On Thursday, November 13, 2025, Toronto city council voted, by a majority, to approve zoning by-law amendments to the Expanding Housing Options in Neighbourhoods (EHON) program, allowing small retail shops and coffee shops to operate on main streets in residential areas.
Etobicoke’s Councillor Stephen Holyday was the only member to vote against the amendments. He argued that retail in residential areas would not be viable, since they require a high volume of customers and foot traffic to survive, and they may also disrupt nearby residents. “This policy is far offside with the will of the people of the city across neighbourhoods across the city,” he said
In contrast, Olivia Chow, the Mayor of Toronto, supported the amendments, saying they encourages entrepreneurship and helps small business owners, especially newcomers. She added that local convenience stores give communities a sense of connection because people gather around them, and they also offer a lot of job opportunities. “It really builds a good sense of belonging,” she said.
Chow pointed out that the number of small shops in the city fell by 33 per cent between 1989 and 2019. She said, “It’s dramatic,” which highlights the importance of supporting and sustaining small businesses if they expand into residential neighbourhoods. She considered the move as paving the way for ambitious entrepreneurs and small business owners, enabling them to operate in Toronto. Without such changes, opening a local store would be very difficult, “if not impossible,” she said. “What we are doing right now is really cutting red tape.”
Councillor Alejandra Bravo argued that many Toronto residents no longer own cars and live in smaller homes, and allowing shops to open in residential neighbourhoods would serve these residents in line with the city’s changing realities.
This EHON has long caused divisions among policymakers as well as residents, as it remains unclear how the city will address certain challenges tied to the policy.
The City of Toronto lacks the authority to restrict certain types of retail stores, including cannabis shops and liquor, because of provincial regulations. This means those businesses can expand into residential neighbourhoods. The city also faces challenges in managing potential issues linked to local businesses, such as noise in residential areas and the spread of litter. As retail and small businesses continue to grow, the city must ensure it has the resources to address any problems that may arise.
And since the city does not have the power to determine which types of businesses can open, it must prepare in advance for how to handle residents’ concerns and maintain their sense of comfort and safety in otherwise quiet neighbourhoods.
These amendments were supported by most members of council, along with encouragement from the mayor. Still, Councillor Stephen Holyday’s concerns deserve attention, as they raise valid points.
Supporters of the changes argue they benefit the city and its economy, encourage small business owners, local initiatives, entrepreneurs and newcomers, and create new job opportunities. At the same time, the city needs a clear plan outlining the steps it can take to help these businesses survive, prevent them from failing quickly, ensure balanced geographic distribution, and maintain the comfort and safety of residents.
When the mayor pointed out that the number of small businesses in Toronto has dropped by 33 per cent over 30 years, that figure can be interpreted in two ways. It highlights the need to support and accommodate small businesses. But it also raises the question of whether rapid expansion makes sense when their numbers continue to decline.
Small business owners don’t only need fewer barriers, they also need real support and assurances that allow them to stay open. How can that be achieved in residential areas that may not have the population density or foot traffic small businesses typically rely on?
There is no doubt small shops add warmth to neighbourhoods and create a sense of belonging, as Mayor Chow noted. But achieving that requires proper planning and effective implementation, not just slogans or lofty speeches. If the plan fails, the city will not benefit. Instead, it will be a financial blow to small business owners. And rather than building community, residents may end up frustrated by noise, disruption and a loss of comfort and safety.
There is no absolute right or wrong in this situation. What will determine success or failure, potentially with serious consequences for the city, is strong pre-planning, a commitment to making the strategy work, and a real understanding of residents’ needs.
