Written for owners of restaurants, cafes and coffee shops, bars, takeout and delivery kitchens, food trucks and bakeries with seating in the US, with state detail for California, Texas, New York and Florida.
The short version
- Fix every violation at once.Then contest any points you disagree with. A C grade in the window hurts walk-in trade more than the fines.
- Preserve the evidence the same day.Keep the dish, ticket, recipe, POS checks, video, incident report and staff names. Video systems overwrite within days.
- Call the insurer; say nothing about fault.Do it straight away. Check your cover too: general liability usually excludes liability from selling alcohol, so bars and restaurants buy liquor liability separately.
Most bad days in a restaurant start with an inspector, a guest's reaction or a phone call about something that happened after someone left. In each case the first hours decide much of the outcome: what you fix, what you keep and what you say.
A failed inspection
In New York City letter grades follow inspection points: A for 0 to 13, B for 14 to 27 and C for 28 or more. An initial inspection of 14 or more points is scored but not graded: an inspector comes back unannounced, typically within a month, and grades that reinspection. After a B or C there, you may post 'Grade Pending' instead while you contest at an OATH hearing. Los Angeles County posts A, B or C grade cards by score; other cities publish scores online. As of Oct 2026.
- Fix the violations at once.For example, if an initial inspection in Queens scores 31 points for cooling and handwashing violations, fix both that day. That score carries no grade yet.
- Be ready for the reinspection.You do not book it: an inspector returns unannounced, typically within a month, and that visit is graded. Keep the fixes and logs going every day.
- Contest a B or C and post 'Grade Pending'.Contest the points at OATH and post 'Grade Pending' until the hearing. A C grade in the window hurts walk-in trade more than the fines.
Holding and cooling temperatures
Hold cold food at 41°F or below and hot food at 135°F or above. Cool cooked food from 135°F to 70°F within 2 hours and to 41°F within 6 hours in total. Reheat for hot holding to 165°F. As of Oct 2026.
FDA Food Code 3-501.14 and 3-403.11, as adopted
The Food Code sets a 2-hour first stage. Food that missed it is discarded, not chilled and served.
An allergic reaction
Preserve the dish, the ticket and the recipe, and call the insurer and counsel. Then find out what changed. For example, say a guest in Chicago tells the server about a sesame allergy and reacts to a dressing made with a new tahini blend. Sesame has been the ninth major allergen since January 1, 2023. Put every recipe or supplier change through your allergen matrix before service, and in Illinois retrain the certified food protection manager under the state's allergen training rule.
An incident after drinks
After any incident involving a guest who drank on site, preserve the POS checks, video, incident report and staff names the same night, tell the liquor liability insurer, and say nothing about fault. Video systems overwrite within days.
Check your cover before you need it. A general liability policy usually excludes liability from selling alcohol, so a bar or restaurant buys liquor liability separately, and many policies carve out assault and battery.
A serious injury in the kitchen
Reporting to OSHA
Restaurants are partly exempt from keeping routine injury logs, but every employer reports a work-related fatality within 8 hours, and an in-patient hospitalization, amputation or loss of an eye within 24 hours. As of Oct 2026.
29 CFR 1904.39; 29 CFR Part 1904 Subpart B, Appendix A
An accessibility demand letter
Restaurants are public accommodations under ADA Title III. In California the Unruh Act provides at least $4,000 for each occasion on which access was denied, but construction-related damages need proof of difficulty, discomfort or embarrassment and can be reduced after a qualifying CASp inspection and prompt correction (Civil Code sections 52 and 55.56). Do not treat the amount claimed as automatic. Hire an ADA defense attorney the same week, get a CASp inspection, fix what is wrong and preserve evidence about each alleged visit. As of Oct 2026.
In Texas, workers' compensation is optional, but a restaurant that opts out cannot use the defenses of contributory negligence, assumption of risk or fellow-servant negligence when a cook sues after a fryer burn (Lab. Code 406.033). Before the next claim, have a Texas-licensed workers' compensation broker and an employment attorney compare statutory cover with any occupational injury plan; such a plan does not restore those defenses. As of Oct 2026.
Asked in Greymill
Keep, right now:
Saturday's POS checks for the regular's tab
The video, exported today, because systems overwrite within days
An incident report and the names of every staff member on shift
Next: tell your liquor liability insurer immediately. Say nothing about fault to anyone, the other driver's lawyer included.
Careful: 'we did nothing wrong' is still a statement about fault. Leave it unsaid.
Check your cover: general liability usually excludes liability from selling alcohol, which is why bars buy liquor liability separately. Pull that policy out today.
Say the word and I'll draft the notice to your insurer now.
Ask it about your own business
Paste this into Greymill with your own figures, and Rules & Licensing works it through for your business.
I run a restaurant, cafe or bar in [state], in the US. [Describe what happened: the inspection score and violations / the guest's reaction and what they ate / the incident and what the guest drank / the staff injury and whether anyone was hospitalized / the demand letter and its deadline], on [date]. Tell me what to preserve and fix today, who to call and in what order, what not to say, and draft the notice to my insurer.
More for restaurants, cafes and bars in the US
- Pricing a plate to a food cost target and knowing your breakeven coversSet menu prices from plate cost, judge dishes by dollars of contribution, watch prime cost, and show any mandatory fee the way your state requires.Read the lesson
- Keeping cash flowing when sales tax, payroll tax and gift cards are not really yoursCard money arrives daily, but part of it belongs to the state, the IRS or a gift card holder, and a 13-week model keeps it apart and shows an expensive advance for what it is.Read the lesson
- Claiming the FICA tip credit and taxing service charges correctlyYou pay payroll tax on your servers' tips and can claim most of it back through the 45B credit, while a mandatory service charge changes both your sales tax and your payroll.Read the lesson
- Opening, buying or keeping a liquor license, and staying clear of dram shop claimsThe permits around a liquor license, how a transfer works when you buy a licensed business, and what server training and your state's dram shop law mean for your risk.Read the lesson
- Buying a restaurant or signing a lease without inheriting someone else's debtsThe lease, vendor and purchase terms that sink restaurants, and the notices that stop a buyer inheriting the seller's unpaid sales tax.Read the lesson
- Paying servers right: tip credits, tip pools and service charges in your stateYour state, and sometimes your city, decides the tipped wage, who can share the pool and how a service charge is paid, and mistakes come back with liquidated damages.Read the lesson
- Winning direct orders and better reviews without overpaying the delivery appsGrow the channels you control, check what each platform really costs you, and ask for reviews in a way the FTC allows.Read the lesson
Open the interactive lesson · Every restaurants, cafes and bars lesson · What Greymill knows about the trade
Sources
The primary sources behind this lesson, checked Oct 2026.
- Food Code 2022 3-501.16, 3-501.14, 3-403.11, 3-401.11 (Inspections, temperatures, allergens and menu labeling)
- letter grading (Inspections, temperatures, allergens and menu labeling)
- grading (Inspections, temperatures, allergens and menu labeling)
- G.L. c.140 s.6B (Inspections, temperatures, allergens and menu labeling)
- H&S Code 25249.6, 25249.7(d), 25249.11(b); OEHHA safe-harbor and fewer-than-10-employees guidance (Inspections, temperatures, allergens and menu labeling)
- Restaurant Law Center v. U.S. Department of Labor (5th Cir. 2024) (Pitfalls that embarrass the product)
- 2025 Form 8846 instructions, Who Should File, How the Credit Is Figured, Lines 2 and 4 (Pitfalls that embarrass the product)
- 29 U.S.C. 203(m)(2)(B); NY Lab. Law 196-d (Pitfalls that embarrass the product)
- Fla. Const. art. X, s. 24(c); FloridaCommerce minimum wage page (Pitfalls that embarrass the product)
- 16 CFR 464.1 and 464.2 (Pitfalls that embarrass the product)
- IRC 224 (Pitfalls that embarrass the product)
- Gen. Oblig. Law 11-101, 11-100; ABC Law 65(2) (Dram shop liability: ca, tx, ny and fl)
- Alco. Bev. Code 2.02(b) (Dram shop liability: ca, tx, ny and fl)
- Fla. Stat. 768.125 (Dram shop liability: ca, tx, ny and fl)
- Civ. Code 1714(c); Bus. & Prof. Code 25602, 25602.1 (Dram shop liability: ca, tx, ny and fl)
- California Labor Code 3700; New York Workers' Compensation Law 10; Florida Statutes 440.02(17) (Insurance and risk)
- PCI DSS v4.0.1 (Insurance and risk)
- opinion (Insurance and risk)
- Admin. Code 20-1221 and following (Scheduling, sick leave, minors, hiring, benefits and safety)
- SMC 14.22.020 (Scheduling, sick leave, minors, hiring, benefits and safety)
- ORS 653.412 to 653.485 (Scheduling, sick leave, minors, hiring, benefits and safety)
- Lab. Code 246 (SB 616) (Scheduling, sick leave, minors, hiring, benefits and safety)
- Lab. Law 196-b (Scheduling, sick leave, minors, hiring, benefits and safety)
- Fla. Stat. 218.077 (Scheduling, sick leave, minors, hiring, benefits and safety)
- 2010 Standards 226.1, 902.3; 42 U.S.C. 12182, 12188 (ADA, unruh and accessibility claims)
- Civ. Code 52(a); 55.56(a) to (g) (ADA, unruh and accessibility claims)
- opinion (ADA, unruh and accessibility claims)
- 28 CFR 35.200 (ADA, unruh and accessibility claims)
- Texas Labor Code 406.033 (Hard cases: insurance, growth and exit)