Microenterprise Home Kitchen Operations - DPH

PUBLIC HEALTH

County Spending Category
1.6 Direct Community Investments
Federal Expenditure Category
Loans or Grants to Mitigate Financial Hardship
Project Launch Date
11/01/2024
Anticipated End Date
06/30/2026
Interpretation Languages
  • Spanish
  • Armenian
  • Korean
  • Tagalog/Filipino
  • Mandarin
  • Cantonese
  • Vietnamese
Written Languages
  • Spanish
  • Armenian
  • Korean
  • Tagalog/Filipino
  • Traditional Chinese
  • Simplified Chinese
  • Vietnamese

Project Contacts

Indicators & Metrics to Date

  • Number of Small Businesses Served
    0
  • Number of Applicants
    75
  • Number of Applications Approved
    37
  • Number of Grants Provided
    70
  • # of CBOs collaborated with
    2
  • # of stakeholder consultations for the fee subsidy program
    1
  • # of the subsidy recipients in the highest to high need areas earn greater than $50,000 in annual net revenues in their second year as a MEHKO
    29
  • # of MEHKO operators who earn less than $50,000 in annual net revenues will receive a one-time subsidy of $597 towards their Initial Application Review Fee
    37

Target Populations

  • Small Businesses
  • Systems Impacted Individuals
  • Systems Involved Individuals

Project Description

The California Health and Safety Code (California Retail Food Code) was amended in January of 2019 to establish a “Microenterprise Home Kitchen Operation” (MEHKO) as a new type of retail food facility. MEHKO is a food facility that is operated by a resident from their private kitchen. Once permitted, a resident can store, handle, prepare, and serve food to the public, as allowed by State law, similar to a mini restaurant. The Board has taken significant steps to support small businesses and microentrepreneurs so that they can establish, thrive, and grow in the County. During the peak of the COVID-19 pandemic, the Board launched the Economic Mobility Initiative to support historically disinvested communities hardest hit by the COVID-19 pandemic. MEHKOs are a strategic, inclusive economic development plan for the County while promoting safe and equitable pathways to legal food vending. On May 14, 2024, the Board introduced the ordinance authorizing MEHKOs in the County. The report back from the Chief Executive Office (CEO), recommended that the Department of Public Health use $600,000 in ARPA-enabled funding to subsidized up to 1,000 MEHKO applicants, available through June 30, 2026. The target population for subsidies would be low-income microentrepreneurs throughout the County (excluding Long Beach, Pasadena, and Vernon) with annual revenues of $50,000 or less. The MEHKO subsidy program will offer economically excluded entrepreneurs a feasible pathway to resources in becoming a safer, legitimate, business owner.

Goals & Objectives

Goal Description Promote and educate all 1000 prospective MEHKO microentrepreneurs and help them with the application process for the fee subsidy grant beginning November 2024.

Objective Description Staff will work with 1000 prospective applicants to determine their eligibility and help them complete the application process.

Activity Description Work with CBOs to engage with their client base and reach a larger demographic of applicants.
Indicators
# Type Name Baseline Target
5 Service Delivery # of CBOs collaborated with 2.00

Activity Description
Indicators
# Type Name Baseline Target
6 Service Delivery # of stakeholder consultations for the fee subsidy program 5.00

Objective Description Review and approve applications for fee subsidy program

Activity Description Ensure applications meet eligibility requirements of having annual net revenue sales of less than $50,000.
Indicators
# Type Name Baseline Target
2 Program Outcome # of MEHKO operators who earn less than $50,000 in annual net revenues will receive a one-time subsidy of $597 towards their Initial Application Review Fee 1000.00
3 Program Outcome # of the subsidy recipients in the highest to high need areas earn greater than $50,000 in annual net revenues in their second year as a MEHKO 1000.00
12 Performance Number of Applications Approved 1000.00

Outcome Description Los Angeles County residents will experience less financial burden in applying for a MEHKO permit.