Restaurant and Food-Service Premises Due Diligence in Alberta

1. Freeze the proposed operation before testing the site

Document the menu, food processes, cooking equipment, fuel, seating, occupant load, alcohol, minors, patio, entertainment, hours, delivery, catering, waste, loading and production volume. Record future changes separately.

Premises conclusions depend on the actual concept. A space suitable for a café or takeout operation may not support grease-producing cooking, a larger occupant load, a bar, late-night activity or the buyer's proposed equipment.

• Menu and equipment
• Seating and occupant load
• Alcohol and minors
• Patio and entertainment
• Delivery and waste
• Opening schedule

2. Verify the defined use and approval history

Obtain zoning and development information for the legal parcel and unit, then compare approved uses and conditions with the proposed operation. Review business-licence, development, building, fire, plumbing, gas, electrical, mechanical and sign records from the relevant municipality.

Edmonton requires zoning approval for a valid business licence and identifies conversion to restaurant use as a scenario that can require permits. Calgary warns that a new owner may require review and upgrades even when no construction is planned. Prior occupancy is not current approval.

3. Separate AHS, municipal and AGLC workstreams

AHS states that a food-business purchaser must obtain a new Food Handling Permit and approval inspection rather than rely on the seller's permit. Confirm application, plan-review, inspection, food-safety and opening requirements directly with Environmental Public Health.

If liquor is proposed, build the applicable AGLC process beside—not inside—the municipal and AHS schedule. One authority's review does not grant another authority's approval, and a seller's liquor licence cannot simply be sold or assigned to the buyer.

4. Reconcile occupant load, exits and accessibility

Review approved occupant load, seating plans, exits, travel distance, fire separations, washrooms, accessibility, sprinklers, emergency lighting and any patio or mezzanine with qualified code professionals. Compare the record with actual construction and intended furniture layout.

A marketed seat count is not approved occupant load, and approved occupant load is not guaranteed customer capacity after allocating staff, furniture, accessibility, liquor or operational constraints. Report each measure by its source and purpose.

5. Trace the complete kitchen exhaust system

Document each hood, canopy, duct route, fan, termination, make-up air unit, controls, interlocks, fire suppression connection and roof or wall penetration. Collect permits, approved drawings, commissioning, cleaning, inspection and service records.

Compare the existing system to the buyer's appliance schedule through qualified mechanical and fire professionals. A hood size, service sticker or visible roof fan alone is not proof that the system is permitted, clean, code-compliant or capable of handling the proposed cooking load.

6. Test gas, power, hot water, refrigeration and plumbing

Prepare connected-load and demand schedules for cooking, refrigeration, dishwashing, HVAC, lighting and point-of-sale systems. Confirm available gas, electrical, water, hot-water recovery, drainage and utility metering with utilities, professionals and the landlord as applicable.

Review shutdowns, repairs, utility bills and planned upgrades, but do not treat past consumption as guaranteed future capacity or cost. A different menu, equipment mix, opening schedule or ventilation design can materially change demand.

7. Map grease and wastewater control fixture by fixture

Trace dishwashers, sinks, floor drains, mop sinks and food-preparation fixtures to the drainage and interceptor system. Record interceptor type, size, location, accessibility, plumbing permit, connected fixtures, service history, backups and cleaning logs.

Calgary requires properly sized grease interception and records; EPCOR publishes installation and maintenance requirements for food-preparation premises. A clean trap is not proof that every required fixture is connected, the device is properly sized or the system complies with the current operation.

8. Inspect building condition and environmental context

Review roof, structure, envelope, drainage, sewer history, water damage, mould indicators, asbestos or other designated substances where relevant, pests, odour, neighbouring uses and waste-storage areas. Use qualified professionals to define appropriate building or environmental assessment.

Restaurant residue or odour is not itself an environmental conclusion, and a clear public-record search is not a property-condition opinion. Match the scope of review to the property's age, history, planned work and lender requirements.

9. Establish equipment title, condition and removal rights

List cooking, refrigeration, dishwashing, suppression, ventilation, point-of-sale and smallwares by serial number, ownership, financing, lease, condition, maintenance and included status. Identify items attached to the building and any landlord claims or restoration obligations.

Order appropriate Personal Property Registry searches and coordinate interpretation with counsel. Equipment bolted down or operating on inspection day is not necessarily seller-owned, lien-free, permitted, warrantied or included.

10. Audit the lease against the specialized premises

Confirm permitted use, alcohol, hours, patio, delivery, odour, noise, waste, exclusivity, signage, parking, storage and utility rights. Allocate responsibility for hoods, ducts, roof, suppression, interceptors, grease lines, HVAC, plumbing, gas, electrical service, repairs and code upgrades.

Review assignment, change-of-control, guarantee, option, demolition, relocation, restoration and casualty provisions with counsel. The physical ability to operate does not establish the legal right to use, alter or transfer the premises.

11. Turn deficiencies into cost, time and conditions

For each gap, identify the required investigation, design, authority, contractor, landlord consent, permit, inspection, cost range, contingency and schedule dependency. Distinguish base-building work, seller work, buyer work and landlord contributions.

Link lease or purchase conditions, fixturing, rent commencement, deposits and termination rights to objective evidence. A contractor estimate is not an approval, and an approval is not a fixed construction cost or opening date.

12. Preserve a dated decision record

Record each source, search date, document version, professional reliance, open question and decision. Re-check time-sensitive permits, licences, service records and property status before condition waiver and closing.

This framework is educational and is not legal, health, liquor, planning, building, fire, engineering, environmental, tax or appraisal advice. Commercially does not certify the premises, equipment, approvals, lease rights or opening schedule.