Limits on sales by MEHKO businesses are raised
News Flash: Assembly Bill No 1325 was passed raising the limits of sales by MEHKO businesses to 90 meals per week and $100k in annual sales, on July 21, 2023.
MEHKO Businesses NOW can serve up to 90 meals per week and can generate annual sales of upto $100,000.
The limit on annual sales revenue has almost doubled now. Weekly limits on meals is raised to 90 from 60.
AB 1325 now allows MEHKO chefs to earn more meaningful revenue per year than before.
Excerpt from the bill pretty much covers the most important point of the bill.
The California Retail Food Code (code) authorizes the governing body of a city, county, or city and county, by ordinance or resolution, to permit microenterprise home kitchen operations (MHKO) if certain conditions are met. Existing law requires an MHKO, as a restricted food service facility, to meet specified food safety standards, including, among others things, that the food is prepared, cooked, and served on the same day. Under existing law, the food preparation is limited to no more than 30 individual meals per day, or the approximate equivalent of meal components when sold separately, and no more than 60 individual meals, or the approximate equivalent of meal components when sold separately, per week. Existing law also requires an MHKO to have no more than $50,000 in verifiable gross annual sales, as adjusted annually for inflation. A violation of the code is a misdemeanor.
This bill would require the food preparation to be limited to no more than 90 individual meals, as defined, or the approximate equivalent of meal components when sold separately, per week. The bill would also allow an MHKO to have no more than $100,000 in verifiable gross annual sales, adjusted for inflation.
This bill would declare that it is to take effect immediately as an urgency statute.
The marks an important step forward for home kitchen based businesses.