Ottawa may exempt home-based ‘low risk’ food businesses from licensing rules

The sign outside City Hall in Ottawa (CTV News Ottawa)

Home-based businesses in Ottawa that sell “low risk” foods, including most baked goods, chocolates, cakes, cookies and coffee beans, may no longer need to obtain a business license from the City of Ottawa as part of a proposed overhaul of food premises licensing.

A report for the emergency preparedness and protective services committee meeting on March 23 outlines updates and amendments to the regulations governing food premises to address “specific issues and gaps.”

The proposals also include the creation of a new license for restaurants and cafes that offer live music, entertainment and dancing, and new regulatory tools to “prevent incidents of excessive noise or problematic patron queuing” outside of the establishments, according to staff.

There are over 3,000 licensed food premises operating in Ottawa, and the annual food premises license is $233. Ottawa’s current licensing regulations for food premises have not been comprehensively reviewed since 2002, and the new regulations come after a review by city staff and public consultations.

“Overall, the Food Premises Licensing Review revealed the current licensing regulations for food premises are working well to address issues of public health and safety, protection of property, including consumer protection, and nuisance abatement,” staff said in the report.

“However, staff have identified the need for updated and new regulations to account for shared commercial kitchens and to create additional tools to address excessive noise and patron management in food premises having live entertainment and in order to ensure consistency, these additional tools are also recommended for licensees in the amusement place category, which may not necessarily be food premises.”

Staff say the proposed changes will “improve regulatory clarity, streamline licensing for businesses offering expanded activities, and introduce targeted tools to address emerging business areas.”

Here is a look at the proposed changes to the food premises licenses under the Licensing Bylaw in the City of Ottawa.

Home-based, low-risk food businesses

Home-based businesses selling low-risk foods will be exempt from obtaining a food premises licence under the Licensing Bylaw, according to the report.

“These businesses are deemed to be low-risk and are already regulated under the Health Protection and Promotion Act in addition to applicable City bylaws,” staff said.

“This approach balances public health protection with economic opportunity, while ensuring that food safety standards are upheld through targeted enforcement and oversight.”

Low-risk foods include breads and buns without meat or cream fillings; Most baked goods without custards; Chocolate, fudge, toffee, brittles and hard candies; Granola, trail mix, nuts seeds; Cakes, brownies, muffins and cookies that do not require refrigeration; and coffee beans and tea leaves.

The report says the Ontario Government introduced changes to the Food Premises Regulation in 2020 that allowed operators to sell low-risk food that was prepared at home, provided they comply with provincial public health legislation and its Food Premises Regulations.

“This regulation sets out food safety standards and other requirements for food premises and is overseen and enforced by public health inspectors in Ottawa Public Health,” staff said.

“In addition, the provincial legislation for home-based food businesses include an obligation to notify their local public health unit before starting operations.”

Ottawa’s new Zoning Bylaw includes an exemption for home-based food businesses operating in a home as long as they prepare low-risk foods only.

New license for establishments offering live music

Restaurants and cafes offering “expanded activities,” such as live entertainment or music beyond standard food service will be required to get a new license.

The city is proposing the creation of a new class of licensed food premises, which will consolidate requirements for food premises that offer entertainment, eliminating the need for a separate amusement place license. Restaurants and cafes selling food and offering live entertainment or other activities currently require both a food premises license and an amusement place license.

While current food premises and amusement place licenses are set to expire on March 31, 2026, staff propose a two-month extension for all currently issued licenses, which will allow current establishments that hold both licenses to transition to the single expanded activity food premises licence.

The cost of the new license will be $448.

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Noise concerns

Ottawa’s Chief License Inspector will receive new tools to prevent excessive noise in restaurants and cafes, and address issues with patrons standing in lines outside of the establishments.

Bylaw Services received 3,171 service requests related to food premises in 2023, and 2,132 requests in 2024. Of the requests, 926 requests in 2023 and 750 requests in 2024 were related to noise at the establishments.

Under the proposed changes to the bylaw, the Chief License Inspector will be able to:

• Require expanded activity food premises to close doors and windows during entertainment hours.
• Mandate relocation of noise-generating equipment within the premises.
• Impose a requirement for a professional engineer’s report with recommendations for compliance in the event of repeated violations of the noise bylaw, at the licensee’s expense.

Business owners will also be required to develop and implement plans to manage lineups outside the establishments and reduce public disturbances in the event of ongoing complaints.

“These plans would be triggered by repeated complaints or violations of City regulations related to sidewalk or roadway encumbrance,” staff said.

Staff say approximately 20 per cent of licensees offering services past 11 p.m. or hosting live music expressed concern over “vague noise regulations and difficulty with compliance.”

Shared Commercial Kitchens

The proposed changes to the Food Premises Licensing Bylaw will create a specific definition for shared commercial kitchens. The operators of shared commercial kitchens will be required to:

• Ensure all clients using or renting their premises carry a minimum of $2 million in commercial general liability insurance
• Keep an up-to-date log of all clients using the shared commercial kitchen to assist public health inspectors or municipal staff in addressing food safety or public health and safety issues.

The bylaw will have a new offence for individuals who falsely claim that food was prepared in a shared commercial kitchen when it was not.

Definition of food premise

Other proposed changes to the rules include “modernizing the definition” of food premises to reflect the “nature of current businesses operating in this area.”

The definition of food premise will be revised to include a “shared commercial kitchen,” according to staff.

Online licensing applications

City staff say the city will introduce an online licensing solution this fall, which will be a “one-stop-shop” for licensing application and renewal.

“This online program is expected to save licensees time by allowing them to apply for and renew their business license online,” staff said.