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Arz bakery 1909 Lawrence Ave E makes a great pita, you can go in mid morning and they're still warm and the bags are slightly steamy. If you buy more than one bag they offer a slight discount.
Pita-Pita Bakery up at Dufferin & Steeles supplies some local restaurants. I find them to be very tasty, they are small and are great for dipping (so, maybe not so great for falafel). Call ahead to see if they're available, they sell to the public but have odd baking times. (416) 663-2224
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