‘Sticker shock’ over new CaféTO fees and rules has city looking to soften the blow

The city is pumping the brakes on proposed changes to CaféTO, after restaurant owners warned that a proposal to institute new fees and regulations could kill the popular outdoor dining program.

At a meeting of council’s executive committee on Tuesday, Mayor John Tory conceded there had been “sticker shock” about costly requirements city staff had recommended be introduced this year as the municipality moves to make the pandemic-era program permanent. He introduced a motion asking staff to look into ways to “address transition concerns” related to the new rules.

The mayor said he hoped staff can “give us some options on some things we could do to perhaps implement this in a slightly more moderate way” that would lessen the blow to restaurants, whose businesses have yet to fully recover from COVID-19.

In a report released last week, staff proposed mandating that restaurants build accessible platforms on all curbside patios, and pay thousands of dollars in annual fees.

Tory agreed that it’s important to make the patios accessible and it’s only fair to charge restaurants to use public space in curb lanes and sidewalks. But his motion asked staff to look into a “grace period” for the platform installations, potential changes to the fee schedule, and any other tweaks that could make it easier for businesses to take part.

Staff will report on the mayor’s motion at February’s council meeting, where the report on the program will be debated.

Since 2020, CaféTO has allowed restaurants to erect outdoor patios in curb lanes and on sidewalks. It was intended to help businesses through lockdowns while giving a space for patrons to safely dine outdoors.

Last year the program enabled more than 1,300 patios and generated $203 million in economic benefits to the city, according to a study commissioned by the Association for Toronto Business Improvement Areas.

For the first three years the program was free, but in the report last week staff recommended instituting a one-time application fee of $865, plus an annual fee that would average about $1,500 for a sidewalk space and $3,000 for a curb lane space.

In addition, the accessibility platforms that would be required for curb lane patios would cost on average $14,000 to build. This year, businesses would be eligible to get half those costs covered by a federal grant of up to $7,500.

Representatives of the restaurant industry told Tuesday’s committee meeting that the additional costs and administrative burden of the new rules would deter many businesses from signing up for the program.

Tracy Macgregor, Ontario vice-president for Restaurants Canada, said that whenever cafes and bars were forced to shut down due to COVID-19 over the past three years, they still had to continue paying taxes, rent, insurance and other costs. While government assistance helped, many owners had to take on loans that they have yet to pay back.

“Restaurants need this program to help them on the road to recovery. Now’s not the time to bring back fees and the proposed changes to the program,” Macgregor said.

“The simplicity and access to the program is what made it such a success for our restaurants and for our city.”

Ben Spurr is a Toronto-based reporter covering city hall and municipal politics for the Star. Reach him by email at bspurr@thestar.ca or follow him on Twitter: @BenSpurr