Rayah Restaurant's Uncertain Future
Rayah, a beloved Moroccan restaurant located in Cabbagetown, is facing the alarming prospect of eviction from its landlord just over a year after it opened its doors to customers. Wafa El Rhazi, the restaurant's owner, has maintained an impeccable record of timely rent payments, yet she now finds herself embroiled in a tumultuous dispute that puts her establishment at risk. The situation has escalated to such a degree that her husband, Zaky Hajji, has resorted to sleeping on a cot in the restaurant’s dining area to ensure that it is never left unattended. El Rhazi expressed her emotional turmoil, stating, "I'm living on stress. I was not naive to the difficulties of the business, but I never ever thought that I would possibly be under the threat of being evicted while my rent is being paid."
On June 8, a notice of default was unexpectedly delivered to Rayah, which informed El Rhazi that "foregoing breaches" needed to be remedied by June 12, or else the landlord would terminate the lease without further notice. Despite this ominous warning, Rayah remains operational. The core of the conflict appears to be rooted in the landlord's demand for an additional payment of $7,536.26, which El Rhazi believes is unjustified as she has not received any receipts to substantiate the claim.
Ongoing Disputes and Challenges
El Rhazi alleges that her landlord, Kareem Sethi, has been attempting to impose additional rental costs that fall outside the standard lease agreement. According to her, these costs have been included in the lease's reconciliation fee, which is typically calculated based on cumulative taxes, maintenance, and insurance costs at the end of the lease year. Prior to this, estimated costs are paid monthly. El Rhazi revealed that she has already paid over $30,000 in provisional fees and argues that Sethi's demands lack any credible basis. "I don't owe him anything," she asserted. "I'm not late in any rent, and he is sending me this on maintenance and repair amounts that he’s not capable of proving." In a show of good faith, she has placed the disputed additional rent in a trust with her lawyer, signaling her willingness to pay if Sethi provides legitimate proof.
The contentious relationship between Rayah and Sethi has deep roots, stretching back to last summer. El Rhazi recounted an incident from July 2025 when she was handed an exorbitant water bill without any supporting documentation. After questioning the charges, she discovered that the actual amount owed was significantly lower than the initial demand. Furthermore, she has faced attempts to charge her for unrelated repair costs and even had the locks changed without notice during a family emergency, resulting in a substantial financial loss. The additional rent requests have been altered multiple times, causing ongoing confusion and distress.
Aaron Binder, the director of Better Way Alliance, noted that landlords in Ontario are required to provide receipts to commercial tenants, a stipulation that is often overlooked. He emphasized that unlike residential tenants who can seek resolution through the Landlord and Tenant Board, commercial tenants are left with no choice but to pursue legal action, which can be a daunting challenge for small business owners like El Rhazi. "A lot of landlords are now bigger corporations with legal teams, whereas a small business owner is running a cafe or a dry cleaner, and they don't really have the same level of sophistication to negotiate strongly," Binder remarked.
El Rhazi's journey to opening Rayah began with her family's migration to Canada four years prior. With a vision of sharing her North African culinary heritage, she invested over $1 million and countless hours into making her dream a reality. The restaurant, decorated with Moroccan motifs and vibrant colors, has become not just a business for her but an emotional cornerstone of her life. As she poignantly stated, "It's my whole life today, Rayah. It's my whole life, emotionally, financially." With a dedicated team of 20 employees, El Rhazi feels a profound sense of responsibility towards her staff and the families they support. The threat of eviction looms heavily over her, underscoring the broader implications of her struggle. "A notice of default with an eviction threat can, in a blink of a night, destroy 20-plus households. It’s not just Wafa versus Kareem," she lamented.
As reported by torontotoday.ca.
