New report says Philly needs to streamline streetery regulations, application process

PHILADELPHIA (KYW Newsradio) — Streeteries became the rage in Philly during the COVID-19 pandemic, but they’ve struggled to regain their footing amid regulations put in place by the city. A new report sought to figure out why they struggled.

City Controller Christy Brady said Philadelphia has made it too complicated and costly to maintain a streetery.

“I would say the biggest obstacle would be the application process and the financial barriers. Both of those issues are what made a lot of the restaurants roll back their streeteries.”

According to her office’s report , there were more than 950 outdoor dining licenses issued between 2020 and 2022. Now, there are just 329 restaurants with active outdoor licenses. Only 26 of them have streetery licenses, allowing them to put tables in parking lanes.

The report suggests they could still be big boons for restaurants, but a high application fee and stringent regulations are in the way.

Philly slaps an annual fee of $1,750 on restaurant owners to maintain a streetery and requires they purchase a $1 million insurance policy. The city also has restrictions in place regarding size and location, as well as just how the streetery is set up.

The report also looked at places like Pittsburgh, where the fee is just $150, and in New York City, where the application runs for multiple years before renewal is required.

Read the full report here

City Controller Outdoor Dining Review August 2024 by Kristina Koppeser on Scribd

Brady said the fee should be much cheaper and the application process should be streamlined. “Right now, there’s just numerous approvals that a restaurant owner needs to go to from different departments,” said the controller.

She also believes the regulations have left money on the table for the city and its restaurants. The report finds the city needs to clarify regulations for restaurateurs and provide clear guidance.

By having more streeteries, Brady said not only restaurants but other local businesses have the chance to make more money. “It increases dining capacity, and therefore, allows them to make more money, and generates more tax dollars for the city,” she said.

“Somebody that’s visiting a restaurant and sitting in an outdoor environment may also go to neighboring businesses and shop. And that’s what we want.”

As for expanding streeteries beyond their current zoning in the city, Brady said she’d leave that up to City Council.