Table of contents
Introduction
Getting started
Regulations
Taxation
Financing
Other resources
Introduction
There are many different kinds of restaurants and catering services. Whether you are interested in starting a café, bar, family-style restaurant or event catering business, you will be part of the food services industry.
Popular types of restaurants and catering businesses include:
- Gourmet and casual dining
- Fast-food and food trucks
- Pubs, bistros and brasseries
- Coffee shops and cafeterias
This guide focuses on operating an independent restaurant or catering business. For information on buying a franchise, visit the Canadian Franchise Association website or call them at 1-800-665-4232.
Getting started
When you start a business there are several things to consider before you can sell your product or service. Most businesses in Ontario need to complete a minimum of three basic steps:
- Find out what licences and regulations apply to your type of business
- Choose a business structure and register or incorporate your business
- Determine if you will need to collect and remit HST
Our Starting a business guide will give you more information on these steps and other basic requirements for starting a business in Ontario.
Read online:
Starting a business
Regulations
Your business may need licences and permits from the federal, provincial and municipal levels of government.
In addition to the information you will find in this guide, you can use BizPaL to find licences and regulations that may affect your business.
Use online:
Permits and licences search
Restaurants and catering services are highly regulated in Ontario. Some common regulations that may apply to your business include:
Food safety and labelling
Your local health unit is the main contact for information on food safety and inspections.
Contact your local health authority to arrange an inspection of your business location, equipment and processes and make sure your business is complying with provincial and federal legislation.
The following link provides contact information for local health authorities that inspect food businesses in Ontario.
Read online:
Local public health contacts
You also need to follow safety standards and labelling rules if you produce, service, process or manufacture food.
Canadian Food Inspection Agency (CFIA)
Most businesses that buy, sell, ship, process or manufacture food will have CFIA regulations to follow.
These regulations may require you to:
- Obtain a licence
- Keep records
- Properly label packaged foods
Activities that are regulated include:
- Importing foods for re-sale
- Selling food to the public, retail food sales
- Shipping food products to another province or territory
- Producing, manufacturing or advertising food products
Check with the CFIA to find out which requirements apply to your business.
Contact CFIA:
1-800-442-2342
Food licences
Food safety for industry
Toolkit for businesses
Labelling, standards of identity and grades
Ontario Ministry of Agriculture, Food and Agribusiness (OMAFA)
You may have regulations or inspection standards to follow if you produce, transport or manufacture specific food products in Ontario. Regulated products include dairy, eggs, fish, meat, honey and other plant-based products. Contact the Ministry directly to find out what will apply to your business.
Contact OMAFA:
1-877-424-1300
Food Inspection Programs
Ontario Ministry of Health
Home-based food businesses are allowed to sell low-risk, home-prepared foods and are exempt from certain regulatory requirements, such as specified handwashing stations in food premises, compliance with commercial dishwashing requirements and food handling training certification.
Low-risk food items are generally considered non-hazardous and do not require time and temperature control. Some examples of low-risk foods include:
- Most breads and buns (without meat, cream filling, etc.)
- Most baked goods (with no custard)
- Chocolate, hard candies and brittles
- Fudge and toffees
- Pickles, jams and preserves
- Granola, trail mix, nuts and seeds
- Cakes (icing that doesn’t require refrigeration), brownies, muffins and cookies
- Coffee beans and tea leaves
For more information contact your local public health unit:
Ontario Ministry of Health - Food handler training and certification
Local public health contacts
Municipal regulations
Many municipalities have licences specific to food handling or food preparation. If your municipality is not listed in BizPaL, or you are not sure what municipality your business falls under, you can contact the Association of Municipalities of Ontario (AMO) for information on what municipal regulations, licences or permits will be needed to operate your business.
1-877-426-6527
Association of Municipalities of Ontario
Single-use plastics
There are rules and restrictions for using, selling, importing and exporting single-use plastics that may apply to your business. The regulations include common items such as plastic bags, cutlery, straws and various containers.
Refer to Environment and Climate Change Canada’s website for the regulations and guidance on alternative products for your business:
Single-use Plastics Prohibition Regulations
Tips and gratuities
As an employer in Ontario, there are rules set out in the Employment Standards Act, 2000 (ESA) that you need to follow when handling tips and other gratuities in your workplace. Generally, you cannot withhold, make deductions from or make your employees hand over their tips or other gratuities. Find more information about your responsibilities and best practices for handling tips on the website of the Ontario Ministry of Labour, Immigration, Training and Skills Development or contact the ministry directly.
Contact Ministry of Labour, Immigration, Training and Skills Development
1-800-531-5551
Tips and other gratuities
Smoke-Free Ontario
The Ontario government prohibits smoking in all enclosed workplaces and enclosed public places. Find out what your responsibilities are, what is required for inspections and how to get “No Smoking” signs.
Contact your local Public Health Unit:
Public Health Unit Locator
Selling, serving and delivering alcohol
If you plan on selling, serving or delivering alcoholic beverages, you will need one or all of the following:
Liquor sales licence
You will need a liquor licence for your business if you sell or serve alcoholic beverages in an area where light meals are available.
Contact the Alcohol and Gaming Commission of Ontario (AGCO)
1-800-522-2876
Liquor sales licence
Bring your own wine (BYOW)
The BYOW endorsement allows customers of your licensed establishment to bring unopened wine from home. If you are interested in getting a BYOW endorsement for your business, contact the AGCO.
Contact AGCO:
1-800-522-2876
Apply for a bring-your-own-wine endorsement
Catering endorsement
Your business can get a catering endorsement from the AGCO if you wish to sell and serve liquor at catered events in an unlicensed area.
Contact AGCO:
1-800-522-2876
Apply for a caterer's endorsement
Liquor delivery services
If you are involved with the delivery of alcohol to individual consumers in Ontario, you will need to have a provincial liquor delivery service licence and meet requirements for training on handling alcohol and for record keeping.
Contact AGCO:
1-800-522-2876
Liquor delivery service
Special occasion permit
You will need a permit to serve alcohol at special events, such as weddings or charity fundraisers. Special occasion permits cannot be issued for a private residence.
Contact the Alcohol and Gaming Commission of Ontario (AGCO):
1-800-522-2876
Special occasion permits
Maintaining high health standards
Your restaurant or catering business will be inspected and appraised, so you should strive to maintain high health standards. There are several standards that you may need to be aware of including:
- Food temperature control
- Protection of food from contamination
- Employee hygiene and hand washing
- Maintenance and sanitation of surfaces and equipment that come into contact with food
- Maintenance and sanitation of surfaces and equipment that do not come into contact with food
- Maintenance and sanitation of washrooms
- Storage and removal of waste
- Pest control.
For further information, call your local Public Health Unit.
Music licence
When your business uses recorded music, you are responsible for getting the right licence(s) for that use. Contact the following organization for more information:
Legal questions
You can contact Pro Bono Ontario’s free legal advice hotline to enquire about getting help with your everyday civil legal needs (no family law, immigration or criminal law). The service is generally aimed at those who cannot afford a lawyer.
Note that service is not guaranteed and you will be asked questions as part of the qualifying process, such as the amount of personal income earned by your household, your name, postal code and age range.
Contact Pro Bono Ontario’s Free Legal Advice Hotline:
1-855-255-7256
Read online:
Pro Bono Ontario - Free Legal Advice Hotline
You can also contact the Law Society of Ontario's Law Society Referral Service if you have legal questions of a business nature. The service may be able to assist you in finding a lawyer or paralegal, based on your needs.
Use online:
Law Society Referral Service
Taxation
Depending on your location and the type of products or services being offered, federal, provincial and/or municipal business taxes may apply.
Read online:
Taxation guide
If you sell goods and services in Ontario, you may need a business number to collect and remit the Harmonized Sales Tax (HST). Most businesses that make less than $30,000 in any 12-month period are not required to charge HST; however, you can register voluntarily and claim input tax credits. Speak with the Canada Revenue Agency (CRA) for more information.
Contact CRA:
1-800-959-5525
Canada Revenue Agency
Additional tax requirements that may apply to restaurants and caterers in Ontario include:
Prepared food and beverages
The following will help you understand how to charge the Harmonized Sales Tax (HST) on prepared food and beverages.
Contact CRA:
1-800-959-5525
Harmonized Sales Tax for Ontario - Point-of-Sale Rebate on Prepared Food and Beverages
Coupons and gift certificates
If you offer coupons and gift certificates, find out how to apply the HST when you sell them and when you redeem them.
Contact CRA:
1-800-959-5525
How to treat coupons and gift certificates
Alcoholic beverages – Beer and Wine Tax
In addition to charging HST, you need to know how much tax was collected on beer and wine products you sell to customers. Ontario manufacturers charge a special beer and wine tax to suppliers which is included in the price you pay for your inventory. If requested, you need to be able to tell your customers how much beer and wine tax was paid.
Contact the Ministry of Finance:
1-866-668-8297
Beer and Wine Tax
Financing
Grants, contributions, subsidies and loan guarantees are available from various government sources. Use Innovation Canada’s online search tool to look for programs and services that may apply to your business.
Search online:
Business Benefits Finder
Other resources:
Industry-specific information
