Outdoor dining, which served as a crucial support for restaurants throughout and post-pandemic, has hit a wall in New York City. This spring, only about 2,100 restaurants have secured permits—significantly down from 13,000 during the pandemic and fewer than the 2,500 permits issued last year, based on a study by Sidedish.
Last year, around 1,000 establishments were still in limbo waiting for their permits, with some individuals having been left in that state for over a year, according to the Department of Transportation. Weekly updates on these waiting figures haven’t been provided yet.
New Yorkers have shown a strong appreciation for outdoor dining, which allows restaurants to expand their space and revenue potential.
However, Andrew Riggy, the executive director of the NYC Hospitality Alliance, highlighted how the current permitting process has become “too expensive and bureaucratic.”
He remarked, “We always expected fewer outdoor dining setups post-pandemic, but the drop has been far more significant than anyone anticipated.” Last year, the city council revamped the outdoor dining policy from its pandemic format, restricting street tables to warmer months and complicating the permit application process.
“The shift to seasonal roadside cafés has deterred many restaurants from even applying. The costs related to building, dismantling, storing, and reinstalling are prohibitively high, particularly since the city requires upfront payment,” Riggy added. He also noted the confusion and red tape involved in the process.
For instance, Helen Chan, co-owner of Ziggy’s Roman Cafe in Dumbo, shared her frustrating journey of trying to secure a permit, stating it took her “107 days” to finally meet with DOT officials after her application. “It costs us a lot of income to miss out on good weather,” she said during a video call with an official who was unable to guarantee her any outcome.
As of Wednesday, she was still awaiting a resolution. “We’ve invested thousands in legal help and time, and we really need outdoor seating for our business model to function,” she expressed.
The costs associated with permit applications for either driveway or sidewalk dining can range from $2,100 to much higher when factoring in additional fees like deposits, legal expenses, and public space fees based on square footage. “Restaurants want to serve patrons outside and boost their earnings, but smaller suburban places with limited cash are struggling the most,” Riggy noted.
He called on Mayor Mamdani’s administration to do something, suggesting that the City Council should allow outdoor dining while the permit process is still pending. Mamdani’s office didn’t respond to inquiries.
A DOT representative placed responsibility on the law rather than administrative delays, claiming there isn’t a backlog of applications but rather a complex, multi-step approval process involving various entities. “Hiccups can occur at any step in this process,” they mentioned, adding that they’re advocating for amendments to simplify the law.
Joseph Levey, an attorney representing numerous restaurants grappling with permit delays—some waiting over a year—criticized the entire setup, saying it lacked proper planning. People started applying last year, hoping to be ready for the season, but frustrations have grown due to delays without clear timelines.
Some restaurateurs, however, remain hesitant to voice their concerns publicly. “Many fear that speaking out could jeopardize their applications,” Levey explained.
Restaurateur Stratis Morfogen criticized the process, stating it has only worsened under Mamdani’s administration. Despite submitting his application in September and seeing his check cashed back in January, he continues to await his permit. “This is incompetence,” he expressed, criticizing the city’s handling and suggesting they are overwhelmed.
Morfogen further lamented that despite promises from Mayor Eric Adams to help small businesses, the reality has turned out quite the opposite. “The concern is that Mamdani doesn’t seem to have advisors who understand the challenges facing small businesses,” he said. “All this red tape could extend the approval process to six months or longer—far too long for many establishments.”
Together, Riggy and Morfogen noted the inconsistency, pointing out that the state Liquor Board has provided interim licenses during lengthy approvals. They believe the DOT should adopt a similar approach. “It’s a disaster,” said one restaurant owner. “People are at a loss.”
