Starting a business is a daunting adventure, and for food makers the challenges are even more pronounced. In addition to establishing a brand and a customer base, many face the logistics of running a commercial kitchen, obtaining licenses and certifications, and meeting inspection standards. But for those who are just starting out or comfortable with keeping a small operation, there’s a straightforward solution: Michigan’s Cottage Food Law.
Cottage food law uniquely positions business owners to operate without a food establishment license. Unlike for food sold through other wholesale or retail channels, commercial kitchen access and food preparation inspections are not required. Food may be sold at farmers markets or pop-ups but sales must be direct-to-consumer (excluding the seller from eCommerce) and sales are capped at $25,000 a year.
In the case of Tiffany Wood, owner of Precision Syrups in St. Joseph, operating under cottage food law allowed her more flexibility than commercial licensing. “Cottage food law allows you to make mistakes – and it’s an affordable way to grow for folks who don’t have hundreds of thousands of dollars to pour into resources and only then start experimenting,” she says. Wood had the opportunity to figure out labeling, precise measurements, and marketing tactics, and to test which products worked best before scaling up.
For Claudia Ayala-Frush of Sugar Happy Cookies in Milford, cottage food law allows her to sell her intricately decorated sugar cookies without having to incur the expense or time commitment of a full-scale commercial operation: “In my case, working from home makes more sense. While I wait [for the icing to set], I can start a new order, reply to client emails, order supplies, run errands, or do something completely unrelated to cookies!”
Michigan Cottage Food Law provides an avenue for entrepreneurs to navigate the complexity of operating a food business while putting less on the line. What does that mean for consumers? More hyper-local foods!
What Needs to Be on the Label?
Cottage food labels should contain the product name, maker’s name and address, ingredients, and measurements. It must also include the phrase “Made in a home kitchen that has not been inspected by the Michigan Department of Agriculture & Rural Development.”
This article was originally written by Emily Row for the 2024 Local Food Guide.