My state has a size exception. Restaurants with occupnancy/seating <15 can have a single bathroom. And the health code doesnt say squat about ADA compliance.
This is why its really important to not let inspectors swan in and tell you things without providing documentation of the applicable code. They may be making stuff up or flat overreaching their authority. The health inspector doesnt get to enforce the building code.
If she got all the applicable permits, why was it never mentioned during the permitting process? She needs to make sure that the inspector was legitimate, code violations come with paperwork. They have to document what is wrong and how it is to be corrected and by what date (because they have to come back and check)
Seriously, it could have been a contractor trolling for work or the pizza place engaging in a little competitive thuggery.
Isnt the ADA a federal thing?
Any time I was involved with building an office I always used an architect. It was worth the money to make sure you complied with all of that stuff. Plus the general contractor was on the hook for building stuff to code.
And the other lesson is that you never, ever, go into business like that with your own money. Even if you have it, get a bank loan against personal collateral. That way when you go belly up, you lose their money—not yours.