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Guide

How to open a restaurant in Canada

A practical checklist from concept to opening day, with a restaurant business plan outline and the Canadian registrations you need.

A guest enjoying a meal in a warmly lit restaurant

Opening a restaurant: the checklist

  • Concept, menu draft and target guest.
  • Business plan and financing (outline below).
  • Location: zoning check, then lease.
  • Registrations and permits (table below).
  • Build-out, equipment and inspections.
  • Systems: POS, online ordering, accounting, payroll.
  • Hire and train; food handler certification.
  • Soft opening, then launch with your Google Business Profile and ordering page live.

Permits and registrations in Canada

StepWhat to doSource
Register the businessChoose sole proprietorship or corporation; get a CRA business numberCRA, Register for a GST/HST account
GST/HST (and QST)Register once taxable sales pass $30,000 in four consecutive quarters, or voluntarily earlierCRA, Register for a GST/HST account
Zoning and buildingConfirm restaurant use is allowed at the address before you sign a leaseyour municipality
Health permitOntario: notify the health unit; BC: health operating permit; Alberta: AHS food handling permit; Quebec: MAPAQ permitOntario Reg. 493/17 (Food Premises); BC Food Premises Regulation; Alberta Health Services, Starting a food business; Québec.ca, permis de restauration (MAPAQ)
Municipal licencee.g. Toronto requires an eating establishment licenceCity of Toronto, licence types
LiquorProvincial regulator licence if you serve alcoholyour province
PayrollCRA payroll account; tips handled per CRA rulesCRA, Tips received by employees

Restaurant business plan outline

Lenders such as BDC publish free templates (BDC, business plan template). For a restaurant, make sure it covers:

  • Concept and menu with plate costs (how to calculate food cost).
  • Market: who eats nearby, competitors, delivery demand.
  • Location and lease terms.
  • Operations: hours, staffing, suppliers, systems.
  • Marketing: launch plan, Google profile, own ordering channel.
  • Financials: start-up budget, monthly break-even, 3-year projection.

Plan your numbers with real benchmarks

Canada’s food services sector made a 4.1% operating margin in 2024 (Statistics Canada, The Daily: Food services and drinking places, 2024); small and medium businesses averaged 2.9% net profit, with rent at 8.3% of revenue (ISED, Canadian Industry Statistics: NAICS 722 financial performance (2024)). Build your projections so they still work at those margins.

Where Chefzi fits

Chefzi is a commission-free online ordering system for Canadian restaurants: your own ordering page in English and French, for a flat $35 a month. Opening with your own ordering page means your first regulars order direct, not through a 20–30% commission app. If that sounds useful, book a 15-minute demo and we will show you your own menu in it. No pressure if you are just researching.

Sources

CRA, Register for a GST/HST account; CRA, Tips received by employees; Ontario Reg. 493/17 (Food Premises); BC Food Premises Regulation; Alberta Health Services, Starting a food business; Québec.ca, permis de restauration (MAPAQ); City of Toronto, licence types; BDC, business plan template · Statistics Canada, The Daily: Food services and drinking places, 2024; ISED, Canadian Industry Statistics: NAICS 722 financial performance (2024)

Frequently asked questions

What do I need to open a restaurant in Canada?

A registered business, a health permit from your province or health unit, municipal zoning and licences, GST/HST registration, and a liquor licence if you serve alcohol.

What goes in a restaurant business plan?

Concept, menu costing, market, location, operations, marketing and financial projections.

How profitable are restaurants in Canada?

The sector’s operating margin was 4.1% in 2024 (Statistics Canada).

Do restaurants need a business plan?

No law requires one, but banks and lenders ask for it, and it forces you to check that rent, payroll and food cost fit your prices. The BDC business plan template is free and includes an example plan.

Take orders without the commission

A 15-minute demo on Canadian time. We’ll show you your own menu in Chefzi.

Book a demo

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