Costa Mesa, CA Home Business: Cottage Food Operations (2026)

Cottage food operations (CFOs) let residents make and sell certain non-potentially-hazardous, shelf-stable foods (such as muffins, cookies, nuts, candies, roasted coffee, popcorn, and certain cakes and pies) from a home kitchen under the California Homemade Food Act (AB 1616 / Health & Safety Code Section 113758 et seq.). In Orange County they are administered by the OC Health Care Agency, Environmental Health, the registering and permitting authority for the unincorporated areas. There are two classes. Class A covers direct sales to the consumer, in person, by mail, or by third-party delivery, including farmers' markets, bake sales, food swaps, and holiday events; it requires registration with no inspection and a gross annual sales limit of $75,000. Class B allows wholesale sales to retailers who resell the product, requires a permit, includes a yearly inspection, and has a $150,000 annual limit (a Class B operator may also operate as Class A). Preparation is limited to the home kitchen and attached storage, with a maximum of one full-time CFO employee. Labels must include the business name, 'Made in a Home Kitchen' (or 'Repackaged in a Home Kitchen'), the permit/registration number, county of approval, net weight, and required federal allergen and nutrition information. Fees for July 2025-June 2026 include an initial review (up to 10 labels) of $221, Class A renewal $125, and Class B renewal $376. Importantly, the County Zoning Code (Sec. 7-9-104(c)(1)) provides that a cottage food operation run as a home occupation must comply with all applicable State regulations and shall not sell any prepared foods on-site.