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:

  • Clarified criteria and new names for business licence categories
  • Retired and merged some business licence categories with existing re-named categories
  • Increased permitted maximum areas that bars and restaurants can use for entertainment
  • Permitted entertainment establishments and nightclubs city-wide in most commercial zones

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) need to apply for their additional licence starting January 1, 2025 and onwards.

Licensing changes

Name changed & criteria updated

The business licence category known as Eating Establishment changes to Eating or Drinking Establishment.

An Eating or Drinking Establishment is a business where:

  • Food or beverages are prepared or served to patrons for immediate consumption on-site
  • May include take-out service and some entertainment or live performance

The 2025 application fee will be $516 and the renewal fee will be $349.

New alternate category with expanded criteria

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:

  • Within any seven-day period, the business operates past 11 p.m. for the majority of days it is open
  • Has a liquor licence to serve alcohol
  • Amusement, entertainment or live performance is offered
  • The occupant load exceeds 150 people

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.

Your business may require an additional nightclub licence

Determine if you need to apply for an additional Entertainment Establishment/Nightclub licence.

Zoning changes

Increased space for entertainment permitted

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.

Licensing changes

Name changed & criteria updated

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:

  • Food or beverages are prepared and offered to patrons exclusively for consumption off-site, or
  • Pre-packaged food or drink items are offered to patrons exclusively for consumption off-site

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.

Licensing changes

Categories merged, name changed & criteria updated

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:

  • As a performing arts space, live music performance venue or any other establishment that offers entertainment or performances for patrons. This may include a theatre, cinema, opera, concert hall, circus, ballet, wedding reception or immersive experience establishments.
  • As a space offered to others to host entertainment or performances for patrons, including banquet halls or event venues.

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.

New alternate category with expanded criteria

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:

  • Within any seven-day period, your premise operates past midnight for the majority of days it is open
  • Your premise has a liquor licence to serve alcohol
  • The occupant load of your premise exceeds 150 people

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.

Your business may require an additional nightclub licence

Determine if you need to apply for an additional Entertainment Establishment/Nightclub licence.

Licensing changes

Criteria updated

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:

  • Offers or advertises bottle service
  • Refers to or advertises itself as a club, nightclub, disco, dance hall, dance club or similar venue
  • Equipped with a lighting system, sound system or a disc jockey booth
  • Has a stage, dance floor or other area used for entertainment or dancing

The 2025 application fee will be $1,058 and the renewal fee will be $710.

Your business may require additional licences

Determine if you need to apply for an additional licence, including:

Zoning changes

Permitted outside downtown core

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.

Zoning criteria

Entertainment establishments/nightclubs must be:

  • Located in a non-residential building, limited to 400 m2 (4,300 sq. ft.) if located on a lot within 6.1 m (20 ft.) from a residentially zoned lot. Offices, storage rooms, and staff rooms are excluded from the maximum.
  • The only nightclub in the building
  • Located on first storey or basement

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).

Licensing changes

Categories merged, name changed & criteria updated

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:

  • Bowling
  • Video arcades and arcade games
  • Archery
  • Axe throwing
  • Carnivals
  • Internet cafés
  • Miniature golf
  • Golf driving ranges
  • Go-kart courses
  • Roller-skating rinks
  • Billiards or pool
  • Trampolines
  • Rebound tumbling
  • Other similar activities

The 2025 application fee will be $459.08 and the renewal fee will be $265.

Your business may require an additional nightclub licence

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.