Starting a food business? Thanks to the growth of commercial kitchens like Amped, you have more options than ever before. You can now launch in a fraction of the time it would have taken in years past. But even at a quality commercial kitchen facility, food business permitting remains complex and daunting.
Amped is here to help you get a handle on what permits you need, where you get them, and who can help you navigate the tough spots.
Where to start? Your Local Health Department
Your health department is the gateway for most permits. Based on your product, where you plan to make it, and how you’re going to sell it, health inspectors can help flag what you’ll need from local, state and/or federal authorities.
Here’s a directory of all the local health departments in California. And here’s a directory of all health departments in Illinois.
Wholesale or Retail? That is the Question
How you’re going to sell your products – retail or wholesale – drives everything else about permitting.
If you’re selling direct-to-consumer (“DTC”) at farmers’ markets, though delivery apps, online, at pop-ups or at your own brick-and-mortar restaurants then you probably have a retail business. Retail permits are nearly always handled by local health departments exclusively. Requirements vary by county or city. Note that in California, certain products such as frozen desserts may require state permits even when selling from your own brick-and-mortar location.
If you’re selling to retail stores, restaurants or other third-parties who then resell your product to others, you’re a wholesaler. The specific wholesale permits you’ll need vary based on where your manufacturing (i.e., which state, county or city), where you’re selling (in-state or out-of-state), what you’re selling (meat, dairy, or none of the above), and, perhaps, surprisingly its pH (low-acid versus acidified).
Making it at home? Cottage Food of MEHKO Permits Get You Started
California and Illinois both offer special permits for people who produce small quantities of non-perishable items at home for small-scale distribution.
California’s cottage food laws allow direct-to-consumer sales (with a “Class A” cottage food permit) and limited wholesale within the state (“Class B” cottage food) for non-perishable foods. Only certain product qualify, including baked goods, jams, and granola. Annual sales limits also apply – no more than $75,000 a year for Class A and $150,000 a year for Class B.
Illinois cottage food permits vary by county but generally allow home production of low-risk products like baked goods and preserves, with sales caps and product restrictions similar to California’s.
California now also allows Microenterprise Home Kitchen Operations (MEHKOs) for hot, ready-to-eat meals sold directly to consumers. MEHKOs are limited to certain counties (including L.A.), and they must satisfy food safety regulations, including requirements for sanitation and storage. MEHKO can be a great option for home-cooked meal services, but it’s not designed for wholesale or packaged goods.
Cottage food and MEHKO permits are a great way to start. But once you surpass the sales caps (again, starting at $75,000 in California), expand to interstate sales or need more capacity and quality control, a commercial kitchen is likely the next step.
Making It in a Commercial Kitchen? These Are the Permits You Need
Back in the day, growing brands could rent church cafeterias or restaurant kitchens during off hours to make their products, but these were rarely health-department compliant. Now, emerging food companies can choose from a range of licensed commercial kitchens, and many health departments offer special, easier-to-get permits for them.
In Los Angeles, companies who rent space in a commercial kitchen like Amped can get a Tenant Food Operator permit, issued by the L.A. County Departments of Public Health. (This is the basic permit for both retail and wholesale users.)
In Chicago, commercial kitchen clients get a Shared Kitchen User (“SKU”) License, available from the City of Chicago.
In both markets, permits can take anywhere from 3-6 weeks to process, so you’ll wait to plan ahead for orders you know are coming down the pike.
Amped’s team is ready to help you get started. And if you need extra assistance, our network of commercialization and process consultants includes some of the best in the business. Reach out today!
Selling through Markets, Restaurants or Amazon? Here’s the Low-Down on Wholesale
In California, If you’re selling wholesale – whether you’re in a commercial kitchen or a stand-alone facility – you’ll need a Processed Food Registration (PFR), issued by the California Department of Public Health (CDPH).
Some local health departments, including L.A. County’s, require a local permit, too – L.A.’s Tenant Food Operator Permit does the trick. In most circumstances, you’ll need to apply for the local permit first and any state or federal permits second.
In Illinois, wholesale producers need to complete a Manufactured Food Application with the Illinois Department of Public Health (IDPH). Those working out of commercial kitchens like Amped in Chicago also need a Shared Kitchen User license (called an “S-K-U” for short; not to be confused with a SKU number). As in Los Angeles, Chicago commercial kitchen wholesale users typically start with the SKU application and then move onto any state or federal applications.
Dairy Products (Milk, Cheese, Yogurt, Ice Cream, and Non-dairy Equivalents)
California requires dairy permits for wholesale products that contain milk or milk products. Surprisingly, California also requires dairy permits for things that resemble milk, like almond milk or soy milk, as well as for some packaged ice cream sold out of private storefronts. The California Department of Food & Agriculture (CDFA), Milk and Dairy Food Safety Branch issues these permits.
Illinois dairy producers need a permit from the Illinois Department of Agriculture’s (IDOA) Dairy Program.
Low-Acid and Acidified Canned Foods: “Yes, We Can!”
Canned foods –from low-acid soups and stocks to acidified salsas, pickles and hot sauces – typically require additional public health permits. (Improperly canned foods can spread botulism, so public health agencies take special care with these items.)
In California, the California Department of Public Health requires a Cannery Licenses for most canned foods. The University of California, Davis has an excellent brochure on the state’s program.
In Illinois, cannery requirements are rolled into the IDPH’s Manufactured Food Application process.
Meat & Poultry Products
If you’re selling wholesale meat or poultry products, you’re probably subject to US Department of Agriculture (USDA) inspection.
The language around USDA is interesting: the agency doesn’t provide “permits” to the companies they inspect. Rather, they issue a “Grant of Inspection” or “USDA Grant” for short.
USDA Grants start with an application. Once your facility, labels and Hazard Analysis and Critical Control Points (HACCP) plan are approved – and other requirements are fulfilled, such as providing a private USDA office at your facility – your Grant can be issued.
(Note that there are exceptions to USDA requirements. If you’re products contain 3% or less raw meat or poultry, less than 2% cooked meat or poultry, or if they not something consumer have traditionally thought of as a “meat” or “poultry” — closed-faced sandwiches are the classic example – they might be exempt from federal inspection.)
Amped is one of the few commercial kitchens with onsite USDA offices at every location. If you’re considering a USDA-regulated product, reach out today and let us connect you with one of our expert compliance partners.
FDA and HACCP Plans
If you’re selling across state lines (and in some other circumstances, too), you’ll need an FDA registration. FDA-registered manufacturers must comply with Good Manufacturing Practices(GMPs) for cleanliness, allergen control, and accurate labeling. HACCP (food safety) plans are often recommended for higher-risk items like soft cheeses.
Third Party Certification: Organic, SQF, Kosher and Beyond
While not technically “permits,” third-party certifications can be essential. You may need them to prove your level of quality and compliance with particular standards like organic or Kosher. Or you may need them as a prerequisite to sell at certain retailers, like Target, Whole Foods, or Costco.
SQF is the world standard for third-party certification. SQF audits closely resemble USDA inspections, although they are administered exclusively by private parties rather than government regulators.
Amped is proud to support several SQF-certified tenants at each of our facilities. Our network of expert compliance partners can help you prepare for a successful SQF process.
Business Permits
Don’t forget to register your business in your local city! In L.A., the city’s Office of Finance registers businesses. In Chicago, your business license and Shared Kitchen User license are part of a single process administered by the Business Affairs and Consumer Protection office.
Next Steps
Ready to scale up? Amped Kitchens has the infrastructure and expertise to support your journey.
Reach out today, and let’s get your production going!
