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Regulations and Policies for Operating Food-Related Businesses

This page provides information for those operating, or wanting to operate, food service businesses (e.g., markets and restaurants).  Please email fpc@erie.gov with any corrections, or if you have a topic that you would like to see on this page.

Are you thinking of starting a food related business?  Here are some considerations.  If you have questions after reading the information and resources below, please reach out to your municipality, County or State licensing agencies or appropriate departments.  The Food Policy Council cannot provide legal advice or authorize business start-ups.

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Insurance Guidelines

The Food Policy Council cannot recommend insurance coverage or provide legal counsel on insurance options.  Please use this section as a general guide, reach out to someone who specializes in insurance, and called an insurance agent or legal counsel for more guidance.  Information for Small Businesses from New York State is a free resource, created by NY State, to help business owners learn more about insurance requirements and options.

Regardless of what kind of business you want to open, there are certain insurance requirements which generally include the following.

Workers’ Compensation

Generally, someone employed by your organization would be covered under your insurance even if they got injured at a worksite different from the organization’s.  This type of insurance is required for most businesses in New York State.  Learn more about workers’ compensation from the New York State Workers’ Compensation Board

Disability Benefits

This coverage is mandatory in New York State and covers disability payments to an employee for up to 6 months of illness or injury.

Property Insurance

This insurance will cover the business’ belongings in a fire, theft, etc.  It’s important to understand the limits of the insurance, which are different depending on the policy you choose.  Many times, these limits include not covering against a flood or other large-scale events.

Liability Insurance

This insurance covers the business in case of a lawsuit.

Other types of insurance

Other types of insurance that might need to be purchased include commercial auto insurance.  This covers vehicles that are owned by the business AND the business in the case of an accident that involves an employee driving for business related matter (e.g., food delivery).

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Opening a retail store

The NY State Food Business Licensing web page defines retail stores as a place allowing customers to purchase food with the intention of eating it offsite, meaning not at the store.  Regulations for retail vendors, and an application that must be submitted to the New York State Department of Agriculture and Markets, can also be found on this page. 

See the How to open a food service establishment by the Erie County Department of Health (ECDOH) Environmental Health Division to learn about required safety and health inspections.

Learn about the nutrition benefits and incentive programs that the market might be able to offer in the nutrition benefits and incentives section below.

Starting a grocery delivery service

The business may need a warehouse or refrigerated warehouse license from the Department of Agriculture and Markets

Consider how any refrigerated food will be kept cold during transport.  This may be particularly important if the business is delivering dairy products, some juices (such as orange juice), or meat.

Other considerations will include where the business is sourcing food from, who the audience and customers are, and how to build the delivery schedule.

Consider what type of vehicle and logistics the business will use during delivery.  Will there be a company owned vehicle or vehicles?  Or will drivers be using their personal vehicles and get reimbursed for mileage, gas, etc?  Some vehicles will require a Commercial Driver’s License.  The type of vehicle purchased could impact the type(s) of insurance the business/organization needs and the cost.

The grocery delivery service might be eligible to accept SNAP.  Learn more about SNAP in the SNAP section below. 

Opening a restaurant

There are NY State regulations for operating a restaurant or any food service establishment available on the NY State Codes, Rules and Regulations web page.  These include topics such as sanitation of utensils, safe storage, employee conditions, waste disposal. 

New York State requires a restaurant beer, restaurant wine, or restaurant liquor license if the restaurant will offer alcoholic beverages.  Information about these licenses, as well as who can work at the restaurant and where to display licenses and warnings (e.g., pregnancy or serving to minors) can be found on the NY State Restaurant License Quick Reference web page.

See How to Open a Food Service Establishment by the Erie County Department of Health (ECDOH)

Finally, please make sure to look up the municipality zoning, safety, and licensing regulations.  See New York State Food Business Licensing for more information. 

Starting or operating a commissary/shared kitchen

The shared kitchen owner, also called a “lessor”, must get a 20-C license.  Some of the additional responsibilities include making sure that the kitchen passes health and safety inspections, and that a cleaning schedule has been established. It is also up to the owner/lessor to keep up-to-date records. 

People renting space in the shared kitchen are referred to as “operators.”  Operators must have a 20-C license.  The operator is responsible for their area’s cleanliness and proper labeling/packaging of their goods.  

Owners/lessors and operators are responsible for addressing concerns raised during safety inspections and for taking preventive measures to ensure a safe and clean kitchen.  Learn more about the requirements and expectations outlined by the New York State Department of Agriculture and Markets Guidance for Shared Use Kitchens. Additional information, including photos of proper safety and sanitation practices, can be found at Basic Standards for Home/Commercial Kitchens and Small Scale Food Processing Facilities.  See How to Open a Food Service Establishment for information from Erie County about required documentation and inspections. 

Operating a food truck/cart

Check municipality regulations to learn about parking restrictions.  Be sure to ask about zoning regulations for food trucks.

A 20-C business license may be required depending on what is sold.  Learn more about Food Business Licensing in New York State

Make sure there is an effective way to keep food refrigerated, or to safely prepare food to a safe temperature.

If ready-to-eat food is sold, remember to incorporate proper handwashing stations.

All safety regulations for a food truck/cart can be found on the NY State Codes, Rules and Regulations website.

See How to Open a Food Service Establishment by the Erie County Department of Health (ECDOH) for necessary applications and safety inspections.

Learn about the nutrition benefits and incentive programs that the market might be able to offer in the nutrition benefits and incentives section below.

Operating a farmers market or mobile produce market

Consider what type of vehicle and logistics the business will use during delivery.  Will there be a company owned vehicle, or vehicles?  Or will drivers be using their personal vehicles and get reimbursed for mileage, gas, etc? 

If you or your organization are starting a mobile market, will products be sold out of the truck or set up table and tents at each stop?  Does the vehicle require a commercial driver’s license to drive?  These decisions could impact the type(s) of insurance the business/organization needs and the cost.  Learn more about vehicles and equipment for mobile markets from the Veggie Van Toolkit Vehicles and Equipment Resources page that was updated in 2022 by the Mobile Market Coalition.  If you are visiting the page for the first time, click here to fill out a brief survey and gain access to the Toolkit.  Once you have completed the survey, visit the  Vehicles and Equipment Resources web page. 

Check municipality regulations to learn about parking or zoning restrictions. 

Make sure there is an effective way to keep food refrigerated in hot weather (if applicable).  The business may need a warehouse or refrigerated warehouse license from the Department of Agriculture and Markets

New York State does not regulate farmers markets but do regulate the food sold.  See Operating a Farmers' Market to learn more about starting a farmers or mobile market in NY state.  

Additional resources for operating a farmers market or mobile market is available from the Farmers Market Coalition and Mobile Market Coalition.

Learn about the nutrition benefit and incentive programs that the market might be able to offer in the nutrition benefit and incentives section below. Learn about the nutrition benefit and incentive programs that the market might be able to offer in the nutrition benefit and incentives section below.

Starting an urban farm/urban agriculture on land that I/my organization already owns

Urban farms, or urban agriculture, is the growing of crops in an urban environment for commercial sales.  Hydroponic and vertical growing operations can also be considered urban agriculture (if grown in urban geographies).  Urban agriculture, while important to the food system, can often be hindered by legacy or inflexible zoning regulations/policy or lack of community awareness and mistrust.  Learn more about urban agriculture in the Local Food Action Plan.

Chickens within residential zoning districts are not permitted in some municipalities.  Click here to whether the farm's municipality allows chickens and the municipality’s code specific to chickens.  Always check with the municipality to learn about their zoning regulations.

Additional information can be found at farmers.gov and United States Department of Agriculture (USDA).  If your urban farm is part of a research or education project, you might be eligible for a Sustainable Agriculture Research and Education (SARE) grant.  Learn more about SARE grants and projects at SARE farm grants.

If you plan to operate a farm stand or sell at a farmers market or mobile produce market, you might be able to accept nutrition benefits or participate in nutrition incentive programs.  Learn about the nutrition benefits and incentive programs that the market might be able to offer in the nutrition benefits and incentives section below.

Starting a community garden

Community gardens are collaborative spaces focused on small-scale agriculture.  The gardens are maintained by participants, and the produce is shared by participants.  Additionally, they act as green space, can reclaim vacant lots, and contribute to skill-building and sense of community.  Learn more about community gardens in the Local Food Action Plan.

Be sure to check local zoning and licensing regulations before diving too deep into planning the garden.  You may also want to consider investing in liability insurance.

If the garden is in Buffalo or Niagara Falls, your organization might be eligible for support from Grassroots Gardens WNY.  The application opens in mid-fall for the following year (September 2023 for a 2024 garden).  Existing community gardens in these municipalities on the website. 

Buying or renting land and start a farm

Right to Farm Law: Erie County, in addition to 23 of the 25 Erie County towns, has an adopted Right to Farm law.  Right to Farm Laws cannot keep land in farming nor ensure farm profitability, but they can offer solutions to mediate farmer-neighbor disputes.  

Right to Farm Laws do not eliminate the need for farmers to comply with municipal building code and zoning ordinance requirements.  As with any land purchase, prospective buyers should ensure due diligence has been taken regarding land use and zoning requirements.

If you are interested in owning livestock, please check the municipality code.  Click here to see if your municipality allows chickens, whether chickens are permitted under any circumstances, and a link to the section of the municipality’s code specifying these conditions.  You can search the code document for other types of livestock (i.e., cattle, sheep, horses, etc).  

If you want to rent land to build a farm on, Cornell Cooperative Extension’s Regional Navigator is a great source.  Other local options might be listed at Farm Land Finder.

Additional information can be found on the farmers.gov website and from the United States Department of Agriculture (USDA).  If the farm is part of a research or education project, it might be eligible for a Sustainable Agriculture Research and Education (SARE) grant.  Learn more about SARE grants and projects.

If you plan to operate a farm stand or sell at a farmers market or mobile produce market, you might be able to accept nutrition benefits or participate in nutrition incentive programs.  Learn about the nutrition benefits and incentive programs that the market might be able to offer in the nutrition benefits and incentives section below.

Selling live plants that produce vegetables or fruit at a nursery

Opening a nursery or orchard with live produce plants requires a permit from the NYS Department of Agriculture and Markets.  Inspection for pests, disease risk, and invasive species must occur before a nursery can receive a certification.  This certification process is then repeated every two years.  Learn more about the process and requirements at their Licensing and Plant Inspections website.

Nurseries selling plants producing vegetables or fruit can accept SNAP-EBT as payment for these items.  Learn more about the program in the SNAP section below.

Having residential chickens

Residential chickens are kept for personal eggs/meat producing no monetary profit.  There may be a limit on the number allowed and living conditions.  Some municipalities require neighbors to formally agree to having chickens live next door.  Some municipalities do not allow roosters.

Please check with your municipality to determine whether you need to apply for a use variance, and to learn more about the policies.

Click here to see if your municipality allows chickens, whether chickens are permitted under any circumstances, and a link to the section of the municipality’s code specifying these conditions.

Making jams, jellies, or other products in my home to sell commercially without a 20-C license

New York State allows residents to make and sell certain items from their home.  According to the Erie County Office of Environmental Health, a 20-C Food Processing Establishment license may not be required if the conditions below apply.

  • You are the only employee.
  • You want to use only your existing kitchen equipment and no commercial equipment.
  • You only sell wholesale to restaurants and stores, or sell at a farm, farm stand, craft fair, flea market, farmer's market, and a few other specific locations.
  • You make only certain types of baked goods.

Qualifying food products must not require refrigeration.  Jams/jellies, breads without fruit/vegetables, and some candies may be eligible for the exemption.  Jams/jellies, breads without fruit/vegetables, and some candies.  You can find a full list on the NYS Home Processing website.

Home processors are exempt from food business licensing, routine inspections, and liability insurance.  However, it is recommended that you speak to an attorney or other insurance professionals to learn more about your risks and options.

Consult your local County and municipality for additional requirements.

The Cornell Food Venture Center provides workshops and assistance to help small business keep a safe cooking environment.  Contact them for additional information.  

If you are going to be selling your product at a farmers or mobile market stand, learn about the nutrition benefits and incentive programs that the market might be able to offer in the nutrition benefits and incentives section below.

Operating another type of home bakery requiring a 20-C license

Home bakeries not meeting the Home Processor Exemption (described in the row above) may require a 20-C Food Processor Permit.  Information about these permits and an application are available from the NY State Department of Agriculture and Markets.

If you are going to be selling your product at a farmers or mobile market stand, learn about the nutrition benefits and incentive programs that the market might be able to offer in the nutrition benefits and incentives section below.

Making products for a one-time “bake sale”, “spaghetti dinner”, “potluck setting"

If the one-time event (e.g., bake sale, spaghetti dinner, potluck, etc) is for a specific club or group, then a permit is generally not required in Erie County.  Specific examples of these groups include congregations, clubs, and schools. 

However, if the sale is open to the public at a community event, then a Temporary Food Establishment Permit is usually required.  Learn more about the process for getting a permit from Erie County.

Donating food I’ve grown

The Good Samaritan Food Donation Act of 1996 allows for donations to nonprofit organizations under some circumstances.  The Act does not protect someone or an organization donating products to an individual person.  To see an analysis of the Act and learn about existing legal protections, please see USDA Good Samaritan Act Provides Liability Protection For Food Donations.

Nutrition benefit and incentive programs that businesses can accept or participate in

The options below are some of the most common benefit and incentive programs available in New York State.  This is not an exhaustive list, and some markets also have their own programs (e.g., a sliding price scale or rewards program).  Please reach out to the program directly for more information.  If you know of additional programs available in Erie County, please contact us at fpc@erie.gov so that we can add to the list.

Supplemental Nutrition Assistance Program (“SNAP”) by Electronic Benefits Transfer (“EBT”), commonly known as “SNAP-EBT”

The Supplemental Nutrition Assistance Program, SNAP, provides individuals and families with low income a debit-like card that can be used at authorized grocery stores, farmers markets, farm stands, mobile markets, etc.  SNAP is a federal program.

Grocers operating a “brick and mortar store” can accept SNAP if they meet certain criteria.  Learn more about accepting SNAP at your store and the application process.

Grocery delivery services can accept SNAP-EBT benefits by marking that the business is a delivery route on the application.  Note that there is a separate application process even if the organization operates a retail store or farmers or mobile market.  The business website must also follow requirements outlined on the SNAP website.

Farmers markets can accept SNAP-EBT benefits.  According to the Farmers Market Coalition, farmers or individual vendors can sign up to accept SNAP-EBT at their stand.  Learn more about SNAP at farmers markets from the Farmers Market Coalition and the SNAP: farmer/producer and SNAP: retailer websites.

Farm stand operators, also called “Direct Marketing Farmers,” should refer to information provided to farmers markets.  Even if the farm sells at farmers markets, a separate application must be filled out for the farm stand at a different location.

Mobile Markets can accept SNAP-EBT benefits and can start with the steps provided in the Farmers Market Coalition SNAP guide.  In addition to these resources, the Mobile Market Coalition developed a brief SNAP guide in 2022 for the Veggie Van Toolkit.  Access the Toolkit here.  After you have completed the survey, click here to access the page that has the SNAP guide.

Nurseries selling plants that produce fruits or vegetables can accept SNAP-EBT benefits for produce plants or seeds per the list created by the USDA’s Food and Nutrition Service.  However, these benefits cannot be used for other type of plants (e.g., flowers), pet food or birdseed.

Special Supplemental Nutrition Program for Women, Infants and Children (WIC)

The Special Supplemental Nutrition Program for Women, Infants and Children, WIC, is a federal program.  WIC provides pregnant people, and caregivers of children up to 5 years old with an electronic benefits transfer (EBT) card if they meet requirements for having low income and are nutritionally at risk.  Learn more about the WIC program here.

Grocery stores interested in becoming a WIC authorized retailer should contact the management agency office in Rochester. See the list of items that can be purchased using WIC.

Farmers/mobile market operators should see the section on the Farmers Market Nutrition Program (FMNP) below.

Go & Dine (for restaurants)

Go & Dine is available from the Erie County Department of Senior Services through a grant by the Administration for Community Living.  This program allows seniors to eat at participating restaurants for free and socialize with other Erie County community members.  Participating restaurants have an abbreviated menu for those looking to use Go & Dine coupons.  A $3 donation is suggested but not required.

Double Up Food Bucks (“DUFB” or “Double Up”) New York

Double Up Food Bucks NY, a program of Field & Fork Network, is a nutrition incentive program for SNAP shoppers that offers a long-term, sustainable solution to fighting food insecurity across New York. The program is a win-win-win, increasing accessibility and affordability of local, fresh fruits and vegetables for families, increasing economic opportunities for farmers, and supporting local economies. A family purchases fresh fruits and vegetables with SNAP benefits at a participating site and then receive a dollar-for-dollar match in Double Up Food Bucks, from $5-$20 a day, to purchase more fresh fruits and vegetables. 

Double Up Food Bucks NY is available at farmers markets, farm stands, mobile markets and grocery stores across New York. There are currently over 230+ participating locations with more than 15 located right here in Erie County. All participating locations can be found by visiting Find a location – Double Up food Bucks NYS. To learn more visit doubleupnys.com or fieldandforknetwork.com.

Farmers Market Nutrition Program (FMNP)

The Farmers Market Nutrition Program (FMNP), empowers WIC recipients to shop at farmers and mobile markets.  The program is operated at the State level with funding from the USDA’s Food and Nutrition Service.  Coupons are sent to the shopper to use at approved farmers markets. Learn more about selling products at a farmers' market.

Mobile produce markets or farm stands have slightly different requirements than a traditional farmers market.  Farmers markets have at least two vendors, while a mobile market or farm stand operate as a single vendor.  

See the requirements and application process to participate in FMNP as a farmers market, mobile market, or farm stand

Senior Farmers Market Nutrition Program (Senior FMNP)

Similar to the Farmers Market Nutrition Program, Senior FMNP allows seniors 60+ to use coupons at farmers markets and mobile markets.  If the market participates in FMNP, you can receive Senior FMNP.  Learn more about selling products at a farmers' market and operating a farmers' market.

FreshConnect coupons (for farmers markets or farm stands)

Created by About Fresh, FreshConnect is an incentive program available to SNAP-EBT users, veterans, service members and their immediate family members.  The program allows farmers markets and farm stands to issue a $2 FreshConnect check for every $2 spent with SNAP-EBT.  Learn more about FreshConnect in New York or apply here.  The Operating a Farmers’ Market page also has information about FreshConnect. If the market is already authorized to accept FMNP, it can also accept FreshConnect coupons.