This guide offers general information for potential entrepreneurs wishing to start a restaurant or catering business.
Starting a business can be a rewarding undertaking, but it comes with its challenges. Before starting a business in Ontario, it is wise to do your research. There are several issues to consider such as regulations, financing, and taxation, managing your business, advertising and much more.
For further information:
see the documents:
As a restaurant operator, your main preoccupation should be to maintain high health standards. Maintaining traffic in your restaurant depends on it, as your restaurant will probably be inspected and appraised. Important steps to take into consideration when dealing with health issues include:
For further information, call your local Public Health Unit .
Depending on your experience, finances, location and customers, you will have to decide on the type of restaurant you want to operate (traditional, ethnic, specialty, coffee shop, fast food, cafeteria, self-serve, etc.), and aim for a practical, useful layout, that will set the mood. It would be good to have all of the following:
To determine the maximum potential of your restaurant and break-even point:
Source: Western Regional Office, Manitoba Industry, Trade and Mines
This document will assist you in navigating federal, provincial and municipal regulations that apply to a number of industries and businesses.
For further
information:
see the document
Business Regulations Info-Guide
For many of the small or medium-sized business in Ontario, complying with environmental regulations is just a part of their day-to-day business. However, not all businesses are sure if they are subject to specific environmental requirements or not. Some of the most common regulations include air permits, hazardous wastes, water quality, etc. For more information on whether your restaurant should be complying with these regulations please contact the Ministry of the Environment Environmental Assessment and Approvals Branch.
For further information:
please call 416-314-8001
visit the web site:
The Ministry of the Environment and Your Business
See the document
Environmental Assessment and Approvals Branch
The Canadian Food Inspection Agency contains a lot of information on food safety, including food safety tips.
For further information:
please call 1-800-442-2342 or 613-225-2342
visit the web site:
Canadian Food Inspection Agency
The Ministry of Agriculture, Food and Rural Affairs web site contains a lot of information on food safety, including information on the Food Safety and Quality Act.
For further information:
please call 1-888-466-2372
visit the web site:
Food Safety
The Ministry of Health and Long-Term Care web site contains information on Health Issues, including locations of Public Health Units and publications on food and water safety.
For further information:
please call 416-314-5518 or 1-800-268-1154
visit the web site:
Publications: Food Safety
As of May 31, 2006, the Ontario government is prohibiting smoking in all enclosed workplaces and enclosed public places. The legislation will also strengthen measures to ensure only those 19 years of age and older can buy cigarettes and will phase out the display of tobacco products, with a complete ban beginning May 31, 2008.
For further information:
please call 416-326-4846
visit the web sites:
Ministry of Health Promotion
Smoke-Free Ontario Act
The Alcohol and Gaming Commission of Ontario is a regulatory agency that reports to the Ministry of Government and Consumer Services. Its mandate is to regulate the sale, service and consumption of alcohol beverages. It manages alcohol licences in Ontario.
For further information:
please call 416-326-8700 or 1-800-522-2876
visit the web site:
Alcohol and Gaming Commission of Ontario
see the document
Application for a New Liquor Licence
These new regulations improve customer service by allowing patrons to bring commercially made and unopened wine to participating licensed establishments. Licensed establishments such as family and fine dining restaurants, cafes, hotel and motel restaurants and similar types of restaurants are eligible for BYOW. Licensed banquet rooms located in a hotel or motel are also eligible.
Participation in the BYOW initiative is voluntary for eligible licensed establishments, and establishments are free to set their own policies for how they offer the service. Some establishments may choose to offer BYOW only on slow nights of the week, or only on special occasions.
Licensed establishments offering this service may also charge a corkage or service fee, require minimum food orders and/or limit the number of bottles a patron can bring.
Interested licensees must apply to the Alcohol and Gaming Commission of Ontario (AGCO) for an endorsement to their existing liquor license. For the first year of the initiative, participating licensed establishments will not be charged an endorsement fee.
A liquor sales license is issued for the sale and service of beverage alcohol in licensed areas where light meals are available. When a liquor sales license is combined with an endorsement, the licensee may sell and serve beverage alcohol under specific circumstances.
An endorsement is an addition that is only valid when combined with an active liquor sales license. In order to apply for a BYOW endorsement, licensees should visit the AGCO web site to print an application form. Once completed, the application should be mailed to the Alcohol and Gaming Commission, Licensing and Registration at 20 Dundas Street West, 7th Floor, Toronto, Ontario, M5G 2N6.
New regulations improve consumer service by allowing patrons to remove partially consumed and resealed bottles of wine that they brought to, or purchased from, a licensed establishment.
Take Home the Rest encourages responsible drinking. Patrons no longer have to choose between finishing a bottle of wine – which may lead to over-consumption – or leaving it behind. Participation in the Take Home the Rest initiative is voluntary for all licensed establishments.
For further information:
call 1-800-522-2876
visit the web site:
Questions and Answers - Bring your own wine/Take the Rest Home
Keep in mind that specific municipal requirements may also apply, depending on the city where the business will be located. Local municipalities may be responsible for the administration of certain business licenses, and they are also responsible for the administration of certain provincial laws, like the Health Protection and Promotion Act, which governs community health standards.
For further information:
visit the web site:
Association of Municipalities in Ontario
see the document
Municipal Requirements to Start a Business
This document is designed to help you navigate through the federal and provincial government programs available to individuals starting a business in Ontario.
For further information:
see the document:
Financing for Starting a Business Info-Guide
The Taxation Info-Guide is designed to help you navigate through the federal and provincial government programs, services and regulations related to taxation that may apply to individuals starting or operating a business in Ontario.
For further information:
see the document
Taxation Info-Guide
Below are links to publications that cover some of the tax requirements for restaurant owners in Ontario.
This Pointer will help if you sell prepared foods from an eating establishment. It explains the basic Retail Sales Tax (RST) rules for your type of business.
For further information:
see the
document
Prepared Foods
This Pointer provides basic Ontario retail sales tax information relating to the sale of alcoholic beverages in an establishment such as a restaurant, bar, pub, hotel, resort or caterers.
For further information:
Alcoholic Beverages
The information in this guide explains how Retail Sales Tax (RST) applies to purchases of taxable goods and services made by Status Indians, Indian bands and band councils.
For further information:
Status Indians, Indian Bands and Band Councils
This form is to be completed when applying for a retail sales tax Vendor Permit, for purposes of charging and collecting retail sales tax.
For further information:
Application for Vendor Permit (PDF - 371 KB)
The information in this guide explains how Ontario retail sales tax applies when various types of coupons are redeemed towards the purchase of goods.
For further information:
Discount Coupons
Insurance needs for businesses vary greatly. It is best to choose an insurance agent or broker familiar with your size of business and, in particular, an agent familiar with your type of operation. If you don't have an insurance agent, it could be a wise decision to ask other business owners in your area to recommend one.
Your local restaurant association may also have information about insurance packages specifically tailored for restaurants. The following list is included to remind you not to overlook the complex areas of business insurance. It is best, however, to discuss your specific requirements with your insurance agent.
Basic insurance:
Word-of-mouth advertising and good public relations are often the best ways of promoting your business. Depending on your market and its size, also consider flyers, business cards, brochures, newspapers (especially for holiday promotions), radio, TV, the phone book and the Internet. Also, bear in mind that a satisfied customer is good advertising. Referrals are also a valuable way of making customers aware of your products or services.
A web site is also a good marketing tool. It should have details to describe the location (your address, telephone and fax numbers, and directions on how to get to your establishment), hours of operation, services offered, credentials and anything else you think may be of interest to potential customers. However, once you launch a web site, you should update it on a regular basis.
Participating in community events is another way of advertising your business. You may also want to hold events that will promote your business. No matter how you choose to market your business, it is wise to track how your clients became aware of your establishment - this may help determine your future advertising strategies.
For more information:
see these documents:
Signs and Your Business
Plan Your Advertising Budget
Advertising Do's and Don'ts
Ways to Promote Your Product or Service
Marketing Plan Outline
The Marketing Basics section of the Online Small Business Workshop covers the basics from developing your customer profile to promoting your business.
For more information:
visit the web site:
Online Small Business Workshop
The Competition Act governs misleading advertising and deceptive marketing practices for all businesses in Canada. The Act, which is administered by Industry Canada, defines which marketing practices are illegal and the process of complaint investigation.
For more information:
please call: 819-997-4282 or 1-800-348-5358
visit the web site:
Competition Bureau
see the document
Competition Act - Misleading Advertising and Deceptive Marketing Practices
It is essential that you know who your customers are, what they need or want, and how to reach them. You should have solid understanding of these if you are going to run a successful business.
For further
information:
see the document
Market Research for Your Business
This Info-Guide is designed to help you navigate through the federal and provincial government regulations on employment.
For further information:
see the document
Employment Regulations Info-Guide
Choosing the right location for your business is important. Considerations include the needs of your business, where your customers and competitors are, and such things as taxes, zoning restrictions, noise and the environment. For most businesses, an appropriate location is critical.
For further information:
see the document
Store Location - "Little Things" Mean a Lot
Before you open your restaurant, you will probably want to buy tables, chairs, lighting and decorative items. You might also need a kitchen, a bar and dinner wares. The menu, size of restaurant and kind of service will determine the type of equipment you will require. For assistance in this area, you might want to try to get the advice of a sales representative or consult trade publications and manufacturers' web sites. An important factor to consider when choosing equipment is the after-sales service and repair and their affordability.
Sources of Financing is an Internet resource for locating traditional and alternative sources of small business financing.
For further information:
see these documents:
Lending - The Basic Criteria
Dealing With Your Banker & Other Lenders
Sources of Micro-credit Financing
Used Equipment - Consider buying used equipment as a cost-saving measure. Sources of used equipment could be a restaurant that is closing or dealers in second-hand equipment. The drawback to this approach is that, often, there are no guarantees with the purchase.
Plan your menu carefully. Try to know what items your customers prefer and how they like them prepared. Try to provide variety while maintaining stable cost averages. Menu prices are a combination of food costs and what is needed to meet expenses and realize a profit. Generally, the price of an item is approximately three times the food costs, depending on restaurant type, operating expenses and competitors' prices. To establish pricing:
For further information:
see the document
Setting the Right Price
A catering business follows many of the same regulations as a restaurant. You should decide whether you want to run your catering business from your home as different regulations may apply.
For copies of these regulations, you can call your local health department and speak with a food inspector.
For further information:
visit the web sites:
Public Health Unit Locations
Health Protection and Promotion Act
Food Inspection Branch
Liquor Licence Act allows for the addition of a variety of special conditions to a sales license. This special condition is referred to as a license "Endorsement".
The holder of a catering endorsement may sell and serve liquor at a catered event in an unlicensed area of a licensed establishment and at a catered event away from the licensed premises in an unlicensed area where a LCBO - Special Occasion Permits would otherwise be required.
For further information:
visit the web site:
Catering Endorsement
Saving Energy Dollars in Hotels, Motels and Restaurants
Statistics Canada is the official source for social and economic statistics and products. You may want to take a look at:
Click:
Canada-Ontario Business Service Centre
Call: 1-800-567-2345
Visit: visit our
Regional Access Program Locations page
to locate an office near you
Some of the organizations listed above are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages.
DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.
Links Policy
Some of the hypertext links lead to non-federal government sites which are not subject to the Official Languages Act and the material is available in one language only.