What licenses and permits are required to open a restaurant in Iowa?

Jan 24, 2024 | 3 min read

Opening a restaurant in Iowa requires obtaining several licenses and permits, including a Food License, Food Service, Retail, and Mobile Food Licensing, Food Processing License, and potentially others depending on the specific circumstances of your restaurant. These licenses are regulated by the Department of Inspections, Appeals, and Licensing (DIAL) and other relevant authorities. The cost of these licenses varies, and the application process can be completed online through various respective licensing systems.

1. Food License

  • Purpose: This license is required for food businesses such as restaurants, bars, and catering operations. It covers food production, sales, or service at each location. The license is non-transferable between locations or owners.
  • Estimated Cost: The annual cost for a food service establishment license, which includes restaurants, is based on annual gross sales and ranges from $150-$400. If the previous year's gross sales are not included in the application, the maximum license registration fee of $400 will be charged.
  • How to Register: You can apply for the license online through DIAL's online food licensing system. The license renewal can also be made online, provided the license is not more than 60 days overdue. Payments can be made via Electronic Fund Transfer (EFT) or credit/debit card.

2. Food Service, Retail, and Mobile Food Licensing

  • Purpose: This license is needed to open a restaurant in the state of Iowa. It is obtained from the Iowa Department of Inspections and Appeals.
  • How to Register: More information and the application process can be found on the Iowa Department of Inspection, Appeals, and Licensing website.

3. Food Processing License

  • Purpose: This license is required if you plan to process food in your restaurant.
  • How to Register: Details and the application process can be found on the Iowa Department of Inspection, Appeals, and Licensing website.

4. Food Service Establishment (FSE) or Retail Food Establishment (FE) License

  • Purpose: In Scott County, you need to obtain either an FSE license (for establishments where food is prepared or served for individual portions intended for consumption on the premises) or an FE license (for establishments that sell food or food products to consumers intended for preparation or consumption off the premises).
  • Estimated Cost: The license fee(s) are based on gross sales, or anticipated gross sales.
  • How to Register: The appropriate application must be filled out and fee(s) paid prior to the opening inspection. The application for FSE and for FE can be found on the Scott County Government website.

5. ServeSafe Certification

  • Purpose: Food handlers in Iowa are required to have ServeSafe Certification.
  • How to Register: You can find classes and more details about this certification on the Iowa Restaurant Association’s website.

Please note that this is not an exhaustive list and other licenses or permits may be required. For more assistance, contact the America’s SBDC Iowa office nearest you, which can be found at www.iowasbdc.org under “Locations”.

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Otter helps your restaurant business grow. Here a few of our key results:
  • Increase revenue up to 10% with Marketing*
  • Reduce storefront downtime by up to 50% with Live Alerts*
  • Increase sales up to 50% with Digital Dine-In's QR code ordering*
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* Results based on typical Otter customer performance

DISCLAIMER: This information is provided for general informational purposes only and the content does not constitute an endorsement. Otter does not warrant the accuracy or completeness of any information, text, images/graphics, links, or other content contained within the content. We recommend that you consult with financial, legal, and business professionals for advice specific to your situation.

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