How to Start a Restaurant in Toronto

The short answer

Zoning first, then the City licence, then DineSafe — with the liquor licence running on its own track. To open a restaurant in Toronto you need three separate approvals from three separate bodies: the City of Toronto for zoning and the Eating or Drinking Establishment licence, Toronto Public Health for food premises inspection under the DineSafe program, and the Alcohol and Gaming Commission of Ontario (AGCO) for a liquor sales licence if you serve alcohol. This guide walks the Toronto mechanics only. The national restaurant guide covers the parts that are the same everywhere in Canada; nothing in this guide repeats it.

Step 1: Check zoning and the licence finder before you sign a lease

As of January 1, 2025, the City has updated its licensing and zoning bylaws for restaurants, bars, and entertainment venues, so check the current rules for your address rather than relying on what a previous tenant did there. The City's Eating or Drinking Establishment page points applicants to its Licence Finder Tool, which helps a business work out which licence or licences suit its operations. Use it before you commit to a space: a restaurant 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.

One zoning detail worth knowing at the planning stage: 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, with eating and drinking remaining the primary use. If your concept leans on live performance, check that share against your floor plan before you build.

Step 2: Apply for the City Eating or Drinking Establishment licence

Sole proprietorships, partnerships, and corporations can all apply. You can apply online or in person. The online application takes 10 to 15 minutes to complete and cannot be saved, so have all required documents ready to upload before you start. Licence application fees can be paid online or by sending a cheque. In-person service is at the Licence and Permit Issuing Office, 850 Coxwell Avenue, 3rd Floor, with walk-in service Monday through Friday from 8:30 a.m. to 4:00 p.m. In person, bring hard copies of all application requirements — applications will not be started unless all requirements are provided, digital copies are not accepted, and payment is by debit, credit, or cheque only; cash is not accepted. Appointments can also be booked online.

The fees, as published on the City page, are:

• Application fee: $268.32. Non-refundable, required on submittal of a complete application.
• Licence fee: $268.32. Due on approval of the application.
• Total: $536.64.

Your licence expires annually on the anniversary of the date it was first issued; the expiry date is written on the licence. The renewal fee is $362.96. A courtesy notice is mailed to your mailing address on file, but you are responsible for keeping the licence valid while operating. If you fail to renew according to the bylaw, the licence is cancelled and you have to reapply. If you change licence category before expiry, the fees already paid are applied to the new licence.

The City also applies screening criteria to applicants and renewals, including convictions for certain Criminal Code and Controlled Drugs and Substances Act offences within set periods, five or more offences under Chapter 545 or 546 of the Toronto Municipal Code in the preceding three years, and any overdue bylaw fines. If you have questions about the documents you need, the City page gives the contact as 416-392-6700 or mlsbusinesslicence@toronto.ca.

Step 3: Certify your food handlers

Staff who handle food in these establishments must have Accredited Food Handler Certification. The City is explicit about who that covers: waiters, waitresses, hosts, hostesses, bartenders, cooks, and every other person serving or making available food or drink. This is stricter than the provincial minimum in the national guide — in Toronto, certification is not limited to one trained person on site. Under Ontario Regulation 493/17, the Food Premises Regulation, every operator of a food service premises must also ensure at least one food handler or supervisor on the premises has completed food handler training during every hour the premises is operating. Plan the training before opening week, so a sick day does not leave a service without a certified person on site.

Step 4: Pass Toronto Public Health DineSafe inspections

DineSafe is Toronto Public Health's food safety inspection and disclosure program. Inspections follow the Ontario Food Premises Regulation (493/17) and municipal bylaws, at a frequency set by the Ministry of Health according to risk. 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.

The inspector issues one of three notices at the time of inspection, and you must continually and prominently post the most recent notice, as issued without alteration, at or near the main entrance:

• Pass. Issued when only minor infractions, or none, are observed. Minor infractions present a minimal health risk and must be corrected by the next inspection. If minor infractions are repeated at the next inspection, the inspector may issue a ticket. Fines range from $55 to $465 depending on the severity of the infraction.
• Conditional Pass. Issued when one or more significant infractions are observed — infractions that present a potential health hazard, such as food contact surfaces needing cleaning or repair, refrigeration or dish washing equipment needing repair, or a missing hand wash basin. A public health inspector re-inspects within 24 to 48 hours. If the infractions are corrected and no other infractions, or only minor ones, are found, a Pass notice is issued. If they are not corrected, a ticket is issued and a second re-inspection follows at a later date; if they are still not corrected, a summons to court is issued and a referral to Municipal Licensing and Standards may follow.
• Closed. Issued when one or more crucial infractions are not corrected immediately. A food establishment can only be closed when a health hazard is present. An Order to Close is issued, an inspector visits daily to make sure the establishment remains closed, and the establishment receives a Pass and may reopen only once every infraction in the order and all other significant or crucial infractions are corrected.

Two practical warnings from the City page: public health inspectors will never request cash for inspection services, and you can verify an inspector's identity by checking the official identification badge and calling Toronto Public Health at 416-338-7600.

Step 5: Apply for the AGCO liquor sales licence, if you serve alcohol

To sell or serve alcohol you need a liquor sales licence from the AGCO, applied for through the iAGCO portal. Selling or serving food or liquor does not have to be the primary business. Licences are available for a two-year or a four-year term, and the fee for a new application is $1,055 for two years or $1,355 for four years. Endorsements — add-ons such as caterer, room service, brew and wine pubs, and mini bars — can be combined with the licence.

Before you apply, the AGCO's liquor sales licence page requires you to verify zoning with the City and verify tax compliance through the Ontario Ministry of Finance Tax Compliance Verification portal, which generates the TCV number you need for the application. Prepare entity disclosure for anyone with an interest in the business or a key management role, personal disclosures from sole proprietors, officers, directors, partners, shareholders holding 10 per cent or more, and the on-site manager where applicable, a signed signature form, and floor plans to scale showing dimensions, the proposed licensed areas, the layout of the whole location, and secondary areas such as washrooms and hallways in a different colour.

Two further documents are not needed at submission but should be sent as soon as possible so the application can be completed promptly: the municipal information form, signed and dated by the City clerk's office, and agency letters of approval — also called compliance letters — from the building department, the fire marshal or fire protection officer, and the public health department, showing the location meets the standards each agency is responsible for. If your application needs public notice, the AGCO emails you a poster to print and hang at the location, and posts notice on the iAGCO portal so members of the community can raise concerns. The AGCO inspects the location before issuing the licence. Liquor can be served between 9 a.m. and 2 a.m., or 3 a.m. on New Year's Eve, with all signs of liquor service cleared 45 minutes after closing.

Late hours, live music, or a big room? Check the Expanded Activity licence

The standard Eating or Drinking Establishment licence is not the end of the story if the restaurant is a late-night, entertainment, or large venue. A business also needs the Expanded Activity Eating or Drinking Establishment licence if it meets three or more of these criteria: it operates past 11 p.m. for the majority of the days it is open within any seven-day period; it holds a liquor licence to serve alcohol; amusement, entertainment, or live performance is offered; or the occupant load is more than 150 people. A restaurant with a liquor licence, live music, and a late close already meets three — plan for the expanded licence from the start, not as a correction after opening.

The fee is $375.96 to apply plus $375.96 on approval, $751.92 in total, with renewal at $546.00 a year. The licence expires annually on the anniversary of its first issue, like the standard licence. If the restaurant later moves between the standard and expanded categories, the City has a streamlined conversion process and any fees already paid are applied to the new licence. Apply at the same office and through the same online or in-person routes as the standard licence.

The order that avoids rework

Confirm zoning and run the Licence Finder Tool, then apply for the City licence and certify your food handlers while the DineSafe inspection routine is set up. Start the AGCO application early — it needs the municipal information form and the three agency letters, which take time to collect — but do not plan an opening date around it until the pre-licensing inspection is done. The expensive mistake is signing a lease on a space that cannot be zoned for a restaurant, or opening without certified staff and failing the first DineSafe inspection in front of customers.

What the opened pages do not state

Two figures a reader would reasonably want are not stated on the official pages opened for this guide, so they are not carried here. The City's licence page does not publish a processing time for an Eating or Drinking Establishment licence application. The AGCO page does not publish a processing time for a liquor sales licence either. The DineSafe page also does not state a separate fee for a food premises inspection — inspectors never request cash for inspection services. Ask the City for its current licence processing time when you apply, and the AGCO for its current timeline.

Related guides

• How to Start a Restaurant Business in Canada — the national restaurant guide: format, kitchen, suppliers, hiring, and opening routines that are the same everywhere in Canada.
• How to Get a Liquor Licence in Ontario — the Ontario liquor licence guide, for the full AGCO picture beyond the restaurant sales licence covered here.
• How to Get a Business Licence in Toronto — the Toronto business licence guide, for the wider City licensing picture.
• How to Start a Food Truck in Toronto — the Toronto food truck path, which shares the DineSafe inspection routine but runs under different City licensing.
• How to Get a Food Handler Certificate in Canada — food handler certification, which sits alongside the Accredited Food Handler Certification requirement in this guide.
• How to Start a Bakery Business in Canada — the national bakery guide, for readers weighing a bakery against a restaurant.

Sources

• City of Toronto, Eating or Drinking Establishment — the licence definition, the Licence Finder Tool, the January 1, 2025 bylaw update, the $268.32 application fee and $268.32 licence fee, the $362.96 renewal fee, the annual anniversary expiry, the in-person office and hours, the Accredited Food Handler Certification requirement, and the 25 per cent entertainment floor area rule.
• City of Toronto, About DineSafe — the DineSafe inspection program, one to three inspections a year, the Pass, Conditional Pass, and Closed notices, the 24 to 48 hour re-inspection, fines of $55 to $465, and the rule that inspectors never request cash.
• Alcohol and Gaming Commission of Ontario, Apply for a liquor sales licence — the $1,055 two-year and $1,355 four-year fees, the iAGCO portal, zoning and tax compliance verification, the disclosure and floor plan requirements, the municipal information form and agency letters, public notice, the pre-licensing inspection, and the 9 a.m. to 2 a.m. hours of sale.
• Ontario, O. Reg. 493/17, Food Premises Regulation, section 32 — at least one trained food handler or supervisor on site during every operating hour.
• City of Toronto, Expanded Activity Eating or Drinking Establishment — the three-or-more criteria, the $375.96 application fee and $375.96 licence fee, $751.92 total, the $546.00 renewal fee, and the licence conversion process.