City staff asked to address ‘transition concerns’ related to CaféTO proposed changes

The mayor’s executive committee passed a motion Tuesday to ask city staff to “provide options that address transition concerns” related to the proposed changes to the CaféTO program and report back at the council meeting in February.

The city’s Transportation Services, Municipal Licensing and Standards, and Economic Development and Culture departments are being asked to review whether to implement a “grace period for platform installations, amendments to the fee schedule, options that better enable businesses outside of Business Improvement Areas to participate in the program fully, and options that address large-off-street CaféTO permits.”

Mayor John Tory acknowledged at the meeting that there has been some “sticker shock” associated with the proposed fees and regulations that businesses will have to incorporate into their operating costs.

The executive committee was reviewing a staff report that outlined the proposed changes for the 2023 season of the program and beyond, with plans to transition the program from a pandemic initiative to a permanent fixture.

The initial staff report recommends “returning to standard permit processes for all right-of-way café types that were in place before the COVID-19 pandemic.”

Staff are also recommending a one-time application fee of $865 and an annual fee of between $1,500 and $3,000 for sidewalk space and curb lane space, respectively.

For curb lane patios, the new proposed rules state that they need to be built on platforms to make them accessible.

Barbara Gray, the general manager of Transportation Services, said while the regulations and fees may “impact uptake” of restaurants participating in the program, the changes will ensure the program is sustainable in the long run.

However, John Kiru, the executive director of the Toronto Association of Business Improvement Areas, said the changes are “too much, too soon.”

The report also includes a recommended grant program to help businesses in meeting these requirements.

CaféTO was created during the COVID-19 pandemic as a lifeline to allow local businesses to have customers dine outdoors after public health restrictions prohibited indoor dining.

Between 2020 and 2022, the City absorbed all operational costs of the program and waived all permit, transfer and application fees.

In 2021 and 2022, more than 1,200 dining establishments took part in CaféTO.

Councillors will still need to give the final green light on the report when it is debated at the next council meeting on Feb. 7-9.