NY Dirt: Outdoor Dining Returns to NYC

New York City restaurants could soon have more flexibility to serve customers outdoors after the City Council passed legislation allowing roadway cafés and dining sheds to operate year-round.

TSCG’s Graci Goldstein sees the change as a positive for restaurants and diners, with expanded outdoor seating offering operators additional space and potential revenue.

“This is a positive thing for the restaurant industry in New York, and you’ll see a lot more outdoor seating, which is nice for the customer too,” Goldstein said.

While Goldstein doesn’t expect the new rules to dramatically reshape restaurant real estate, she noted that year-round outdoor seating could influence site selection. Restaurants may be able to consider smaller interior spaces while benefiting from additional outdoor capacity, and locations that were previously less desirable could potentially command higher rents.

“It could drive rents up in less desirable locations because outdoor seating adds so much potential business for these restaurant operators,” Goldstein said.

TSCG Managing Partner David Firestein highlighted another side of the issue: the potential impact on neighboring retailers and residents. Dining structures can obstruct storefront visibility and signage, while increased activity along sidewalks can create congestion and competing interests between restaurants and surrounding businesses.

“It definitely causes conflict,” Firestein said.

Plus, the trash. 

“I remember sitting in one of them one time and a rat crawled right past me,” Goldstein said. 

Hopefully restaurants will be leaving that particular aspect of outdoor dining in the past. 

The legislation would eliminate the need for restaurants to dismantle and store roadway dining structures each winter, potentially making outdoor dining a more practical long-term option for operators while introducing new considerations for the surrounding retail environment.

Media coverage includes The Real Deal