New York City hospitality industry cheers alcohol ruling for outdoor dining

New York City’s hospitality industry toasted an announcement Wednesday by the state Liquor Authority clarifying that hundreds more establishments would be allowed to serve alcohol in outdoor dining.

Until the clarification, made at an authority meeting, it appeared as if only seven outdoor-dining program participants — seven restaurants, cafes, bars and other venues across the five boroughs, in a city with many thousands that serve booze — appeared to be allowed to serve alcohol in outdoor setups after the program fully resumed Tuesday.

In a statement, the NYC Hospitality Alliance, a trade group, said that the ruling "ensures outdoor dining remains uninterrupted for restaurants, workers, and New Yorkers and visitors who enjoy alfresco dining during the transition period from the pandemic-era system into the new Dining Out NYC program."

Co-authors of an NYU study — the findings of which the city disputes — said that at the peak of the pandemic, there were over 12,500 outdoor dining venues. (The city says the number was 6,000 to 8,000).

After new rules were imposed beginning last year — including making the program seasonal, adding fees and other restrictions — the number of participating venues plummeted. It’s now about 2,400 participants, including about 600 roadway setups.

At issue before the liquor authority's Wednesday announcement was whether conditional approval by the city of an outdoor dining operation was sufficient to qualify for an expanded liquor permit, an essential matter because the number of fully approved operations was below 100 as recently as a few days ago citywide.

The authority clarified that it is.

The city welcomed the news.

In statement on the alcohol ruling, the city’s Transportation Department, which administers the outdoor dining program, said: "New Yorkers came to enjoy outdoor dining during the pandemic, and we are proud that it is now a permanent part of our city's streetscape."

By Matthew Chayes

matthew.chayes@newsday.comchayesmatthew

Matthew Chayes, a Newsday reporter since 2007, covers New York City.