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NYC’s outdoor dining boom really is coming to an end — and owners blame new city rules: poll

Brunch may look a little different next spring.

Over 44% of New York City restaurant operators said in a poll released Wednesday that they wouldn’t offer outdoor dining because of soaring government fees and a confusing application process.

Some 214 restaurants out of 477 polled by the trade group the NYC Hospitality Alliance said they were not participating in the city’s new seasonal outdoor dining program because of high costs and a new byzantine permit process that would give them less space for tables and chairs.

Restaurant owners told NYC Hospitality Alliance new space requirements for roadway dining sheds made the endeavor less profitable. James Keivom

“It’s clear from this survey that improvements need to be made to the rules and requirements so all restaurants that want to offer alfresco dining can and are not left out,” NYC Hospitality Alliance’s executive director Andrew Rigie said. “Only then can we truly achieve the city’s goal of having the biggest and best outdoor dining program around the country and globe.”

The Post previously reported that sheds were disappearing this summer as the city rolled out the new regulations — which includes charging restaurants both a $1,050 to $2,100 four-year licensing fee and an annual fee based on the size of the shed.

The group had expected at least 5,000 restaurants to apply for outdoor dining but only about 2,600 did by the Aug. 3 deadline.

The alliance predicts many applications would end up rejected because of complex new restrictions and Rigie called the number of applications “disappointing.”

The poll of eateries comes as the number of dining sheds in the Big Apple plummets to pre-pandemic levels — years after COVID-19 emergency orders fueled a surge that saw upwards of 10,000 offering al fresco options.

Before the pandemic shutdown, only about 1,400 restaurants offered outdoor dining options.

Others said taking down the structures over winter as required by the new program made it too expensive to be worthwhile. Paul Martinka

Of restaurants that didn’t apply for the new program, 40% told the alliance that stricter clearance requirements would not allow them to have enough tables or seats to make outdoor dining worthwhile.

Some 38% said outdoor dining was too expensive because structures must be taken down and stored during the winter months due to new seasonality requirements, and nearly one-third said the online application process was too difficult.

Under the new licensing process, restaurants have to shell out even more if their establishment is below 125th Street in Manhattan.

A statement from the Department of Transportation, which oversees the new roadway dining applications, seemed to blame City Council for making the outdoor dining program seasonal.

Andrew Rigie, executive director of the NYC Hospitality Alliance said it’s “disappointing” so few restaurants applied for the new program. Patrick McMullan via Getty Images
44% of owners say they’ll ditch outdoor dining over government fees and confusing application process. James Keivom

“The Dining Out NYC program preserves the best parts of outdoor dining, addresses important quality of life concerns, and adheres to city council legislation that made outdoor dining seasonal,” read the statement.

A DOT source bragged to The Post that New York City restauranters are at least jumping on the outdoor dining program at a faster rate than in Paris, which also recently instituted new requirements.

“A higher proportion of restaurants that participated in the temporary program are participating in the permanent program than in Paris, which also recently instituted seasonality requirements,” the source told The Post.

As always, we want to make sure that outdoor dining works for everyone — diners, restaurant owners, neighbors, and our city’s streets — and we welcome continued feedback and input as we perfect this program,” read the statement from City Hall.