A tense standoff at an Etobicoke Swiss Chalet restaurant has ended. Toronto Police have one man in custody and a second, smiling man has exited the building with his hands raised.

"The end result is everyone is safe," Const. Tony Vella told CTV News on Friday after the standoff ended.

The gunman surrendered after speaking with a police negotiator, he said.

The restaurant's manager had been inside the restaurant in his office. But it isn't known yet whether the gunman even knew he was there, Vella said.

A loaded rifle has been recovered from the restaurant, he said.

The next steps are to identify the man, his history and determine his motives -- "Why did he do what he did?" Vella said, adding criminal charges will be laid in this case.

Regular bus service has resumed in the area.

Earlier developments

Vella told reporters earlier that a man, white and estimated to be in his 40s, went into the restaurant at 1255 The Queensway at about 4 p.m. Friday and sat down for a meal.

"He provided the server with a note, and he indicated that he was armed with a handgun, and that she should immediately evacuate the area," Vella said.

"She did so. She was obviously very concerned and upset about it. People did leave the restaurant."

However, while police knew the gunman was inside, they didn't know if anyone else remained in the restaurant, he said.

The restaurant's blinds were drawn. One witness had suggested to CTV Toronto that the manager might have still been inside the restaurant.

Police say according to witness accounts, the man was in possession of a handgun. However, they didn't know if the man possessed any other firearms or weapons, Vella said.

Emergency Task Force officers replaced uniformed officers outside the restaurant. An explosives disposal unit was also brought to the scene.

With a report from CTV Toronto's Natalie Johnson and Paul Bliss