MONTREAL — As Montreal prepares for an influx of visitors expected during the Formula One Canadian Grand Prix weekend, lower terrace fees in the city’s downtown core are easing both operating costs and the administrative burden on restaurants.

The Canadian Grand Prix runs from May 22-24 at Circuit Gilles Villeneuve and typically draws large crowds into downtown Montreal, boosting activity for restaurants and hospitality businesses.

Andreas E. Vecchio, owner of Caffettiera in downtown Montréal, said last year’s Grand Prix weekend was the restaurant’s busiest of the year, with demand roughly doubling on peak days.

“We served 800 coffees in a single Saturday,” he said, adding he was optimistic about this year’s event.

The system for the Ville-Marie borough now calculates terrace fees using a fixed rate per square metre of outdoor seating space, replacing a model previously based on property values. In the central business district — roughly the core downtown area — businesses pay $12 per square metre for terrace space each season. In the rest of the borough, the rate is $6 per square metre.

In a news release, the City of Montreal said about 85 per cent of businesses in the downtown borough will see lower terrace fees under the new system through 2030, a change announced about a month ago.

Jules Hébert, director general of the SDC Montréal centre-ville — a non-profit organization representing downtown businesses — said the new fee structure was being well received and allowed businesses to focus on operations and customer experience.

He pointed to spikes in foot traffic during major events such as NHL hockey playoff games, noting that attendance can exceed 50,000 people on game nights — an increase of 379 per cent in foot traffic — driving customers into restaurants and other establishments.

“So (the change in terrace fees) is very, very positive,” he said, adding that conditions were in place for a strong summer season.

Vecchio noted that even small reductions in costs can affect profitability, but said terrace upkeep and maintenance costs remain significant. He also said the downtown core has faced ongoing challenges since the pandemic, such as construction.

“The centre-ville had lost some of its appeal, so this is a great initiative to bring restaurants back and make terraces more attractive,” he said.

Fede Sanchez, director of communications and hospitality at Le Pois Penché downtown, also welcomed the changes but said they are largely symbolic during the busy Grand Prix weekend.

Le Pois Penché’s terrace fees total $400, a reduction of about $1,000 from last year, he said.

Sanchez said he’d like to see Ville-Marie treated as a strategic economic zone, pointing to long-term challenges including vacancies and reduced commercial activity.

For restaurateurs outside the downtown core, the new pricing structure has highlighted uneven treatment between boroughs.

Patricia Lévesque, owner of Chez Lévesque in Outremont, argued that restaurants across Montréal face similar pressures and should not be treated differently depending on location.

She said she paid $6,500 last year and is paying $8,000 this year.

“Why would one borough pay more than another?” she asked, noting terraces are essential to Montréal’s summer economy and identity.

“It’s joy on the street,” she said.

The mayor’s office in Montréal had not responded to a request for comment at the time of publication.

This report by The Canadian Press was first published May 18, 2026.

Charlotte Glorieux, The Canadian Press