Quick answer: Opening a restaurant in Ontario in 2026 typically costs CAD 200,000-500,000+ depending on size, location and build-out (Toronto is at the higher end). You will need a business registration, a municipal business licence, a public health inspection, food handler certification, and — if you serve alcohol — an AGCO liquor licence. Ontario charges 13% HST. Realistic timeline: 6-12 months.
Ontario is Canada's biggest restaurant market, and Toronto one of its most competitive. The dream is easy; the paperwork and the numbers are where most first-timers get caught. Here is the grounded version for 2026.
How much does it cost to open a restaurant in Ontario?
| Format | Typical all-in (CAD) |
|---|---|
| Cafe / small QSR | $120,000-$300,000 |
| Full-service restaurant | $250,000-$500,000+ |
| Toronto (premium locations) | higher end + key money |
The biggest swing is the space. A second-generation restaurant unit with existing kitchen infrastructure can cut build-out dramatically versus a raw retail conversion. Budget several months of "dark rent" before you open.
What licences and permits do you need in Ontario?
- Business registration — register your business/corporation in Ontario and get your CRA business number (for HST).
- Municipal business licence — from your city (e.g. City of Toronto) to operate an eating establishment.
- Public health approval & inspection — your local public health unit reviews the premises and inspects before opening.
- Food handler certification — required food-safety training for staff/supervisors.
- Building & occupancy / fire approvals — for your renovation and capacity.
- AGCO liquor licence — if you serve alcohol; apply early, it is the slowest.
- Patio / sign / music permits — as applicable.
Ontario applies 13% HST to restaurant meals; a POS that handles it automatically keeps your returns clean — see our GST/HST calculator and the Ontario restaurant POS guide.
The steps to open, in order
- Concept & numbers — cuisine, price point, and a simple P&L. Use a startup cost calculator.
- Business plan & funding — savings, bank/BDC loans, investors; add a contingency.
- Register the business and get your CRA/HST number.
- Find & lease the space — prioritise second-generation units; check zoning.
- Design kitchen & layout for flow and speed.
- Apply for licences — start with the AGCO liquor licence and public health.
- Build out & equip — new vs used equipment is a big cost lever.
- Menu & pricing for a target food cost (~28-35%). Use a food cost calculator.
- Choose your POS & tech — month-to-month, no lock-in, HST-ready. See the Canadian POS comparison.
- Hire & train, then soft-launch before your grand opening.
Frequently asked questions
How much does it cost to open a restaurant in Toronto? A full-service restaurant in Ontario typically runs CAD 250,000-500,000+, with premium Toronto locations at the higher end once key money and higher rents are included. A cafe or small QSR can start around CAD 120,000-300,000.
Do I need a liquor licence in Ontario? Only if you serve alcohol — through the AGCO. It is the most involved licence, so apply early in your timeline.
What sales tax applies to Ontario restaurants? Ontario charges 13% HST on restaurant meals; a POS that applies it automatically simplifies your filing.