Outdoor Dining Disaster!

*****ALERT*****

DOT Delays Threaten Outdoor Dining & Liquor Sales

Dear HL Clients and Friends,

Restaurant owners, brace yourselves—the city’s outdoor dining rollout is a mess. With just days before the April 1st start date, the Department of Transportation (DOT) has issued only 42 licenses out of 3,700+ applications.

In response to this backlog, the DOT has introduced “Conditional Approvals” for Roadway Cafés, allowing some operators to open on April 1st—if they meet specific conditions.

What You Need to Know About Conditional Approvals

As of March 3rd, applicants who have cleared the Public Hearing phase may receive a Conditional Approval—which allows them to operate their Roadway Café starting April 1st, provided they submit the following within 30 days:

1️⃣ Updated insurance documentation
2️⃣ A signed and notarized Outdoor Dining Contract
3️⃣ Final two application fees

Additionally, recipients of Conditional Approvals can begin building out their Roadway Café structures as early as March 25th. This is a major step forward for restaurants that have been stuck in application limbo for months.

However, there’s a major problem that could cost operators significant revenue:

SLA Says No Liquor Until Full Permits Are Issued

For restaurants planning to serve alcohol in their new DOT-approved outdoor spaces, there’s a major hurdle.

The State Liquor Authority (SLA) has confirmed that it will NOT accept Conditional Approvals in place of a full DOT Dining Out permit. This means:

• Operators CANNOT serve alcohol in their outdoor dining spaces until they receive their final DOT permits.
• Operators CANNOT serve alcohol in their outdoor dining spaces until they receive SLA approval
• The SLA will not process liquor license applications without an officially issued DOT Dining Out permit.

The Timeline Problem: When Will Alcohol Be Allowed in Roadway Cafés?

Due to delays at multiple levels—including the Mayor’s Office, DOT, and Comptroller’s Office—the final contract approval process alone is taking 1-2 months per application.

After that, the SLA’s liquor license approval process takes another 45-60 days.

That means restaurants could face several months between the April 1st outdoor dining start date and the actual approval for liquor service—a major financial blow for operators who rely on outdoor alcohol sales.

Sidewalk Dining Applications Also Delayed

While the DOT scrambled to push Roadway Café approvals forward, sidewalk café applications have been deprioritized.

Restaurants that:
✅ Participated in the COVID-era sidewalk dining program
✅ Applied to the DOT Dining Out program before August 3, 2024

Can continue operating sidewalk cafés year-round—but without liquor service.

Since sidewalk applications only recently began moving through the review process, SLA approvals for these spaces are expected to take even longer than for Roadway Cafés.

What Should Restaurant Owners Do Now?

📌 Monitor your Conditional Approval status. If received, submit the required documents ASAP to avoid further delays.
📌 Prepare for an alcohol service gap. With SLA delays, consider adjusting outdoor service models to compensate for lost liquor sales.
📌 Push for expedited approvals. Contact your local representatives and industry organizations to advocate for a streamlined process.

We are monitoring this situation closely and will provide updates as they become available. If you have questions about navigating the DOT or SLA approval process, reach out to our team for guidance. Please email us at [email protected]

– Joey Regs and Matt Borowiec on behalf of the HL Licensing Team