Ave. & from 51st Ave. to 105th Ave.
• San Leandro St. from 51st St. to 98th Ave.
• E 12th St. from 4th Ave. to 23rd Ave.
• 14th Ave. from E 11th St. to 19th Ave.
You can sell on private property that has an
address visible from the street with the following
areas:
• Foothill Blvd. from 19th Ave. to MacArthur Blvd.
• International Blvd. from 1st Ave. to 105th Ave.
• San Leandro St. from Fruitvale Ave. to 98th
Ave.
• Fruitvale Ave. & High Street from Interstate 880
to Foothill Blvd.
• E 12th St. from 4th Ave. & 23rd Ave.
• 14th Ave. from E 11th St. to E 19th St.
Carts & trucks can sell in the commercial zones below, along the streets where they are
permitted to sell.
• C!20 Shopping Center Commercial
• C!28 Commercial Shopping District
• C!30 District Thoroughfare Commercial
• C!40 Community Thoroughfare Commercial
• M!20 Light Industrial
• M!30 General Industrial
• M!40 Heavy Industrial
The
Actual
Codes
Oakland Municipal Code (O.M.C.)
Chapter 5.49 Pushcart Food Vending Pilot
Program
Oakland Municipal Code (O.M.C.) Chapter
8.09 Vehicular Food Vending
The web
links:
library.municode.com/HTML/16308/level2
/TIT5BUTAPERE_CH5.49PUFOVEPIPR.html
library.municode.com/HTML/16308/level2/TIT8H
ESA_CH8.09VEFOVE.html#TIT8HESA_CH8.09VEFO
VE_8.09.030PEAR
Food for Thought
“Street Food Parks,” “Food Pods,” and special neighborhood events are becoming increasingly popular venues for carts and trucks
to sell food. Just like for individual sellers, there are specific places where food pods can operate. Some events or pods are just for
trucks, also. Because they are so popular, if you are considering joining one, starting asking organizers early in your process as there
are waiting lists to join often. The organizers charge fees and sometimes a percentage of your profits to join.
If you’re thinking of starting your own pod, start by checking out the:
1. Group Vending Application: www2.oaklandnet.com/oakca1/groups/ceda/documents/agenda/oak033283.pdf, and
2. Map of allowed areas: www2.oaklandnet.com/oakca1/groups/ceda/documents/report/oak032952.pdf.
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
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Food for Thought
You may also want to get to know the leaders of the Business Improvement District (BID) in which you want to sell. Knowing
and building relationships” with the other business owners in the area’s BID can help you in many ways.
Visit www.oaklandchamber.com/pages/businessimprovementcommunitybenefitdistrictsbidcbd/ to learn more about the district
where you want to sell and how to contact the leaders.
More%Details%on%When%&%Where%You%Can%Sell%In%Oakland%
Carts Trucks
Other
location
rules:
You MAY:
• Sell anywhere within the street sections
and zones above, as long as there are
6 ft between your cart and the curb
AND you must be 100 ft from any other
pushcarts.
• Sell at least 200 ft away from any school
or public park.
• Sell at permitted public events within
two blocks of permitted locations.
• Move your cart on the sidewalk outside
of the permitted street sections and
zones, but you can’t sell outside of
those areas while on the move.
You CAN’T:
• Sell or put your cart next to on-street
disabled parking spaces, or driveways,
entries and exits from buildings or next
to street intersections where your
equipment may block sight distances
for pedestrians or cars.
• Place/store equipment or supplies on
the sidewalk or other public property
• Block or cause hazards around entries
or exits to pedestrians or parked or
moving cars.
• Lock your cart to trees, fire hydrants,
benches or any other permanent
structure. It must be easy to move if
needed.
• Use any tables, chairs, fences, or other
temporary or permanent furniture are
allowed to be used along with your
cart.
• Sell directly to someone in a car or
truck.
You MAY:
• Park/Sell at least 500 ft away from a school or
any public park.
• Park/Sell at least 200 ft away from any fast
food restaurant, truck, restaurant, or deli
without written permission from the owner of
that business.
• Use up to 4 stand-up “cocktail” tables.
You MUST:
• Park where you can be seen from the street
and within 200 ft of a public restroom
• Park at least 10 ft away from the sidewalk or
right-of-way so that a line would not over-
crowd the public space.
• Sell in a paved lot.
• Maintain access for wheelchairs.
• Provide lighting for customer safety that is
directed downwards and away from public or
nearby properties
• Provide at least two 32 gallon trash bins within
15 ft of the truck and keep the area litter-free
within 200 ft of the truck and remove the
waste every day.
You CAN’T:
• Park or block the right-of-way, driveways, or
parking spaces that take up another business’
needed spaces
• Place/store equipment or supplies outside the
truck.
• Use any chairs, fences, or temporary or
permanent furniture.
• Become a “fixture” of the site or be
considered an improvement to real property.
• Serve alcohol.
• Exceed noise ordinance rules.
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
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STEPS%1I4:%The%Oakland/Alameda%County%MFF%Permitting%Process%
%%Step%1:%%Oakland%Zoning%Clearance%Application%
CITY%process%&%form%
You need this to get your Oakland Business Tax License (Step 2).
You’ve reviewed the information on Pages 4 & 5, and understand where you want to sell, what kind of equipment
you want, and what you want to make. Now you can complete the Zoning Clearance Application. You can get a
copy at the Oakland Permit Center or here: www2.oaklandnet.com/oakca1/groups/ceda/
documents/form/oak037285.pdf
For this form:
• Business Name, Address, & Phone Number
• Description of Activities
• Hours of Operation, Number of Employees
• Answers to a few questions about whether the business involves manufacturing, requires changes to a
building, or signs – your answers should all be “No.”
You will submit this form and request a site evaluation. The evaluation costs $157 and is part of getting Zoning
Clearance.
City of Oakland Permit Center
250 Frank H Ogawa Plaza, 2nd Floor
Oakland, CA 94612
510.238.6402
www2.oaklandnet.com/Government/o/PBN/OurOrganization/BuildingServices/o/Permits/
%%Step%2:%%Oakland%Business%Tax%License%
CITY%process%&%form%
You need this before you can complete the ACEH MFF Permit application. There are two web sites where you can
find information on the Business Tax License:
The Oakland Business Assistance Center:
oaklandbusinesscenter.com/index.php?option=com_content&task=view&id=63&Itemid=59
City of Oakland Business Tax Section:
www.oaklandnet.com/government/fwawebsite/revenue/revenue_biztaxreq.htm
You can find the form & instructions here:
www.oaklandnet.com/government/fwawebsite/revenue/pdf/Newbizapp.pdf
For this form:
• $61 first time registration
• State Seller’s Permit #
• Zoning Permit #
• SSN or ITIN#
• Driver’s License #
Also, by March 1st of each year, you will have to pay a City Business Tax to renew your License. If your gross receipts
are less than $50,000, the fee is $60. If your gross receipts are $50,001 or more, you will multiply your gross receipts by
.0012. For example: $56,000 x .0012 = $67.20.
City of Oakland Business Tax Section
250 Frank H. Ogawa Plaza, Suite 1320
Oakland, CA, 94612
510.238.3704
www.oaklandnet.com/government/fwawebsite/revenue/revenue_biztax.htm
Hours: M, Tu, Th, F: 8 am-4 pm; W: 9:30 am-4:00 pm
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
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Morsel
Catering isn’t covered
in this guide because it
does not involve direct
sales and has different
rules for food
preparation, storage,
and transportation.
Food Trucks can be
used to cater private
events and do not need
extra permitting as long
as the menu is nearly
the same as what you
always serve. Contact
ACEH with any
questions about
catering events with
your MFF.
%%Step%3:%%Begin%the%ACEH%MFF%Permit%Application%Process%
COUNTY%process%&%form%
You’ve planned your menu, bought
your cart or truck, got your business
licensing all set up thanks to
Chapter 2, and Steps 1 & 2 above,
great!
The ACEH Mobile Food Facility
(MFF) Permit Application covers
both carts and trucks. There are
some differences, explained more
later. There are four parts: A, B, D,
and E that apply to MFFs. There are
number of things (that we explain
below) that you need to have done
first, so really, finally submitting the
application is one of the last steps in
getting your actual permit.
• Part A: The details of your business ownership (name, address, food
safety certification, VIN if applicable, etc.)
• Part B: Mobile Food Facility Operating Information (menu and plans
for food storage, water disposal, washing, refrigeration, etc.)
o Includes a place to indicate whether you have an agreement
with another business to plug-in and use the restroom
• Part C: Catering Business Registration – Does not apply to MFFs
• Part D: Commissary/Commercial Kitchen Agreement
o Will need one for each cart or truck if permitting multiple facilities
• Part E: Route Sheet (name locations, days, hours, etc.)
Once you have your permit, you have to re-submit this form within 30
days of any changes to your route.
You can get the form in person at the ACEH in Alameda, or on the ACEH MFF
web page: www.acgov.org/aceh/food/mobile_food_units.htm
While you are working through the first four questions in this chapter and on
all of the steps to set yourself up as a business owner (Chapter 2), you will be answering the questions to fill in Parts B,
D, and E and gathering a pile of documents that are requirement as attachments to this application. Also, think
ahead that you will need $241 for the application, and $314 for the MFF Permit itself, and maybe $162 more if you
need or want a consultation with ACEH (see more in Food for Thought at top of this page).
About%Each%Part%of%the%ACEH%MFF%Application%Form%
%
PART%A:%%Your%MFF%Business%Basic%Information%
Here you will provide your name, business name, vehicle registration information if applicable, and other
straightforward questions about your business.
PART%B:%%MFF%Operating%Information%
You already know generally what you want to make and you should because that informs what kind of facility
you’ve purchased. Plan your menu in a more detail, write it up, and provide it with Part B.
Part B also asks for information about where you will store, change water tanks, wash your cart or truck – this will
probably all be done at your commissary or commercial kitchen, and that will be answer for those questions. You’ll
also answer how your MFF is refrigerated, and whether you’ll be using a generator or have an agreement with
Food for Thought
Not sure whether a Truck you’re looking at buying is to Code? For
a $162 Fee, ACEH will provide a one-hour consultation
appointment for matters such as:
• Discussing your business plan before submitting permit
application
• Inspecting a Mobile Unit you are thinking of buying
• Reviewing plans for a proposed custom MFF. Additional $572
fee may apply, depending on level of review needed.
To request a consultation appointment, call 510.567.6700 or you
can go ahead and submit Part A with the $162 fee and
“Consultation” box at the top of the form checked and fill out as
much information as you can.
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
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Page%18%of%47%
Food for Thought
ACEH conducts spot inspections of MFFs.
They focus on a food safety practice they
call “Active Managerial Control.” This
means they want to see that you are
actively managing your cart or truck’s
water storage and waste systems, your
generator’s operation, your refrigeration,
your employee’s methods, and anything
else that, if not going right, could shut you
down if inspectors show up unexpectedly.
From their point of view, it is better for
you to close your business for an hour to
fix a problem then it is for them to shut
you down for longer and for you to have
to pay fines to start selling again.
another restaurant to plug in or use their restroom. You will have most of this information because you worked
through the Zoning Clearance requirements already.
It is best if you put together a Standard Operating Procedures (SOP) list to give ACEH that will answer the following
questions (if not more than these):
• How are you training your staff?
• How is the food coming to you?
• How do you set up to go out in the morning?
• How are you going to transport it and maintain
those safe temperatures?
• What sort of things are you doing
during the day?
• What are you watching for (temperature control,
hand washing)?
• What are you restocking, maintaining
during the day?
• How do you operate the
truck/generator/water/cook top?
• What are you doing to close at the
end of the day?
• What do you do with the food at the end of the
day (throw it away? are you able to reuse it?
what does keeping or getting rid of the food
depend on?)
The CRFC contains the food handling, refrigeration, and other requirements that you need to develop operating
procedures. Here is another helpful resource from the U.S. Department of Agriculture (USDA): www.fsis.usda.gov/
shared/PDF/Basics_for_Safe_Food_Handling.pdf?redirecthttp=true
PART%D:%Commissary/Commercial%Kitchen%Agreement%
Again, you will need access to a commissary or commercial kitchen for a cart or truck, and you need to choose
yours before you apply for the MFF Permit. Because you thought through this as part of those first four questions in
this chapter, you should know which one you will use and know the owner/manager already. Here again is the link
to the list of permitted commissaries and commercial kitchens: www.acgov.org/aceh/food/
List_of_Permited_Commissaries.pdf
You shouldn’t have to join and start paying for your commissary/kitchen yet, just have an agreement with the one
you do want to use. There is a section on Part D for the manager to fill out and sign. And you have to tell the ACEH if
you change Commissaries at any point after you have your permit.
PART%E:%MFF%Route%Sheet%
Because you already have your Zoning Clearance, you should already have these answers also. Fill out where you
will sell, which days, and during which hours, among other items.
Food for Thought
In 2014, ACEH started a food truck inspection program that will place signs on trucks showing how they truck score
on food safety inspections. Like ACEH’s program for restaurants, trucks will receive Green (Pass), Yellow (Conditional
Pass), or Red (Closed/Fail) Placards to help the public make informed decisions. To read more about the program visit:
www.acgov.org/aceh/food/mfp-info.htm and review the inspection checklist: www.acgov.org/aceh/food/MFF-Official-
Inspection-Report-Form.pdf.
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
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ATTACHMENTS:%Required%Checklist%Items%%
• Menu (Current or Proposed)
• Current Food Safety Certificate of Person in Charge of Food Safety Management
• Current DMV Registration
• Valid Driver’s License
• Seller’s Permit from Board of Equalization
• Business License(s) from City(s) of operation
Have your $241 Application Fee ready (pay with cash, credit card,
cashier’s check or money order) which is due when you submit the
application in person at ACEH.
Alameda County Environmental Health
1131 Harbor Bay Pkwy
Alameda, CA 94502-6577
510.567.6700
www.acgov.org/aceh/food/mobile_food_units.htm
If you application is perfect, or very close to it, ACEH will contact you to schedule an inspection. If they have a lot of
questions, or your application isn’t complete, they’ll schedule you for a $162 consultation appointment.
It should take 3-4 weeks from the time you submit your application to when you have your inspection. At your
inspection, assuming you pass, the $314 Permit Fee is due.
CONGRATULATIONS!%You%should%now%have%your%ACEH%Mobile%Food%Facility%(MFF)%Permit.%This is an
annual permit, call 510.567.6810 to schedule a renewal inspection appointment two months before your permit
expires. Renewal fee is $314.
Now, you’re ready to prepare and submit application #2: City of Oakland’s Mobile Food Vending (MVF) Permit!
Morsel
All fees paid to ACEH are
NON-refundable (you can’t
get your money back).
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
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Page%20%of%47%
Morsel
Oakland can issue only 60 cart
permits per year. As of June
2014, less than 10 cart permits
are active.
%%STEP%4:%%City%of%Oakland%Mobile%Food%Vending%Permit%Application%%
CITY%process%&%form%
Oakland has different applications for carts and trucks. Just like with the ACEH MFF Permit Application, there are
things you should be working on so that you’re ready to submit the Oakland Application once you have your ACEH
Permit.
Which%Oakland%Application%Do%You%Need?%
PUSHCART Application VEHICULAR Food Vending Application
Any mobile food facility that is less than:
• 8 feet LONG
• 6 feet DEEP
• 6 feet HIGH
• Pulled trailers bigger than 8x6x6 – whether open
or enclosed (anything that needs a car or truck
to move)
• Trucks
Because you will have already had your site evaluation and been working with the City, you may have already
gotten the application. If not, go to the Permit Desk, or call 510.238.3891.
Oakland%Permit%Application%Attachments%
PUSHCART Application VEHICULAR Food Vending Application
• Copy of valid City of Oakland Business Tax Certificate
• Copy of valid ACEH Permit
• Applicable Fees (see below)
• Location of restroom you will have access to if you will be selling from a single location for more
than four consecutive hours at a time
o If you filled out the Plug-in & Restroom section in the ACEH Application, you can use that
as proof of your restroom access
• Copy of Driver’s License or equal Photo ID
• Copy of Zoning Clearance for Commissary
• 4 photographs of cart showing different views
• Photograph of “Not in Service” sign
• Sample of advertising signs along with
measurements
• Copy of valid California Driver’s License for
business owner/operator
• Vehicle Documents
• Site Plan with boundaries & setbacks
• Property Owner’s written consent
• 4 photographs of the vehicle
• 6 photographs of site and surroundings
• Sample Logo
• Sample of signs along with measurements,
including “No Loitering”
FEES
• 1st Time Permit: $455 TOTAL
• Renewal Fee: $455
FEES
• 1st Time Permit:
o Site Evaluation/Application Fee: $157.21
o Permit Fee: $2,090.75
• Renewal Fee: $2,090.75
When all the materials for your Oakland Permit are ready, you will go
to the Permit Desk with the applicable fees and attachments. If all
materials are satisfactory, you should be able to get your permit that
day. Submit Oakland MFF Application with the applicable fee. You
must renew your permit by April 15th each year.
%
%
%
NOW%…%YOU%ARE%FULLY%PERMITTED%TO%OPERATE%YOUR%CART%OR%TRUCK%!!!%
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
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Page%21%of%47%
MFF%Estimated/Sample%Startup%Costs
Item% Payee% Fee%
Fictitious Business Name Statement
Posting in newspapers
Alameda Clerk Recorder
Local Paper (Oakland Tribune)
$40
$62
Zoning Clearance Oakland Permit Center $40.15
Business Tax License from the City of
Oakland Oakland Business Tax Section $61
Food Handlers Card ACEH or Various Providers $141-160
Insurance Private Insurance Company $300-$500 per year
Commissary/Kitchen Rental Various $300-$2,500
Equipment Consultation ACEH $162
Plan Check (Trucks, if needed) ACEH $572
MFF Permit Application ACEH $241
MFF Permit ACEH $314
Oakland CART Permit Oakland Permit Center $455
Oakland TRUCK Permit
Application/Site Evaluation
Permit
Oakland Permit Center $157.21
$2,090,75
CART Approximate Total:
TRUCK Approximate Total
$1,954-$4,474
$3,900-$6,900
Chapter%3:%Mobile%Food%Facilities%(MFFs)%
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Page%22%of%47%
MFF%Steps%Flow%Chart%
Page%23%of%47%
4. COTTAGE FOOD OPERATIONS (CFO’s)
What%is%a%Cottage%Food%Operation?%
A cottage food operation (CFO) is an enterprise at a private home where specific low-risk food products that do
not require refrigeration are made or repackaged for sale to consumers. These are foods that do not support the
rapid growth of the types of bacteria that would make people sick when held outside of refrigeration temperatures.
A CFO is the only type of food business that can use a home kitchen for processing food.
• CFO’s are limited to the preparation of only the items on the approved cottage food products list (see
below).
• CFO’s are limited to 1 employee in addition to any number of family members who live in the private
home.
• CFO’s annual gross sales are limited to:
o $45,000 or less in 2014
o $50,000 or less in 2015 or beyond
If the food operation does not meet ALL of the above characteristics, it is not considered a CFO, and a
certified/permitted commercial kitchen is required for food preparation.
In addition to the characteristics above, which define a CFO,
there are further restrictions meant to protect public health
and safety and conform with existing food regulations that
must be followed by all food businesses. These restrictions
include limits on sales, structural requirements, operational
guidelines, product labeling, and cottage food sold in food
facilities.
CFOs in Oakland need a permit from Alameda County
Environmental Health (ACEH) as well as Zoning Clearance and
Business Licensing from the City of Oakland.
Given%The%Restrictions,%Why%Should%I%Start%A%CFO?%
PROS% CONS%
1. It’s the cheapest to start, if you want to try creating
a small home-based business without a lot of
upfront investment
2. It has the lowest barriers to entry (fewer legal
requirements than many other types of food
businesses)
3. It’s a great way to test your product in the market
before you invest a lot of money in starting a bigger
business
4. It allows you the ability to work from home
5. Because cottage foods must be non-potentially
hazardous foods, your inventory’s shelf-life is longer
6. You may have as many household/family members
involved in the business as you like
1. Must use home kitchen only (cannot use a
commercial kitchen) to make your food. Once you
grow to a point of needing to expand, you’ll have
to apply for new permitting. (So, if you’re planning
on growing and scaling your business quickly, this
may not be the ideal way to start.)
2. Sales are restricted (see above). Once you start
selling more than what’s allowed, you have to seek
other types of permitting and move production out
your home.
3. While it’s great that you work from home, you
cannot have children or pets anywhere near your
kitchen while you are preparing food. (So this isn’t a
solution for any childcare issues you may have.)
4. Limited to one employee (non-family/living outside
of household)
The City of Oakland provides a CFO
Zoning Bulletin to aspiring CFO
entrepreneurs, last updated in 2013. It
includes the information included in this
guide, although the steps are represented a
little differently, and the steps provided do
not clarify steps for Class A or Class B
CFOs (defined in this chapter).
Chapter%4:%Cottage%Food%Operations%(CFOs)%
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Page%24%of%47%
List%of%Approved%Cottage%Foods:%
1. Baked goods, without cream, custard, or meat fillings, such as breads, biscuits, churros, cookies, pastries,
and tortillas
2. Candy, such as brittle and toffee
3. Chocolate-covered nonperishable foods, such as nuts and dried fruits
4. Dried fruit
5. Dried pasta
6. Dry baking mixes
7. Fruit pies, fruit empanadas, and fruit tamales
8. Granola, cereals, and trail mixes
9. Herb blends and dried mole paste
10. Honey* and sweet sorghum syrup
11. Jams, jellies, preserves, and fruit butter that comply with the standard described in Part 150 of Title 21 of
the Code of Federal Regulations (see below)**
12. Nut mixes and nut butters
13. Popcorn
14. Vinegar and mustard
15. Roasted coffee and dried tea
16. Waffle cones and pizelles
As of May 7, 2014, the following foods were added to the list:
17. Cotton candy
18. Candied apples
19. Confections such as salted caramel, fudge, marshmallow bars, chocolate covered marshmallow, nuts,
and hard candy, or any combination thereof
20. Buttercream frosting, buttercream icing, buttercream fondant, and gum paste that do not contain eggs,
cream, or cream cheese
21. Dried or dehydrated vegetables
22. Dried vegetarian-based soup mixes
23. Vegetable or potato chips
24. Ground chocolate
* Honey requires further zoning review with the City of Oakland, as it
cannot be made from bees located on a residential property. This is
because home occupation regulations currently do not allow animal
raising as part of a business, and bees are considered animals.
**Jams, jellies, preserves, and fruit butter: CFOs that produce jams,
jellies, preserves, and other related products must be sure that their
products meet the legal established standards of identity requirements
for those products as set forth in 21 CFR Part 150. The purpose of the
regulation is to maintain the integrity of the food product to ensure
consumers consistently get what they expect. The product name and
ingredients listed on the label must be factual and comply with the
legal definitions and standards of identity or the product may be
considered misbranded. Products made with other ingredients that are
not defined in 21 CFR 150 cannot be produced by cottage food
operations. Addition of other ingredients, or alteration of ingredient
profiles, changes the chemistry of the food, which can allow the
growth of various bacteria and toxins under the right conditions. For
example, addition of peppers (i.e. jalapeno pepper) to make pepper
jelly is not supported by 21 CFR 150, and the addition of this low acid
ingredient could cause the formation of botulism toxin in the product if
the proper controls are not used.
The list of approved cottage foods is subject to change and will be
maintained and updated by the California Department of Public
Health (CDPH) on its website as necessary. You may want to check the
list from time to time and make note of any new approved foods you may wish to add to your business:
www.cdph.ca.gov/programs/Documents/fdbCFOfoodslist.pdf
Food for Thought
Because the Cottage Food Act (the California
law that governs CFOs) is very new, having
just gone into effect in January 2013, it is
relatively untested.
As more producers join the ranks, and the
movement gains traction in the market, cottage
food producers will have more say about the
regulations and which foods may be added to
the approved list in the future. In fact, if you
would like something added to the approved
foods list, you can submit a request:
www.cdph.ca.gov/programs/Documents/fdbCF
Oaddfoodrequest.pdf
But if producers don’t get licensed, don’t
follow the rules, or try to sell foods that are
not on the approved list, they will hurt the
chances for everyone else to make
improvements to the regulations.
For a full list of guidelines:
www.acgov.org/aceh/documents/CCDEH_Mod
el_CFO_Guidelines_-Updated_12-21-2012.pdf
Chapter%4:%Cottage%Food%Operations%(CFOs)%
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Page%25%of%47%
Class%A%vs.%Class%B%Permits%%
There are two types of permits for CFOs. Depending on how you intend to sell you product, you’ll either apply for a
Class A permit, or a Class B permit.
“Class%A”%=%Direct%Sales% “Class%B”%=%Indirect%Sales%&%Direct%Sales%
Class A CFO’s may engage only in direct sales of
cottage food products, meaning sales are made
either 1) at the home where the cottage food
operation is located, or 2) at a community event, such
as a bake sale or food swap, a farm stand, a certified
farmers’ market, or through community-supported
agriculture subscriptions.
Class A CFO’s must submit a completed self-
certification checklist to be approved by the local
environmental health agency when they submit their
registration application for a permit.
Link to the self-certification checklist:
www.acgov.org/aceh/documents/CFO_Model_Self-
Certification_Checklist-12-21-2012.pdf
Like Class A CFO’s, Class B CFO’s may sell directly to
the public, but they may also sell CFO-prepared foods
either indirectly to the public through retail food
facilities such as restaurants and markets. In other
words, the consumer purchases cottage food
products made by the CFO from a third-party retailer
that holds a valid permit, and where food may be
immediately consumed on the premises.
Inspection – Class A CFO kitchens and food storage
areas (referenced in the law as the “registered or
permitted area”) are not subject to initial or routine
inspections. However, an inspection may be required if
any consumer complaints are registered against the
operator of the CFO.
Inspection – “Class B” CFO kitchens and food storage
areas must be inspected prior to permit issuance, with
yearly inspections scheduled after the initial permit has
been granted.
Link to the Alameda County Environmental Health Department (ACEH) permit application for both Class A and
Class B CFO’s: www.acgov.org/aceh/documents/CFO_Model_Self-Certification_Checklist-12-21-2012.pdf
Geographic%Boundaries%
Class A CFOs may sell product within their county, as long as they are limited to direct sales. Class A cottage foods
are not currently permitted for sale in other jurisdictions.
A Class B CFO is authorized to engage in the indirect sales of cottage food products within the county in which the
“Class B” cottage food operation is permitted. However, other counties may allow CFOs with valid permits in
Alameda County to make indirect sales in their counties as well. You must check with these other counties before
attempting to make such a sale. Thus far, Alameda County has not permitted another county’s Class B CFOs to sell
within its jurisdiction.
A CFO may accept orders and payments via the internet, mail or phone. However, the CFO must deliver their CFO
products directly (in person) to the customer. The CFO products may not be delivered via US Mail, UPS, FedEx or
using any other indirect delivery method. This includes both “direct” and “indirect” sales. Interstate sales (sales to
customer in states outside of California) are not permitted with either a Class A or Class B license.
Chapter%4:%Cottage%Food%Operations%(CFOs)%
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Page%26%of%47%
Sales%Limits%
In 2014, the CFO shall not have more than $45,000 in gross
annual sales in the calendar year. Beginning in 2015, and each
year thereafter, the CFO shall not have more than $50,000 in
gross annual sales in the calendar year. Once the CFO
exceeds the gross sales volume established in the law, they
must move their operations to a commercial processing facility
and register with the California Department of Public Health
(CDPH) under the Processed Food Registration Program. You
may contact CDPH at 916.650.6516 for more information about
registration.
Limited%Number%of%Employees%
There are limits to the number of employees a CFO is permitted to employ. In addition to the operator and family or
household members, CFO’s of either Class A or Class B may have only 1 employee. That means only you, family and
1 full-time or part-time paid employee may be employed by this business, no more!
Structural%Requirements%
• All equipment, utensils, food, drink, ingredients and items used in the preparation of a cottage food item
must be stored and used within the home. No cottage food functions may occur in any location outside
the registered or permitted area.
• No infants, small children under age 12, or pets are allowed in the registered area during CFO operations.
• A hand washing facility (sink) must be available during food handling or preparation activities. Soap and
clean towels must be supplied.
Operations%
• The county CFO registration or permit is non-transferrable and is only valid for the exact persons, location,
type of food sales, and distribution activity outlined on the permit.
• Kitchen equipment and utensils must be kept clean and in good repair.
• All food contact surfaces and utensils must be washed, rinsed, and sanitized before each use.
• All food preparation and storage areas must be completely free of rodents and insects.
• All foods or ingredients shall come from an approved source and shall be obtained from sources that
comply with all applicable laws.
• All food shall be manufactured, produced, prepared, compounded, packed, stored, transported, kept for
sale, and served so as to be pure and free from adulteration and spoilage.
• Nonfood items, such as packaging/labeling or cleaning supplies, must be stored in an area separate from
food.
• No smoking in the kitchen area during the preparation, processing, packaging or storing of food.
• Food handlers shall engage in proper hand washing immediately prior to any food preparation or
packaging
• Any person with a contagious illness may not prepare or package food products. A person with a lesion or
open wound must stop working in the permitted area unless the wound is covered with an impermeable
dry, durable, tight-fitting bandage and a glove.
• No cottage food preparation, packaging, or handling may occur in the home kitchen/permitted area at
the same time as any other domestic activities, such as family meal preparation, dishwashing, clothes
washing, or guest entertainment.
• Water used for food preparation or cleaning shall meet potable drinking water standards (see glossary for
a definition of potable water.)
Morsel
Gross sales refers to the total
amount sold before you subtract
any costs such as the cost of the
raw ingredients or cost of
packaging materials or labels.
Chapter%4:%Cottage%Food%Operations%(CFOs)%
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Page%27%of%47%
Labeling%
Label all products with the following:
1. The words “Made in a Home Kitchen” or “Repackaged in a Home Kitchen” in 12-point type on the CFO
product’s primary display panel.
2. The name commonly used for the food product or an adequately descriptive name.
3. The name, city, state and zip code of the CFO that produced the cottage food product. If the CFO is not
listed in a current telephone directory, then a street address must also be declared. (A contact phone
number or email address is optional but may be helpful for consumers to contact your business, especially if
they want to buy more!)
4. The registration or permit number of the CFO that produced the cottage food product, and, in the case of
a “Class B” CFO, the name of the county that issued the permit number.
5. The ingredients of the CFO product, in descending order by weight, if the product contains two or more
ingredients.
6. The net quantity (count, weight, or volume) of the food product, stated in both English (pound) units and
metric units (grams).
7. A declaration on the label in plain language if the food contains any of the major food allergens such as
milk, eggs, fish, shellfish, tree nuts, wheat, peanuts, and soybeans. There are two approved methods
prescribed by federal law for declaring the food sources of allergens in packaged foods: a) in a separate
summary statement immediately following or next to the ingredient list, or b) within the ingredient list.
8. If the label makes approved nutrient content claims (such as free, low, reduced, fewer, high, less, more,
lean, extra lean, good source, and light), or health claims (gluten-free), the label must contain a “Nutrition
Facts” statement on the information panel. For information about health claims or nutrition facts, as well as
additional instructions, please see the CDPH Labeling Requirements for Cottage Food Products:
www.cdph.ca.gov/programs/Documents/fdbCFOlabel.pdf
Labels must be legible and in English (accurately translated information in another language may also be included
on the label). Labels, wrappers, inks, adhesives, paper, and packaging materials that come into contact with the
cottage food product by touching the product or penetrating the packaging must be food-grade (safe for food
contact) and not contaminate the food.
In a permitted retail food facility (such as a restaurant, market, or deli), cottage food products served without
packaging or labeling shall be identified to the customer as homemade on the menu, menu board or in another
easily accessible location that would reasonably inform the consumer that the food or an ingredient in the food has
been made in a private home.
Chapter%4:%Cottage%Food%Operations%(CFOs)%
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Page%28%of%47%
Training%
Every person who prepares or packages cottage food must complete a food processor course within 3 months of
becoming registered or permitted and every 3 years during operation.
CFOs, their employee, and any household member that is involved in the preparation or packaging of cottage
foods may take one of the same American National Standards Institute (ANSI) accredited food handler courses
that are currently required for retail food facility food handlers. The courses are available on-line or via a classroom
in a variety of languages for a minimal cost. After successfully completing the course, you will receive a food
handler card or certificate, which you need to keep as proof that you completed the required training. You must
present a copy of this card or certificate for each person involved in preparing cottage foods to your local
enforcement agency upon their request, to verify that the training requirement has been completed. You may find
a list of approved courses here: www.ansica.org/wwwversion2/outside/
ALLdirectoryListing.asp?menuID=212&prgID=228&status=4
STEPS%1I10:%The%Oakland/Alameda%County%CFO%Permitting%Process%
!
%%STEP%1:%%Complete%SelfICertification%Checklist%
%CLASS%A%ONLY%%% %%COUNTY%form%l%
!
The CFO Self-Certification Checklist is a 2-page form for Class A CFOs only to show that you meet the minimum
standards of health and safety for the preparation of cottage foods in the home. There are questions regarding
zoning, which ask if you comply, which you must, but the documentation isn’t required at this point (see STEP 9).
The form: www.acgov.org/aceh/documents/CFO_Model_Self-Certification_Checklist-12-21-2012.pdf
Class B CFO’s start with STEP 2.
%%STEP%2:%%Submit%Registration/Permitting%Form%
%%COUNTY%form%l%%
The CFO Registration/Permitting Form is the 5-page application for the ACEH Class A & Class B CFO Permit. 5 pages
sounds long, but that’s because it repeats the rules and regulations for CFOs. You will submit the form, with the Self-
Certification Checklist, and the applicable permit fee: Class A: $162; Class B: $243.
The form: www.acgov.org/aceh/documents/CFO_Model_Registration-Permitting_Form_12-21-2012.pdf
%%STEP%3:%%Attend%ACEH%Office%Consultation%
COUNTY%appointment%l%%
After you submit your Registration/Permitting Form, ACEH and you will schedule an office consultation appointment
to review your application. Bring copies of all of the completed items below:
• Completed Registration/Permitting Form (application) completely filled out
• Completed Self-certification Checklist (Class A only)
• State and federal compliant product labels (one for each different food item that you plan to produce)
• Food handler certification (if you have already completed this, otherwise you have 3 months to complete it
after your permit is issued)
Alameda County Environmental Health
1131 Harbor Bay Pkwy
Alameda, CA 94502-6577
510.567.6700
www.acgov.org/aceh/index.htm
Chapter%4:%Cottage%Food%Operations%(CFOs)%
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Page%29%of%47%
%%STEP%3.5%(Class%B%only):%%Prepare%for%ACEH%Inspection%
%%CLASS%B%ONLY%%% %%COUNTY%appointment%l%
Class B CFOs must pass an ACEH Inspection. You and ACEH will schedule this appointment. They will look to ensure
that:
• All CFO foods are located/stored in the kitchen
• All CFO equipment (including the refrigerator) is located/stored in the kitchen
• All CFO equipment is clean and operable
• The refrigerator keeps food temperatures to 41° or below
• All food is stored above the floor and protected from contamination
• Liquid soap and clean towels are provided for proper hand washing
• Hot and cold running water are both readily available at the kitchen faucet
• General sanitation is good and there are no signs of vermin
%%STEP%4:%%Get%Permit%Number%and%Referral%Letter%
COUNTY%process%l%
After your office consultation and inspection (Class B only), you will get a Permit Number and Referral Letter from
ACEH.
!
!
%%STEP%5:%%Complete%Oakland%Zoning%Clearance%Worksheet%
CITY%process%&%form%l%
Complete the Oakland Zoning Clearance Worksheet and submit it to the Oakland Permit Center. You do not pay
the zoning fee until your application has been approved. Include with your submission:
1. Completed Self-Certification Checklist
2. Registration/Permitting Form
3. ACEH Permit Number
4. ACEH Referral Letter
For this form:
• Business Name, Address, & Phone Number
• Description of Activities
• Hours of Operation, Number of Employees
The form: www2.oaklandnet.com/oakca1/groups/ceda/documents/form/oak037285.pdf.
City of Oakland Permit Center
250 Frank H Ogawa Plaza, 2nd Floor
Oakland, CA 94612
510.238.6402
www2.oaklandnet.com/Government/o/PBN/OurOrganization/BuildingServices/o/Permits/
%%STEP%6:%%Pay%Zoning%Clearance%Fee%
CITY%process%l%
The Permit Center will notify you when your zoning clearance has been approved, and then you will submit the
$40.15 fee.
Chapter%4:%Cottage%Food%Operations%(CFOs)%
%
Page%30%of%47%
%%STEP%7:%%Apply%for%Oakland%Business%Tax%License%
CITY%process%&%form%l%
Oakland New Business Application form & instructions: www.oaklandnet.com/government/fwawebsite/
revenue/pdf/Newbizapp.pdf
For this form:
• $61 first time registration
• State Seller’s Permit #
• Zoning Permit #
• SSN or ITIN#
• Driver’s License #
Also, by March 1st of each year, you will have to pay a city business tax to renew your license. If your gross receipts
are less than $50,000, the fee is $60. If your gross receipts are $50,001 or more, you will multiply your gross receipts by
.0012. For example: $56,000 x .0012 = $67.20.
City of Oakland Business Tax Section
250 Frank H. Ogawa Plaza, Suite 1320
Oakland, CA, 94612
510.238.3704
www.oaklandnet.com/government/fwawebsite/revenue/revenue_biztax.htm
Hours: M, Tu, Th, F: 8 am-4 pm; W: 9:30 am-4:00 pm
%%STEP%8:%%Submit%Zoning%Clearance%&%Business%Tax%License%to%County%
COUNTY%process%l%
Submit copies of your Zoning Clearance Approval, proof of payment, and your Business Tax License back to ACEH
to complete the permitting process. You will then receive a Certificate of Approval to Operate from ACEH.
You will have to inform ACEH when you add to your product offerings.
%%STEP%9:%%Get%Food%Handler’s%Card%
PRIVATE%Company%class%&%test%l%
Now that you have passed all visits and inspections and are approved to start operating, you need to get your
Food Handler’s Card within 3 months of getting your approval to start your business. Courses and exams are
available online in a variety of languages and should cost $10-$15. Any family members or an employee that helps
you also need this card. (Note, you only need the basic training for CFOs, not the managers’ training.)
Approved courses:
www.ansica.org/wwwversion2/outside/ALLdirectoryListing.asp?menuID=212&prgID=228&status=4
Chapter%4:%Cottage%Food%Operations%(CFOs)%
%
Page%31%of%47%
%%STEP%10:%%Get%Necessary%Additional%Permits%
CITY%&/or%COUNTY%processes%&%forms,%depending%l%
You will need additional permits if:
• Your CFO depends on well water and/or a septic
system
• You intend to sell at farmer’s markets or special
events
o Selling at a Farmer’s Market requires a
Temporary Food Facility (TFF) Application to
ACEH. Before submitting that application, you
must be accepted by the Manager/Sponsor
of the Farmer’s Market at which you want to
sell, and be listed as a vendor on the Sponsor’s
Permit.
o TFF Application: www.acgov.org/aceh/
food/Temporary_Events_Food_Booth_Operato
r_Application.pdf
Frequently%Asked%Questions%About%CFO’s%
From the California Department of Public Health: www.cdph.ca.gov/programs/Documents/fdbCFOfaqs.pdf
From the California Conference of Directors of Environmental Health:
www.ccdeh.com/resources/documents/food-safety-guidelines-1/1015-ab-1616-frequently-asked-questions-
updated-2012-11-01-1/file
From the Sustainable Economies Law Center: www.theselc.org/faq
CFO%Estimated/Sample%Startup%Costs%
Item% Payee% Fee%
Fictitious Business Name Statement
Posting in newspapers
Alameda Clerk Recorder
Local Paper (Oakland Tribune)
$40
$62
Permit ACEH
Class A $162
Class B $243
Zoning Clearance for a Home
Occupation from the City of Oakland Oakland Permit Center $40.15
Business Tax License from the City of
Oakland Oakland Business Tax Section $61
Food Handlers Card Various Providers $10-$15
Insurance (optional but recommended) Private Insurance Company $300-$500 per year
Total: $375-$1000
Food for Thought
Consider purchasing liability insurance.
Liability insurance is not required by law.
However, it is recommended, as it protects your
assets (your home, car, savings, etc.) in case you
are sued as a result of damage or illness caused by
the products of your CFO. Home-based
businesses are generally not covered by standard
homeowner’s or renter’s insurance. Some places
where you might sell your cottage food, such as
farmer’s markets, cafes or retail stores, may
require you to have liability insurance.
Check out the Resilient Communities Legal Café
hosted by the Sustainable Economies Law Center:
www.theselc.org/cafe
Chapter%4:%Cottage%Food%Operations%(CFOs)%
%
Page%32%of%47%
CFO%Steps%Flow%Chart%
%
Page%33%of%47%
APPENDIX A. GLOSSARY
Brick and Mortar: A business that serves customers from a permanent physical location. (Note: full scale brick and
mortar restaurants are not included in this guide.)
California Retail Food Code (CRFC): The go-to comprehensive resource for operating a food business in California.
Updated annually in January.
Catering: Catering businesses do not make direct food sales to the public, but provide food at private events. They
still have to comply with the CA Retail Food Code, and have to meet specific requirements about how hot and/or
cold food kept hot/cold during transport or on site. This guide does not cover those rules.
Commercial Kitchen: Kitchens found in hotels, hospitals, educational
and work place facilities, army barracks, and similar establishments
are subject to public health laws. They are inspected periodically by
public-health officials, and may be forced to close if they do not
meet hygienic requirements mandated by law. A food truck may
include a mobile commercial kitchen containing traditional
equipment that you would typically find in a stationary commercial
kitchen or brick and mortar restaurant
Commissary: A stationary food facility that services mobile food
facilities (trucks or carts), where the following occurs:
1) food, containers, or supplies are stored;
2) food is prepared or pre-packaged for sale or service at
other locations;
3) utensils are cleaned; or
4) liquid and solid wastes are disposed or potable water is obtained.
Cook Time: How long an item takes to cook to a proper serving temperature.
Contamination: The unintended presence of potentially harmful substances, including microorganisms, chemicals
and physical objects in food.
Corner Store/Small Brick & Mortar Store: A small-scale store that typically sells a limited selection of foods and other
products. The term “corner store” encompasses a diverse range of small stores—both independent and chain
stores; in rural, urban, and suburban settings; and not always located on a corner. Other terms that are commonly
used to refer to this type of store include small-scale store, convenience store, neighborhood store, and bodega.
Cottage Food: A Cottage Food Operation (CFO) is an enterprise at a private home where specific low-risk food
products that do not require refrigeration are made or repackaged for sale to consumers.
Cross-Contamination: When foods and surfaces that might be contaminated with bacteria come into contact with
other foods and surfaces that otherwise wouldn’t be a potential threat.
Direct Sale: A transaction between a business operator and a consumer, where the consumer purchases the
product directly from the operator without any other parties involved.
Dry Goods: Items such as coffee, tea, sugar, flour, an paper products that don’t require refrigeration.
Eighty-Six: Restaurant lingo for taking an item off the menu. Generally refers to taking it off temporarily because you
ran out of the item, but it can also refer to removing it permanently.
Entrepreneur: One who organizes, manages, and assumes the risk associated with operating any business
enterprise.
Food: any item used, or intended to be used, for human consumption (including manufactured foods, packaged
candy, chewing gum and bottled water and beverages).
Food Business: is any retail or wholesale facility whose operation involves any of the following: preparing, serving,
storing, processing, transporting, handling, bottling, baking, or selling food.
The difference between
Commissaries and Commercial
Kitchens is hard to define very
clearly. Basically, some
Commercial Kitchens may be also
be able to serve as a Commissary
where you can store a Mobile
Food Facility (MFF) (cart, trailer,
or truck), your food, etc., but
they may not all be appropriate.
ALSO, not all Commissaries may
be proper Commercial Kitchens.
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OFPC-Hustle-Guide_9.2.14

  • 1. OAKLAND Food Policy Council “HUSTLE GUIDE” A"Step'by'Step"Instruction"Booklet"for"Oakland'Based"Entrepreneurs"" Looking"to"Start"a"Mobile"or"Cottage"Food"Business" " Commissioned by the HOPE Collaborative, Inner City Advisors, and the Alameda County Public Health Department to support the work of the Oakland Food Policy Council.
  • 2. ACKNOWLEDGEMENTS We wish to thank the following individuals who provided key information in the development of this guide: Authors: Nan Cramer and Megan Arneson Advisory Committee: Jose Corona, Navina Khanna, Esperanza Pallana, Diane Woloshin, and Sabrina Wu Jackie Greenwood, ACEH Don Atkison-Adams, ACEH Heather Klein, City of Oakland Alisa Shen, City of Oakland Rich Fielding, City of Oakland Leonardo Rivera, City of Oakland Judy Cardiff, From Garden to Jar Mollie Dutton-Starbuck, Mollie Rose Baking Co. Karen Hester, Bites off Broadway Joan Kiley, Dragonfly James and Marmalades Zak Silverman, Docs of the Bay Nikki Silvestri, Green For All Camille Pannu, United States Federal Courts Citation: Oakland Food Policy Council. Hustle Guide. A Step-by-Step Instruction Booklet for Oakland-Based Entrepreneurs Looking to Start a Mobile or Cottage Food Business. http://oaklandfood.org/food-hustle-guide/ July 2014 Photo Credit: Upper left, Miss Arepita, photo by Carolina Abolino; Upper right, photo by Carolina Abolino; bottom left, S.O.S. Juice photo by Ashel Eldridge; bottom right, El Taco Bike photo by Alfonso Dominquez.
  • 3. TABLE OF CONTENTS TABLE OF CONTENTS ...................................................................................................................2! 1. INTRODUCTION.........................................................................................................................1! Why"This"Guide?"....................................................................................................................................."1! Types"of"Business"Models"This"Guide"Addresses"..................................................................................."1! 2. STARTING A FOOD BUSINESS................................................................................................3! STEPS"1'10:""Starting"an"Oakland'based"Food"Business"........................................................................."4! 3. MOBILE FOOD FACILITIES (MFFS) CARTS & TRUCKS ....................................................9! Overview"................................................................................................................................................"9! Where"Do"I"Start?"..................................................................................................................................."9! WHAT"Do"I"Want"To"Make?"(Plan"Your"Menu)"....................................................................................."10! WHERE"Can"I"Prep"My"Food?"(Commissaries"&"Commercial"Kitchens)"................................................"10! WHICH"Kind"Of"MFF"Do"I"Want"To"Operate?"(MFF"Types"&"Requirements)"........................................"10! About"Trucks"........................................................................................................................................"13! WHERE"in"Oakland"Can"I"Set"Up"My"MFF?"..........................................................................................."13! STEPS"1'4:"The"Oakland/Alameda"County"MFF"Permitting"Process"....................................................."16! About"Each"Part"of"the"ACEH"MFF"Application"Form"..........................................................................."17! MFF"Estimated/Sample"Startup"Costs".................................................................................................."21! MFF"Steps"Flow"Chart"..........................................................................................................................."22! 4. COTTAGE FOOD OPERATIONS (CFOs)...........................................................................23! What"is"a"Cottage"Food"Operation?"....................................................................................................."23! Given"The"Restrictions,"Why"Should"I"Start"A"CFO?"............................................................................."23! List"of"Approved"Cottage"Foods:".........................................................................................................."24! Class"A"vs."Class"B"Permits"...................................................................................................................."25! Geographic"Boundaries"........................................................................................................................"25! Sales"Limits"..........................................................................................................................................."26! Limited"Number"of"Employees"............................................................................................................."26! Structural"Requirements"......................................................................................................................"26! Operations"............................................................................................................................................"26! Labeling"................................................................................................................................................"27! Training"................................................................................................................................................."28! STEPS"1'10:"The"Oakland/Alameda"County"CFO"Permitting"Process"..................................................."28! CFO"Estimated/Sample"Startup"Costs".................................................................................................."31! CFO"Steps"Flow"Chart"..........................................................................................................................."32!
  • 4. "................................................................................................................."Error!%Bookmark%not%defined.! APPENDIX A. GLOSSARY.............................................................................................................33! APPENDIX B. BUSINESS PLAN BASICS ....................................................................................36! Why"should"I"write"a"business"plan?"...................................................................................................."36! What"should"I"include"in"my"business"plan?"........................................................................................."36! Where"can"I"find"more"information?"...................................................................................................."37! APPENDIX C. BUDGET WORKSHEETS...................................................................................38! MOBILE"FOOD"FACILITIES"BUDGET"WORKSHEET"................................................................................."38! COTTAGE"FOOD"OPERATIONS"BUDGET"WORKSHEET".........................................................................."39! APPENDIX D. SELLING FRESH OR PREPARED FOODS.....................................................40! Who"should"I"talk"to"and"what"do"I"need"to"do?".................................................................................."40! What"kinds"of"food"do"I"want"to"sell?"..................................................................................................."40! What"kind"of"equipment"does"my"facility"need?".................................................................................."40! Can"I"display"products"on"the"sidewalk"outside"my"store?".................................................................."41! Health"&"Safety:"Only"Buy"Produce"from"Approved"Sources"..............................................................."42! Packaging:"Buy"Properly"Packed"Produce"or"Buy"at"Farmers’"Markets"................................................"42! Sourcing"Directly"from"Urban"Gardeners"&"Farmers"..........................................................................."43! STEPS"1'4:"Preparing"to"Sell"Fresh"or"Prepared"Foods"........................................................................."44! APPENDIX E. GENERAL RESOURCES ......................................................................................46!
  • 5. Page%1%of%47% 1. INTRODUCTION Why%This%Guide?% This “Hustle Guide” is meant as a primer for anyone interested in starting a small food business that would operate within the City of Oakland. This guide is intended to save you time and money while you explore your options for starting a small food business. A collaboration between the HOPE Collaborative, Inner City Advisors, the Alameda County Public Health Department, and the Oakland Food Policy Council (OFPC), this document has been created with the shared goals of supporting household incomes, improving access to healthy foods, and strengthening local communities. Nearly all of the information and forms mentioned in this guide are available online. Wherever possible website links have been included, in addition to phone numbers and addresses to key city or county offices. Access to the internet is key to being able to complete the steps outlined in this guide in an efficient manner. If you do not have internet access at home or via a mobile device, you might use the Oakland Public Library. Oakland Public Library 125 14th Street Oakland, CA 94612 510. 238.3134 www.oaklandlibrary.org Types%of%Business%Models%This%Guide%Addresses% Mobile%Food%Carts%&%Trucks:% This section refers to any number of mobile food facilities (from a small push, or pull cart to a large truck or bus) designed to sell or serve food and/or drinks. Food may be prepared in a commissary or commercial kitchen and then taken somewhere else for sale, or it may be prepared and cooked onsite inside the mobile food facility depending on the set-up and permitting. Cottage%Foods:% A cottage food operation (CFO) is the only type of food business that can use a home kitchen for processing food. The types of foods that a cottage food operation can sell are limited to “non- potentially hazardous foods,” meaning foods that are unlikely to grow harmful bacteria or other toxic microorganisms at room temperature. In addition to these two main types, there are several other ways to get started as a small food entrepreneur in Oakland, including, but not limited to: Prepared%Foods%(takeIaway):%% Prepared food refers to food that is ready to serve or use with little or no further preparation. It has been processed by cleaning, cooking, and/or wrapping for sale. Some prepared foods may be produced by cottage food operators. Prepared foods may be sold by mobile food vendors, or they may be sold by licensed corner stores or bodegas, or at certain temporary events. Depending on the type of food and the way you decide to sell it, different rules could apply. For instance, if you are in the business of making prepared foods but you are going to sell said food to a corner store, then that’s indirect sales and may be considered catering. For advice on how to set up a business selling prepared foods, and answers about whether you need a CFO permit, or simply a temporary events permit, please contact Carmen Barrie at the Alameda County Environmental Health Department (ACEH): 510.567.6700. Stands/Kiosks/Booths%(i.e.:%produce%stands):% Food stands, kiosks, or booths can be classified as either temporary (such as a stand at a farmers market that happens only once per week), requiring a temporary events permit, or permanent (such as a road- side produce stand), that requires a different, season-long type of permit. You may find the application for a temporary events booth here: www.acgov.org/aceh/food/TFF-Application-Food-Booth- FillableToPublic.pdf
  • 6. 1.%Introduction% " Page%2%of%47% Corner%Stores/Bodegas:% There are a number of corner stores, or bodegas, in the City of Oakland that may wish to offer their customers more options in terms of fresh or prepared foods (as opposed to only foods that are pre- packaged.) Doing this may not only increase revenue to the store, but may also provide a beneficial community service by increasing access to fresh, healthy foods in areas of the city where larger grocery stores are not within easy reach. Corner stores may be an outlet for food entrepreneurs including CFO’s to market their products. If a corner store is interested in selling fresh food or prepared foods, the guide in Appendix D at the back of this document is designed as a primer to help owners identify and comply with the requirements to do so. In addition to consulting that document, however, it is highly recommended that you contact the Alameda County Environmental Health Department (ACEH) for a site evaluation before taking any steps toward converting your corner store. Call them at: 510.567.6700 for a consultation.
  • 7. Page%3%of%47% 250 Ogawa Plaza is along Clay Street between 14th St. and 16th St. The entrance is in the Plaza, to the right of City Hall if you’re looking at the front of City Hall. The Permit Center is least busy before 11 am. 2. STARTING A FOOD BUSINESS The basic steps to starting any small business are listed below, along with steps specific to certain food businesses. The Oakland Business Assistance Center is a great resource for entrepreneurs wanting to start any business. You can check them out online at www.oaklandbac.com/ or visit them in person: Oakland Business Assistance Center 270 Frank H. Ogawa Plaza Oakland, CA 94612 510.238.7952 www.oaklandbac.com/ Hours: M-F, 9:00 a.m. – 5:00 p.m. If you need additional help, please see the resources section at the end of this guide for additional organizations or web sites.
  • 8. Chapter%2:%Starting%a%Food%Business% % Page%4%of%47% STEPS%1I10:%%Starting%an%OaklandIbased%Food%Business% %%STEP%1:%%Choose%a%Business%Name% COUNTY%database%search% Before you fill out any official form, you need to name your business! When choosing a name, think about: • How easy is it to say? • How easy is it to remember? • How will it look on signs and advertisements? • Is it unique – will you stand out from other vendors selling similar food? • Does it give a clue as to what kind of food you’re selling? • Does it sounds like something else you may not want it to sound like? You need to make sure your business name isn’t already taken by someone else in Alameda County by checking the Fictitious Business Name database at the County Clerk-Recorder's website: rechart1.acgov.org/ search.asp?cabinet=fbn. You can also go in person to the County Clerk’s office (address below), or request a search by mail for $25. There is also a database you can use at any branch of the Alameda County Library to do a national search. County of Alameda County Clerk Recorder 1106 Madison Street Oakland, CA, 94607 510.272.6362 www.acgov.org/auditor/clerk/fbn1.htm If you’re going to create a website or a Facebook page, you may want to see if any other business has that domain name and think about how you may name your web site address if someone else has that domain name. You can search domain names with the “WHOIS?” database: www.networksolutions.com/whois/index.jsp. %%STEP%2:%%File%a%Fictitious%Business%Name%Statement% COUNTY%ClerkIRecorder’s%Office%process%&%form% So that your business will be listed on the City/County/State record books as your business name instead of your first and last name, you must file a Fictitious Business Name Statement with the County Clerk-Recorder's office in Oakland. It is also called a DBA (Doing Business As) statement. To file Fictitious Business Name Statement: • Review County web page: www.co.alameda.ca.us/auditor/clerk/filefbn2.htm • Print form: www.acgov.org/forms/auditor/275-321.pdf, or get in person at address below • File within 40 days of starting business • File in person or by mail • Present or submit copy of current and valid government-issued identification • Have a physical address (not a P.O. Box) • Pay $40 for 1 business name with 1 owner (additional owners are $7 each) o To pay in person, you may use cash, check (personal, bank, or cashier’s), money order, or a debit card o To pay by mail, you can pay by check (personal, bank, or cashier’s), or money order. No cash or debit/credit cards are accepted by mail • Publish the statement in a local newspaper once a week for 4 weeks, with 5 days between each date of publication – meaning you can’t publish on Friday, then again on Monday. Choose the same day of the week each week to publish the statement for the 4 weeks. It costs $62 to publish all four weeks at the Oakland Tribune. The announcement should cover the information below: You’ll fill in your information in the […] spaces. Statement File # [123456] The following individual is doing business as [BUSINESS NAME. Address: 1 Main St., Oakland, CA 94XXX]. Mailing Address: [same as above] is hereby registered by the following owner(s): [BUSINESS NAME 1 Main St., Oakland, CA 94XXX]. This business is conducted by a Sole Proprietor. The registrant began to transact business under the fictitious business name listed above on [DATE]. This Statement was filed with the County Clerk-Recorder of Alameda County on [DATE]. [BUSINESS NAME]: publication date #[1], #[2], #[3], #[4].
  • 9. Chapter%2:%Starting%a%Food%Business% % Page%5%of%47% • THEN, you need to tell the county you published the notice by filing an “affidavit of publication” with the County Clerk within 30 days after the completion of the publication. • The Statement expires 5 years from the date it was filed and a new statement must be filed BEFORE the expiration date. County of Alameda County Clerk Recorder Oakland Tribune 1106 Madison Street 1970 Broadway #100 Oakland, CA, 94607 Oakland, CA 94612 510.272.6362 510.208.6300 www.acgov.org/auditor/clerk/fbn1.htm www.insidebayarea.com/oakland-tribune %%STEP%3:%%Employer%Identification%Number%(EIN)% FEDERAL%process%&%form% For the purposes of tax administration, you CAN get an Employer Identification Number (EIN) if you’re not going to have employees, but you HAVE to get it if you are going to have employees. IRS EIN Information & Form www.irs.gov/Businesses/Small-Businesses-&-Self- Employed/Apply-for-an-Employer-Identification- Number-(EIN)-Online %%STEP%4:%%CA%Sellers%Permit% STATE%Board%of%Equalization%process%&%form% To sell items or goods in California, you must get a Seller’s Permit, through the California Board of Equalization (BOE). There is no fee for a Seller’s Permit. The State’s process is mostly paper-free, you can usually get your permit right away, whether you apply online or in person. To apply: 1. go to the web site: efile.boe.ca.gov/ereg/index.boe - or - 2. visit the BOE office (below) in person to use their computers to apply online. BOE Field Office 1515 Clay St., Ste. 303 Oakland, CA 94612-1432 510.622.4100 www.boe.ca.gov What You Need: • Social Security Number • Date of Birth • State Driver’s License or Identification • Name and location of bank account • Names of Suppliers, Bookkeepers, Personal References • E-mail address • Projected Monthly Sales • Federal Employer Identification Number (EIN) if you are going to have employees As a permit holder, you are required to: • Report and pay sales and use taxes • Keep adequate records You are also required to notify the BOE if you: • Change your business address • Change the ownership of your business • Add or drop a partner • Sell your business • Buy another business • Discontinue your business Note If you need an Individual Taxpayer Identification Number (ITIN) visit the IRS web site: www.irs.gov/ Individuals/International-Taxpayers/Taxpayer-Identification- Numbers-(TIN)#itin. Here is the form: www.irs.gov/pub/irs-pdf/fw7.pdf.
  • 10. Chapter%2:%Starting%a%Food%Business% % Page%6%of%47% If you are going to make more than $100,000 in gross receipts you will also need a Use Tax Account. That’s probably a ways down the road for most people starting out. When you need that, you would go back to the BOE for that additional license. %%STEP%5:%%Oakland%Zoning%Clearance% CITY%processes%&%forms% You need Zoning Clearance from the City of Oakland in order to operate your business where you want to operate it. Cottage Food Operators and Mobile Food Vendors get this Clearance and their Alameda County Environmental Health (ACEH) Permits in opposite order of each other. Either way, you need the Zoning Clearance before you can get your Oakland Business Tax Certificate (see #5 below). COTTAGE FOOD Zoning Clearance happens AFTER you get ACEH Permit MOBILE FOOD Zoning Clearance must happen BEFORE you get ACEH Permit 1. finish ACEH CFO Permit process 2. apply for Oakland Zoning Clearance 3. apply for Oakland Business Tax Certificate (see #5 below) 1. apply for Oakland Zoning Clearance (involves Site Evaluation and $157.21 fee). 2. apply for Oakland Business Tax Certificate (see #5 below) 3. start ACEH Permit process Zoning Clearance Form: www2.oaklandnet.com/oakca1/groups/ceda/documents/form/oak037285.pdf For this form: • Business Name, Address, & Phone Number • Description of Activities • Hours of Operation, Number of Employees City of Oakland Permit Center 250 Frank H Ogawa Plaza, 2nd Floor Oakland, CA 94612 510.238.6402 www2.oaklandnet.com/Government/o/PBN/OurOrganization/BuildingServices/o/Permits/ %%STEP%6:%%Oakland%Business%Tax%Certificate% CITY%process%&%form% Oakland New Business Application form & instructions: www.oaklandnet.com/government/fwawebsite/ revenue/pdf/Newbizapp.pdf For this form: • $61 first time registration • State Seller’s Permit # • Zoning Permit # • SSN or ITIN# • Driver’s License # Also, by March 1st of each year, you will have to pay a City Business Tax to renew your License. If your gross receipts are less than $50,000, the fee is $60. If your gross receipts are $50,001 or more, you will multiply your gross receipts by .0012. For example: $56,000 x .0012 = $67.20. The Oakland Business Assistance Center is also a helpful resource for people starting a business in Oakland. City of Oakland Business Tax Section Oakland Business Assistance Center 250 Frank H. Ogawa Plaza, Suite 1320 270 Frank H. Ogawa Plaza Oakland, CA, 94612 Oakland, CA 94612 510.238.3704 510.238.7952 www.oaklandnet.com/government/ fwawebsite/revenue/revenue_biztax.htm www.oaklandbac.com/ Hours: M, Tu, Th, F: 8 am-4 pm; W: 9:30 am-4:00 pm Hours: M-F, 9:00 a.m. – 5:00 p.m.
  • 11. Chapter%2:%Starting%a%Food%Business% % Page%7%of%47% Morsel ACEH suggests you review the “NSF Healthguard Workbook” before attending class; you can find it here: www.nsf.org/newsroom_pdf/preview_ healthguard_restaurant.pdf %%STEP%7:%%Register%Your%Business%with%the%California%Secretary%of%State% STATE%requirement,%forms,%and%processes% Depending on the type of business you form, you may have to file formation documents with the California Secretary of State (SOS). There are generally six different kinds of business types in California. Below is a brief explanation of the three that will most likely apply to your food business and you can read more here: www.business.ca.gov/StartaBusiness/DefiningaBusiness.aspx. Sole Proprietorship: You will most likely operate your business as a sole proprietorship. A sole proprietor has total control, receives all profits from and is responsible for the taxes and liabilities of the business. California does not require formation documents from sole proprietorships. Business income is reported on the individual’s annual state and federal taxes and the business entity does not pay an annual fee or tax to the State for doing business in California. General Partnership: where two or more people go into business together, but the business is not a separately taxed entity. By either verbal or written agreement, partners decide how profits will be shared. Each individual partner’s portion of the profits is taxable state and federal annual income; the business entity does not pay an annual fee or tax to the State for doing business in California. All partners are responsible for legal and financial obligations of the business. Filing a Statement of Partnership Authority ($70) with the California SOS is optional; if partners do file, copies of the forms are documentation of the agreement in addition to any other written agreements. Any changes to the Statement or business must be filed also. Find the form and read more here: www.business.ca.gov/ StartaBusiness/DefiningaBusiness/GeneralPartnership.aspx. Limited Partnership: where two more people go into business together, but one person acts as the general partner with management authority and personal legal and financial liability. At least one other person is a limited partner participating as an investor or operator but without management authority or control of the business. The general partner takes on more risk than the limited partner in this partnership. Each individual partner’s portion of the profits is taxable state and federal annual income; but the Limited Partnership must pay an annual $800 tax to conduct business in California. A Certificate of Limited Partnership ($70) must be filed with the California SOS. Find the form and read more here: www.business.ca.gov/StartaBusiness/DefiningaBusiness/LimitedPartnership.aspx. When you file any optional or required forms with the California SOS, the Franchise Tax Board (FTB) will also receive the information and send you information and forms regarding what the FTB will require of your business. Any changes to the registrations listed above involve additional forms and fees. You can find that information here: www.sos.ca.gov/business/be/forms.htm. CA Secretary of State California Business Portal 1500 11th Street Sacramento, CA, 95814 916.657.5448 www.sos.ca.gov/ %%STEP%8:%%Food%Safety%Certification%for%Managers% COUNTY%process,%form,%class%&%test% CA Law requires that at least one person operating a food business has a Food Safety Manager’s Certification. As the owner-operator, you need this certification and need to take an approved class and pass a test. As the “Person In Charge,” you will need to train any employees you hire and they will also need a Food Handler Card. Food%Safety%Manager’s%Certification% The Alameda County Environmental Health Department (ACEH) offers classes in English, but tests are available in English, Spanish, Chinese, Vietnamese, Arabic, Korean, and Japanese. If you need a test in one of these languages, you must make the request two weeks before the date of the class you take. ACEH’s web page with this information is here: www.acgov.org/aceh/food/.
  • 12. Chapter%2:%Starting%a%Food%Business% % Page%8%of%47% For Certification: • 1 full 8.5-hr workday training, includes workbook and exam • Classes available in English or Spanish • Tests are available in English, Spanish, Chinese, Vietnamese, Arabic, Korean, and Japanese – to take your test in a language other than English, you must make the request two weeks before the class • $141 first time; • You must pay by check 30 days before the day you take the class, the workbook will be sent to your address when check is received • $38 if you didn’t pass the test the first time and have to take the test again • Certification lasts 5 years; $95 to renew There are also several other places around the Bay Area or online to take a class and the test; the list is here: www.acgov.org/aceh/food/Food_Safety_Class_Provider_List.pdf. Employee%Food%Handler%Card% New food handlers must get their Food Handler Card within 30 days of hire. You can find Food Handler classes on the list provided above, or there are a few online courses listed here: www.ansica.org/wwwversion2/outside/ ALLdirectoryListing.asp?menuID=212&prgID=228&status=4. • Approximately 2-hour course and exam • Classes available in English several languages • Classes should run between $10 and $20 • Cards last 3 years Alameda County Environmental Health 1131 Harbor Bay Pkwy Alameda, CA 94502-6577 510.567.6700 www.acgov.org/aceh/food/mobile_food_units.htm %%STEP%9:%%Register%with%the%CA%Employment%Development%Department%(EDD)% STATE%process%&%forms% If you will pay any employee more than $100 in a three-month period, you will be required to pay state payroll taxes. Read more about the requirements and how to register here: www.edd.ca.gov/ payroll_taxes/am_i_required_to_register_as_an_employer.htm. %%STEP%10:%%Liability%Insurance% Liability%Insurance%Requirements% Pushcarts & Trucks Cottage Food Operations Oakland requires that you carry the same insurance as companies that do business with the City, including General Liability, Auto, Workers’ Compensation (if you will have employees), and Professional Liability. Review “Schedule Q” and take it to your insurance agent to get a policy that meets the requirements. Find Schedule Q here: www2.oaklandnet.com/oakca1/groups/contracting /documents/form/oak023255.pdf California does not require that you have a liability insurance policy, but some places where you can sell (like farmers’ markets) may require you to carry insurance. Either way, entrepreneurs are strongly encouraged to get a policy to protect their business and personal assets. Talk to your home or auto insurance agent about getting a liability insurance policy – it should cost $300-$500 per year. The Food Liability Insurance Program (FLIP) is an insurance company just for food vendors including carts, trucks, and CFOs, policies are available for $299. Visit www.fliprogram.com/ for more information. Insure My Food Truck (www.insuremyfoodtruck.com/) and Insure My Food Trailer (www.insuremyfoodtrailer.net/) are two other resources for liability insurance created just for food vendors.
  • 13. Page%9%of%47% 3. MOBILE FOOD FACILITIES (MFFS) CARTS & TRUCKS Overview% Mobile food carts and trucks are two ways to enter the food business and they are becoming very popular in urban areas. Alameda County Environmental Health (ACEH) uses the term “Mobile Food Facility,” or MFF to generally refer to carts, trailers, and trucks. Each option has very different start-up costs. You can find used carts that need work for as low as $700, or find new deluxe options for upwards of $5,000. Used trucks, without the kitchen installed, can cost anywhere from $9,000 to $20,000 and new trucks can cost as much as or more than $100,000. And the kinds of foods you can offer and/or prepare depends on the kind of cart or truck you choose and the equipment installed in the unit. This chapter is about the process of getting permitted to operate an MFF on your own – as opposed to participating in a “street food park” or special cart or truck event. You will want to get a copy of the CA Retail Food Code (CRFC) and get to know it very well, especially Chapter 10 Mobile Food Facilities. The CA Retail Food Code is long and looks intimidating, but it is actually pretty straightforward. You can find a copy here: www.cdph.ca.gov/services/Documents/fdbRFC.pdf, or at the ACEH office. The ACEH is there to help you. They really do want people to do mobile food vending correctly from the beginning so that you can pass inspection and don’t have to deal with citations or fines after you open your business. Alameda County Environmental Health 1131 Harbor Bay Pkwy Alameda, CA 94502-6577 510.567.6700 www.acgov.org/aceh/food/mobile_food_units.htm In this chapter, we’ll cover the steps in the process of getting permitted and starting to sell from a cart or truck in Oakland. There are two permits you need: 1. Alameda County Environmental Health (ACEH) Mobile Food Facility (MFF) Permit 2. City of Oakland Pushcart or Vehicular Vending Permit First, though, you need to establish your business in Oakland, then apply for the ACEH MFF Permit, and then get the applicable permit from Oakland. This journey is not a straightforward path, but referring to the flow chart at the end of this chapter should be helpful as you move through. Where%Do%I%Start?% The first four things to consider when thinking about a mobile food business are: 1. WHAT do I want to make? 2. WHERE can I store and prep my food and store and clean my MFF? 3. WHICH kind of MFF do I want and what can I afford? 4. WHERE in Oakland can I set up my MFF? The answers to these four questions help answer each other and it may feel like you’ll be working on answering them all the same time! You need to know what you want to make before choosing your MFF, where you can prep and/or cook the food and store and clean your MFF, and where you can sell may which kind of MFF you can or want to purchase and may affect what you make. For example, if you’re thinking your want a truck, but it won’t be approved where you thought you’d like to sell, you may have to choose a cart instead. Understanding and getting your desired location approved can be tricky, and is something you need to know BEFORE you purchase any equipment or start the entire permitting process, so we’re going to start there. You may also remember from Chapter 7: Article 3 Mobile Water and Wastewater Tanks is another important section of the CRFC for MFFs.
  • 14. Chapter%3:%Mobile%Food%Facilities%(MFFs)% % Page%10%of%47% Chapter 2: Starting a Food Business, this is the first step in getting your Oakland Business Tax License, which you need before you can apply for the ACEH MFF Permit, and we’ll talk about more later. WHAT%Do%I%Want%To%Make?%(Plan%Your%Menu)% What you want to serve will impact which kind of MFF business you decide to do, and more important, what equipment your MFF requires. The more complicated the menu, the more storage, utensils, serving materials, refrigeration your MFF will need – and your shopping list and costs could grow quickly. Questions%to%Consider% 1. What foods are popular in your town, county, city, or region? 2. What foods are ideally suited to your (or your partner’s/employee’s) culinary expertise? 3. What ingredients are easy to get from wholesalers, markets, or farms in your area? 4. What foods are easy to transport to and from an off-site commissary or commercial kitchen? 5. What can you prepare and/or heat up without much difficulty? 6. What foods can customers easily carry around with them and eat on the go? 7. What foods are potentially cost-effective for you to sell? 8. What foods are not being sold at most of the other food carts or trucks in your area? 9. What times of day would you ideally be open for business? Breakfast? Lunch? Dinner? Late night? 10. Are you going to focus on one or two foods with several variations (like pizza, tacos, or ice cream?) 11. Or do you want a larger menu with a central theme? (Remember this may require more space, and may move you from the cart category to a truck.) Test Your Food: Don't start out with foods you have not thoroughly tested. This means you need to practice and perfect each recipe to be sure your menu: • is easy to make repeatedly in large quantities • tastes consistently good • is easy to serve • travels well WHERE%Can%I%Prep%My%Food?%(Commissaries%&%Commercial%Kitchens)% Carts and trucks require access to Commissaries or Commercial Kitchens to store and prepare food, and to store and clean equipment. Which one you need depends on what you need to store, your equipment, the kind of food preparation you will be doing, etc. As stated in the glossary, some commercial kitchens may be also be able to serve as a commissary where you can store a cart, trailer, or truck (MFF), store and prepare your food, etc., but they may not all be appropriate. ALSO, not all commissaries may be proper commercial kitchens. You’ll want to start looking for your commissary/commercial kitchen as your considering what you’ll make, where can you store your MFF, how much will it cost, where is it in relation to where you want to sell, etc. The level of service individual commissaries or commercial kitchens offer varies, and your needs will depend on the type of mobile food facility you choose. For example, trucks need a secure place to plug in overnight, access to a sewer to empty dirty water tanks, and access to potable water for refilling tanks, etc. You need to have an agreement in place with a commissary/commercial kitchen for the ACEH MFF Permit. You may not have to be using or paying for the space/access to the site yet, but you need the manager’s signature and some other things explained more in Step 3 of the MFF Permitting Process. ACEH has a list of permitted commissaries in or around Alameda County posted on its main MFF site, www.acgov.org/aceh/food/mobile_food_units.htm, or you can find it here: www.acgov.org/aceh/food/List_of_Permited_Commissaries.pdf. Also, sometimes certain schools, churches, Veterans of Foreign Wars (VFW) Halls, Elks Clubs, or granges may have commercial kitchens that you can use for lower rates than at a private business. You’ll still want to be sure the facility can meet the ACEH requirements. Your commissary does not need to be in Alameda County, but ACEH requires that you get the signatures of the County Health Department verifying that facility is to code. If you use more than one commissary or commercial kitchen, you must fill out and get signatures on a Part D form for each facility. WHICH%Kind%Of%MFF%Do%I%Want%To%Operate?%(MFF%Types%&%Requirements)%
  • 15. Chapter%3:%Mobile%Food%Facilities%(MFFs)% % Page%11%of%47% The first and foremost thing to remember when you are considering purchasing or customizing a cart, trailer, or truck is that ACEH is there to help you. Again, they really do want people to do it correctly from the beginning so that you can pass inspection and don’t have to deal with citations or fines after you open. Read more on Page 17 about having ACEH inspect an MFF before you buy it (involves a $162 fee). The chart below will help you consider which MFF type is right for you if you’re not sure. Because you will want to ensure you can sell with the equipment you want in the place that you want to sell BEFORE you make any big purchases, we’re going to talk more later about the different requirements carts and trucks each have in order to pass inspection. % Compare%Carts,%Trailers,%&%Trucks% Pushcart/Bike Cart/ Unenclosed Trailer Cart Enclosed Trailer Truck/Bus equipment Least (depending on food) Middle High: most sophisticated equipment for storing, serving, cooking, and preparing foods typical foods “Basic:” Hot Dogs, Tamales, Roasted Corn, Prepackaged Fruit “Limited Cooking:” Espresso Drinks, Crepes, Churros, etc. Pizza, Hamburgers, Stir-fry, Sandwiches, Salads, Soups, Tacos, Burritos, Fried Foods, Sushi, Chicken Teriyaki, etc. accessibility Easiest to move around in a small area Harder to move by hand - usually needs car or truck Easiest to move long distances carrying capacity Lowest Middle Highest parking Least issue – can usually be on the sidewalk if there is adequate clearance for pedestrians Depends on how big/heavy it is, whether it is possible to move by hand if necessary Limited both on and off-duty weather Most affected by weather – the most protection you might have is an umbrella Medium since food and employees are inside. Awnings may come with unit or could be added cost to buy <$1,000-$12,000 $5,000-25,000 $25,000-$200,000 cost to run Low Med-High High profitability Depends on costs Depends on costs Can be very profitable, based on menu and whether items can be customized immediately prior to serving reliability Typically doesn't run on a motor, so can't break down Depends on reliability of vehicle moving trailer. Will likely need a generator to run electricity, which can affect reliability. Most complicated since it requires an engine to move it, plus a generator to run electricity. permitting ACEH & Oakland Mobile Vending Permits DMV Registration ACEH & Oakland Mobile Vending Permits DMV Registration ACEH & Oakland Mobile Vending Permits DMV Registration Morsel Learn about getting your trailer ready for the road from CA DMV: www.dmv.ca.gov/pubs/dl648/dl648pt12.htm. Learn about registering commercial vehicles here: www.dmv.ca.gov/vr/commercial.htm
  • 16. Chapter%3:%Mobile%Food%Facilities%(MFFs)% % Page%12%of%47% Morsel The CA and ACEH inspection standards are built of the very detailed “NSF International Standard 59.” If you’re curious, search on-line for that term and you should find 1-2 year old versions of it – the real thing costs $105. Foods that do not require ware-washing/ 3 compartment sink: • boiled or steamed hot dogs, • tamales in original wrapper (corn husk, banana leaf or other wrapper that can’t be eaten), or • food that is just heated, popped, shaved (ice), baked, portioned, or assembled …as long as there are adequate spare serving and preparation utensils that have been washed and sanitized at your commissary on a daily basis. % New,%Used,%Or%DoIItIYourself%“DIY”?%%Buyer%Beware!%%%% ACEH must inspect all carts and trucks (MFFs) and to pass inspection, your MFF needs to be in compliance with a number of different CA Retail Food Code regulations and some other very detailed industry standards. The standards have to do with what materials are used, how seams are joined, and other details designed to ensure units can be easily cleaned and made sanitary. Buying a new MFF, while usually the most expensive option, could be the best bet for ensuring you will pass inspection. The next best thing would be a used MFF that the previous owner didn’t re-build or change a lot. You should ask the seller if his or her MFF passed inspection in its current condition. If you are brave enough to take on building your own MFF, you must build it according to the CA Retail Food Code Chapters 7 & 10. You may find dozens of “DIY” resources on the web, but beware of resources that tell you ways to get around certain rules or regulations. You can have ACEH “pre-inspect” an MFF you’re thinking of buying for the $162/hr consultation fee. Call 510.567.6700 to find out how to make an appointment. See the Page 17 for more about ACHE consultation appointments. About%Carts:%Push,%Bicycle,%&%Unenclosed%Trailer%Carts% There lots of different kinds of carts. Carts or unenclosed trailers are facilities that you operate and sell to customers while standing on the ground, behind the cart (as opposed to standing inside an enclosed trailer or truck). Carts generally fit into two categories – 1) those you push or pull by hand or bicycle carts and 2) trailers that need to be towed by a vehicle. The kind of equipment you need depend on the kind of food you will be selling. Having a refrigerator and a 3- compartment ware washing sink to wash, rinse, and sanitize utensils is required to do limited food preparation. Examples of “limited preparation” foods are espresso drinks, crepes, churros, etc. Limited Food Preparation is restricted to: 1. Heating, frying, baking, roasting, popping, shaving of ice, blending, steaming or boiling of hot dogs, or assembly of non- prepackaged food. 2. Dispensing and portioning of non-potentially hazardous food. 3. Holding, portioning, and dispensing of any foods that are prepared for satellite food service by the onsite permanent food facility or prepackaged by another approved source. 4. Slicing and chopping of food on heated cooking surface during the cooking process. 5. Cooking and seasoning to order. 6. Preparing beverages that are for immediate service, in response to an individual consumer order, that do not contain frozen milk products. See the glossary for the definition of what is not included in “limited food preparation,” according to the CRFC Section 113818. Carts must also have potable water and wastewater tanks, depending on you’ll be cooking. Refer to the CRFC Chapter 7 Article 3 Mobile Water and Wastewater Tanks for the details and the ACEH can help you understand what you need.
  • 17. Chapter%3:%Mobile%Food%Facilities%(MFFs)% % Page%13%of%47% Morsel Most mobile food vendors do better by selling in fewer, consistent locations rather than moving constantly or “roaming.” Morsel You will need pictures of your cart (or truck) and samples of your signs for the Oakland Permit, so you’ll want these done by the time you’re applying for the Oakland Permit. Cart%Signage%Rules% The City of Oakland requires that: • City and County Permits must be posted and easy to see at all times. • Your signs are no more than 5 ft. sq. total – that can be one 5 ft. sq. sign or two signs that together are within 5 ft. sq. total • You have a “Not in Service” sign About%Trucks% This category includes trailers that you stand inside of to operate and sell to customers. Except where there are exceptions, “trucks” will refer to both enclosed trailers and trucks for the rest of this chapter. The City of Oakland defines them as trucks with take-out counters that sell ready-to-consume prepared foods, in disposable containers, located on private property on a semi-permanent basis during hours of operation. Trucks can built to be bare bones or be as complete a kitchen that can make cupcakes from start to finish. Because trucks are enclosed, they can have more built-out kitchens and cleaning (including ware-washing 3- compartment sinks) and refrigeration equipment, you are not limited to “limited food preparation” like carts. You can serve pizza, hamburgers, stir-fry, sandwiches, salads, soups, tacos, burritos, fried foods, sushi, chicken teriyaki, etc. If you are going to customize a truck that was not a food truck before or make a lot of changes to an existing food truck, you must have it inspected by the CA State Housing and Community Development (HCD) department to get an “HCD Insignia.” So you have the best chance of passing ACEH inspection, you should submit the plans for your build-out to ACEH. This costs $572, but will help ensure you’re having it built correctly. There is an office of HCD in Alameda County and you can arrange for HCD to come inspect your truck and approve your retrofitted or re- modeled truck. We’ll tell you more about the ACEH inspection later, in Step #3 of the permitting process. Truck%Signage%Rules% The City of Oakland requires that: • Business Tax Certificate & City Truck Permit must be posted on or next to front passenger window • ACEH Permit & Decal must be posted on left rear of truck • You have only 3 signs that all together are within 30 ft sq. total. One of those signs must be a sign that says loitering is not allowed. WHERE%in%Oakland%Can%I%Set%Up%My%MFF?%% Oakland’s Permit Center has a map of the areas where you can sell with your cart. Visiting the Permit Center is your best bet for getting this information directly from the staff that are there to help you. You can call or visit the office (below), or the map is posted on the web at: www2.oaklandnet.com/oakca1/groups/ceda/documents/ report/oak038359.pdf City of Oakland Permit Center 250 Frank H Ogawa Plaza, 2nd Floor Oakland, CA 94612 510.238.6402 www2.oaklandnet.com/Government/o/PBN/OurOrga nization/BuildingServices/o/Permits/ The charts on this page and the next pages give the details from the Oakland Municipal Codes about where you can sell from a cart or truck in Oakland. Getting to know this information will prepare you for the first step in the permitting process – getting your City of Oakland Zoning Clearance. We’ll explain that step more when we start walking you through the steps of the permitting process.
  • 18. Chapter%3:%Mobile%Food%Facilities%(MFFs)% % Page%14%of%47% When%&%Where%You%Can%Sell%In%Oakland% Carts Trucks When Monday-Friday: 7am-10pm Saturday & Sunday: 8am-10pm You may set-up for an hour before or break-down for an hour after those times. Check with the Permit Center. Hours are likely the same as for carts, but the Code for trucks is not as specific as it is for carts. The Code says, “Hours of operation shall be determined by the city but shall not exceed: seven a.m. to three a.m., everyday.” Where You can sell on sidewalks along the street sections below: • Fruitvale Ave. & High Street from Interstate 880 to Foothill Blvd. • Foothill Blvd. from 19th Ave. to 23rd Ave. & from 47th Ave. to MacArthur Blvd. • International Blvd. from 1st Ave. to 23rd Ave. & from 51st Ave. to 105th Ave. • San Leandro St. from 51st St. to 98th Ave. • E 12th St. from 4th Ave. to 23rd Ave. • 14th Ave. from E 11th St. to 19th Ave. You can sell on private property that has an address visible from the street with the following areas: • Foothill Blvd. from 19th Ave. to MacArthur Blvd. • International Blvd. from 1st Ave. to 105th Ave. • San Leandro St. from Fruitvale Ave. to 98th Ave. • Fruitvale Ave. & High Street from Interstate 880 to Foothill Blvd. • E 12th St. from 4th Ave. & 23rd Ave. • 14th Ave. from E 11th St. to E 19th St. Carts & trucks can sell in the commercial zones below, along the streets where they are permitted to sell. • C!20 Shopping Center Commercial • C!28 Commercial Shopping District • C!30 District Thoroughfare Commercial • C!40 Community Thoroughfare Commercial • M!20 Light Industrial • M!30 General Industrial • M!40 Heavy Industrial The Actual Codes Oakland Municipal Code (O.M.C.) Chapter 5.49 Pushcart Food Vending Pilot Program Oakland Municipal Code (O.M.C.) Chapter 8.09 Vehicular Food Vending The web links: library.municode.com/HTML/16308/level2 /TIT5BUTAPERE_CH5.49PUFOVEPIPR.html library.municode.com/HTML/16308/level2/TIT8H ESA_CH8.09VEFOVE.html#TIT8HESA_CH8.09VEFO VE_8.09.030PEAR Food for Thought “Street Food Parks,” “Food Pods,” and special neighborhood events are becoming increasingly popular venues for carts and trucks to sell food. Just like for individual sellers, there are specific places where food pods can operate. Some events or pods are just for trucks, also. Because they are so popular, if you are considering joining one, starting asking organizers early in your process as there are waiting lists to join often. The organizers charge fees and sometimes a percentage of your profits to join. If you’re thinking of starting your own pod, start by checking out the: 1. Group Vending Application: www2.oaklandnet.com/oakca1/groups/ceda/documents/agenda/oak033283.pdf, and 2. Map of allowed areas: www2.oaklandnet.com/oakca1/groups/ceda/documents/report/oak032952.pdf.
  • 19. Chapter%3:%Mobile%Food%Facilities%(MFFs)% % Page%15%of%47% Food for Thought You may also want to get to know the leaders of the Business Improvement District (BID) in which you want to sell. Knowing and building relationships” with the other business owners in the area’s BID can help you in many ways. Visit www.oaklandchamber.com/pages/businessimprovementcommunitybenefitdistrictsbidcbd/ to learn more about the district where you want to sell and how to contact the leaders. More%Details%on%When%&%Where%You%Can%Sell%In%Oakland% Carts Trucks Other location rules: You MAY: • Sell anywhere within the street sections and zones above, as long as there are 6 ft between your cart and the curb AND you must be 100 ft from any other pushcarts. • Sell at least 200 ft away from any school or public park. • Sell at permitted public events within two blocks of permitted locations. • Move your cart on the sidewalk outside of the permitted street sections and zones, but you can’t sell outside of those areas while on the move. You CAN’T: • Sell or put your cart next to on-street disabled parking spaces, or driveways, entries and exits from buildings or next to street intersections where your equipment may block sight distances for pedestrians or cars. • Place/store equipment or supplies on the sidewalk or other public property • Block or cause hazards around entries or exits to pedestrians or parked or moving cars. • Lock your cart to trees, fire hydrants, benches or any other permanent structure. It must be easy to move if needed. • Use any tables, chairs, fences, or other temporary or permanent furniture are allowed to be used along with your cart. • Sell directly to someone in a car or truck. You MAY: • Park/Sell at least 500 ft away from a school or any public park. • Park/Sell at least 200 ft away from any fast food restaurant, truck, restaurant, or deli without written permission from the owner of that business. • Use up to 4 stand-up “cocktail” tables. You MUST: • Park where you can be seen from the street and within 200 ft of a public restroom • Park at least 10 ft away from the sidewalk or right-of-way so that a line would not over- crowd the public space. • Sell in a paved lot. • Maintain access for wheelchairs. • Provide lighting for customer safety that is directed downwards and away from public or nearby properties • Provide at least two 32 gallon trash bins within 15 ft of the truck and keep the area litter-free within 200 ft of the truck and remove the waste every day. You CAN’T: • Park or block the right-of-way, driveways, or parking spaces that take up another business’ needed spaces • Place/store equipment or supplies outside the truck. • Use any chairs, fences, or temporary or permanent furniture. • Become a “fixture” of the site or be considered an improvement to real property. • Serve alcohol. • Exceed noise ordinance rules.
  • 20. Chapter%3:%Mobile%Food%Facilities%(MFFs)% % Page%16%of%47% STEPS%1I4:%The%Oakland/Alameda%County%MFF%Permitting%Process% %%Step%1:%%Oakland%Zoning%Clearance%Application% CITY%process%&%form% You need this to get your Oakland Business Tax License (Step 2). You’ve reviewed the information on Pages 4 & 5, and understand where you want to sell, what kind of equipment you want, and what you want to make. Now you can complete the Zoning Clearance Application. You can get a copy at the Oakland Permit Center or here: www2.oaklandnet.com/oakca1/groups/ceda/ documents/form/oak037285.pdf For this form: • Business Name, Address, & Phone Number • Description of Activities • Hours of Operation, Number of Employees • Answers to a few questions about whether the business involves manufacturing, requires changes to a building, or signs – your answers should all be “No.” You will submit this form and request a site evaluation. The evaluation costs $157 and is part of getting Zoning Clearance. City of Oakland Permit Center 250 Frank H Ogawa Plaza, 2nd Floor Oakland, CA 94612 510.238.6402 www2.oaklandnet.com/Government/o/PBN/OurOrganization/BuildingServices/o/Permits/ %%Step%2:%%Oakland%Business%Tax%License% CITY%process%&%form% You need this before you can complete the ACEH MFF Permit application. There are two web sites where you can find information on the Business Tax License: The Oakland Business Assistance Center: oaklandbusinesscenter.com/index.php?option=com_content&task=view&id=63&Itemid=59 City of Oakland Business Tax Section: www.oaklandnet.com/government/fwawebsite/revenue/revenue_biztaxreq.htm You can find the form & instructions here: www.oaklandnet.com/government/fwawebsite/revenue/pdf/Newbizapp.pdf For this form: • $61 first time registration • State Seller’s Permit # • Zoning Permit # • SSN or ITIN# • Driver’s License # Also, by March 1st of each year, you will have to pay a City Business Tax to renew your License. If your gross receipts are less than $50,000, the fee is $60. If your gross receipts are $50,001 or more, you will multiply your gross receipts by .0012. For example: $56,000 x .0012 = $67.20. City of Oakland Business Tax Section 250 Frank H. Ogawa Plaza, Suite 1320 Oakland, CA, 94612 510.238.3704 www.oaklandnet.com/government/fwawebsite/revenue/revenue_biztax.htm Hours: M, Tu, Th, F: 8 am-4 pm; W: 9:30 am-4:00 pm
  • 21. Chapter%3:%Mobile%Food%Facilities%(MFFs)% % Page%17%of%47% Morsel Catering isn’t covered in this guide because it does not involve direct sales and has different rules for food preparation, storage, and transportation. Food Trucks can be used to cater private events and do not need extra permitting as long as the menu is nearly the same as what you always serve. Contact ACEH with any questions about catering events with your MFF. %%Step%3:%%Begin%the%ACEH%MFF%Permit%Application%Process% COUNTY%process%&%form% You’ve planned your menu, bought your cart or truck, got your business licensing all set up thanks to Chapter 2, and Steps 1 & 2 above, great! The ACEH Mobile Food Facility (MFF) Permit Application covers both carts and trucks. There are some differences, explained more later. There are four parts: A, B, D, and E that apply to MFFs. There are number of things (that we explain below) that you need to have done first, so really, finally submitting the application is one of the last steps in getting your actual permit. • Part A: The details of your business ownership (name, address, food safety certification, VIN if applicable, etc.) • Part B: Mobile Food Facility Operating Information (menu and plans for food storage, water disposal, washing, refrigeration, etc.) o Includes a place to indicate whether you have an agreement with another business to plug-in and use the restroom • Part C: Catering Business Registration – Does not apply to MFFs • Part D: Commissary/Commercial Kitchen Agreement o Will need one for each cart or truck if permitting multiple facilities • Part E: Route Sheet (name locations, days, hours, etc.) Once you have your permit, you have to re-submit this form within 30 days of any changes to your route. You can get the form in person at the ACEH in Alameda, or on the ACEH MFF web page: www.acgov.org/aceh/food/mobile_food_units.htm While you are working through the first four questions in this chapter and on all of the steps to set yourself up as a business owner (Chapter 2), you will be answering the questions to fill in Parts B, D, and E and gathering a pile of documents that are requirement as attachments to this application. Also, think ahead that you will need $241 for the application, and $314 for the MFF Permit itself, and maybe $162 more if you need or want a consultation with ACEH (see more in Food for Thought at top of this page). About%Each%Part%of%the%ACEH%MFF%Application%Form% % PART%A:%%Your%MFF%Business%Basic%Information% Here you will provide your name, business name, vehicle registration information if applicable, and other straightforward questions about your business. PART%B:%%MFF%Operating%Information% You already know generally what you want to make and you should because that informs what kind of facility you’ve purchased. Plan your menu in a more detail, write it up, and provide it with Part B. Part B also asks for information about where you will store, change water tanks, wash your cart or truck – this will probably all be done at your commissary or commercial kitchen, and that will be answer for those questions. You’ll also answer how your MFF is refrigerated, and whether you’ll be using a generator or have an agreement with Food for Thought Not sure whether a Truck you’re looking at buying is to Code? For a $162 Fee, ACEH will provide a one-hour consultation appointment for matters such as: • Discussing your business plan before submitting permit application • Inspecting a Mobile Unit you are thinking of buying • Reviewing plans for a proposed custom MFF. Additional $572 fee may apply, depending on level of review needed. To request a consultation appointment, call 510.567.6700 or you can go ahead and submit Part A with the $162 fee and “Consultation” box at the top of the form checked and fill out as much information as you can.
  • 22. Chapter%3:%Mobile%Food%Facilities%(MFFs)% % Page%18%of%47% Food for Thought ACEH conducts spot inspections of MFFs. They focus on a food safety practice they call “Active Managerial Control.” This means they want to see that you are actively managing your cart or truck’s water storage and waste systems, your generator’s operation, your refrigeration, your employee’s methods, and anything else that, if not going right, could shut you down if inspectors show up unexpectedly. From their point of view, it is better for you to close your business for an hour to fix a problem then it is for them to shut you down for longer and for you to have to pay fines to start selling again. another restaurant to plug in or use their restroom. You will have most of this information because you worked through the Zoning Clearance requirements already. It is best if you put together a Standard Operating Procedures (SOP) list to give ACEH that will answer the following questions (if not more than these): • How are you training your staff? • How is the food coming to you? • How do you set up to go out in the morning? • How are you going to transport it and maintain those safe temperatures? • What sort of things are you doing during the day? • What are you watching for (temperature control, hand washing)? • What are you restocking, maintaining during the day? • How do you operate the truck/generator/water/cook top? • What are you doing to close at the end of the day? • What do you do with the food at the end of the day (throw it away? are you able to reuse it? what does keeping or getting rid of the food depend on?) The CRFC contains the food handling, refrigeration, and other requirements that you need to develop operating procedures. Here is another helpful resource from the U.S. Department of Agriculture (USDA): www.fsis.usda.gov/ shared/PDF/Basics_for_Safe_Food_Handling.pdf?redirecthttp=true PART%D:%Commissary/Commercial%Kitchen%Agreement% Again, you will need access to a commissary or commercial kitchen for a cart or truck, and you need to choose yours before you apply for the MFF Permit. Because you thought through this as part of those first four questions in this chapter, you should know which one you will use and know the owner/manager already. Here again is the link to the list of permitted commissaries and commercial kitchens: www.acgov.org/aceh/food/ List_of_Permited_Commissaries.pdf You shouldn’t have to join and start paying for your commissary/kitchen yet, just have an agreement with the one you do want to use. There is a section on Part D for the manager to fill out and sign. And you have to tell the ACEH if you change Commissaries at any point after you have your permit. PART%E:%MFF%Route%Sheet% Because you already have your Zoning Clearance, you should already have these answers also. Fill out where you will sell, which days, and during which hours, among other items. Food for Thought In 2014, ACEH started a food truck inspection program that will place signs on trucks showing how they truck score on food safety inspections. Like ACEH’s program for restaurants, trucks will receive Green (Pass), Yellow (Conditional Pass), or Red (Closed/Fail) Placards to help the public make informed decisions. To read more about the program visit: www.acgov.org/aceh/food/mfp-info.htm and review the inspection checklist: www.acgov.org/aceh/food/MFF-Official- Inspection-Report-Form.pdf.
  • 23. Chapter%3:%Mobile%Food%Facilities%(MFFs)% % Page%19%of%47% ATTACHMENTS:%Required%Checklist%Items%% • Menu (Current or Proposed) • Current Food Safety Certificate of Person in Charge of Food Safety Management • Current DMV Registration • Valid Driver’s License • Seller’s Permit from Board of Equalization • Business License(s) from City(s) of operation Have your $241 Application Fee ready (pay with cash, credit card, cashier’s check or money order) which is due when you submit the application in person at ACEH. Alameda County Environmental Health 1131 Harbor Bay Pkwy Alameda, CA 94502-6577 510.567.6700 www.acgov.org/aceh/food/mobile_food_units.htm If you application is perfect, or very close to it, ACEH will contact you to schedule an inspection. If they have a lot of questions, or your application isn’t complete, they’ll schedule you for a $162 consultation appointment. It should take 3-4 weeks from the time you submit your application to when you have your inspection. At your inspection, assuming you pass, the $314 Permit Fee is due. CONGRATULATIONS!%You%should%now%have%your%ACEH%Mobile%Food%Facility%(MFF)%Permit.%This is an annual permit, call 510.567.6810 to schedule a renewal inspection appointment two months before your permit expires. Renewal fee is $314. Now, you’re ready to prepare and submit application #2: City of Oakland’s Mobile Food Vending (MVF) Permit! Morsel All fees paid to ACEH are NON-refundable (you can’t get your money back).
  • 24. Chapter%3:%Mobile%Food%Facilities%(MFFs)% % Page%20%of%47% Morsel Oakland can issue only 60 cart permits per year. As of June 2014, less than 10 cart permits are active. %%STEP%4:%%City%of%Oakland%Mobile%Food%Vending%Permit%Application%% CITY%process%&%form% Oakland has different applications for carts and trucks. Just like with the ACEH MFF Permit Application, there are things you should be working on so that you’re ready to submit the Oakland Application once you have your ACEH Permit. Which%Oakland%Application%Do%You%Need?% PUSHCART Application VEHICULAR Food Vending Application Any mobile food facility that is less than: • 8 feet LONG • 6 feet DEEP • 6 feet HIGH • Pulled trailers bigger than 8x6x6 – whether open or enclosed (anything that needs a car or truck to move) • Trucks Because you will have already had your site evaluation and been working with the City, you may have already gotten the application. If not, go to the Permit Desk, or call 510.238.3891. Oakland%Permit%Application%Attachments% PUSHCART Application VEHICULAR Food Vending Application • Copy of valid City of Oakland Business Tax Certificate • Copy of valid ACEH Permit • Applicable Fees (see below) • Location of restroom you will have access to if you will be selling from a single location for more than four consecutive hours at a time o If you filled out the Plug-in & Restroom section in the ACEH Application, you can use that as proof of your restroom access • Copy of Driver’s License or equal Photo ID • Copy of Zoning Clearance for Commissary • 4 photographs of cart showing different views • Photograph of “Not in Service” sign • Sample of advertising signs along with measurements • Copy of valid California Driver’s License for business owner/operator • Vehicle Documents • Site Plan with boundaries & setbacks • Property Owner’s written consent • 4 photographs of the vehicle • 6 photographs of site and surroundings • Sample Logo • Sample of signs along with measurements, including “No Loitering” FEES • 1st Time Permit: $455 TOTAL • Renewal Fee: $455 FEES • 1st Time Permit: o Site Evaluation/Application Fee: $157.21 o Permit Fee: $2,090.75 • Renewal Fee: $2,090.75 When all the materials for your Oakland Permit are ready, you will go to the Permit Desk with the applicable fees and attachments. If all materials are satisfactory, you should be able to get your permit that day. Submit Oakland MFF Application with the applicable fee. You must renew your permit by April 15th each year. % % % NOW%…%YOU%ARE%FULLY%PERMITTED%TO%OPERATE%YOUR%CART%OR%TRUCK%!!!%
  • 25. Chapter%3:%Mobile%Food%Facilities%(MFFs)% % Page%21%of%47% MFF%Estimated/Sample%Startup%Costs Item% Payee% Fee% Fictitious Business Name Statement Posting in newspapers Alameda Clerk Recorder Local Paper (Oakland Tribune) $40 $62 Zoning Clearance Oakland Permit Center $40.15 Business Tax License from the City of Oakland Oakland Business Tax Section $61 Food Handlers Card ACEH or Various Providers $141-160 Insurance Private Insurance Company $300-$500 per year Commissary/Kitchen Rental Various $300-$2,500 Equipment Consultation ACEH $162 Plan Check (Trucks, if needed) ACEH $572 MFF Permit Application ACEH $241 MFF Permit ACEH $314 Oakland CART Permit Oakland Permit Center $455 Oakland TRUCK Permit Application/Site Evaluation Permit Oakland Permit Center $157.21 $2,090,75 CART Approximate Total: TRUCK Approximate Total $1,954-$4,474 $3,900-$6,900
  • 27. Page%23%of%47% 4. COTTAGE FOOD OPERATIONS (CFO’s) What%is%a%Cottage%Food%Operation?% A cottage food operation (CFO) is an enterprise at a private home where specific low-risk food products that do not require refrigeration are made or repackaged for sale to consumers. These are foods that do not support the rapid growth of the types of bacteria that would make people sick when held outside of refrigeration temperatures. A CFO is the only type of food business that can use a home kitchen for processing food. • CFO’s are limited to the preparation of only the items on the approved cottage food products list (see below). • CFO’s are limited to 1 employee in addition to any number of family members who live in the private home. • CFO’s annual gross sales are limited to: o $45,000 or less in 2014 o $50,000 or less in 2015 or beyond If the food operation does not meet ALL of the above characteristics, it is not considered a CFO, and a certified/permitted commercial kitchen is required for food preparation. In addition to the characteristics above, which define a CFO, there are further restrictions meant to protect public health and safety and conform with existing food regulations that must be followed by all food businesses. These restrictions include limits on sales, structural requirements, operational guidelines, product labeling, and cottage food sold in food facilities. CFOs in Oakland need a permit from Alameda County Environmental Health (ACEH) as well as Zoning Clearance and Business Licensing from the City of Oakland. Given%The%Restrictions,%Why%Should%I%Start%A%CFO?% PROS% CONS% 1. It’s the cheapest to start, if you want to try creating a small home-based business without a lot of upfront investment 2. It has the lowest barriers to entry (fewer legal requirements than many other types of food businesses) 3. It’s a great way to test your product in the market before you invest a lot of money in starting a bigger business 4. It allows you the ability to work from home 5. Because cottage foods must be non-potentially hazardous foods, your inventory’s shelf-life is longer 6. You may have as many household/family members involved in the business as you like 1. Must use home kitchen only (cannot use a commercial kitchen) to make your food. Once you grow to a point of needing to expand, you’ll have to apply for new permitting. (So, if you’re planning on growing and scaling your business quickly, this may not be the ideal way to start.) 2. Sales are restricted (see above). Once you start selling more than what’s allowed, you have to seek other types of permitting and move production out your home. 3. While it’s great that you work from home, you cannot have children or pets anywhere near your kitchen while you are preparing food. (So this isn’t a solution for any childcare issues you may have.) 4. Limited to one employee (non-family/living outside of household) The City of Oakland provides a CFO Zoning Bulletin to aspiring CFO entrepreneurs, last updated in 2013. It includes the information included in this guide, although the steps are represented a little differently, and the steps provided do not clarify steps for Class A or Class B CFOs (defined in this chapter).
  • 28. Chapter%4:%Cottage%Food%Operations%(CFOs)% % Page%24%of%47% List%of%Approved%Cottage%Foods:% 1. Baked goods, without cream, custard, or meat fillings, such as breads, biscuits, churros, cookies, pastries, and tortillas 2. Candy, such as brittle and toffee 3. Chocolate-covered nonperishable foods, such as nuts and dried fruits 4. Dried fruit 5. Dried pasta 6. Dry baking mixes 7. Fruit pies, fruit empanadas, and fruit tamales 8. Granola, cereals, and trail mixes 9. Herb blends and dried mole paste 10. Honey* and sweet sorghum syrup 11. Jams, jellies, preserves, and fruit butter that comply with the standard described in Part 150 of Title 21 of the Code of Federal Regulations (see below)** 12. Nut mixes and nut butters 13. Popcorn 14. Vinegar and mustard 15. Roasted coffee and dried tea 16. Waffle cones and pizelles As of May 7, 2014, the following foods were added to the list: 17. Cotton candy 18. Candied apples 19. Confections such as salted caramel, fudge, marshmallow bars, chocolate covered marshmallow, nuts, and hard candy, or any combination thereof 20. Buttercream frosting, buttercream icing, buttercream fondant, and gum paste that do not contain eggs, cream, or cream cheese 21. Dried or dehydrated vegetables 22. Dried vegetarian-based soup mixes 23. Vegetable or potato chips 24. Ground chocolate * Honey requires further zoning review with the City of Oakland, as it cannot be made from bees located on a residential property. This is because home occupation regulations currently do not allow animal raising as part of a business, and bees are considered animals. **Jams, jellies, preserves, and fruit butter: CFOs that produce jams, jellies, preserves, and other related products must be sure that their products meet the legal established standards of identity requirements for those products as set forth in 21 CFR Part 150. The purpose of the regulation is to maintain the integrity of the food product to ensure consumers consistently get what they expect. The product name and ingredients listed on the label must be factual and comply with the legal definitions and standards of identity or the product may be considered misbranded. Products made with other ingredients that are not defined in 21 CFR 150 cannot be produced by cottage food operations. Addition of other ingredients, or alteration of ingredient profiles, changes the chemistry of the food, which can allow the growth of various bacteria and toxins under the right conditions. For example, addition of peppers (i.e. jalapeno pepper) to make pepper jelly is not supported by 21 CFR 150, and the addition of this low acid ingredient could cause the formation of botulism toxin in the product if the proper controls are not used. The list of approved cottage foods is subject to change and will be maintained and updated by the California Department of Public Health (CDPH) on its website as necessary. You may want to check the list from time to time and make note of any new approved foods you may wish to add to your business: www.cdph.ca.gov/programs/Documents/fdbCFOfoodslist.pdf Food for Thought Because the Cottage Food Act (the California law that governs CFOs) is very new, having just gone into effect in January 2013, it is relatively untested. As more producers join the ranks, and the movement gains traction in the market, cottage food producers will have more say about the regulations and which foods may be added to the approved list in the future. In fact, if you would like something added to the approved foods list, you can submit a request: www.cdph.ca.gov/programs/Documents/fdbCF Oaddfoodrequest.pdf But if producers don’t get licensed, don’t follow the rules, or try to sell foods that are not on the approved list, they will hurt the chances for everyone else to make improvements to the regulations. For a full list of guidelines: www.acgov.org/aceh/documents/CCDEH_Mod el_CFO_Guidelines_-Updated_12-21-2012.pdf
  • 29. Chapter%4:%Cottage%Food%Operations%(CFOs)% % Page%25%of%47% Class%A%vs.%Class%B%Permits%% There are two types of permits for CFOs. Depending on how you intend to sell you product, you’ll either apply for a Class A permit, or a Class B permit. “Class%A”%=%Direct%Sales% “Class%B”%=%Indirect%Sales%&%Direct%Sales% Class A CFO’s may engage only in direct sales of cottage food products, meaning sales are made either 1) at the home where the cottage food operation is located, or 2) at a community event, such as a bake sale or food swap, a farm stand, a certified farmers’ market, or through community-supported agriculture subscriptions. Class A CFO’s must submit a completed self- certification checklist to be approved by the local environmental health agency when they submit their registration application for a permit. Link to the self-certification checklist: www.acgov.org/aceh/documents/CFO_Model_Self- Certification_Checklist-12-21-2012.pdf Like Class A CFO’s, Class B CFO’s may sell directly to the public, but they may also sell CFO-prepared foods either indirectly to the public through retail food facilities such as restaurants and markets. In other words, the consumer purchases cottage food products made by the CFO from a third-party retailer that holds a valid permit, and where food may be immediately consumed on the premises. Inspection – Class A CFO kitchens and food storage areas (referenced in the law as the “registered or permitted area”) are not subject to initial or routine inspections. However, an inspection may be required if any consumer complaints are registered against the operator of the CFO. Inspection – “Class B” CFO kitchens and food storage areas must be inspected prior to permit issuance, with yearly inspections scheduled after the initial permit has been granted. Link to the Alameda County Environmental Health Department (ACEH) permit application for both Class A and Class B CFO’s: www.acgov.org/aceh/documents/CFO_Model_Self-Certification_Checklist-12-21-2012.pdf Geographic%Boundaries% Class A CFOs may sell product within their county, as long as they are limited to direct sales. Class A cottage foods are not currently permitted for sale in other jurisdictions. A Class B CFO is authorized to engage in the indirect sales of cottage food products within the county in which the “Class B” cottage food operation is permitted. However, other counties may allow CFOs with valid permits in Alameda County to make indirect sales in their counties as well. You must check with these other counties before attempting to make such a sale. Thus far, Alameda County has not permitted another county’s Class B CFOs to sell within its jurisdiction. A CFO may accept orders and payments via the internet, mail or phone. However, the CFO must deliver their CFO products directly (in person) to the customer. The CFO products may not be delivered via US Mail, UPS, FedEx or using any other indirect delivery method. This includes both “direct” and “indirect” sales. Interstate sales (sales to customer in states outside of California) are not permitted with either a Class A or Class B license.
  • 30. Chapter%4:%Cottage%Food%Operations%(CFOs)% % Page%26%of%47% Sales%Limits% In 2014, the CFO shall not have more than $45,000 in gross annual sales in the calendar year. Beginning in 2015, and each year thereafter, the CFO shall not have more than $50,000 in gross annual sales in the calendar year. Once the CFO exceeds the gross sales volume established in the law, they must move their operations to a commercial processing facility and register with the California Department of Public Health (CDPH) under the Processed Food Registration Program. You may contact CDPH at 916.650.6516 for more information about registration. Limited%Number%of%Employees% There are limits to the number of employees a CFO is permitted to employ. In addition to the operator and family or household members, CFO’s of either Class A or Class B may have only 1 employee. That means only you, family and 1 full-time or part-time paid employee may be employed by this business, no more! Structural%Requirements% • All equipment, utensils, food, drink, ingredients and items used in the preparation of a cottage food item must be stored and used within the home. No cottage food functions may occur in any location outside the registered or permitted area. • No infants, small children under age 12, or pets are allowed in the registered area during CFO operations. • A hand washing facility (sink) must be available during food handling or preparation activities. Soap and clean towels must be supplied. Operations% • The county CFO registration or permit is non-transferrable and is only valid for the exact persons, location, type of food sales, and distribution activity outlined on the permit. • Kitchen equipment and utensils must be kept clean and in good repair. • All food contact surfaces and utensils must be washed, rinsed, and sanitized before each use. • All food preparation and storage areas must be completely free of rodents and insects. • All foods or ingredients shall come from an approved source and shall be obtained from sources that comply with all applicable laws. • All food shall be manufactured, produced, prepared, compounded, packed, stored, transported, kept for sale, and served so as to be pure and free from adulteration and spoilage. • Nonfood items, such as packaging/labeling or cleaning supplies, must be stored in an area separate from food. • No smoking in the kitchen area during the preparation, processing, packaging or storing of food. • Food handlers shall engage in proper hand washing immediately prior to any food preparation or packaging • Any person with a contagious illness may not prepare or package food products. A person with a lesion or open wound must stop working in the permitted area unless the wound is covered with an impermeable dry, durable, tight-fitting bandage and a glove. • No cottage food preparation, packaging, or handling may occur in the home kitchen/permitted area at the same time as any other domestic activities, such as family meal preparation, dishwashing, clothes washing, or guest entertainment. • Water used for food preparation or cleaning shall meet potable drinking water standards (see glossary for a definition of potable water.) Morsel Gross sales refers to the total amount sold before you subtract any costs such as the cost of the raw ingredients or cost of packaging materials or labels.
  • 31. Chapter%4:%Cottage%Food%Operations%(CFOs)% % Page%27%of%47% Labeling% Label all products with the following: 1. The words “Made in a Home Kitchen” or “Repackaged in a Home Kitchen” in 12-point type on the CFO product’s primary display panel. 2. The name commonly used for the food product or an adequately descriptive name. 3. The name, city, state and zip code of the CFO that produced the cottage food product. If the CFO is not listed in a current telephone directory, then a street address must also be declared. (A contact phone number or email address is optional but may be helpful for consumers to contact your business, especially if they want to buy more!) 4. The registration or permit number of the CFO that produced the cottage food product, and, in the case of a “Class B” CFO, the name of the county that issued the permit number. 5. The ingredients of the CFO product, in descending order by weight, if the product contains two or more ingredients. 6. The net quantity (count, weight, or volume) of the food product, stated in both English (pound) units and metric units (grams). 7. A declaration on the label in plain language if the food contains any of the major food allergens such as milk, eggs, fish, shellfish, tree nuts, wheat, peanuts, and soybeans. There are two approved methods prescribed by federal law for declaring the food sources of allergens in packaged foods: a) in a separate summary statement immediately following or next to the ingredient list, or b) within the ingredient list. 8. If the label makes approved nutrient content claims (such as free, low, reduced, fewer, high, less, more, lean, extra lean, good source, and light), or health claims (gluten-free), the label must contain a “Nutrition Facts” statement on the information panel. For information about health claims or nutrition facts, as well as additional instructions, please see the CDPH Labeling Requirements for Cottage Food Products: www.cdph.ca.gov/programs/Documents/fdbCFOlabel.pdf Labels must be legible and in English (accurately translated information in another language may also be included on the label). Labels, wrappers, inks, adhesives, paper, and packaging materials that come into contact with the cottage food product by touching the product or penetrating the packaging must be food-grade (safe for food contact) and not contaminate the food. In a permitted retail food facility (such as a restaurant, market, or deli), cottage food products served without packaging or labeling shall be identified to the customer as homemade on the menu, menu board or in another easily accessible location that would reasonably inform the consumer that the food or an ingredient in the food has been made in a private home.
  • 32. Chapter%4:%Cottage%Food%Operations%(CFOs)% % Page%28%of%47% Training% Every person who prepares or packages cottage food must complete a food processor course within 3 months of becoming registered or permitted and every 3 years during operation. CFOs, their employee, and any household member that is involved in the preparation or packaging of cottage foods may take one of the same American National Standards Institute (ANSI) accredited food handler courses that are currently required for retail food facility food handlers. The courses are available on-line or via a classroom in a variety of languages for a minimal cost. After successfully completing the course, you will receive a food handler card or certificate, which you need to keep as proof that you completed the required training. You must present a copy of this card or certificate for each person involved in preparing cottage foods to your local enforcement agency upon their request, to verify that the training requirement has been completed. You may find a list of approved courses here: www.ansica.org/wwwversion2/outside/ ALLdirectoryListing.asp?menuID=212&prgID=228&status=4 STEPS%1I10:%The%Oakland/Alameda%County%CFO%Permitting%Process% ! %%STEP%1:%%Complete%SelfICertification%Checklist% %CLASS%A%ONLY%%% %%COUNTY%form%l% ! The CFO Self-Certification Checklist is a 2-page form for Class A CFOs only to show that you meet the minimum standards of health and safety for the preparation of cottage foods in the home. There are questions regarding zoning, which ask if you comply, which you must, but the documentation isn’t required at this point (see STEP 9). The form: www.acgov.org/aceh/documents/CFO_Model_Self-Certification_Checklist-12-21-2012.pdf Class B CFO’s start with STEP 2. %%STEP%2:%%Submit%Registration/Permitting%Form% %%COUNTY%form%l%% The CFO Registration/Permitting Form is the 5-page application for the ACEH Class A & Class B CFO Permit. 5 pages sounds long, but that’s because it repeats the rules and regulations for CFOs. You will submit the form, with the Self- Certification Checklist, and the applicable permit fee: Class A: $162; Class B: $243. The form: www.acgov.org/aceh/documents/CFO_Model_Registration-Permitting_Form_12-21-2012.pdf %%STEP%3:%%Attend%ACEH%Office%Consultation% COUNTY%appointment%l%% After you submit your Registration/Permitting Form, ACEH and you will schedule an office consultation appointment to review your application. Bring copies of all of the completed items below: • Completed Registration/Permitting Form (application) completely filled out • Completed Self-certification Checklist (Class A only) • State and federal compliant product labels (one for each different food item that you plan to produce) • Food handler certification (if you have already completed this, otherwise you have 3 months to complete it after your permit is issued) Alameda County Environmental Health 1131 Harbor Bay Pkwy Alameda, CA 94502-6577 510.567.6700 www.acgov.org/aceh/index.htm
  • 33. Chapter%4:%Cottage%Food%Operations%(CFOs)% % Page%29%of%47% %%STEP%3.5%(Class%B%only):%%Prepare%for%ACEH%Inspection% %%CLASS%B%ONLY%%% %%COUNTY%appointment%l% Class B CFOs must pass an ACEH Inspection. You and ACEH will schedule this appointment. They will look to ensure that: • All CFO foods are located/stored in the kitchen • All CFO equipment (including the refrigerator) is located/stored in the kitchen • All CFO equipment is clean and operable • The refrigerator keeps food temperatures to 41° or below • All food is stored above the floor and protected from contamination • Liquid soap and clean towels are provided for proper hand washing • Hot and cold running water are both readily available at the kitchen faucet • General sanitation is good and there are no signs of vermin %%STEP%4:%%Get%Permit%Number%and%Referral%Letter% COUNTY%process%l% After your office consultation and inspection (Class B only), you will get a Permit Number and Referral Letter from ACEH. ! ! %%STEP%5:%%Complete%Oakland%Zoning%Clearance%Worksheet% CITY%process%&%form%l% Complete the Oakland Zoning Clearance Worksheet and submit it to the Oakland Permit Center. You do not pay the zoning fee until your application has been approved. Include with your submission: 1. Completed Self-Certification Checklist 2. Registration/Permitting Form 3. ACEH Permit Number 4. ACEH Referral Letter For this form: • Business Name, Address, & Phone Number • Description of Activities • Hours of Operation, Number of Employees The form: www2.oaklandnet.com/oakca1/groups/ceda/documents/form/oak037285.pdf. City of Oakland Permit Center 250 Frank H Ogawa Plaza, 2nd Floor Oakland, CA 94612 510.238.6402 www2.oaklandnet.com/Government/o/PBN/OurOrganization/BuildingServices/o/Permits/ %%STEP%6:%%Pay%Zoning%Clearance%Fee% CITY%process%l% The Permit Center will notify you when your zoning clearance has been approved, and then you will submit the $40.15 fee.
  • 34. Chapter%4:%Cottage%Food%Operations%(CFOs)% % Page%30%of%47% %%STEP%7:%%Apply%for%Oakland%Business%Tax%License% CITY%process%&%form%l% Oakland New Business Application form & instructions: www.oaklandnet.com/government/fwawebsite/ revenue/pdf/Newbizapp.pdf For this form: • $61 first time registration • State Seller’s Permit # • Zoning Permit # • SSN or ITIN# • Driver’s License # Also, by March 1st of each year, you will have to pay a city business tax to renew your license. If your gross receipts are less than $50,000, the fee is $60. If your gross receipts are $50,001 or more, you will multiply your gross receipts by .0012. For example: $56,000 x .0012 = $67.20. City of Oakland Business Tax Section 250 Frank H. Ogawa Plaza, Suite 1320 Oakland, CA, 94612 510.238.3704 www.oaklandnet.com/government/fwawebsite/revenue/revenue_biztax.htm Hours: M, Tu, Th, F: 8 am-4 pm; W: 9:30 am-4:00 pm %%STEP%8:%%Submit%Zoning%Clearance%&%Business%Tax%License%to%County% COUNTY%process%l% Submit copies of your Zoning Clearance Approval, proof of payment, and your Business Tax License back to ACEH to complete the permitting process. You will then receive a Certificate of Approval to Operate from ACEH. You will have to inform ACEH when you add to your product offerings. %%STEP%9:%%Get%Food%Handler’s%Card% PRIVATE%Company%class%&%test%l% Now that you have passed all visits and inspections and are approved to start operating, you need to get your Food Handler’s Card within 3 months of getting your approval to start your business. Courses and exams are available online in a variety of languages and should cost $10-$15. Any family members or an employee that helps you also need this card. (Note, you only need the basic training for CFOs, not the managers’ training.) Approved courses: www.ansica.org/wwwversion2/outside/ALLdirectoryListing.asp?menuID=212&prgID=228&status=4
  • 35. Chapter%4:%Cottage%Food%Operations%(CFOs)% % Page%31%of%47% %%STEP%10:%%Get%Necessary%Additional%Permits% CITY%&/or%COUNTY%processes%&%forms,%depending%l% You will need additional permits if: • Your CFO depends on well water and/or a septic system • You intend to sell at farmer’s markets or special events o Selling at a Farmer’s Market requires a Temporary Food Facility (TFF) Application to ACEH. Before submitting that application, you must be accepted by the Manager/Sponsor of the Farmer’s Market at which you want to sell, and be listed as a vendor on the Sponsor’s Permit. o TFF Application: www.acgov.org/aceh/ food/Temporary_Events_Food_Booth_Operato r_Application.pdf Frequently%Asked%Questions%About%CFO’s% From the California Department of Public Health: www.cdph.ca.gov/programs/Documents/fdbCFOfaqs.pdf From the California Conference of Directors of Environmental Health: www.ccdeh.com/resources/documents/food-safety-guidelines-1/1015-ab-1616-frequently-asked-questions- updated-2012-11-01-1/file From the Sustainable Economies Law Center: www.theselc.org/faq CFO%Estimated/Sample%Startup%Costs% Item% Payee% Fee% Fictitious Business Name Statement Posting in newspapers Alameda Clerk Recorder Local Paper (Oakland Tribune) $40 $62 Permit ACEH Class A $162 Class B $243 Zoning Clearance for a Home Occupation from the City of Oakland Oakland Permit Center $40.15 Business Tax License from the City of Oakland Oakland Business Tax Section $61 Food Handlers Card Various Providers $10-$15 Insurance (optional but recommended) Private Insurance Company $300-$500 per year Total: $375-$1000 Food for Thought Consider purchasing liability insurance. Liability insurance is not required by law. However, it is recommended, as it protects your assets (your home, car, savings, etc.) in case you are sued as a result of damage or illness caused by the products of your CFO. Home-based businesses are generally not covered by standard homeowner’s or renter’s insurance. Some places where you might sell your cottage food, such as farmer’s markets, cafes or retail stores, may require you to have liability insurance. Check out the Resilient Communities Legal Café hosted by the Sustainable Economies Law Center: www.theselc.org/cafe
  • 37. Page%33%of%47% APPENDIX A. GLOSSARY Brick and Mortar: A business that serves customers from a permanent physical location. (Note: full scale brick and mortar restaurants are not included in this guide.) California Retail Food Code (CRFC): The go-to comprehensive resource for operating a food business in California. Updated annually in January. Catering: Catering businesses do not make direct food sales to the public, but provide food at private events. They still have to comply with the CA Retail Food Code, and have to meet specific requirements about how hot and/or cold food kept hot/cold during transport or on site. This guide does not cover those rules. Commercial Kitchen: Kitchens found in hotels, hospitals, educational and work place facilities, army barracks, and similar establishments are subject to public health laws. They are inspected periodically by public-health officials, and may be forced to close if they do not meet hygienic requirements mandated by law. A food truck may include a mobile commercial kitchen containing traditional equipment that you would typically find in a stationary commercial kitchen or brick and mortar restaurant Commissary: A stationary food facility that services mobile food facilities (trucks or carts), where the following occurs: 1) food, containers, or supplies are stored; 2) food is prepared or pre-packaged for sale or service at other locations; 3) utensils are cleaned; or 4) liquid and solid wastes are disposed or potable water is obtained. Cook Time: How long an item takes to cook to a proper serving temperature. Contamination: The unintended presence of potentially harmful substances, including microorganisms, chemicals and physical objects in food. Corner Store/Small Brick & Mortar Store: A small-scale store that typically sells a limited selection of foods and other products. The term “corner store” encompasses a diverse range of small stores—both independent and chain stores; in rural, urban, and suburban settings; and not always located on a corner. Other terms that are commonly used to refer to this type of store include small-scale store, convenience store, neighborhood store, and bodega. Cottage Food: A Cottage Food Operation (CFO) is an enterprise at a private home where specific low-risk food products that do not require refrigeration are made or repackaged for sale to consumers. Cross-Contamination: When foods and surfaces that might be contaminated with bacteria come into contact with other foods and surfaces that otherwise wouldn’t be a potential threat. Direct Sale: A transaction between a business operator and a consumer, where the consumer purchases the product directly from the operator without any other parties involved. Dry Goods: Items such as coffee, tea, sugar, flour, an paper products that don’t require refrigeration. Eighty-Six: Restaurant lingo for taking an item off the menu. Generally refers to taking it off temporarily because you ran out of the item, but it can also refer to removing it permanently. Entrepreneur: One who organizes, manages, and assumes the risk associated with operating any business enterprise. Food: any item used, or intended to be used, for human consumption (including manufactured foods, packaged candy, chewing gum and bottled water and beverages). Food Business: is any retail or wholesale facility whose operation involves any of the following: preparing, serving, storing, processing, transporting, handling, bottling, baking, or selling food. The difference between Commissaries and Commercial Kitchens is hard to define very clearly. Basically, some Commercial Kitchens may be also be able to serve as a Commissary where you can store a Mobile Food Facility (MFF) (cart, trailer, or truck), your food, etc., but they may not all be appropriate. ALSO, not all Commissaries may be proper Commercial Kitchens.