Breaking into the Food BusinessSeptember 2, 2011

IJ Clinic on Entrepreneurship

• Trains a corps of University of Chicago Law School students to provide legal assistance to low-income entrepreneurs

IJ Clinic on Entrepreneurship• Provides free legal representation• Presents educational workshops and events• Advocates for economic liberty in Chicago

Institute for Justice

• National civil liberties law firm• Fights for individuals’ rights to earn an honest

living• Started a National Street Vendor’s initiative:– El Paso– Atlanta– Chicago– Streets of Dreams

First steps

What kind of food business would you like to start? There are several ways to start small and legally. There should be more!

Green Grocer Cart

Food Peddler License• Individual who, going from place to place, whether on

private property or on the public way, sells fruits and vegetables from wagons, pushcarts, handcarts or other vehicles, or from packs, baskets or similar containers.

• $165 fee• Display name and address on cart• Wear badge• May sell uncut fruits and vegetables only• Many no peddling zones, hard to map out• Fines of $50-$200 for violations

Prepare Food for Sale

Shared Kitchen User License• Business that uses space in a licensed shared kitchen• Kitchen designed to be shared• Restaurant that shares as supplement to regular activity

• $330 fee for 2 years; $75 fee for 90 days• Food Sanitation Manager Certificate• Owners with badge must be present• Menu• Consultation with Department of Health at kitchen• Keep records of dates and times in kitchen

Sell at Farmers Market

Farmers Market Producer• Get sales tax ID• Apply to Mayor’s Office of Special Events• $25 per day per farmers market• May sell prepackaged, non-perishable food

prepared in an approved food-processing establishment• Preparation at home is approved for some baked goods

and preserves with proper labeling and sanitation course – new Illinois Cottage Foods law

Sell on the Go

Mobile Food Dispenser License• “any person who, by traveling from place to place upon the

public ways, serves food or drink from a wheeled vehicle”• $275 fee• No food except individual portions that are totally

enclosed in a wrapper or container and which have been manufactured, prepared or wrapped in a licensed food establishment– Exception for coffee, soda, some frozen desserts– Mark wrapper with date of preparation and name of preparing

business

Sell on the Go

Mobile Food Dispenser License (cont.)• Vehicle must be enclosed with top and sides and interior

must be of smooth, impervious material that is easily washed and light in color

• Meat and dairy must be in refrigerator at < 40° or in oven with thermometer showing > 180°. Hot food must be kept > 145°

• Must have handwashing sink and running hot water, empty wastewater daily

• Must keep food enclosed and protected from contamination

Sell on the Go

Mobile Food Dispenser License (cont.)• Must move; may stop only to serve customers for no more

than 2 hours in any one block• A few districts prohibited, especially for frozen desserts• No stopping within 200 feet of a restaurant entrance,

church, a school or school playground while school is in session

• No sales between 10:00pm and 10:00am• No sale except from curb side and only when vehicle is legally

parked• Fines of $200-$1000 for each day of violations

Prepare on the Go?

Proposed Mobile Food Facility License• Vehicle used in conjunction with a commissary or other food

dispensing establishment to cook or sell food • Mobile Food Facility license application:

– Name and address– Sample route map for five business days– Plan of MFF and any mobile support unit, approved by department

of health– Name and address of commissary or other location approved by

the department of health where MFF and MSU will be stored and cleaned.

• $660 fee

Prepare on the Go?

Proposed Mobile Food Facility License (cont.)• MFF must have owner or employee with food service sanitation

manager certificate• Written agreement for washroom within 200 feet of parking

spot if staying more than 2 hours• No parking or standing:

– Within 200 feet of food establishment that offers a similar service;

– Within 100 feet of any food establishment without written consent

– On private property without written consent– At special events or in parks without permits

Prepare on the Go?

Prepare on the Go?

Prepare on the Go?

Proposed Mobile Food Facility License (cont.)• Hand-washing sink, 3-compartment ware-washing sink,

running hot water with wastewater emptied daily or more• Potentially hazardous foods < 41° or > 135°• Vehicle must be registered as a commercial vehicle – no

carts!• Before building or buying vehicle, submit 3 copies of plan

to health department and $750 plan review fee.• Before using, bring to health department for inspection

with $400 inspection fee. Initial inspection not necessary if standardized vehicle already approved.

Change the Law

• Do you think mobile food should be allowed before 10am?

• Do you think mobile food businesses should be allowed to sell near restaurants?

• Do you think trucks should be allowed to prepare food on board? How about carts?

DO SOMETHING ABOUT IT!

Change the Law

• Sign up for My Streets! My Eats! emails.• Like Institute for Justice Clinic on Entrepreneurship on

Facebook.• Follow @IJClinic on Twitter.• Rally customers.• Contact the Health Department to explore alternative,

affordable equipment options.• Contact your alderman, Alderman Mitts, and Alderman

Tunney with your opinions.• Attend the hearing on the new MFF law.

Change the Law

• Spread the word and the campaign:

Entrepreneurs should be free to prepare and sell healthy food on the go from trucks and carts all over Chicago!