How to Open a Food Cart in Portland
Blog by Attorney Nicole Hetz
As you may have noticed, Portland, Oregon is often called “the land of food carts”. Depending on the source and who you ask, there are over 600 food carts in the city. Portland's Multnomah county was ranked fourth place in 2018 with 90 food cart businesses, an increase of 76 percent over five years. Can you imagine what the number is for 2022? But what does it really take to open a food cart?
First of all, what counts as a food cart? It is “...any vehicle that is self-propelled, or which can be pushed or pulled down a sidewalk, street or highway on which food is prepared, processed or converted, or which is used in selling and dispensing food to the ultimate consumer.” (As defined in OAR 333-162-0000 (31) So essentially it is a mobile food unit that includes carts, trailers, trucks, drive-through coffee stands and kiosks.
There are some common qualities in all food carts.
They all have to be “mobile” which means they need to be ready to go at all times, on inflated wheels.
All food carts must be licensed by the Oregon Health Department.
If you are selling unpackaged meals, you must have a way to wash your hands.
You can’t have any permanent connections to any utility service (i.e. water, sewer, or electric), etc.
No matter if you are thinking of remodeling an old food cart, buying one that is already working or starting from scratch, you will have to go through a “plan review process” with Multnomah county to meet the requirements of the Oregon Food Code. It is important that whatever you buy meets code requirements.
There are four classes of food carts depending on several factors including size, complexity and type of foods prepared.
The class ultimately depends on your menu. For example: are you thinking about selling pre-packaged food like a pre-wrapped sandwich? Or have you chosen to build a menu that needs to be prepared right there in the moment? That could be a class one or class four depending on what you are making or cooking. The menu is super important as a decision factor in the whole process. Think before you cook!
Despite the beneficial opportunities that food carts can provide, there are numerous logistical challenges to owning a food cart. For example: Most food carts will need a commissary unless they have a 3-compartment sink. A commissary is a commercial kitchen. This means that this is required for Class 1 mobiles if you are preparing, prepackaging, or ware washing yourself; or, on a Class 2 or 3 mobile if there is no 3-compartment sink on the mobile unit and you are preparing, prepackaging, or ware washing yourself at the commissary. Even if your cart is owned by a restaurant or if you are dropping off/picking up dishes, you will still need the commissary information. Another example is the food and equipment not stored in your cart or commissary, must be stored in a licensed warehouse - meaning you can’t take it home with you.
How to open a food cart business in Multnomah County Oregon
When you submit your plan review application and the fee associated with the process, you must also submit:
Mobile Food Unit Plan Review Application and Plan Review Fee
Plan Review Worksheet
Menu
Floor plan of the mobile’s interior
Detailed information for: 3-compartment sink, hot water heater, pump, fresh/waste water tanks
Operating Schedule
Wastewater Disposal Form
Restroom Agreement Form
Commissary Application and Verification Form and Commissary License Fee (if applicable)
Warehouse Application and Plan Review Packet (if applicable)
After plans have been approved by the Oregon Health Department you must submit your operating license application and fee. This can be done when you turn in your plan review packet. Once you receive our approval letter you can begin construction. If your plans are not approved, stop and ask for more information.The last step would be to contact your plans examiner to set up a pre-opening inspection. You cannot open until your pre-opening inspection has been completed and approved. Your license is good for one calendar year and licenses are not transferable. If you’re buying or leasing a food cart that has operated within the past 12 months, you’ll need to apply for a change of ownership and get your own license.
What are the legal steps for a food cart business?
Ideally, you would form a separate legal entity for this business endeavor, separate from your personal life. We normally see clients forming a Limited Liability Company or Partnership right at the beginning of this process. If you are in a partnership, we definitely recommend building a partnership operating agreement to lay out all the rules of your business and relationship. Another thing to consider is trademarking your business name and your logo, if you have one, to protect the intellectual property that you have created with your brand. Lastly, if you are planning to move the food cart to other venues to provide the service, you may want to consider an event or client service agreement in which we would build a scope of the service, amount of food and amount of people you are serving, payment methods, refund and cancellation policies, covid policies, among other important considerations. Rational Unicorn Legal Services can advise and assist with all of these things: LLC formation, partnership agreements, contract drafting, reviewing commercial leases before you sign, searches to ensure your business name is not already being used elsewhere, trademark applications to protect your branding, catering agreements, and more. Get in touch with us via the contact page on our website to discuss any of these.
I have a mobile unit license from another county. Can I use it to sell in Multnomah County?
Mobile units licensed by another Oregon county that arrive in and leave Multnomah County on the same day are not required to obtain a local license. If you wish to park the unit in Multnomah County overnight or longer, such as for an event, you must notify the Oregon Health Department, pay a fee and receive an inspection. This only applies if you are currently licensed in another Oregon county. If you are not currently licensed you must acquire a mobile unit license from the Multnomah County Health Department, or obtain a temporary event license. Under all circumstances you must comply with all local rules and regulations.
If you’re ready to get your food cart business started, reach out to Rational Unicorn Legal Services to connect with Attorney Nicole Hetz for a free 30 minute consultation.
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