POLICY REPORT
                           DEVELOPMENT AND BUILDING

                                           Date: September 1, 1995
                                           Dept. File No.  PAJ

   TO:       Vancouver City Council

   FROM:     Director of Land Use and Development

   SUBJECT:  Food Service Establishments -
             Amendment re Restaurant Seating


   RECOMMENDATION

        A.   THAT  the   Director  of   Planning  be  instructed   to  make
             application to amend the  definitions of "Restaurant -   Class
             1"  and "Restaurant - Class  2" in the  Zoning and Development
             By-law, generally in accordance with Appendix A, to:

             (i)  specify that all types of seats (inside, outside, chairs,
                  stools, benches) are counted as seats; and

             (ii) increase  the  minimum  number  of  seats  from  nine  to
                  seventeen;

             FURTHER  THAT the Director of Legal  Services be instructed to
             prepare the necessary by-law;

             AND FURTHER THAT the  application and by-law be referred  to a
             Public  Hearing,  together  with  the  recommendation  of  the
             Director of Planning to approve the application.

        B.   THAT, subject to approval of A at Public Hearing, the Director
             of Legal Services be instructed to bring forward the following
             amendments  to the  License and  Health By-laws,  generally in
             accordance  with  Appendix B,  at  time  of  enactment of  the
             amendments to the Zoning By-law:

             (i)  amendments to  the definitions in the  License and Health
                  By-laws to  achieve consistency with  the definitions  of
                  restaurant in the Zoning and Development By-law; and

             (ii) amendments  to  the  Health  By-law  to  require  limited
                  service food establishments to provide a public washroom,
                  usable by staff (at present, they are required to provide
                  a staff washroom only).
        C.   THAT,  subject to approval of A  and B, the Building By-law be
             interpreted to  permit limited service food  establishments to
             be  considered a  Group  E occupancy  in determining  washroom
             requirements.

   GENERAL MANAGER'S COMMENTS

        The General Manager of Community Services RECOMMENDS approval of A,
        B and C.

   COUNCIL POLICY

   Council policy  on establishments selling prepared  food for consumption
   on the  premises is  reflected  in the  regulations  of the  Zoning  and
   Development,  License,  Parking, Health  and  Building  By-laws.   These
   include:

   -    Zoning  and  license definitions  which  exclude  retail and  other
        establishments with less than nine inside seats for the consumption
        of prepared food from the regulations which apply to restaurants;

   -    Parking  regulations   which,  in  general,  outside  the  Downtown
        District, require more parking for restaurants than retail uses;

   -    Health regulations  which require staff and  public washrooms based
        on the  number of staff, and the total number of inside and outside
        seats provided for customers for the consumption of food;

   -    Building  regulations which  require washrooms  based on  number of
        persons (occupancy).


   SUMMARY

   Staff  have reviewed the various policies and regulations which apply to
   food service establishments.  There is an inconsistency in how seats are
   counted for the purpose  of determining when an establishment  becomes a
   restaurant.    Staff recommend  that  the  Health  Department policy  of
   counting all  seats,  whether  chairs, stools,  benches,  or  inside  or
   outside  seats, be  adopted, rather  than the  Planning and  Permits and
   Licenses  policy  of  counting only  inside  chairs.    Staff have  also
   considered  increasing the maximum number  of seats that  a food service
   establishment can  have before it becomes a restaurant.  RECOMMENDATIONS
   A and B would specify how
   seats are counted in relevant definitions in the Zoning and Development,
   License and Health By-laws  and would increase the current  threshold of
   nine seats, at  which point  an establishment becomes  a restaurant,  to
   seventeen seats.  However, the seventeen seats would include all seats.

   There is also an inconsistency in how washroom requirements are applied.
   Although  the Health By-law requires  two public washrooms  for any food
   service establishment with seats  for customers, staff currently do  not
   require a public washroom until a food service establishment has nine or
   more seats.   Only a staff washroom is required  for establishments with
   less  than  nine seats.   RECOMMENDATION  B  (ii) would  incorporate the
   requirement  for only  one  washroom in  the  Health By-law,  but  would
   require  the washroom  to be  for  public use.   RECOMMENDATION  C would
   clarify washroom requirements in the Building By-law.

   If Council  approves A, B and C, only one washroom would be required for
   food service establishments with  less than seventeen seats, and  a food
   service  establishment would  not become  a restaurant  until it  has at
   least seventeen seats.

   PURPOSE

   This report responds to the following Council directives:

   -    That  staff  report  on amending  the  Zoning  By-law  to allow  an
        increase   in   the   number   of  inside   seats   permitted   for
        restaurant/cafes,  and that  enforcement of  the current  by-law be
        withheld until receipt of the report (November 5, 1993); and

   -    That staff  report on  conflicting requirements between  the Zoning
        and Health By-laws with respect to food service establishments (May
        2, 1995).

   BACKGROUND

   In 1993,  the Robson  Street Business  Association expressed  concern to
   staff  and  Council about  enforcement of  the City's  regulations which
   require  additional washrooms  and parking  if an  establishment selling
   prepared food has more than  eight inside seats.  The Association  asked

   that  the by-laws be amended to allow  up to sixteen inside seats before
   higher washroom and parking standards are applied.
   Current Regulations and Policies

   The  Zoning  and Development  By-law  defines  "Restaurant-Class 1"  and
   "Restaurant-Class 2"  as "the use  of premises for the  sale of prepared
   food to the public where at least nine seats are  provided for customers
   ...".  (Class 1 and Class 2 restaurants differ in the amount and type of
   entertainment  and dancing they are  permitted to provide.)   The By-law
   does not specify the type of  seats but staff administrative policy, for
   the purpose of development and building permit approval,  and licensing,
   is to  exclude outside seats and counter or bar stools from this number.
   For the  purpose of  calculating washroom requirements,  however, Health
   Department staff count all types of seats.

   There  are a  number  of  implications  of  this  definition  and  staff
   administrative policies:

   -    Take-out  establishments,  coffee  bars,  delicatessens,  bakeries,
        clothing  stores,  fitness centres,  etc.  can  sell prepared  food
        without  need  for  development  permit  approval  or  license  for
        restaurant  use if less  than nine inside seats  are provided.  The
        License By-law  classifies and defines the  prepared food component
        of  such establishments  as "Limited Service  Food Establishments",
        and this term is used to describe them in this report.

   -    Limited service food establishments are  classified as a retail use
        for zoning purposes.   In  three zoning districts  (C-2B, C-2C,  C-
        2C1),  these establishments  are  outright approval  uses,  whereas
        restaurants are conditional approval uses.

   -    As retail uses, limited service food establishments are required to
        provide  less parking in most  areas of the  city than restaurants.
        (For   example,  a   300   m›  retail   use/limited  service   food
        establishment would  be required to provide three parking spaces in
        a  C-2 District,  whereas a  restaurant of  the same size  would be
        required to provide 22 parking spaces.)

   -    Limited  service food establishments with eight inside seats and no
        outside seats  are not  required to  provide any public  washrooms;
        however the required staff washroom is expected to be accessible to
        the  public in emergencies.   When  an establishment  exceeds eight
        seats, whether it  is a limited  service food establishment  (eight
        inside and some  outside seats)  or a restaurant  (more than  eight
        inside seats), an additional washroom is required.
   -    Limited  service food  establishments can  be fairly  large because
        outside seats, on private  property, and counter and bar  seats are
        not included in the eight seat maximum.  (Counter and bar seats may
        be included if staff consider their number to be excessive.)

   -    Limited service food establishments pay a lower  license fee ($279)
        than restaurants ($403).

   -    Limited  service food  establishments  are not  permitted to  serve
        liquor  because restaurant  use approval  is required  before staff
        will support a liquor license application.

   In summary,  the above  regulations and  policies allow limited  service
   food establishments to  pay a  lower annual license  fee, provide  fewer
   washrooms,  and, in  some  districts, to  provide  less parking  and  be
   processed  an as outright rather than  a conditional approval use.  They
   cannot, however, obtain a liquor license.  

   DISCUSSION

   Council  has asked staff  to report on  conflicting requirements between
   the   Zoning  and   Health  By-laws   with  respect   to   food  service
   establishments.

   Council has  also asked staff to  report on allowing an  increase in the
   number  of inside  seats that  an establishment  can  have before  it is
   subject  to the  higher  washroom and  parking  standards applicable  to
   restaurants.  The Robson Street Business  Association has requested that
   the  number be increased  from eight  to sixteen  seats.   The Vancouver
   Branch of the Restaurant and Food Services Association is opposed  to an
   increase in the eight seat maximum.

   Conflicting Requirements

   The requirements  are not technically  conflicting since the  Zoning and
   Health  By-laws regulate  different  things.   However,  whether or  not
   Council  decides to  change the number  of inside seats  permitted for a
   limited  service food establishment, staff recommend  a number of by-law
   and  policy amendments to achieve greater consistency in how the various
   regulations are applied.  These include:

   -    An amendment to the  definitions in the Zoning, License  and Health
        By-laws  to stipulate the minimum number of seats that a restaurant
        must have and the type of seats included.  Staff recommend that all
        seats  be  included  (i.e.,  inside and  outside,  chairs,  stools,
        benches, etc.).   This would  achieve consistency  with respect  to
        seating in how the various By-laws
        are applied  to  food service  establishments.   (The  Parking  and
        Building By-laws do not need amending since they rely on the Zoning
        By-law definitions.)

   -    An  amendment to the Health By-law regulations to reflect the lower
        washroom standard  that staff  now apply  to  limited service  food
        establishments,  but to require that the one washroom provided be a
        public  washroom,  usable by  staff, rather  than a  staff washroom
        only.

   -    An addition to the interpretations of the Building By-law to permit
        limited  service food  establishments to  be considered  a Group  E
        occupancy for the purpose of determining washroom requirements.

   The main  impact of the above  changes would be on  limited food service
   establishments  that have  stools,  benches or  outside  patio seats  in
   addition to their inside  seats.  If the number of seats permitted for a
   limited   service   food   establishment   is   not   increased,   these
   establishments  would become restaurants  by virtue of  having more than
   eight seats in total.    

   There  would also  be a  change  to the  washroom standards  for limited
   service  food  establishments since  the  Health By-law  does  not allow
   access  to public  washrooms through  the food  preparation area.   This
   means  that all new limited service food establishments will be required
   to  have a washroom that it  is accessible from a  public hallway, as is
   the case  for restaurants.  The proposed  amendment to the Health By-law
   would also  require the food  preparation area to  have a handbasin  for
   food handler use.

   If Council adopts the proposed amendments to the Health By-law, existing
   limited  service food  establishments which only  have a  staff washroom
   accessible  through the  food preparation  area would  be grandfathered.
   Health  Department staff  would  prefer to  discourage  its use  by  the
   public, except in emergencies.

   There  would  be a  relatively  small  impact  on parking  requirements.

   Parking standards for restaurants significantly exceed retail  standards
   only when  an establishment is  greater than 100  m›, and since  outside
   seating is not counted in floor area, additional parking is not required
   for outside seating.
   Increasing Number of Seats

   In considering whether the number of seats should be increased before an
   establishment  is  considered  a  restaurant,  staff  contacted adjacent
   municipalities to ascertain how they  classify and regulate food service
   establishments.     Unfortunately,   there  is  little   consistency  in
   treatment.     Some  municipalities  apply  higher   standards  once  an
   establishment  has one seat, some apply the same standards regardless of
   number of  seats, some  only allow  outside  seats if  inside seats  are
   reduced  accordingly, or limit outside  seats to a  percentage of inside
   seats.   Most that use a  seat standard count outside  seats, though not
   always sidewalk seats.  In short, there is no standard in use by another
   municipality that seems suitable  for Vancouver.  No other  municipality
   presently  applies different regulations at nine seats, though two do at
   eleven seats.

   Staff  have found  it difficult  to determine  the appropriate  point to
   trigger higher washroom and parking requirements.  Staff are comfortable
   with  the present  limit of eight  seats, because  it represents  a very
   small  scale food service establishment, and in practise allows for more
   than eight seats  due to the extreme  difficulty in enforcing  the exact
   number of seats on any given day.

   However,  staff  also recognize  the trend  to  an increasing  number of
   coffee houses, delicatessens and other food service establishments which
   provide a variety of food and beverages for relatively quick consumption
   on the premises, if the customer so desires.  Staff also acknowledge the
   lively element these  establishments add to streets  and shopping areas.
   To the  extent that  washroom requirements impede  these establishments,
   due to the  cost of providing  and maintaining the  facilities, and  the
   amount of non-revenue-producing floor  area required for them, there  is
   an argument  for allowing  a greater number  of seats than  eight before
   higher  standards  apply.   Staff  feel  that  up  to sixteen  seats  is
   reasonable based on the number of people that one washroom can serve and
   provided that  all seats are  counted.  Beyond sixteen,  staff feel that
   higher  washroom and parking standards  should apply.  Approximately two
   parking  spaces are  foregone if the  number is increased  from eight to
   sixteen.

   If  Council decides  to increase  the number  to sixteen,  the following
   washroom standards would apply:
   Number of Seats      Number of Water Closets/Washrooms (See Note)

        0-16            1 (public,  available for staff)

        17-25           2* (1 male & 1 female public, available for staff)

        26-50           3* (1 male & 1 female public & 1 staff**)

        51-100          5* (2 male & 2 female public, & 1 staff**)    
   *    No change from present standard.

   **   Separate male  and female required  if staff exceeds  6; additional
        staff washrooms required if staff exceeds 20.

   Note:     Number of  washrooms equals number of  water closets (toilets)
             for 50 and under seating  capacity.  Over 50 seating  capacity
             or  over 100  staff,  the  number  of water  closets  required
             exceeds the number of washrooms  and hand basins.  (i.e.,  one
             washroom could contain four water closets and two handbasins).

   Prior  to drafting this report,  staff discussed the  idea of increasing
   the number of seats  that a limited service food  establishment can have
   before  it  becomes a  restaurant with  the  President of  the Vancouver
   Branch of the B.C.  and Yukon Restaurant and Food  Services Association.
   The Association feels  that any establishment selling  prepared food for
   consumption on the premises is a restaurant, and is therefore opposed to
   any  increase in  seating capacity which  would allow  establishments to
   operate as restaurants without  being classified as restaurants for  the
   purpose   of   regulation.     The   Association   is  concerned   about
   establishments  being  treated equally,  and  with  non-customer use  of
   restaurant washrooms, due  to a lack of public washrooms  in  most areas
   of the city.   Staff agree this  is a legitimate concern.   The proposed
   requirement of a public washroom for limited service food establishments
   should alleviate some of this concern.

   Council  should be  aware,  however,  that  most complaints  that  staff
   receive  on food  service establishments  are about noise,  with outside
   seating being a particular problem.  If Council increases the number  of
   seats  to  sixteen before  restaurant approval  is required,  there will
   likely  be an  increase  in food  service  establishments with  nine  to
   sixteen seats.   This may result  in a greater number  of complaints and
   conflicts with residential uses.
   Some mixed-use strata-title developments do  not allow restaurant use as
   part of the strata  corporation's regulations.  If the  City allows more
   retail  uses  to operate  as  restaurants, without  being  classified as
   restaurant,  there  could  be  some concerns  from  adjacent  residents.
   However, staff  note that  many establishments  already have  sixteen or
   more seats, without restaurant approval, because present policy does not
   include  stools and outside patio seats,  and because enforcement action
   has been withheld for almost two years.  Consequently, the impact of the
   increase should not be significant.

   It  is difficult for  staff to determine how  many seats limited service
   food establishments will actually have if Council increases the  maximum
   number to sixteen.  Staff suspect  the current limit of eight results in
   some establishments  having ten to fourteen seats, or even more.  If the
   number is increased to sixteen, there will undoubtedly be abuses of this
   limit also.  While staff will resume enforcement action once Council has
   acted  on this  report,  infractions of  the  seating  limit will  be  a
   continuing problem.

   At present, limited service food  establishments cannot obtain a  liquor
   license.  Staff believe  this policy should generally remain  in effect.
   However,  staff  would  be   prepared  to  consider  a  liquor   license
   application for a  limited service food establishment,  providing it met
   the Health and Building By-law regulations for restaurants.

   CONCLUSION

   Staff have reviewed the washroom and other requirements for food service
   establishments  and   have  put   forward  recommendations   to  improve
   consistency  in  the application  of  regulations, and  to  increase the
   seating capacity of limited service food establishments.

                                     * * *                       APPENDIX A





       PROPOSED AMENDMENTS TO ZONING AND DEVELOPMENT BY-LAW DEFINITIONS
                         (RELATED TO RECOMMENDATION A)



   Underlining indicates amendment/addition

   Restaurant - Class 1,  which means the use of  premises for the sale  of
   prepared food to the public where  at least seventeen seats of any kind,
   including chairs,  stools  and  seats  on  benches,  whether  inside  or
   outside,  are provided  for customers  consuming food  purchased  in the
   establishment,  where any live entertainment is provided by no more than
   two persons, and  where there is no dancing  by customers and no  use of
   any  amplified  musical  instrument,   but  does  not  include  Drive-in
   Restaurant or Drive-through Service;

   Restaurant - Class  2, which means the  use of premises for  the sale of
   prepared food to the public where  at least seventeen seats of any kind,
   including chairs,  stools  and  seats  on  benches,  whether  inside  or
   outside,  are provided  for customers  consuming food  purchased  in the
   establishment, and where live entertainment is provided by three or more
   persons,  or  where there  is dancing  by customers  or  the use  of any
   amplified musical  instrument, but does not  include Drive-in Restaurant
   or Drive-through Service;
                                                                 APPENDIX B
                                                                Page 1 of 2

               PROPOSED AMENDMENTS TO LICENSE AND HEALTH BY-LAWS
                         (RELATED TO RECOMMENDATION B)


   Underlining indicates amendment/addition

   LICENSE BY-LAW

   Definitions

   "Limited Service Food  Establishment" means any premises where food that
   is  not prepackaged  is  prepared and  served, and  where  no more  than
   sixteen  seats  of  any kind,  including  chairs,  stools  and seats  on
   benches, whether inside or outside, are provided for customers consuming
   food purchased in the establishment.

   Restaurant means, without a qualifier, both a Restaurant - Class 1 and a
   Restaurant - Class 2.

   Restaurant -  Class 1 means any  premises used for the  sale of prepared
   food to the public where at least seventeen seats of any kind, including
   chairs,  stools and  seats on  benches, whether  inside or  outside, are
   provided for  customers consuming  food purchased in  the establishment,
   where  any live entertainment  is provided by no  more than two persons,
   and where  there is no dancing by customers and  no use of any amplified
   musical instrument.

   Restaurant -  Class 2 means any  premises used for the  sale of prepared
   food to the public where at least seventeen seats of any kind, including
   chairs,  stools and  seats on  benches, whether  inside or  outside, are
   provided for  customers consuming  food purchased in  the establishment,
   and where  live entertainment is provided  by three or  more persons, or
   where there is dancing by customers  or the use of any amplified musical
   instrument.

   HEALTH BY-LAW

   Definitions

   "Limited Service Food Establishment" means any premises  where food that
   is  not prepackaged  is  prepared and  served,  and where  no more  than
   sixteen  seats  of  any kind,  including  chairs,  stools  and seats  on
   benches, whether inside or outside, are provided for customers consuming
   food purchased in the establishment.

   "Restaurant"  means any premises  used for the sale  of prepared food to

   the public where at least seventeen seats of any kind, including chairs,
   stools and seats on benches, whether inside or outside, are provided for
   customers consuming food purchased in the establishment.      APPENDIX B
                                                                Page 2 of 2




   Regulations

   4-35A     Notwithstanding  Section   4.33,  any  limited   service  food
   establishment shall be permitted to operate with a public washroom only,
   provided that a handbasin for the use of food handlers is located within
   the food preparation area.