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Daly City, CA Home Business: Cottage Food Operations (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

City Carve-Out
MEHKOs exempt per DCMC 17.36.020
MEHKO Permit
San Mateo County Environmental Health
MEHKO Meal Limits
30 meals/day, 90 meals/week
MEHKO Sales Cap
$100,000 gross annual sales
City Requirement
Register as Daly City business

Summary

Daly City's zoning excludes general 'food preparation' as a home occupation, but state law overrides: residents can run a county-permitted Microenterprise Home Kitchen Operation (MEHKO) or a state cottage food operation. DCMC Sec. 17.36.020 expressly removes MEHKOs from the home occupation rules, deferring to state and San Mateo County permitting.

Recently approved legislation allows home-based San Mateo County chefs to operate food facilities (i.e., Microenterprise Home Kitchen Operation - MEHKO) from their home kitchens. The program is available to San Mateo County residents living in private homes equipped with a kitchen who are locally licensed and have been issued an operating permit from San Mateo County's Environmental Health Services Division. A Microenterprise Home Kitchen Operation (MEHKO) is "a food facility that is operated by a resident from their private home kitchen." Once permitted, a resident can store, handle, prepare, and serve food to the public as allowed by State law like a restaurant. State law does place limits on the number of meals that can be served, revenue that can be received, and on some foods that can be prepared, among other requirements.

Full Breakdown

DCMC Sec. 040 lists 'food preparation' among occupations that cannot be a Daly City home occupation. However, Sec. 020 (amended by Ord. No. 1453, 11-22-2021) states that any Microenterprise Home Kitchen Operation as defined by California Health and Safety Code Sec. ' Under HSC Sec. 113825, a MEHKO is a home food facility limited to no more than 30 individual meals per day and 90 per week, with no more than $100,000 in verifiable gross annual sales, selling directly to consumers. The city's MEHKO page directs residents to obtain an operating permit from San Mateo County Environmental Health Services and to register as a local business with Daly City.

Separately, California Government Code Sec. 51035 bars cities from prohibiting cottage food operations (HSC Sec. 113758) in residential dwellings; CFOs register with San Mateo County Environmental Health and sell only approved non-potentially-hazardous foods.

Violations & Fines

Preparing and selling food from a home without a San Mateo County MEHKO permit or cottage food registration falls back into the 'food preparation' exclusion of DCMC Sec. 17.36.040 and is an unlawful home occupation, subject to permit denial or revocation and code enforcement. County health permits can also be suspended or revoked for violating the California Retail Food Code.

Frequently Asked Questions

Can I cook and sell meals from my Daly City kitchen?
Yes, with a MEHKO permit from San Mateo County Environmental Health Services. Daly City code (Sec. 17.36.020) exempts state-defined MEHKOs from its home occupation rules; state law caps them at 30 meals per day, 90 per week, and $100,000 in annual sales.
Does Daly City allow cottage food operations?
Yes. California Government Code Sec. 51035 prohibits cities from banning cottage food operations in residential dwellings, so home production of approved low-risk foods is allowed with San Mateo County Environmental Health registration plus a Daly City business license.
Why is 'food preparation' listed as an excluded home occupation?
DCMC Sec. 17.36.040 excludes general food preparation from the home occupation permit path, but state law created separate MEHKO and cottage food channels that operate under county health permits instead of the city's home occupation permit.

Sources & Official References

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