California Poised to Become First State to Mandate Food Allergen Disclosures for Restaurants; SB 68 Awaits Gov. Newsom’s Signature

California is on the verge of becoming the first state to enact food allergen disclosure requirements for restaurants. Senate Bill 68 (SB 68), introduced in January 2025 by California state Sen. Caroline Menjivar, awaits action by Gov. Gavin Newsom with a deadline of Oct. 12, 2025. This GT Alert provides an overview of SB 68 and considerations for restaurant operators and franchisors if it becomes law.

The Existing Food Allergen Regulatory Landscape

At the federal level, packaged foods have been subject to allergen labeling requirements for more than two decades. The Food Allergen Labeling and Consumer Protection Act of 2004 (FALCPA) mandates that packaged foods containing any of the nine major allergens-milk, eggs, fish, crustacean shellfish, tree nuts, wheat, peanuts, soybeans, and sesame-must identify them prominently on the label. If enacted, SB 68 would become the first state or federal law to mandate allergen disclosures for restaurants.

Which Restaurants Would Be Covered by SB 68?

SB 68 applies to "[F]ood facilit[ies] ….. subject to Section 343(q)(5)(H) of Title 21 of the United States Code that serves or sells restaurant-type food to the consumer," which, as with federal menu labeling laws, applies to:

• A "food establishment" that is part of a chain with 20 or more locations;
• Entities doing business under the same name (regardless of ownership of the locations); and
• Offering for sale "substantially the same menu items."

Although the initial draft of SB 68 introduced in January 2025 required all California restaurants to disclose food allergens, the legislation was subsequently amended to require compliance only by restaurants meeting the above criteria.

Illustrative Applicability Examples (As of the Date of this GT Alert):

How Must Covered Restaurants Disclose Food Allergens to Customers?

Under SB 68, covered restaurants would be required to:

• Provide food allergen disclosure either directly on the menu (next to or immediately below each item) or in a digital format, such as a QR code that links to an online menu.
• If a digital method is used for menus/disclosure, restaurants would be required to offer an alternative written format for customers who cannot access digital information. Acceptable alternatives may include a separate allergen-specific menu, an allergen chart, a grid, a booklet, or other written materials.
• Communicate allergen information using either the common or usual names of the allergens or standardized pictograms.
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  Are Covered Restaurants Required to Be Certified or Provide Special Training to Employees?

  • Under current California state law, restaurants must ensure that a "person in charge" is always present and that all food handlers are trained on allergen awareness and safe handling practices. SB 68 does not specify any additional training requirements or certifications.
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    Who Would Enforce the Law and What Are Penalties/Risks of Non-Compliance?

    Enforcement falls to local agencies, which may verify compliance through visual inspection or other reasonable means.

    When Would Covered Restaurants Need to Comply?

    The compliance date for restaurants covered by SB 68 is July 1, 2026.

    Certain Practical Concerns Regarding SB 68

    • Unlike federal menu labeling laws, which underwent rigorous debate and analysis for many years prior to implementation, SB 68 may possibly go into effect less than 18 months from introduction. Despite the significant obligations SB 68 would impose, the legislation leaves many questions unanswered with little preparation time for covered restaurants.
    • SB 68 impacts both franchisors and their franchisees doing business in California, including systems with fewer than 20 locations in California. Even if a system has only one franchisee-owned California location, if it has more than 20 locations worldwide, compliance with SB 68 would be required. This may put a greater strain on small business owners already struggling under California's complex and expensive regulatory environment.
    • While SB 68 draws on existing allergen disclosure laws for packaged food and beverage products, restaurants are fundamentally different than food and beverage manufacturers, which, unlike restaurants, often produce products in tightly controlled environments with lower risk of food allergen-related mistakes. If a labeling or an ingredient mistake is made in a manufacturing facility, the manufacturer may have the time and opportunity to identify and remedy the error, where that may not be the case in the restaurant environment.

    Manufactured packaged products are not subject to customer requested customization or ingredient substitution as is often the case in restaurants, making the risk of allergen-related mistakes in restaurants higher than the manufactured products business.

    Practical Preparation Considerations for Restaurant Operators and Franchisors

    With the potential signing of SB 68 into law imminent, the following considerations may help restaurant operators and franchise systems prepare, minimize risk, and maintain consistency across locations under SB 68:

    • Conduct Analysis of Current Menu Items. Operators and franchisors should conduct an analysis across all menu items to identify the presence of food allergens. Operators and franchisors may consider retaining a third party to evaluate which standard menu items contain major food allergens (including sauces, toppings, garnishes, and dressings). To the extent a third party is engaged to conduct the analysis, operators and franchisors should consider including indemnification provisions in the agreement with the third party in case the third party provides inaccurate information.
    • Review Operating Manuals and Training Information for Food Storage and Preparation Techniques. Operators and franchisors should consider reviewing and updating operations manuals and related policies and procedures related to food storage and preparation procedures. This review may include evaluating the methods for separating raw and cooked foods, using dedicated equipment and utensils, and implementing proper handwashing and sanitization protocols to minimize the risk of cross-contamination between food items with allergen- and non-allergen foods. Procedures for storing, preparing, and serving foods containing food allergens should be closely examined.
    • Vendor and Supply Chain Coordination. Operators and franchisors should discuss with food vendors the identification of allergens in any food products and ingredients supplied by such vendor. Operators and franchisors should require vendors to provide ingredient and allergen information in writing and with regular updates. Supply agreements with vendors might require vendors to immediately communicate any updates in ingredients or preparation procedures (e.g., supplier of a sauce changes recipe) to ensure allergen information remains current at all times.
    • Review and Improve Food Preparation Guidance. Operators and franchisors should conduct a review of operations manuals and related training materials and procedures to determine if the training and resources provided to employees and/or franchisees are consistent with food preparation and cooking procedures to ensure product uniformity consistent will the allergen disclosures provided to customers. In addition to enhancing compliance with menus and menu board requirements, operators and franchisors may wish to ensure that employees and franchisees understand the allergen disclosure requirements and recognize how any variations in ingredients or cooking methods may result in inaccurate allergen information. Operators and franchisors should exercise diligence with employees and franchisees to ensure frontline employees and cooks are trained to prepare products in strict conformity with allergen disclosure requirements. To further enhance allergen safety and minimize the risk of inadvertent contamination, operators and franchisors may consider developing new procedures to clearly label all ingredients and finished products that contain allergens. For example: (i) the use of a standardized allergen icon and color-coding for packaging, storage bins, and preparation equipment; (ii) storing allergen containing ingredients in designated, sealed containers on designated shelves; and (iii) regularly inspecting storage areas for integrity of packaging and proper segregation.
    • Developing Consistent Allergen Disclosures. Operators and franchisors may wish to develop the format that company-owned stores or franchisees must use to deliver allergen information to customers in compliance with SB 68. Operators and franchisors have the option of providing this information directly on a printed menu or in a digital format (i.e., a digital menu board or QR code that links to the menu). If an operator or franchisor chooses to provide the major food allergen information in a digital format, it must also use an alternative method for customers who are unable to access the information. Alternative methods include providing allergen information on a separate allergen-specific menu, an allergen chart, grid, booklet, or in other written materials. When creating a template, operators and franchisors should consider using common names for allergens (per the law) or pictograms for clarity. Pictograms, should be standardized and clear. The law allows standard pictograms in addition to common names.
    • Notifying Franchisees. Franchisors should develop and deliver a consistent and complete message to franchisees about the food allergen requirements and implementation. Franchisors should be explicit in communicating that while the franchisor is testing the products and developing associated allergen disclosures, ultimate responsibility for compliance with the food allergens law rests upon each franchisee, including ensuring that food products are stored and prepared in a manner consistent with system standards so that the allergen information disclosed is consistent with food served to customers and in compliance with SB 68.
    • Budgeting and Cost Allocation. Operators and franchisors should consider budgeting for the additional costs associated with SB 68, including testing, menu reprinting, possible digital menu updates, and staff training. Franchisors may wish to review their current franchise agreements to determine whether some, or all, of the expenses related to adhering to food allergen disclosure requirements such as training, signage, ingredient labeling, menu updates, and technology upgrades can be allocated to the franchisee. Sections the franchisor should consider reviewing include, but are not limited to, (i) compliance with laws; (ii) operating standards and manual compliance; (iii) system modification or updates; (iv) training requirements; (v) signage and marketing materials; and (vi) technology. Additionally, operators and franchisors should analyze whether advertisement funds may be allocated for new menu development and/or whether suppliers or vendors may be willing to assist with the cost of new menu development.
    • Franchise Agreement Updates. Franchisors may add provisions to their manuals and franchise agreements to address the food allergen requirement. When updating the franchise agreement, a franchisor should consider adding an express obligation in the compliance with laws section requiring franchisees to comply with all menu and allergen disclosure requirements. Additionally, it may be important to ensure the indemnification provision is broad enough to provide coverage in the event of a franchisee's failure to comply with the allergen disclosure requirements and/or failure to store and prepare menu items in a manner that ensures the allergen representations are accurate.
    • Monitoring Compliance and Auditing. Operators and franchisors should establish an internal auditing system with location inspections to ensure the allergen requirements are being properly presented and that menu items are being prepared in a manner to ensure accuracy with allergen disclosures.
    • Legal Review and Risk Assessment. Operators and franchisors may wish to have legal counsel review all disclosures of major food allergens (wording, format) for SB 68 compliance. Operators and franchisors should understand the significant risk and potential liability associated with allergen mislabeling or other allergen-related mistakes. To mitigate against risk, operators and franchisors should consult with their respective insurers and risk management professionals, in addition to reviewing franchise agreements, vendor agreements, and other agreements for indemnification provisions.
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      Conclusion

      The GT Restaurant Team is closely monitoring SB 68's status.