Hi there,

Congrats to California MEHKOs! Last Friday, the governor signed AB 1325, which greatly increases the sales limits for CA's micro-restaurants.

And they put an urgency clause in the bill, which means that unlike most CA bills, this one is already in effect. CA micro-restaurants can now sell up to $100k of products per year (up from $50k), and can sell up to 90 meals per week (up from 60).

The bill does one more important thing too. It expands the types of businesses that can use the MEHKO law by clarifying that the definition of a "meal" includes meal components like beverages, appetizers, desserts, etc. In some cases, health departments were turning away entrepreneurs who weren't selling a traditional "meal". For instance, this bill ensures that someone can use the law to run a homemade beverage business.

Now remember, not everyone in CA can use the micro-restaurant law yet. But with more counties opting in, it is now available to 30% of Californians (just 3 years ago, it was available to less than 7% of Californians). And I know that the COOK Alliance and the Institute for Justice, who co-sponsored this bill, are trying to get that number much closer to 100%.

As you might recall, in my recap a couple weeks ago, I shared that micro-restaurant bills are essentially being ignored in other states. I thought we might see another state join CA & UT this year, but it currently doesn't look likely.

This is what it's like to be in the very early stages of a new movement. It's like that awkward phase at the beginning of a dance party. The music is playing, but there are only two people on the dance floor. It looks like they're having fun and you want to dance too, but most everyone is still sitting on the sidelines, so you hesitate. But eventually enough people start dancing that everyone else decides to join too.

That's what happened in the cottage food movement a decade ago, and that's what will eventually happen in the micro-restaurant movement as well. Even though many counties in CA have already proven that this concept works well, governments are still hesitating. But they will join too once they see enough others doing it! It's just going to take some time. :)

Until next week,
David