Restaurant industry faces new challenges as City proposes big changes to CafeTO program

CaféTO patios along Queen West during the pandemic. Photo by Stephanie Dickison | Toronto Restaurants.

🕘 8 min read

It appears big changes could be underway for the the City of Toronto’s outdoor dining program, CaféTO.

Today the City announced proposed changes “that will advance the transition of CaféTO from a temporary emergency response initiative into a sustainable program that makes Toronto’s streets more attractive, safe and accessible while continuing to allow restaurants and bars to operate with expanded space outdoors.”

The program that launched in 2020 to “help bar and restaurant operators during the pandemic by providing safe, expanded outdoor dining areas in the public right-of-way while indoor dining capacities were restricted” could see the following changes based on a CaféTO staff report that recommends:

• Returning to standard permit processes for all right-of-way café types that were in place prior to the COVID-19 pandemic.
• Updates to the outdoor dining bylaw to “reflect the transformative and supportive nature of CaféTO and a response to existing City Council direction to establish criteria for a safe, active, accessible and attractive permanent curb lane café program.”
• The City continue to support CaféTO and subsidize permit fees through approximately $1.4 million in financial support this year.
• Returning to the existing requirement of constructing temporary platforms in curb lane café permit areas “to ensure curb lane cafés are fully accessible, and to increase safety near on-street patios and address concerns about equitable program access.” The average cost of temporary platforms in 2022? According to the report, approximately $14,00. “At least $500,000 will be made available through the CaféTO Property Improvement Program to support operators with the cost of installing a temporary platform in 2023.”
• Reinstating the one-time application fee ($865) and one-time transfer fee ($676.27) in addition to updated permit fees for curb lane cafés and sidewalk cafés across the city “as costs for this program are currently borne entirely by the City.” According to the 50-page Report For Action CaféTO 2023 And Beyond, an average sidewalk café results in an annual permit fee of $1,449 and the proposed 2023 fee for an average curb lane café is $3,077.
• Two grants for small businesses and Business Improvement Areas (BIAs) will continue in 2023.

In November 2021, Council approved a plan to transition many of CaféTO’s temporary processes into a permanent program, “starting with a return to standard sidewalk café permitting and a streamlined administration and application process.” Reinstating the rigorous application process for sidewalk cafes and curb lane cafes means restaurateurs will have to get everything in order quickly to have things up an running in a few months when the warmer weather arrives (Note: Registration for the 2023 CaféTO Curb Lane Café Program was not available at the time of the announcement). That is if establishments have ample space for pedestrians and patio seating as per new regulations, and/or funds for application fees and to make the required changes - otherwise, they could be without patios this year and in years to come.

The report states the proposed changes “will ensure CaféTO installations are beautiful, active, and accessible.” They arrive however at a time when the industry is still in peril, closures of hospitality businesses are occurring at an alarming rate, and owners continue to navigate numerous hurdles simultaneously including rising rent and property tax prices, minimum wage increases, labour, ingredient and supply chain issues, not to mention the recent ban of single-use plastics in Canada, many of which are used in foodservice including single-use plastic checkout bags, cutlery, containers and plateware, stir sticks, and straws. 

According to the report, The City has supported CaféTO “with more than $20 million in funding over the life of the program.” A Toronto Association of Business Improvement Areas (TABIA) economic impact study funded by the City reports the program “delivered $203 million in economic benefits to Toronto in 2022” and CaféTO diners spent “an estimated $179 million on patios from May through September.”

The City states 1,327 establishments took part in CaféTO in 2022; 1,213 in 2021; and 801 in 2020. With proposed changes to the sidewalk café permit fee structure and the reintroduction of application fees in 2023, the staff report expects 400 applications for new curb lane cafés and 493 sidewalk cafes.

The report also cites the impact the CaféTO program had on other areas including Road Maintenance and TTC and Wheel-Trans Services and recommends numerous changes including condensing the Curb Lane Café Season by 61 days to May 15-October 14 instead of April 15-November 14, and establishments be limited to one curb lane café permit area per operator, and restaurant operators located on a corner lot not be permitted to have “both a sidewalk café on a flankage and a curb lane café on a different street.” There are also new restrictions for establishments including placement of decks, screens, fencing, planters, and additional requirement for marketing displays.

The report will be considered by Executive Committee on January 31, 2023, and considered by City Council on February 7, 2023, subject to the actions of the Executive Committee.

Stay tuned for updates.

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