City council has approved a series of sweeping zoning changes that will expand opportunities for smaller retail and service businesses in Toronto's residential areas. This represents one of the most significant updates to neighborhood permitting in decades. The decision completes the third phase of the Expanding Housing Options in Neighborhoods (EHON) Neighborhood Retail and Services Study, opening the door to mom-and-pop stores in select downtown and East End districts while allowing shops, cafes and other environmentally friendly uses along major streets in all 25 boroughs.
In planning terms, the term “corner stores” refers to small retail stores permitted on residential corner lots provided they are located on a designated community street. These stores are limited to low-impact formats such as convenience retail, small cafes with off-site food preparation, and personal services.
Example of a house-shaped neighborhood retail store in Ward 9 Davenport, image from Google Maps
Residential properties on main streets across the city now accommodate a range of retail and service uses on the ground floor, with professional and wellness office space expanded to the second floor. More limited permits have been issued for interior districts, allowing small-scale retail on qualified corner lots in designated districts in the Center and East End. These permits were added through Council changes limiting the rollout for this phase to the “old” Toronto and East End. Updates to housing standards were also completed, as well as instructions for a monitoring program, future license reviews and discussions with the province on cannabis and alcohol controls.
Under the new zoning, a corner lot on a designated community street (or a lot adjacent to a park, school, or existing commercial area) can now accommodate a compact convenience store with the capability for side or carry-out food prepared elsewhere. These uses are limited to formats that fit smoothly into the surroundings, with the exception of terraces and more impact-intensive businesses.
The rollout covers the following eight districts:
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District 4 (Parkdale–High Park)
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District 9 (Davenport)
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District 10 (Spadina–Fort York)
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District 11 (University–Rosedale)
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District 12 (Toronto–St. Paul's)
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District 13 (Toronto Center)
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District 14 (Toronto–Danforth)
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District 19 (Beaches – East York)
Other districts may apply for inclusion in the program through further consultation.
Toronto and East York Wards where neighborhood indoor retail permits now apply, image by City of Toronto and edited by Anthony Teles
While interior permits are limited to select districts, the Main Street component applies citywide. Each district now permits small retail stores and services in residential properties on designated main streets, supporting grocery and convenience stores, cafes, personal services, studios, and community-oriented offices. Council also adopted a number of district-specific exclusions that remove certain corridors from the map, but the broader framework sets uniform permits across Toronto's arterial network. Council also adopted several amendments to identify several specific streets (primarily in Scarborough, Etobicoke, North York and parts of Midtown) that the new business permits do not apply to.
City staff will track how the new permits are working locally and report back either after two years or after the first 100 permits and business licenses. The review will assess whether adjustments to zoning, enforcement or licensing are necessary.
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