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.