Finding the Right Space
Opening a restaurant in Toronto is exciting — and complex. The right location is critical, but a beautiful space in the wrong zone or without proper infrastructure can cost you months of delays and tens of thousands in unexpected costs. Here's what to check before you fall in love with a space.
Zoning Requirements
Your space must be zoned for "eating establishments" under Toronto's By-law 569-2013. Check the specific zoning designation at the property address. If the space previously operated as a restaurant, you're likely in a permissible zone — but confirm with the city. If the space was previously retail or office, you may need a change-of-use permit.
Additional zoning considerations: outdoor patios may require additional permits (the city's CafeTO program has specific rules), late-night operation (past 11 PM) may require special permission, and proximity to residential zones may impose noise restrictions.
Health Department Requirements
Toronto Public Health requires all food establishments to comply with the Ontario Food Premises Regulation (O. Reg. 493/17). Key requirements include:
- Adequate ventilation including a Type 1 or Type 2 commercial kitchen exhaust hood (depending on cooking type)
- Grease trap installation and regular maintenance
- Three-compartment sink for manual dishwashing, or a commercial dishwasher
- Separate handwashing sink in the food preparation area
- Proper food storage (temperatures, separation, labelling)
- Washroom facilities for patrons (number depends on seating capacity)
- Accessible design per Ontario's Accessibility for Ontarians with Disabilities Act (AODA)
Your space must pass a health inspection before you can open. Schedule a pre-inspection consultation with Toronto Public Health during your planning phase — they'll identify potential issues before you invest in construction.
Liquor Licence
If you plan to serve alcohol, you need a licence from the Alcohol and Gaming Commission of Ontario (AGCO). The application process takes 6–12 weeks. You'll need floor plans showing the licensed area, a municipal zoning clearance, and fire department approval. Your location must meet distance requirements from schools and certain other establishments.
Consider applying for the liquor licence early in your build-out process — delays are common, and you don't want a completed restaurant waiting months for a licence.
Building Code and Permits
Any renovation to a commercial space requires a building permit from the City of Toronto. For restaurant build-outs, this includes: interior demolition, electrical upgrades (commercial kitchens have significant power requirements), plumbing modifications, HVAC installation, fire suppression systems, and accessibility upgrades.
Permit timelines vary: simple modifications take 4–6 weeks for approval; major renovations can take 3–6 months. Budget accordingly.
Space Sizing
As a rule of thumb, a full-service restaurant allocates 60% of floor space to the dining area and 40% to the kitchen, storage, washrooms, and service areas. A 2,000 sqft space gives you approximately 1,200 sqft of dining area — seating roughly 50–60 guests depending on layout. If you're planning a bar-heavy concept, allocate more space to the bar area and less to seated dining.
Cost Expectations
Restaurant build-out in Toronto typically costs $100–$250/sqft for a full renovation, depending on the condition of the existing space and your design complexity. A 2,000 sqft space could cost $200,000–$500,000 to build out. Equipment (kitchen, bar, POS systems) adds another $50,000–$150,000. Negotiate a TI allowance from the landlord to offset these costs.