Victoria council approves inflation adjustment to patio fees for restaurants and bars

During this week’s committee of the whole meeting, city council voted to increase fees for restaurants and bars that use city property for patio space by applying an adjustment in line with inflation.  

A report was presented to council after City of Victoria staff were given direction to review the on-street parking and curbside needs. 

This review provided the opportunity to develop a transparent and consistently applied administrative structure including fee schedules for the City’s successful and popular Outdoor Patio Program.

This program grew in popularity through the COVID-19 pandemic as a way to allow food and beverage operators a way to remain open. 

In 2023, as businesses began to recover, the City refreshed this program via the Patio Regulation Bylaw. The bylaw established graduated fee rates that were intended to increase in 2025 as businesses continued to recover from the pandemic. 

However, due to multiple economic factors, including inflation, wages, rents, business levies, cost of goods as well as cross-border tariffs, the City recognized businesses were not recovering at the rate previously thought. 

In April 2025, council decided to hold the fee schedule for patios at 2023/2024 rates for the 2025/26 year. 

However, as of January 1st, 2027, the patio fee rates are set to double over those set out from the adoption of the bylaw. 

If fees were to double, staff would need to begin sending notification letters to all affected businesses this summer, notifying them of the fee increase and renewal requirements. 

Following the rate freeze, staff are recommending that the bylaw be amended to remove future patio fee increases. This would maintain them at 2026 levels until the analysis of on-street parking and curbside needs has been finalized. 

Furthermore, staff recommend that the adjustment to 2026 patio fees be adjusted to be in line with annual inflation (CPI) going forward. 

Other options include maintaining current levels for patio fees, but without adding a CPI adjustment to them, or to adjust the fees as planned which would see them double in 2027. 

During the question period on the matter, Councillor Jeremy Caradonna asked what the motivation was behind the proposed adjustment for CPI, and how much effort City staff are putting into this program to require this adjustment. 

To this, William Doyle, director of engineering and public works replied that many business owners who are part of the patio program are asking for some sort of stability in the patio fee schedule. 

“They’re looking for predictability in rates, and for us to provide a bit of a multi-year outlook rather than perhaps staying steady and having a big jump,” said Doyle. 

Following questions, Caradonna moved that council adopt option one’s amendments into the bylaw, holding rates at 2026 levels with an annual adjustment in line with CPI. 

“This program has been wildly successful—the patio bylaw goes back to 2023, we’ve come a long way as a city on patios,” he said. 

“It was kind of the wild west pre-COVID. During COVID there was this pilot [program]—it was obvious that Victorians really appreciated having more access to patios and so it became regularized through a bylaw and now we’re dealing with the finer points of how to charge for this program.”

He also noted that moderating the increases is justifiable because the patio program does so much for businesses and to activate the downtown core, as well as neighbourhoods with patios under this program. 

The decision to approve this option for the bylaw amendment was unanimous.