Quote:
"We could have set [Bao] anywhere but giving it a real-life location adds a layer of believability and grounds it since the style of the characters are so cartoony. It was a cool homage to my hometown and I've never really seen Toronto animated on screen before so it was a good excuse to do that."
-- Domee Shi

Source:
Liu, Karon. "Pixar's new animated short pays tribute to moms, Chinese food and Toronto." Interview with Domee Shi. Toronto Star, June 12, 2018.