As of January 1, 2025, the City of Toronto will implement updated licensing and zoning bylaws for restaurants, bars and entertainment venues. These changes clarify and modernize the rules while fostering business opportunities, contributing to vibrant communities and stimulating Toronto’s economy, including areas outside of the downtown core.
Key changes to licensing and zoning bylaws for 2025:
Restaurants, bars and entertainment venues currently holding business licences may need to transition to a new licence type, depending on their activities and services provided. Businesses that provide several food or entertainment services (e.g. nightclubs) may have to apply for an additional licence or permissions.
Businesses currently licensed with the City will need to follow the new rules when their annual business licences are scheduled for renewals in 2025. Businesses that will require a secondary licence (for example, a restaurant that requires a second licence as a nightclub) must begin the process of obtaining their additional licence starting January 1, 2025, and sufficient time will be provided to come into compliance with the new requirements.
The business licence category known as Eating Establishment changes to Eating or Drinking Establishment.
An Eating or Drinking Establishment is a business where:
The 2025 application fee will be $516 and the renewal fee will be $349.
There is a new licence category known as Expanded Activity Eating or Drinking Establishment.
An Expanded Activity Eating or Drinking Establishment is a business that, in addition to the Eating or Drinking Establishment criteria, also meets three or more of the following criteria:
The 2025 application fee will be $723 and the renewal fee will be $525.
Your business does not require both an Eating or Drinking Establishment licence and an Expanded Activity Eating or Drinking Establishment licence. You only need the one that applies to your business.
Determine if you need to apply for an additional Entertainment Establishment/Nightclub licence.
25 per cent of the floor area in Eating or Drinking Establishments can be dedicated to entertainment in most commercial zone and along the edges of industrial zones. This change maintains that eating and drinking remains the primary use of these businesses but allows for more entertainment and makes the rule easier to understand and enforce.
If you own or operate an Eating or Drinking Establishment, you can get information about Toronto musicians from the City’s Musician Directory.
The licence category known as Retail Food Establishment changes to Take-Out or Retail Food Establishment.
A Take-Out or Retail Food Establishment is a business where:
The 2025 application fee will be $380 and the renewal fee will be $251.
If your business is not selling pre-packaged or prepared food or drinks, then you may not require a Take-out or Retail Food Establishment licence.
The business licence categories known as Circus, Theatre and Public Hall change to Entertainment Place of Assembly.
An Entertainment Place of Assembly is a business that is used in any of the following ways:
This licence category does not require a minimum percentage of fixed seating or floor space that can be used for entertainment.
The 2025 application fee will be $436 and the renewal fee will be $251.
There is a new licence category known as Expanded Activity Entertainment Place of Assembly.
An Expanded Activity Entertainment Place of Assembly is a business that, in addition to the Entertainment Place of Assembly criteria, also meets all the following criteria:
The 2025 application fee will be $611 and the renewal fee will be $378.
Your business does not require both an Entertainment Place of Assembly and an Expanded Activity Entertainment Place of Assembly licence. You only need the one that applies to your business.
Determine if you need to apply for an additional Entertainment Establishment/Nightclub licence.
The criteria for the business licence category known as Entertainment Establishment/Nightclub has been clarified.
An Entertainment Establishment/Nightclub is a business where amplified music is provided for entertainment or dancing. A business is also considered an entertainment establishment/nightclub if it meets three or more of the following criteria:
The 2025 application fee will be $1,058 and the renewal fee will be $710.
Determine if you need to apply for an additional licence, including:
Nightclubs are now permitted city-wide in most commercial zones, subject to conditions. These changes are meant to reduce the clustering of nightclubs in the downtown area by permitting entertainment options in commercial zones and reduce the barriers business operators currently face in getting the correct nightclub business licence.
Entertainment establishments/nightclubs must be:
Any new zoning regulations, like the requirement to be in a non-residential building, apply on a go-forward basis for new zoning compliance applications in 2025. Nightclubs permitted by the City prior to the changes will continue to be permitted (for example, those that currently exist in mixed-use buildings).
The business licence categories known as Place of Amusement, Billiard Hall, Bowling House and Carnival change to Amusement Establishment.
An Amusement Establishment is a business that offers or permits any type of amusement activity for patrons, including providing space for amusement activities, but does not include fitness facilities, recreation centres or community centres.
Some examples of Amusement Activities include the following:
The 2025 application fee will be $459.08 and the renewal fee will be $265.
Determine if you need to apply for an additional Entertainment Establishment/Nightclub licence.
The City is developing a Licence Finder Tool and a video to help businesses understand which licence or licences are suited to their operations. Information sessions and webinars on how the licensing and zoning bylaw changes will become available for registration in November.