Good News for New York City’s Food and Beverage Industry: Outdoor Restaurants Can Apply for Liquor Licenses.

On Wednesday, April 2nd, the New York State Liquor Authority (SLA) announced that they will accept the Department of Transportation (DOT)-issued documents for sidewalk cafes with “conditional approval” as valid documents for restaurants or bars to apply for selling alcoholic beverages. This allows food and beverage businesses to add fully or temporarily approved outdoor dining areas to their liquor license permissions for selling alcoholic beverages.

Since the pandemic, New York City’s outdoor dining area policies have transitioned from temporary measures to permanent policies. During this transition period, many restaurants have been operating outdoor spaces with the city’s permission but lacking approval from the New York State Liquor Authority (SLA) for liquor license changes. Restaurants were concerned this could put them at risk of “illegally selling alcoholic beverages,” leading to penalties or the closure of their outdoor dining areas.

The SLA’s decision has been praised by The NYC Hospitality Alliance.

The outdoor dining program in New York City is overseen by the Department of Transportation, while the SLA is responsible for regulating alcoholic beverages in outdoor dining spaces. As the attitudes of these two agencies towards outdoor dining continue to evolve, the industry has been closely monitoring their developments.

According to the SLA’s announcement in December 2024, businesses must submit a change application within 60 days of receiving conditional approval from the Department of Transportation. Those who have received conditional approval must submit their applications by June 1, 2025 (60 days after April 2, 2025); failure to do so will result in ceasing the sale of alcoholic beverages in the affected outdoor areas.

Additionally, the SLA’s policy states that restaurants and bars legally operating outdoor dining under New York City laws and Department of Transportation rules can continue serving alcoholic beverages as long as they comply with the required processes.

The restaurant industry alliance commends the New York State Liquor Authority for implementing a reasonable process to ensure that during the transition from the pandemic era to the new outdoor dining program, restaurants, staff, and New Yorkers and visitors enjoying outdoor dining can dine and drink without disturbance.

In February of this year, the Department of Transportation announced that applicants who have completed the most crucial steps in the application process will receive “conditional approval” permits, allowing them to legally operate until the Department of Transportation issues their permanent permits.