How to Start a Food Business in California

Chefs and entrepreneurs start a variety of food businesses in California. There are restaurant franchises such as Burger King, Wendy's or MacDonald's. You can also open a dessert, full course or street vending food business. Depending on the California county where you want to open your company in and the specific type of culinary establishment you are starting, you will need to meet certain requirements before you begin serving customers.

Instructions

Complete Filings and Raise Capital

1. Get your Employee Identification Number (EIN). Apply for an EIN through the Internal Revenue Service (see Resources). Note that you can also apply for your EIN over the telephone by calling the Business & Specialty Tax Line at 1-800-829-4933.

2. Register to collect state sales and use tax through California's Tax Service Center (see Resources). The state of California allows you to apply for a sales and use tax license online. Keep in mind that you can also file and pay the taxes online.

3. Create a business plan. Write a detailed business plan for your food business. Describe the types of food you will offer, where your business will be located and the days and hours of operation. Build a marketing plant that focuses on how you will connect with the media and let the public know about your business. For example, you could distribute weekly press releases to local food editors informing them of community, sports or charity events you are hosting. Research receipt sales for other food establishments in the area. Supply your line item budget. Identify additional capital your business needs and the specific steps you will take to gain the funds. Refer to the Small Business Administration's "Writing a Business Plan" (see Resources) to review sample business plans. Keep in mind that many banks will request to see a detailed business plan before they agree to extend you a loan.

4. Raise capital and get insurance. Work with local banks such as West America, California Bank & Trust and The Mechanics Bank to submit loan applications to raise capital for your food business. Speak with insurance providers such as Capital Insurance Group, Agency One Insurance and Sun Rock Insurance. Review coverage levels and premium rates. Purchase ample property and liability insurance. Ask your insurance provider about employee-related insurance such as worker's compensation, disability and unemployment, to make sure you have enough insurance for your staff.

5. Contact one of the county approved Certified Food Handlers Training Course providers (see Resources). Provide identification that confirms that you are 18 years or older. Pass the examination at the end of the training to gain your certification. Keep in mind that California Retail Food Code requires you to get a food handler certification if you prepare, handle or serve unpackaged food. Note that although you are not required to post the certificate in your food business, you must keep the certificate on file.

6. Contact a licensed and reputable real estate agent to help you learn about the area where you want to open your business. Make sure that the location is highly trafficked, especially during the days and hours your business will be open. Look into the cost of locating your food business near a hub of area colleges so you can market to and gain support from college and university students in addition to city employees and residents.

7. Complete applications. Contact the county Department of Resource Management's Environmental Health Division at 675 Texas Street, Suite 5500, Fairfield, California 94533. Request a Food Facility Plan Submittal Application. Pay applicable fees and submit the application to the department. Complete the Supplemental Questionnaire and Hood Worksheet. Fill in, sign and submit a Commissary Agreement if you are operating a mobile food business such as a hot dog stand.

8. Purchase equipment and furniture such as stoves and hoods, smoke fans, grills, grease drains, freezers, refrigerators, deep sinks, tables and chairs. Contact the gas and electric companies to install electrical wiring and gas lines so you can operate your cooking equipment. Acquire table linen, dish towels, rags and aprons. Keep in mind that you can contact directories and warehouses such as Restaurant Equipment Design, CRESCO, Food Service Warehouse and Big Tray to purchase restaurant equipment at a discount.

9. Contact a local interior designer such as Design Perspectives and Restaurant Design Concepts who has food establishment designing experience. Make sure that your eatery has a fireproof ceiling. Design for comfort and eye appeal. Consider adding a seating area and a private room so that you can host special events at your restaurant.

10. Post job openings for licensed and experienced cooks and cashiers at local culinary schools such as California Culinary Academy, Napoli's Culinary Academy and Ramekins Sonoma Valley Culinary School. Ask school administrators to include an ad for the positions you are seeking to fill in the school's career placement offices. Post openings on job boards such as Career Builder, Monster and Simply Hired. Post similar job openings in your local newspaper and offer area college students the opportunity to intern at your restaurant during the summer.

11. Market and promote your food business. Create a professional website for your food business. Add pictures and video clips from special events at your eatery, including the grand opening. Post your website's URL on message boards and discussion forums that focus on dining and special events. Include your website URL on all correspondence and emails you send.

Tips & Warnings

• This article covers how to start a food business in Solano County, California.

Resources

• Apply for an EIN
• California Tax Service Center
• Small Business Association - Writing a Business Plan
• Certified Food Handler Training and Test Providers
• Commissary Agreement