Bay Area Restaurant Permits: Health, Fire, and Building Codes (2026 Guide)

Why Restaurant Permitting Is More Complex Than Residential

If you have ever pulled a permit for a kitchen remodel or bathroom renovation, you might assume opening a restaurant follows a similar process. It does not. Restaurant permitting involves multiple agencies reviewing your project simultaneously, each with its own application, fee schedule, inspection protocol, and approval timeline.

A residential kitchen remodel requires a building permit and possibly a plumbing or electrical sub-permit. A restaurant buildout requires all of that plus health department plan review, fire marshal clearance, a commercial operating permit, a business license, food handler certifications, and potentially a liquor license, a conditional use permit, and a grease interceptor permit.

Each agency operates independently. A delay with one does not pause the clock on another. Missing a requirement from one agency can force you to redesign work that another agency already approved. This is why restaurants that try to navigate permitting without experienced guidance regularly face three to six month delays and tens of thousands of dollars in unexpected costs.

The Complete Restaurant Permit Stack

Every restaurant opening in the Bay Area needs to clear the following permits and approvals. The exact fees and timelines vary by city and county, but the categories are consistent across the region.

1. Building Permit (City or County Building Department)

The building permit covers all structural, mechanical, electrical, and plumbing work in your space. Whether you are building out a raw shell or renovating an existing restaurant, any construction work requires a building permit from your local jurisdiction.

What it covers: Demolition, framing, drywall, flooring, plumbing rough-in and finish, electrical wiring and panels, HVAC installation, hood and duct systems, ADA-compliant restrooms, and fire-rated assemblies.

Plan review process: You submit construction drawings prepared by a licensed architect or engineer. The building department reviews for compliance with the California Building Code, local amendments, Title 24 energy standards, and zoning requirements.

AB 671 update for 2026: California’s AB 671, effective January 1, 2026, requires local building departments to approve or deny restaurant tenant improvement permit applications within 20 business days of receiving a complete application. If the deadline passes without a decision, the application is automatically approved. For resubmissions correcting identified deficiencies, the review window drops to 10 business days. This law also allows qualified professional certifiers (licensed architects or engineers with at least five years of commercial design experience and $2 million in liability insurance) to certify that plans comply with all applicable codes.

Cost: Building permit fees are typically calculated as a percentage of project valuation, ranging from 1% to 3%. For a restaurant tenant improvement valued at $300,000 to $500,000, expect $5,000 to $15,000 in building permit and plan review fees. San Jose’s plan review rate is $325 per hour with a one-hour minimum.

2. Health Department Plan Review and Operating Permit

Your county’s Environmental Health division must review and approve your plans before construction begins, then inspect the completed space before you can serve food. This is one of the most detail-intensive reviews in the entire process.

What they review: Floor plans showing all equipment locations, food preparation and storage areas, handwashing stations (minimum three: one at each restroom, one in the kitchen), warewashing setup, ventilation, plumbing fixtures, finish materials for floors, walls, and ceilings (all must be smooth, durable, and easily cleanable), grease interceptor sizing, and pest prevention measures.

Submission requirements: Three sets of scaled floor plans, equipment specification sheets, a proposed menu, and finish material schedules. As of February 2026, Santa Clara County requires all plan check submittals to be sent electronically; printed plans are no longer accepted.

Cost by county:

Permit / Fee	San Francisco	Santa Clara County	Alameda County	Contra Costa County
Health Permit Application	$900 - $1,400	$600 - $1,200	$500 - $1,100	$700 - $2,000
Plan Review Fee	$400 - $800	$400 - $900	$350 - $700	$400 - $800
Annual Operating Permit	$600 - $1,200	$400 - $800	$400 - $900	$500 - $1,000
Plan Review Timeline	15 - 20 business days	15 - 30 business days	15 - 25 business days	20 - 30 business days

Fee ranges reflect variation by facility size, service type, and risk category. Contact your county’s Environmental Health division for exact fee schedules.

California Retail Food Code (CalCode) highlights:

• All food contact surfaces must be smooth, easily cleanable, and in good repair
• Grease interceptors (gravity grease interceptors) must be sized per California Plumbing Code drainage fixture values
• Grease removal devices must be flush-mounted in the floor or sealed to the wall and floor with at least six inches of clearance for cleaning
• Adequate ventilation is required over all cooking equipment producing grease-laden vapors
• Separate handwashing sinks are required in food preparation areas; they cannot double as utility or warewashing sinks

3. Fire Department Clearance

The fire marshal reviews your plans for life safety, occupancy load, egress, and fire suppression systems. Restaurants with commercial cooking equipment face additional requirements.

Type I hood and fire suppression: Any cooking equipment that produces grease-laden vapors requires a Type I hood with a UL 300 listed wet chemical fire suppression system. Fire suppression nozzles must be installed in the hood, in the ductwork, and above each piece of cooking equipment. The system must be professionally inspected every six months, with records maintained per California Fire Code Section 606.3.3.1.

Additional fire requirements:

• Occupancy load calculation based on square footage and use type
• Emergency exit signage and illumination
• Fire sprinkler system (required in most commercial spaces)
• Fire alarm and detection system
• Fire extinguisher placement (minimum one per 3,000 square feet, properly rated for kitchen fires)
• Clear egress paths meeting minimum width requirements

Cost: Fire plan review fees range from $500 to $2,000 depending on the jurisdiction. Fire suppression system installation for a commercial kitchen typically costs $3,000 to $8,000 for the system itself, plus inspection fees.

4. Business License and Tax Registration

Every city in the Bay Area requires a business license to operate. This is typically one of the simpler permits to obtain, but it must be in place before you open.

Cost: $50 to $500 annually, depending on the city and your projected gross revenue. San Francisco’s First Year Free program has historically waived first-year permit and license fees for new businesses.

5. ABC Liquor License (If Serving Alcohol)

If your restaurant will serve beer, wine, or spirits, you need a license from the California Department of Alcoholic Beverage Control (ABC).

Common restaurant license types:

License Type	What It Covers	State Application Fee	Annual Fee	Typical Timeline
Type 41 (Beer and Wine, Eating Place)	Beer and wine only, with food service	$700 - $1,050	$400 - $900	2 - 4 months
Type 47 (On-Sale General, Eating Place)	Beer, wine, and spirits, with food service	$6,275 - $16,560	$925 - $1,450	3 - 6 months

Note: Type 47 licenses in high-demand Bay Area locations can cost $200,000 or more on the private market, far exceeding state application fees. Effective January 1, 2026, ABC application and annual fees increased by 2.72%.

Timeline consideration: ABC licensing runs on its own timeline and should be started as early as possible, ideally at lease signing. Many restaurant owners open for food service while their liquor license application is still in process.

6. Additional Permits You May Need

Depending on your location, concept, and space, you may also need:

• Conditional Use Permit (CUP): Required in many Bay Area cities if the space was not previously used as a restaurant, if you plan to serve alcohol, or if your hours of operation exceed certain thresholds. CUP processing can add two to four months and $3,000 to $10,000 in fees.
• Signage Permit: Required for exterior signs, awnings, and projecting signs. Fees range from $100 to $500.
• Grease Interceptor Permit: Some jurisdictions require a separate permit from the wastewater or sewer district for grease interceptor installation.
• Outdoor Dining Permit: If you plan to use sidewalk or patio space for seating, a separate encroachment or outdoor dining permit is required.
• Music or Entertainment Permit: Required in some cities for live music, DJs, or amplified sound beyond background levels.

A Realistic Permit Timeline

Here is what a well-managed restaurant permit timeline looks like when applications are submitted complete and processes run in parallel where possible.

Months 1 - 2: Pre-Construction Permits

• Submit building permit application with construction drawings (AB 671: 20-business-day review)
• Submit health department plan review package (15 to 30 business days)
• File ABC liquor license application (begins three-to-six-month process)
• Apply for business license
• Submit fire department plan review

Months 2 - 4: Construction Phase

• Building permit issued; construction begins
• Rough-in inspections (plumbing, electrical, mechanical, framing)
• Fire suppression system installation and testing
• Health department pre-operational consultation (if offered by your county)

Months 4 - 5: Final Inspections and Approvals

• Building department final inspection
• Fire department final inspection and occupancy clearance
• Health department final inspection and operating permit issuance
• Certificate of Occupancy issued

Month 5 - 6: Opening

• Staff training and food handler certifications finalized
• ABC license issued (if timeline aligns)
• Soft opening and final operational setup

This timeline assumes a mid-size restaurant tenant improvement with no major plan check corrections. New construction from a raw shell, projects requiring a conditional use permit, or applications with incomplete submittals will take longer.

The Most Common Permit Mistakes Restaurant Owners Make

Starting Construction Before Health Department Approval

The health department must approve your plans before construction begins. If you start building and your layout does not meet CalCode requirements, you will need to tear out and redo completed work at your own expense. This is especially common with handwashing station placement, grease interceptor sizing, and floor finish materials.

Underestimating Fire Code Requirements

Type I hood and fire suppression system requirements are non-negotiable for any restaurant producing grease-laden vapors. These systems require specific ductwork routing, suppression agent capacity, and nozzle placement that must be coordinated with your kitchen layout during the design phase, not after construction begins.

Submitting Incomplete Applications

Incomplete applications are the number one cause of permit delays across every agency. A missing equipment spec sheet, an unsigned form, or a floor plan that does not show handwashing station locations will trigger a correction cycle that adds weeks to your timeline. Under AB 671, the 20-business-day clock does not start until the application is deemed complete.

Not Running Permits in Parallel

Building permits, health department plan review, fire plan review, and ABC licensing can all be initiated simultaneously. Waiting for one approval before starting the next can add three to four months of unnecessary delay.

Why a Design-Build Firm Matters for Restaurant Permitting

Restaurant permitting is not just about filling out forms. It is about designing a space that satisfies four or five different agencies on the first submission. Your kitchen layout must work for the health department’s CalCode requirements, the fire marshal’s suppression and egress standards, the building department’s structural and energy codes, and ADA accessibility requirements, all at the same time.

At Custom Home, our commercial buildout team handles the full permitting process in-house. We design your space in 3D so you can review the layout, finishes, and customer flow before we submit to any agency. Every plan set is prepared to meet the specific requirements of your city and county, reducing correction cycles and keeping your timeline on track.

We coordinate directly with health departments, fire marshals, and building departments so you can focus on the parts of opening a restaurant that only you can handle: your menu, your team, and your vision for the space.

Next Steps

If you are planning a restaurant opening in the Bay Area and want to understand exactly what your permit process will look like, contact Custom Home for a consultation. We will walk through the specific requirements for your city, your space, and your concept, and provide a realistic timeline and budget for the full permit and construction process.