Applied Economics Teaching Resources

an AAEA Journal

Agricultural and Applied Economics Association

Case Study

A Case Study on the Home Cooking Movement—Legalization, Market, and Competition

Suraj Gurung(a), Jonathan Ritacco(a), Lijun Angelia Chen(a) and John Lai(a)
(a)University of Florida

JEL Codes: JEL Codes: Q13; Q18
Keywords: Diffusion of innovation, economic systems and structures, Home Cooking Movement (HCM), legalization, Microenterprise Home Kitchen Operations (MEHKO)

Publish Date: December 15, 2024

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Abstract

The National Food Freedom Initiative, led by the Institute for Justice, has been promoting “food freedom” since 2013, advocating for people’s rights to buy or sell foods of their choice and for reduced government regulation. Similar progress by California Assembly members and non-profit organizations, coupled with increased home kitchen operations driven by consumer demand, led to the passage of Assembly Bill No. 626 (AB 626) in 2018, which legalized residential preparation and sale of foods containing perishables (i.e., meat and seafood). California’s AB 626 laid out a legislative foundation for other states, such as Utah and Iowa, expanding the Home Cooking Movement (HCM). However, while the HCM is an emerging tool to extend the food freedom initiative, little is known about the economic viability and resilience of the HCM food system and the growth potential of home kitchen operations and businesses. To fill the gap, this case study examines the evolving legislative landscape of the HCM, accesses the economic systems underpinning HCM across three core structures—motivation, decision-making, and information structures, and uses the framework of Diffusion of Innovation Theory to analyze the challenges facing the HCM. By creating an enhanced economic understanding of an innovative food system, this case study offers valuable insights to beneficiaries such as policymakers, consumers, industry advocates, and opponents, as well as students majoring in agribusinesses and food economics.

About the Author: Suraj Gurung is a PhD Student at the University of Florida. Jonathan Ritacco is an Undergraduate Student at the University of Florida. Dr. Lijun Angelia Chen is an Assistant Professor at the University of Florida. (Corresponding Author Email: lijunchen@ufl.edu) Dr. John Lai is an Assistant Professor at the University of Florida.

Acknowledgements: This work was supported by the USDA National Institute of Food and Agriculture, Hatch Projects FLA-FRE-006374 and FLA-FRE-006037.

Copyright is governed under Creative Commons CC BY-NC-SA

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