Ready to open a restaurant in Ontario? That’s great! However, you can’t start serving customers just yet. You’ll need to do things by the book. Whether you’re selling cookies out of your home kitchen, buying a franchise restaurant, or opening the trendiest new eatery in downtown Toronto, you’ll need to follow the proper steps. This includes complying with inspections, community notices, and obtaining all the necessary permits to run your business. In Ontario, some of your licenses will come from the province, while other requirements will vary depending on the local municipality. In this blog, we’ll go over what permits are needed to start a restaurant in Ontario, and where you can get them!
Federal Business Registration
If you plan to operate a business in Canada, you’ll need to register with the Federal Government and get a business number (BN). Your BN is essentially a tax identifier – you’ll need it when filing with the CRA or navigating other financial and legal processes. You’ll also get a GST/HST number, which allows you to charge HST in your restaurant.
Provincial Business Registration
In addition to getting a BN, you’ll also need to register your restaurant with the Ontario Business Registry. This can be done fairly easily online. Once you’re registered, you’ll get an Ontario Business Identification Number (BIN). You’ll need your BIN to formally incorporate your business when the time comes.
Looking for more restaurateur resources? We’ve carved up some helpful tips for starting your restaurant on our blog. Check it out.
- How to Find a Restaurant For Sale in Toronto
- The Essential Restaurant Start-up Checklist
- How Long Does it Take to Build a Restaurant From the Ground Up?
Liquor License
Alcohol sales make up a major share of business revenue at most restaurants, and if you’re looking to sell or serve alcoholic beverages too, you’ll need a liquor licence.
Let’s look at how to get a liquor license in Ontario. You’ll submit your application to the Alcohol and Gaming Commission of Ontario (AGCO). This process is relatively easy and can be done online through the iAGCO portal.
Once again, you won’t want to leave your application to the last minute. The AGCO is very diligent with how they review and manage applications. If any complications come up, it can create delays. They’ll also send an inspector to your restaurant to verify the details you provided in your application, while making sure you’re compliant with other health, safety, and zoning regulations.
If you’re looking to open a brewpub or make your own alcoholic beverages, you’ll need a specific permit called a manufacturer’s licence, in addition to the standard liquor license.
Just like the other permits on this list, liquor licenses can be refused or revoked – they also require renewal every so often. If you’re not careful, losing your liquor license can cause a lot of setbacks and headaches – not to mention the lost revenue.
Municipal Business Permits
The exact type of business license required to operate a restaurant in Ontario will vary depending on the municipality. In Toronto, restaurants require an Eating or Drinking Establishment or an Expanded Activity Eating or Drinking Establishment. If you’re unsure which permits you will need based on your municipality, ask a Restaurant Real Estate Agent.
Municipal Food Safety & Inspections
Along with your municipal business license, your restaurant may also be subject to inspections and other certifications related to food safety and business practices.
In Toronto, restaurants are regularly inspected by public health officials under the DineSafe program (sometimes called PASS), which assigns a visible colour-coded grade based on compliance with food safety standards.
DineSafe inspections analyze 8 main aspects of food safety:
- Food Temperature Control
- Protecting Food from Contamination
- Employee Hygiene & Hand-washing
- Maintenance and Sanitation of Food Contact Surfaces & Equipment
- Maintenance and Sanitation of Non-food Contact Surfaces & Equipment
- Maintenance and Sanitation of Washrooms
- Storage & Removal of Waste
- Pest Control
Advertising & Signage Permits
Your restaurant will need signage – it’s a big part of getting customers through the door. In Ontario, most municipalities have their own rules and bylaws regulating the size, placement, and design of signs, mainly to ensure they do not obstruct sidewalks, block visibility, or pose safety risks. As you get your restaurant set up, you’ll need to apply for a signage permit before installing anything.
Thinking about opening a restaurant in Toronto? Check out these other blog posts for helpful tips!
- How to Sort Through Restaurant Listings
- How to Negotiate a Commercial Lease
- How to Hire Restaurant Staff
Structural Requirements & Accessibility
With all publicly accessible business spaces in Ontario, your restaurant will also need to meet certain structural requirements surrounding accessibility. More specifically, your restaurant’s entrances, washrooms, dining areas, and customer spaces should be able to accommodate individuals with mobility challenges, such as those who use wheelchairs, crutches, or walkers. Explore the Accessibility for Ontarians with Disabilities Act (AODA) for more information.
You’re also required to offer staff training on providing inclusive and respectful customer service to guests with disabilities, including those who may have visual, hearing, or cognitive impairments.
Employee & Staff Requirements
Beyond the business licenses and permits, your restaurant staff will also need specific certifications to legally work in the establishment.
Food Handler Certificate
Any staff members who will be preparing or serving food will require proper accreditation. In Ontario, there are a number of accepted third-party instructors who can issue Food Handler Certificates.
Smart Serve
Just like food, any staff members who will be serving or handling alcohol will require the proper certification. Ontario’s Smart Serve program can be completed online and only takes about 4 hours.
Opening a restaurant in Ontario? Carve Real Estate can help! You can reach us by email at ryan@carverealestate.com or by phone at 416-618-0054.
