As the spring 2025 outdoor dining season kicks off in New York City, thousands of restaurants are preparing to expand their footprint onto sidewalks and streets.
But this year’s rollout is layered with regulatory changes, conditional approvals, and ongoing questions—especially when it comes to serving alcohol.
According to the Department of Transportation (DOT), 600 restaurants have already received the green light to construct roadway dining structures, and another 2,000 are approved for sidewalk setups.
“We’re building a more resilient and vibrant city,” said Mayor Eric Adams earlier this month. “Outdoor dining brought life back to our neighborhoods. This new framework gives restaurants the tools to keep serving New Yorkers safely and legally.” But beneath the optimism lies a thicket of bureaucracy that many operators are struggling to navigate.
Gone are the haphazard wooden sheds and enclosed cabins that characterized pandemic-era dining. Under the new rules, which take effect April 1, structures must adhere to strict design guidelines—especially for roadway cafes.
Top coverings must now be open-air or retractable, allowing for ventilation and reducing the sense of permanence that drew criticism in earlier versions. No more solid roofs or enclosed four-walled boxes.
Andrew Rigie, Executive Director of the NYC Hospitality Alliance, noted that “restaurant operators have shown an incredible willingness to comply with the city’s vision, but the shift in design standards has meant added costs and confusion. These are not ‘shacks’—they’re carefully constructed spaces that comply with evolving rules.”
The aim, the city says, is to strike a balance between public use of curb space and restaurant business needs. Still, many restaurateurs remain skeptical, noting the tens of thousands of dollars it takes to meet these requirements.
As of late March, only 39 permanent licenses had been issued from the over 4,000 applications submitted. To prevent widespread disruption to the 2025 outdoor season, the DOT announced a stopgap measure: restaurants with “conditional approvals” can begin operations April 1, provided they meet key compliance benchmarks.
This “conditional approval” allows operators to legally open while the city finalizes paperwork. It’s a welcome move for many, but doesn’t resolve all issues. “There’s been a sense of whiplash,” said Ron Bookman, legal advisor to the NYC Hospitality Alliance.
“We’ve had to decode evolving DOT protocols on the one hand and State Liquor Authority policies on the other. Operators are stuck in the middle.”
Perhaps the most contentious issue this season is the murky legal status of alcohol service in outdoor spaces. While restaurants may operate their outdoor cafes under DOT’s conditional approval, they must still register those spaces with the State Liquor Authority (SLA) to legally serve alcohol.
In August 2024, SLA announced that restaurants must file a Municipal Alteration Application to include outdoor cafes in their licensed premises. Initially, the deadline to comply was January 1, 2025.
In December, SLA updated its policy, allowing businesses to file the application within 60 days of receiving their permanent DOT license—not their conditional approval.
That small distinction has massive implications. Since the vast majority of restaurants only have conditional approval, they cannot yet apply to the SLA. That means they cannot serve alcohol legally in those outdoor areas—despite being allowed to operate them otherwise.
“The SLA has been silent on whether conditional approval is enough to proceed with alcohol service,” said Rigie. “We’ve urged them to provide clarity because this ambiguity is costing restaurants real money.” Indeed, without the ability to serve alcohol—often a major revenue stream—some operators may find outdoor dining economically unsustainable.
According to industry insiders, restaurants are already feeling the pinch. Costs for compliant builds can exceed $30,000. Payroll is also surging, with some reporting a 50% jump in labor costs. And with summer fast approaching, the stakes couldn’t be higher. Yet even operators who are ready to comply face roadblocks.
Applications must go through community board reviews, DOT approval, and SLA registration. One hiccup in that chain can delay operations by months—right in the heart of peak dining season.
Ron Bookman emphasized the urgency: “We believe SLA should treat conditional approvals the same as permanent ones for the purpose of filing and approving alcohol service. Right now, we’re flying blind.”
If you’re a restaurant or foodservice operator in New York City, you may legally operate your outdoor setup under any of the following conditions: if you were approved under the original COVID-era program and filed a new application before August 3, 2024; if you received a conditional approval from DOT for your sidewalk or roadway café; or if you received a permanent license from DOT.
However, for alcohol service, you must submit a Municipal Alteration Application to SLA within 60 days of receiving your permanent DOT license—not your conditional approval.
The SLA has not yet confirmed whether they will accept applications based on conditional status, nor have they clarified enforcement timelines. Until the SLA addresses these two critical questions publicly, the industry remains in limbo.
For detailed guidance, operators are encouraged to visit the city’s new interactive platform, DiningOutNYC.info, which provides up-to-date maps, guidelines, and application portals for sidewalk and roadway dining.
Additionally, the NYC Hospitality Alliance continues to provide support, updates, and advocacy on behalf of the restaurant community. “We’re committed to making sure restaurant owners aren’t left in the dark,” said Rigie.
For now, the message is clear: build if you’re ready, serve if you’re allowed—but stay tuned. In New York’s ever-evolving outdoor dining landscape, clarity may be the hottest commodity of all.
