A restaurant needs more than a good location. The space has to carry a commercial kitchen, and several approvals come before you can open. Check these before you sign a restaurant space lease. Checked October 4, 2026.
1. Zoning
The zoning bylaw sets which uses are permitted in each zone, and work that does not comply will not get a building permit. Ask the city whether your exact use is permitted at that address: sit-down, take-out, with or without alcohol.
2. The space itself
- Is there a kitchen exhaust hood and fire suppression system already, and in what condition?
- Is there a gas line, and is there enough electrical power for your equipment?
- Is there a grease interceptor (grease trap)? Ask the city about its sewer-use rules for restaurants.
- Where would the exhaust run to the roof, and will the landlord allow it?
- Was the space a restaurant before? Existing equipment can save build-out money, but have it inspected.
3. Public health
Before you open a food business, you must notify your local public health unit. In Waterloo Region, that means the Food Premise Notification Form with a copy of your floor plan; a public health inspector then reviews it against Ontario’s Food Premises Regulation. Each region has its own public health unit.
4. Alcohol
- Serving alcohol needs a liquor sales licence from the AGCO.
- Before you apply, check with the municipality that the location is zoned for your business.
- The application includes floor plans to scale and a municipal information form, with approval letters from the building department, the fire department and public health.
- The AGCO inspects the location before it issues the licence.
5. Lease terms that matter more for restaurants
- A fixturing period long enough for permits and a kitchen build-out.
- A permitted use that covers your menu, take-out, delivery and any alcohol.
- Exclusivity against another restaurant of your type in the same plaza.
- Who owns the hood and other improvements when the lease ends.
- Rules on hours, odours, garbage and any patio.
Work out the monthly cost with the commercial lease calculator, and read the 12 clauses to check.
Sources (official pages, checked October 4, 2026)
- Ontario – Citizen’s guide to land use planning: zoning bylaws
- Region of Waterloo Public Health – Restaurants and food services health standards (new food premises notification)
- AGCO – Apply for a liquor sales licence
- Ontario – Renting commercial property in Ontario (Commercial Tenancies Act, updated July 2, 2026)
Programs and limits change, often at budget time. Confirm the current rules on the official page before you rely on them.
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General information only – not financial, legal or mortgage advice. Please consult a licensed professional about your own situation.