Philly restaurants push to relax streetery regulations they say will kill outdoor dining

The sounds of Philadelphia’s bustling kitchens filled a Zoom call with city officials Wednesday, as dozens of restaurant operators virtually testified against new streetery regulations put in place by the city’s Streets Department.

The new rules, they argued, would gut the city’s outdoor dining scene just as it’s poised to make a comeback this spring, and small and minority-owned eateries would suffer the most. Many also aired frustrations about transparency around the regulatory process.

The rules have become a flash point between city officials and the pandemic-battered restaurant industry. Lawmakers and industry stakeholders spent much of last year hammering out a compromise to bring up to code the city’s hundreds of streeteries, or outdoor dining structures built over parking spaces during the pandemic. It had already been a heated fight, but when Mayor Jim Kenney’s administration quietly released new regulations with a trove of unexpected rules and fees last month, some restaurateurs said it felt like a sucker punch during a cease-fire.

» READ MORE: Philly quietly added surprise fees and ‘burdensome’ rules for restaurant streeteries

“It’s beyond disillusioning that these rules were created without anyone in our industry chiming in,” said Nate Ross, owner of New Wave Cafe in Queen Village. “I would argue the whole thing should be torn up and thrown away.”

Officials said they would produce a report based on the two hours of testimony. But there were no assurances that any tweaks would be made at this stage.

Among the most contentious new mandates: Restaurants would have to run electrical lines underground or use noisy generators to power their parking-space patios, install crash-proof barriers, and potentially dismantle the structures during inclement weather.

Then there are added approval layers. As written, the Streets Department won’t approve streetery licenses without written support from neighbors at abutting properties, and restaurants must get the green light from the city’s Art Commission.

Add to that the surprise price tag: a $2,200 annual license fee and a requirement for restaurants to secure a $60,000 bond to cover costs in the event of emergency removal.

Restaurants that fall outside the by-right streetery zones established by City Council already must go through extra hoops to get approval. But the regulations come at a time when restaurants are fighting to bounce back from the omicron wave, while still bringing national acclaim to the city’s food scene.

» READ MORE: Hundreds of restaurants got excluded by Philly’s new ‘streetery’ zones — some by less than a block

“It feels like you are saying no to us in a very polite way,” Chutatip “Nok” Suntaranon, owner of Kalalya, told city officials, hours after she was named a finalist for the 2022 James Beard Awards. “We are willing to work with you. Just make it make sense.”

Financial pains echoed through the testimonies. Brauhaus Schmitz co-owner Doug Hager said the restaurant lost $100,000 paying staff through the omicron wave “while having no butts in seats.” Gisella Jara, owner of Malbec Argentine Steakhouse, noted that recent inflation has driven the cost of goods through the roof.

Few contested that some streeteries need to be reined in from blocking pedestrian access or sight lines from the road. While some residents complained about streeteries encouraging late-night drunkenness and noise, streetery operators who testified said they’ve abided by all the rules so far, and already have unwritten support from their neighbors.

“We’ve had no nuisance complaints, we’ve had no citations,” said Jennifer Sabatino, operations manager at Manatawny Still Works, which runs a streetery in East Passyunk.

Streets officials said the annual license fee would cover “required inspections, additional personnel, technology upgrades, and enhancements to the online application.” Restaurants countered they could lower the annual rates.

Elected officials said the costs make it untenable for streeteries to operate. Councilmembers Maria Quiñones-Sánchez and Allan Domb requested a staggered fee schedule, based on seat capacity or months of the year that the streetery is utilized.

“I know it’s more work … but a tiered process is a fairer process,” said Quiñones-Sánchez, whose district includes some of the poorest neighborhoods in North Philadelphia.

Other proposed fixes included easing the electrical requirements, nixing the Art Commission approval, and temporarily doing away with the $60,000 security bond. Domb, whose real estate holdings include downtown eateries, said many small restaurants don’t have the credit or resources to get a bond.

“We’re only allowing our wealthier owners in the hospitality industry access to the streetery program,” Domb said. “And that’s something we don’t want coming out of this pandemic — or ever.”

Many operators said they were optimistic about coming to an amendable resolution.

But the clock is ticking.

Testifying as the temperatures outside rose into the 60s, advocates noted the desire for outdoor dining remains as high as it was pre-vaccine. Streets officials told The Inquirer that another notice would go out to restaurants before enforcement began, though no timeline was immediately clear.

In the meantime, operators hope officials take their concerns into account.

Said Zakary Pyzik of the Pennsylvania Restaurant & Lodging Association: “The path to recovery hopefully starts this spring, and if we can get this program right, it can start with outdoor dining.”