A first-time restaurateur says his dream of opening a sports bar in Kensington Market could turn into a nightmare if the Alcohol and Gaming Commission of Ontario (AGCO) denies him a liquor licence based on complaints from a residents’ group.
Karan Sarvaiya tells CityNews he’s worked in some of Toronto’s top restaurants, learning all he can with the aim of one day owning his own establishment.
His connection to and affinity for Kensington Market began when, as a newcomer to Canada, he started selling Indian street snacks in the eclectic neighbourhood.
“Six years back, when I used to have a side hustle over here, I used to sell paani puri from a stall, and I always had a dream that I wanted to build something of my own in Kensington Market. I saw that this area has a very beautiful and different culture. People come here to enjoy drinks, food, and music. So I thought having something of my own was something I wanted to do. So that’s the reason I chose Kensington Market,” he says.
Sarvaiya leased the space at 204 Augusta Avenue last year to establish Kensington Socials, taking over the location once occupied by the Hot Box Café.
“I have invested my entire life savings in this … and I have borrowed money from my friends and family to start this place,” he says.
Less than two weeks away from opening, a liquor licence remains elusive as the AGCO confirms to CityNews that they received two objections against the restaurant, “including one objection with the names of 97 members of the residents’ association.”
The residents’ association that raised the concerns is the community advocacy group Friends of Kensington Market (FoKM). One of the concerns cited is the “broader changing composition of the neighbourhood,” says co-chair Serena Purdy.
“There is already a significant saturation of licensed establishments in the area. The introduction of another liquor-licensed venue – especially one with an outdoor licensed patio – raises serious concerns regarding noise, congestion, and the changing character of the Market,” reads the FoKM objection submitted to the AGCO.
Kensington Socials would indeed join a row of several other licensed establishments on Augusta Avenue. When asked to clarify why one more would be one too many, Purdy says the concerns are not solely about this single establishment.
“I don’t think it’s a problem with one more. The problem is one more and then one more and then one more, and the broad incentive to replace the types of businesses that people need to make healthy lives in a city – fresh food grocers, repair shops, things that people need that aren’t a licensed establishment – they’re slowly getting pushed out. So it’s an incremental change, and this is part of it. They’re part of a general trend that’s raised a lot of concerns for the market,” she says.
She adds that when a space acquires a liquor licence, the rent it can command goes up exponentially, which then means other, unlicensed businesses can no longer afford to rent them once the licensed business moves out. She says it’s happened to many spaces in the market, leaving several empty storefronts in the neighbourhood.
“There are spaces in the neighbourhood that have existing liquor licences that they could have opted for,” she says.
Sarvaiya says he looked at a few other spaces in the market, but they did not suit his needs. He was also unaware of the ongoing concerns regarding the changes in the character and composition of the neighbourhood.
“I wasn’t aware about any of the issues. I had met the owner [of 204 Augusta], I met everyone, but no one ever informed me about this. I wish I knew all these things before. It would’ve saved a lot of time and I would’ve gone somewhere else,” he says.
Locked into a 10-year lease, Sarvaiya says it’s too late to change course now. But he’s willing to compromise and work with concerned residents.
“I’m willing to close the license once I move out from this place … [if we don’t complete 10 years] we can add the condition that once we close this place, I’m willing to cancel the licence,” he says. “We already sat with them and informed them about all those things. I gave them all the options. I want to be a good citizen in this neighbourhood and work with everyone.”
Another concern cited in the FoKM petition is the impact on future residents of a supportive housing building, currently in the early stages of construction, that will eventually sit right behind Kensington Socials’ back patio.
“Proximity to a licensed patio threatens the safety, stability, and recovery of these residents, who require quiet and secure surroundings. Patio noise, intoxicated patrons, and late-night disturbances would directly undermine this essential housing project,” reads the petition.
Once built, the supportive housing building will be managed by the Kensington Market Land Trust and St. Clare’s Housing. They tell CityNews they were not aware they were being included in the complaint.
“I was surprised to see it, honestly. I appreciate the good wishes that I think are being expressed, and we are genuinely appreciative of that,” says Andrea Adams, Executive Director of St. Clare’s Housing.
“That said, our understanding is that Kensington has always been an eclectic and affordable neighbourhood and that this project is not going to change that and does not add to the complexity of the discussion that Kensington Market residents are having about the future of their neighbourhood and what does and doesn’t belong.”
In response to worries about the impact on “vulnerable individuals with complex health and substance use needs” cited in the petition, Adams says it is not a topic of concern for them.
“To be clear, not all of the tenants there are going to have struggles with recovery or addiction. And the ones that do – that is theirs to manage, and they’re going to have to manage that no matter where they live in the city. I think more interesting is what those future residents’ opinion will be about what they feel the character of Kensington Market will be, just like any of the other neighbours that live around here,” she says.
When asked if they were opposed to a liquor licence being granted to Kensington Socials, Adams says they’re not taking sides.
Sarvaiya says if there are concerns for the wellbeing of residents in supportive housing, he’s open to covering the back patio as a compromise.
“We are willing to put a shed over here so that people cannot see what’s happening,” he says.
In addition to concerns about the neighbourhood itself, FoKM listed “failure to provide public notice” in their complaint.
The AGCO tells CityNews that as per the licensing process, “the AGCO facilitates a Public Notice Process, which offers residents an opportunity to express concerns about a liquor sales licence application in their community.”
As part of this process, the applicant must display a notice provided by the AGCO informing the public about that they have applied for a liquor sales licence.
“The AGCO received an application for a liquor sales licence on February 6, 2025, for the indoor area at 204 Augusta Ave, with a public notice period from February 13 – March 12, 2025. A second notice period was assigned from May 17 – June 13, 2025, for an outdoor area at the same location,” said the AGCO in a statement to CityNews.
Purdy says Sarvaiya did not follow this procedure, and FoKM did not have enough time to gather more signatures for its petition. She says it garnered just under 100 signatures in 24 hours, “as a result of the fact that we didn’t know about this till the last second.”
“I went in person and looked around once I did find out a little bit about this, and didn’t see anything. So I think that’s a concern about transparency and honesty,” she says.
CityNews has viewed the video provided by Purdy, taken on June 6, 2025, and no notice is visible in the area that was filmed.
Sarvaiya shared a photograph with CityNews taken on May 17, 2025, that shows the notices posted on the right side of the entrance of 204 Augusta Avenue in English and French.
On Friday, the AGCO responded to the FoKM complaint and said that a Notice of Proposal to Review the Licence Application will be sent to the applicant, Kensington Socials. They will have the opportunity to appeal it at the Licence Appeal Tribunal, which can be a lengthy process.
Meanwhile, Sarvaiya says he was hoping to open on August 1.
“If I don’t start this place with a liquor license, it will be a very difficult place to run … it’ll be very difficult to survive in this area because the rent itself is so high. I can’t pay every month out of pocket,” he says.
“I’m all invested in this and there’s no backing out now.”
