I'm fairly sure that a private business ultimately has the right to refuse service for any reason which does not conflict with Canada's human rights laws.
Having worked in restaurants, I can tell you that the only reasons I've ever seen it done are if a) the party size exceeds a limit the restaurant has set for itself b) you, or a member of your party, is intoxicated or c) you do not meet a dress code.
I have also, personally, thrown people out of a restaurant for being jerks.
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