Serving alcohol on an Ontario patio: municipal approval, the 8-month limit and telling the AGCO

A patio can add a third of your seats between May and September, and a licensed one adds drinks sales too. The process for getting one changed on 1 January 2023, and many owners are still working from advice that describes the old system, where the AGCO approved each patio.

Who approves a temporary patio?

If your business is inside a municipality, your municipality approves the temporary patio. The Alcohol and Gaming Commission of Ontario (AGCO) no longer accepts or approves temporary patio applications for licensees in municipalities. On a First Nations reserve the band council approves, unless it has left that to the AGCO. In an unorganized area you apply to the AGCO online through the iAGCO portal.

This applies to holders of a liquor sales licence and to manufacturers with a by-the-glass endorsement.

How long can a temporary patio run?

Up to eight months in total in a calendar year. The months need not be consecutive, and an approval can be shorter. A municipality can attach conditions, such as closing times, noise limits, barriers or insurance. Read the conditions, because they become the terms you are held to.

What must you tell the AGCO?

Once you have the municipal or band council approval, you must notify the AGCO before you start selling and serving liquor on the patio. You will need:

• the start date for liquor service on the patio
• how many months a year you are approved to operate it
• the months you plan to operate
• the expiry date of the approval, if there is one
• a description of the location and dimensions of the patio
• any conditions on the approval

You make a regulatory submission through your iAGCO account, under the licence you are reporting on, and you can upload the document that lists the conditions. You must also notify the AGCO if the approval is suspended or withdrawn, or if conditions are changed or added. If the AGCO itself approved your patio, you do not need to notify it.

What still goes to the AGCO?

Permanent extensions, and temporary indoor extensions everywhere, are still AGCO matters. A permanent outdoor area needs building, fire and health compliance letters, and for municipal property such as a boulevard, a café agreement with the city. Start early: the municipality, the AGCO and your landlord each have their own timeline.

What about the rest of the patio?

The AGCO approval deals with alcohol. A patio can also need a building or zoning permission, a sidewalk or boulevard permit, a health inspection of any outdoor food service and a landlord's consent. Some cities run their own patio programs, such as Toronto's CaféTO. Ask your municipality for the full list in one meeting.

What does a municipal approval usually ask for?

That varies by city, and the AGCO page leaves it to each municipality to set conditions. Expect questions about where the patio sits, how it is bounded, how guests move in and out, how late it operates and what it does to the sidewalk or neighbours. Ask early whether the approval lasts one season or several, and whether the city expects a fresh application each year. A long approval is not a long liquor entitlement: the eight-month limit counts months in a calendar year, so a patio approved for the maximum cannot also run through the winter.

What if the approval changes mid-season?

The AGCO also expects to hear if your approval is suspended or withdrawn, or if its conditions are changed or added, so make one person responsible for the paperwork. If the city shortens your season, stop serving liquor outdoors on the new end date and update the AGCO. Serving on a patio that is no longer approved is a compliance problem you can avoid with one calendar entry.

A patio checklist

1. Ask your municipality which approval you need and for how many months.
2. Get the conditions in writing.
3. Confirm your landlord and insurer agree.
4. Notify the AGCO before the first drink is served outside.
5. Train patio staff, who need Smart Serve like everyone else (see Smart Serve for Ontario restaurant staff).
6. Diary the end of the approval, and your reminder to renew.

For the rest of the licence, read Ontario liquor sales licences. If you also deliver drinks with food, the rules are in alcohol with takeout and delivery in Ontario.

More in the Canadian guides for food businesses.