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CEDAR RAPIDS The majority of diners assume that the eateries they frequent are safe to eat at, have a valid license, and have been approved by the local health department.
However, a new trend suggests that’s not always the case for people in Linn County and throughout Iowa who want to order a bite to go.
Local public health officials have observed a rise in delivery-focused eateries selling food on DoorDash and other apps without the required licenses or inspections in recent years.
Before they were closed, a few of them enjoyed considerable popularity in Cedar Rapids.
According to Dustin Hinrichs, supervisor of the environmental quality branch for Linn County Public Health (LCPH), no one knows that this is even feasible. People simply have faith in the system’s security.
Where is this happening?
The number of unregistered or badly licensed restaurants trying to sell their cuisine has increased over the past two to three years, according to LCPH. Although it can also occur at commercial locations, this occurs more frequently at home locations.
Instead of traditional dine-in and carryout sales, these restaurants mainly use models like cloud kitchens, which rely on delivery through third-party applications like DoorDash and Uber Eats.
According to Hinrichs, he has addressed the issue at roughly 20 eateries in Linn County and a few more in Jones County, where LCPH has a service contract.
He added there are numerous such stories of it occurring. However, resources are limited because enforcement for about 1,700 licensed businesses is handled by a team of six full-time restaurant inspectors.
We mostly rely on complaints. “We simply don’t have the staff,” Hinrichs stated. To determine whether the reports are accurate, a few full-time personnel would need to investigate those.
Furthermore, it’s not limited to the Corridor. According to the Department of Inspections, Appeals and Licensing (DIAL), complaints against unregistered facilities have increased by around 20% this year. Food trucks, farmers market vendors, businesses that open without a food license, and individuals selling homemade meals that don’t meet the requirements for cottage food exemptions are some examples of these issues.
Notable examples
Lost Cuban is one well-known instance of a Cedar Rapids restaurant that lacked the appropriate license.
From 2012 to 2019, the well-known Cuban eatery in downtown Cedar Rapids, which uses family recipes from its owner Jess Streit, was licensed as a full-service establishment.
In April 2024, it briefly reopened as a DoorDash delivery-only restaurant. Up until earlier this year, it operated out of the Third Street Bodega, serving Cuban sandwiches, without the required restaurant license or inspection.
Hinrichs claimed that they worked out of a closet-like area and disregarded several calls, texts, and in-person efforts to assist them in meeting regulations such as ventilation.
“I really enjoyed their cuisine,” Hinrichs remarked. They were aware of the guidelines.
Hinrichs was compelled to file a lawsuit. In order to get an injunction that would enable law enforcement to close them down, LCPH went to court.
The Lost Cuban was out of business by the time they finished the procedure. Streit was unreachable by phone and did not reply to texts or messages on social media asking for comment on this piece.
Since birria tacos were popular a few years ago, Birria King, another well-liked cloud kitchen concept, also began without the necessary approval.
A balancing act of enforcement
Aside from resources, LCPH may have to strike a balance when it comes to enforcement.
According to Hinrichs, county public health departments have the power to close down eateries that violate rules and regulations, but they only do so as a last resort for practical and personal safety reasons. Many restaurant owners view the business at stake as a significant financial and personal investment, frequently totaling tens of thousands of dollars.
Before, I’ve seen individuals reach for guns. “In the field and in the office, I’ve had people hurl at me,” he remarked. People would stop at nothing to keep it afloat because it is their life savings.
Hinrichs has human-level understanding of that. He was raised in the restaurant business, where his father’s ventures were repeatedly unsuccessful.
The first line of defense the agency uses to help restaurateurs understand what is required is education on what might be a complex procedure.
The majority of cases are settled by informing business owners about what they can and cannot do without a license, according to Stefanie Bond, communications director for the Iowa Department of Inspections, Appeals, and Licensing. State and local food safety regulatory agencies may collaborate with city and county attorney offices to take action against an unlicensed food operation.
When instruction is insufficient to force unlicensed restaurant owners to conform, Hinrichs uses connections with other county and city agencies to assist in imposing penalties on noncompliant establishments. This can entail refusing to issue building permits for remodeling or liquor licenses.
What do delivery apps allow?
According to DoorDash, it forbids unauthorized eateries from using its platform and mandates that all companies abide by local, state, and federal laws.
The third-party delivery service gathers basic data, such as a restaurant’s Tax ID number, and needs merchants to fulfill specific eligibility conditions, such as possessing a business license. Additionally, running its restaurants in residential areas is prohibited by the platform’s terms of service.
However, Hinrichs and restaurant owners told The Gazette that the platform does not require them to show that they have completed food safety training or that they have complied with local health rules, as is necessary in Iowa.
Whether DoorDash collects evidence of health code compliance from its merchants was not made clear by a spokesperson.
According to DoorDash, it looks into any claims of unauthorized eateries and, if confirmed or impossible to confirm, takes them off the platform. Hinrichs claimed that he has had trouble persuading delivery platforms to fulfill that commitment.
They simply keep transferring you to other (workers). “They move you to someone new as soon as you start getting anywhere,” he stated.
When asked what kinds of documentation or verifications they need from eateries that use their platform, Uber Eats refused to respond.
All restaurants, including those operating at ghost, cloud, or virtual kitchens, are required to comply with all relevant licensing and food safety regulations, Alex Finke, an Uber public policy representative, said in a statement.
Is selling food from home allowed?
In Iowa, under certain conditions, it is legal to produce and sell food from your house.
Cottage food laws permit shelf stable foods that don t require temperature control,such as baked goods, to be made and sold from homes.
You can also make and sell temperature-controlled food, like casseroles and meat products, from home with aHome Food Processing Establishment (HFPE) license.
Some of the 59 HFPE licensees in Linn County sell well-known goods like sandwiches, pizza, and burgers.
State law prohibits an HFPE licensee from operating on-site dining, but does not bar them from operating food delivery businesses from home.
According to Hinrichs, the standards for a typical restaurant are far more stringent than those for that license, including those related to equipment, training, and fire codes.
What does it take to legally open a restaurant?
Opening a restaurant outside the house is costly and time-consuming. Applicants for food licenses must pass a pre-opening inspection, complete food safety training, and submit floor plans of the equipment layout.
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But for good reason, Hinrichs explains. We see outbreaks around the world all the time because people have no idea what they re doing in the kitchen.
Requirements for traditional restaurants protect infrastructure the home cook doesn t have to think about. Grease trap requirements, for example, protect sewers and water systems from improper disposal can lead to backups and flash flooding, in extreme circumstances.
Nonprofits like NewBo City Market help new restaurant owners navigate the process and mitigate the costs. Over the last two and a half years, the small business incubator has worked with about 20 restaurants and food businesses, including the introduction of seven new ones.
The model has helped former vendors likeCR Midnight Smoker BBQ,The Hangry LadyandAnh s Bread Therapygraduate to their own brick-and-mortar establishments around the city.
There s a huge demand for restaurants to open in Cedar Rapids, said Matt McGrane, director of equitable business development for NewBo City Market. I get why it would be tempting to open a restaurant from your home.
It can take several months to formulate a business plan and help businesses navigate health regulations. By working closely with each vendor, the institution gains and passes on knowledge to subsequent vendors.
For example, gas appliances need to be chained to the wall to prevent a line from breaking if pulled too far. A divider needs to be in place between deep fryers and cooktops to prevent grease spatters from igniting flames.
The cost of equipment is one of the largest barriers to new restaurateurs. McGrane said the average equipment cost for a startup can run $30,000 or more.
NewBo City Market provides resources like grant access, a communal dish room and a limited number of ventilation hoods to help ease the pain. The limited number of ventilation hoods is a bottleneck for vendors waiting to get in.
In return, vendors are held to higher standards than the law requires. Each one is required to have food protection manager certifications, take out the trash and clean dirty dishes before closing each night.
Because we re in a shared space, one person s actions in their stall can impact other restaurants adjacent, McGrane said. We have a reputation to uphold.
Even with these resources, owning a restaurant is a significant commitment. But when done properly, NewBo City Market s model helps make the dream accessible to more in an industry with difficult odds.
They dream of doing something they get joy from. They want to earn a living doing this, but they want to share it with the world, McGrane said. It s almost a calling they have.
Comments: Features reporter Elijah Decious can be reached at (319) 398-8340 or [email protected].
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