How to Start a Coffee Shop in Toronto

Opening a coffee shop in Toronto means clearing the City's licensing system and Toronto Public Health's inspection system before the first customer sits down. The generic spine — business registration, taxes, insurance, fit-out, menu, hiring — is covered in the national guide linked below. This guide covers only Toronto mechanics: which City licence a coffee shop needs, the zoning review, the public health notification, food handler certification, and the DineSafe inspections that follow. This guide is process information, not legal advice: where a figure was not verified on an official page, this guide states a check instead of a figure.

1. Confirm the licence category before anything else

An Eating or Drinking Establishment is a business where food or beverages are prepared or served to patrons for immediate consumption on-site, and it may include take-out service and some entertainment or live performance, according to City of Toronto, Eating or Drinking Establishment. A coffee shop with tables where customers drink their coffee is squarely in this category, even if most orders are take-out. Sole proprietorships (individuals), partnerships, or corporations can apply, on the same page.

Two neighbouring categories change the answer:

• Take-out only. If every drink and pastry leaves the shop and there is no seating or area for on-site consumption, the premises fall under the Take-out or Retail Food Establishment category instead. The seating test decides it: on-site consumption puts you in Eating or Drinking Establishment; everything leaving the store puts you in take-out or retail. Do not apply for the wrong category to save a fee — the licence must match how the shop actually operates.
• Expanded activity. If the shop also meets three or more of these criteria — operating past 11 p.m. for the majority of days open within any seven-day period, holding a liquor licence to serve alcohol, offering amusement, entertainment, or live performance, or an occupant load of more than 150 people — it is an Expanded Activity Eating or Drinking Establishment, according to City of Toronto, Expanded Activity Eating or Drinking Establishment. A late-night coffee bar with live music and a liquor licence is an expanded activity business, not a standard one, and the fee is higher: $375.96 application fee plus $375.96 licence fee, $751.92 in total, with a $546.00 renewal fee, on the same page.

As of January 1, 2025, the City updated its licensing and zoning bylaws for restaurants, bars, and entertainment venues, according to City of Toronto, Eating or Drinking Establishment. Older references to an "eating establishment" licence mean the same category under its current name.

2. Get the zoning review — before you sign the lease

A zoning review is required to confirm compliance with the City's zoning by-law when applying for business licence approval, and eating or drinking establishments, including expanded activity ones, are on the list of uses that require written confirmation, according to City of Toronto, Zoning Review for Business Licence. The fee is $248.67 per application, non-refundable, effective January 1, 2026, on the same page.

What the review needs: a survey or site plan showing property lines, lot area, and setbacks, and fully dimensioned floor plans indicating the uses of all spaces, on the same page. Applications for an Expanded Activity Eating and Drinking Establishment licence must show the entertainment area and proposed entertainment activities on the floor plans, on the same page. If any building alterations are proposed, or a new major occupancy is being introduced, a building permit may be required instead, on the same page.

Do this before signing a lease or paying for a fit-out. A space in the wrong zone cannot be licensed as an eating or drinking establishment, and the review fee is non-refundable whether the answer is yes or no. One additional review may be provided where minor revisions are made to plans to comply with zoning requirements, on the same page.

3. Notify Toronto Public Health and prepare for DineSafe

Before the shop opens, give notice of the intention to commence operating a food premise to the medical officer of health — in Toronto, that means Toronto Public Health. A person who gives notice of an intention to commence to operate a food premise to the medical officer of health under subsection 16 (2) of the Health Protection and Promotion Act shall include their name, contact information, and the location of the food premise in the notice, according to Ontario, O. Reg. 493/17: Food Premises. There is no fee stated for this notification on the official pages; it is a notice, not a permit application.

Then expect inspection. The DineSafe inspection system is based on provincial and municipal regulations, and the Ministry of Health requires each board of health in Ontario to follow a standardized process that assesses the conditions of an establishment, based on the Ontario Food Premises Regulation (493/17), according to City of Toronto, About DineSafe. Every eating and drinking establishment in Toronto receives a minimum of one, two, or three inspections each year depending on the type of establishment, the food preparation processes, and the volume and type of food served, on the same page.

Inspection findings are graded as infractions in three classes:

• Minor — a minimal health risk, corrected by the next inspection. Examples include walls, floors, or non-food contact surfaces needing cleaning or repair, and inadequate ventilation and lighting, on the same page. A Pass notice is issued when only minor or no infractions are observed, and fines range from $55 to $465 depending on the severity of the infraction, on the same page.
• Significant — a potential health hazard, corrected within 24 to 48 hours. Examples include food contact surfaces or equipment requiring cleaning or repair, lack of a hand wash basin with the necessary supplies, and garbage not stored in a sanitary manner, on the same page. A Conditional Pass notice is issued when one or more significant infractions are observed, and a public health inspector will re-inspect within 24 to 48 hours, on the same page.
• Crucial — an immediate health hazard, corrected immediately. Examples include no hot and cold running water under pressure in the food preparation area, rodent or insect infestation without effective pest control, inadequate refrigeration, sewage back-up, and food contaminated or adulterated, on the same page. A Closed notice is issued when one or more crucial infractions are not corrected immediately, and a food establishment can only be closed when a health hazard is present, on the same page.

Every drinking and eating establishment in Toronto must continually and prominently post the most recent food safety inspection notice, as issued without alteration, at or near the main entrance, on the same page. The details of food safety inspections conducted over the past two years are reported on the City's site, on the same page — your customers can look up your result, so treat the notice as public from day one.

One protection worth knowing: public health inspectors will never request cash for inspection services, and they always issue inspection signs at the time of inspection, on the same page. Verify any inspector's identity with Toronto Public Health at (416) 338-7600, on the same page.

4. Certify the staff who handle food

Staff who handle food in an eating or drinking establishment must have Accredited Food Handler Certification — including waiters, waitresses, hosts, hostesses, bartenders, cooks, and every other person serving or making available food or drink, according to City of Toronto, Eating or Drinking Establishment. For a coffee shop, that means baristas and anyone preparing or serving food, not only the cook. Arrange the certification before opening: the inspection regime in step 3 checks food handling from the first visit, and an uncertified team is a finding waiting to happen.

The premises themselves must also meet the operating standards in the Food Premises Regulation: the premises must be operated and maintained free of conditions that may be a health hazard, adversely affect sanitary operation, or adversely affect the wholesomeness of food, according to Ontario, O. Reg. 493/17: Food Premises. That covers the practical fit-out decisions — tight, smooth, non-absorbent floors where food is prepared and utensils are cleaned, walls and ceilings that can be readily cleaned, and rooms maintained in a sanitary condition to prevent contamination, on the same page.

5. Apply for the City licence

After obtaining all documents and information, apply for the licence online or in person, according to City of Toronto, Eating or Drinking Establishment. Online, have all required documents ready to upload before starting: the application takes 10 to 15 minutes to complete and cannot be saved, on the same page. Licence application fees can be paid online or by sending a cheque, on the same page. In person, services are available at the Licence and Permit Issuing Office, 850 Coxwell Avenue, 3rd Floor, Monday through Friday from 8:30 a.m. to 4:00 p.m., on the same page. Bring hard copies of all application requirements — applications will not be started unless all requirements are provided, and digital copies will not be accepted, on the same page. Payment in person can only be made by debit, credit, or cheque; cash will not be accepted, on the same page.

The fees for a standard Eating or Drinking Establishment licence are an application fee of $268.32, non-refundable and required upon submittal of a complete application, and a licence fee of $268.32, due upon approval, for a total of $536.64, on the same page. For questions about which documents are needed, the City lists 416-392-6700 and mlsbusinesslicence@toronto.ca, on the same page.

Two operating conditions attach to the licence: the business must provide adequate supervision of dining rooms, including outside eating areas, and a sufficient number of attendants to ensure outside eating areas are kept clean and free of garbage at all times, with a sufficient number of appropriate containers for garbage, recycling, and organics, on the same page. And up to 25 per cent of the floor area in Eating or Drinking Establishments can be dedicated to entertainment in most commercial zones and along the edges of industrial zones, on the same page — relevant if the coffee shop runs open mic nights or live music, but stay under that share unless the premises are licensed as an expanded activity establishment.

If the shop wants a sidewalk café, that is a separate CaféTO permit, and the City's licence page points to the CaféTO program for details, on the same page. Do not build a patio into the opening plan until the CaféTO permit is in hand.

6. Post the notice, keep the licence current, and renew annually

Your licence will expire annually on the anniversary of the date that the licence was first issued, and the expiry date is written on the licence, according to City of Toronto, Eating or Drinking Establishment. A courtesy notice will be mailed to your mailing address on file identifying any documents required to renew, but you are responsible for ensuring the business licence is valid while operating, on the same page. The renewal fee is $362.96, on the same page. If you fail to renew according to the by-law, the licence will be cancelled and you will have to reapply, on the same page.

Keep the DineSafe notice posted at or near the main entrance at all times, as required in step 3. If a Conditional Pass is issued, fix the significant infractions inside the 24-to-48-hour window: if the infractions are corrected and no other infractions or only minor infractions are found at re-inspection, a Pass Notice will be issued, but if they are not corrected by the first re-inspection, a ticket will be issued and a second re-inspection conducted, according to City of Toronto, About DineSafe. Repeated crucial infractions can lead to a summons to court and referral to the Licensing Tribunal, on the same page.

Note that the City may deny a licence application or renewal on screening criteria, including convictions for specified offences and five or more offences under Chapter 545 or 546 of the Toronto Municipal Code in the preceding three years, according to City of Toronto, Eating or Drinking Establishment. If any founder has a record that could trigger screening, get advice before paying the non-refundable application fee.

Figures this guide does not state

• Licence processing time. No processing time is stated on the City of Toronto licence pages, so none is printed. Third-party sites quote a 20-business-day service target after a complete application; that figure is not stated here because it was not verified on a toronto.ca page. Ask Municipal Licensing and Standards for the current target when you apply.
• Take-out or Retail Food Establishment licence fee. This guide states the standard Eating or Drinking Establishment fee only. The take-out-only category has its own fee, which was not verified on a toronto.ca page, so no figure is printed. Check the City's Take-out or Retail Food Establishment licence page before filing.
• CaféTO sidewalk café fees. No current fee figure is stated on the City pages, so none is printed. Check the CaféTO program page before budgeting for a patio.
• Toronto Public Health notification fee. No fee is stated for notifying Toronto Public Health of a new food premises on the official pages. The notification is a notice under the Food Premises Regulation, not a priced application.
• Fit-out and startup costs. No official source states what a Toronto coffee shop fit-out costs. Price the espresso equipment, lease, and build from quotes for your shop.

Related guides:

How to Start a Coffee Shop Business in Canada, Food Truck Permits and Licences in Canada, How to Get a Liquor Licence in Ontario, and How to Register a Business in Ontario.

Sources

• City of Toronto, Eating or Drinking Establishment — licence definition, who can apply, application and licence fees, renewal fee, food handler certification, operating conditions —
• City of Toronto, Expanded Activity Eating or Drinking Establishment — expanded activity criteria, $751.92 total fee, $546.00 renewal fee, in-person office —
• City of Toronto, Zoning Review for Business Licence — zoning review requirement, $248.67 fee, site and floor plan requirements —
• City of Toronto, About DineSafe — inspection frequency, Pass, Conditional Pass, and Closed notices, infraction classes, fines, posting requirement —
• Ontario, O. Reg. 493/17: Food Premises — notice of intention to commence operations, operating and maintenance standards —