Under the new restrictions, the maximum capacity of bars and restaurants will now be 75 people, up from 100 previously.
Only six people can sit at a table together, and establishments must keep a customer diary for each customer, not just one person at the table.
Background music and other background sounds, including televisions, may not be louder than the volume of a normal conversation.
Mayor John Tory called it a difficult decision, but said it is a decision that must be balanced to keep people healthy and maintain economic stability.
“We do what we think is right. We recommend what we think is right. All of those things fall into that category, ”Tory said.
“We certainly only do this after a very careful assessment made on a daily basis of the consequences of these types of things, because they have consequences.
To help mitigate the impact of the new bylaws, council also approved a motion from the Conservatives, to explore ways the city can continue to operate the patios during the winter.