The Vibe Bistro and Lounge in Hintonburg has lost its license to serve food, according to ward councillor Jeff Leiper.
Leiper tweeted out the news on Thursday afternoon, saying the lounge's license is suspended until a hearing next Friday to revoke it permanently.
The suspension comes amid complaints the business at Somerset and Bayswater is a hub for crime.
Some residents allege there is late-night partying, underage drinking and drug use at the venue and believe it is linked to escalating violence in the community.
On Wednesday Leiper acknowledged he has received complaints about the venue but stressed residents shouldn't jump to conclusions, as police haven't connected the Vibe Lounge to the recent homicide.