What was supposed to be a celebration of Rayah’s first anniversary has instead become a round-the-clock effort to keep the restaurant open.
Owner and chef Wafa El Rhazi says she is facing possible eviction amid a dispute with her landlord over thousands of dollars in taxes, maintenance and insurance (TMI) charges that she says have never been properly accounted for.
Over the last year, Rayah has brought a touch of laid-back Parisian coolness with a North African twist to Cabbagetown, a spark that hasn’t been seen since the longstanding Pear Tree brunch spot shut down in the late aughts in the same space. The cheerful bistro features a sunroom patio in the back, Moroccan tiles, plush booths and peacock-feather-patterned wallpaper.
According to El Rhazi, the dispute centres on taxes, maintenance and insurance charges (TMI), which commercial tenants typically pay in addition to rent. By the end of the year, the landlord calculates how much money was spent on TMI and either credits the tenant for any unused funds, or asks for more money if the initial amount wasn’t enough to cover those costs.
“I pay my rent and have zero debt,” said El Rhazi during a recent interview at the restaurant. “I’m asking for a list of what has been done and by whom. I’m not against paying what I owe, just provide me the documents….every time I ask for proof, I get threatened with a notice of default.”
In a letter from El Rhazi’s lawyer addressed to landlord Kareem Sethi that was reviewed by the Star, the initial year-end TMI amount owed was $11,615.68 in February before being amended to $5,020.81 in April and then $7,536.26 in June.
El Rhazi said Sethi refused to provide a detailed and itemized list showing how the TMI charges were calculated.
She said that after requesting an itemized invoice list, she was served a Notice of Default Under Lease on June 8, signed by Sethi, stating that outstanding amounts had to be paid by June 12. The notice states that failure to do so could “include, without limitation, terminating the Lease and the Tenant’s tenancy at the Premises…”
El Rhazi said the outstanding $7536.26 is currently allocated in a trust with her lawyers, and the money will be transferred to Sethi once he provides her with a detailed list of TMI fees she owes.
The Star reviewed correspondence between El Rhazi and Sethi’s lawyers. The former said the landlord did not provide sufficient details regarding the charges based on general accounting practices. The lawyer for Sethi replied that the landlord provided a statement of charges as required by the lease agreement, but the lease did not specify that additional documents are required. The letter continued to say that the landlord “has gone beyond that requirement” and provided bills and itemized statements.
In the meantime, she and her husband Zaky Hajji remain at the restaurant, which for now is open for regular service.
The Star reached out to Sethi for an interview. He requested an off-the-record interview, which the Star declined. The Star then sent a list of allegations made by El Rhazi that had also previously been sent to him by her lawyer, but did not receive a response by publication time.
El Rhazi and Hajji say they are now spending much of their time trying to keep the restaurant open along with their staff of 20 employees. The couple is also calling on the province to strengthen protections for small business owners.
MPP for Toronto Centre Kristyn Wong-Tam, who met El Rhazi late last year during a roundtable discussion of small business owners, in the city, said that while residential tenants have a standardize lease with landlords set out by the province, there isn’t one for commercial renters, leaving small business owners vulnerable.
“I previously moved a motion calling the government to review the Commercial Tenancies Act, which is 36 years old now and landlords and tenants are often left to draw their own agreements,” said Wong-Tam, who spoke in support of the restaurant at a press conference held June 12.
They add that these protections are necessary to sustain what’s unique about Toronto’s streets. “It’s a rather boring streetscape existence if every neighborhood had the same (chains), it’s these independent retailers that drives tourism and gives the streets character.”
Wong-Tam said commercial tenants would benefit from a standardized lease and a more accessible way to resolve disputes without resorting to court proceedings.
For El Rhazi, her goal was always to bring her North African and French upbringing to Toronto, and create an all-day hangout spot.
“I arrived in Toronto in Nov. 2021 from France with my husband and daughter. I left the tech industry to open a restaurant. I then had a son and said to myself, ‘You’re 35, now is the time to do it,’” said El Rhazi.
“When I arrived, there was no representation of North African food; Moroccan, Algerian, Tunisian, so I wanted to make people discover my culture. I was also born and raised in France, so I had couscous on Friday and cordon bleu on Saturday. I wanted a place where people can come in any time of day and not worry about what they’re wearing or if they can bring their kids. Everything is made in house: the sauces, the garnishes, the breads, it’s really important to me.”
El Rhazi looks at the bigger picture and says there are many other business owners like her in a similar situation.
“A lot of immigrants work in restaurants, so think about all those people who can’t speak the language and have been screwed over and just roll over. There is a momentum right now, we need to speak out,” said El Rhazi.
