As I walk down Dundas Street West on a warm July afternoon, the vibrant window displays of family-owned businesses tell stories beyond their merchandise. Behind each storefront lies a complex narrative of legacy, sacrifice, and increasingly, difficult decisions for second-generation Canadians.
“My parents never took a day off,” says Mei Lin, 34, whose parents emigrated from Taiwan in the late 1980s and established Golden Leaf Bakery in Chinatown. “They worked sixteen-hour days so I could go to university. Now they’re ready to retire, and I’m caught between honoring their legacy and pursuing my own career in graphic design.”
Lin’s dilemma echoes across Toronto’s diverse neighborhoods, where family businesses have long served as economic anchors and cultural touchstones. According to a recent Toronto Board of Trade survey, nearly 40% of family-owned businesses in the Greater Toronto Area will face succession decisions in the next five years, yet fewer than half have formal succession plans.
The economic impact is substantial. Family enterprises generate approximately $574.6 billion in GDP annually across Canada according to the Family Enterprise Foundation, with Toronto hosting one of the highest concentrations of such businesses.
“We’re seeing a perfect storm of factors,” explains Priya Sharma, family business advisor at RBC’s Business Succession Planning division. “Aging first-generation owners, rising commercial rents, changing consumer habits, and second-generation Canadians who’ve been educated for different career paths.”
At Kensington Market’s Perola Supermarket, Paulo Oliveira stocks Portuguese specialty foods while contemplating the future of the business his parents started in 1969. “My parents came here with nothing and built this place into a community landmark,” he says, arranging bottles of olive oil. “But my kids are studying medicine and engineering. They respect what their grandparents built but don’t see themselves behind this counter.”
The emotional weight of these decisions can be overwhelming. Many first-generation immigrants view their businesses as more than livelihoods—they’re embodiments of sacrifice and success stories to be passed down.
“I’ve sat with families where parents feel deeply betrayed when children don’t want to take over,” notes Rajiv Mehta, who facilitates succession planning workshops through the Toronto Business Development Centre. “Meanwhile, their children carry tremendous guilt. Both generations need support navigating these conversations.”
The pandemic accelerated many of these tensions. When COVID-19 forced temporary closures, some owners nearing retirement decided not to reopen. Others found their children stepping in temporarily to help modernize with online ordering and delivery options, inadvertently opening new conversations about the future.
Sandeep Johal’s parents opened their first convenience store in Scarborough in 1991. During the pandemic, Johal, who works in finance, helped them establish an online presence. “That experience showed me I could potentially run the business differently—maybe not full-time behind the counter like my parents, but with updated systems and a manager.”
For those seeking middle ground, innovative solutions are emerging. Some second-generation Canadians are transforming family businesses rather than abandoning them—updating product lines, embracing technology, or modifying business models to align with their own skills.
In Greektown, Eleni Pappas has gradually transformed her parents’ traditional diner into a modern Mediterranean restaurant with extended evening hours and craft cocktails. “I couldn’t see myself reproducing exactly what my parents did, but I found a way to honor their legacy while making it my own,” she explains.
The City of Toronto offers resources through Enterprise Toronto, providing mentorship and guidance specifically tailored to family business transitions. Yet many business owners remain unaware of available supports.
“Cultural and language barriers often prevent first-generation owners from accessing these resources,” says Carlos Herrera of the Hispanic Canadian Business Alliance. “We’re working to bridge those gaps, helping families have these difficult conversations before crisis points.”
For Toronto’s neighborhoods, these succession decisions will reshape the commercial landscape in coming years. Empty storefronts following failed transitions impact not just families but entire communities.
As I finish my conversation with Mei Lin at Golden Leaf Bakery, she offers me a pineapple bun—her father’s specialty. “Whatever happens, I want to preserve these recipes, these traditions,” she says. “Maybe not exactly as my parents did it, but in a way that works for the next generation.”
The warm, sweet bun tastes like both tradition and possibility—much like the future of Toronto’s family businesses themselves.
