Six weeks into the 2026 outdoor dining season, the number of New York City restaurants with permits to operate outdoor seating has dropped notably. City records show approximately 2,100 eateries currently hold permits, down from around 2,500 last year and a high of about 13,000 during the COVID-19 pandemic. Industry stakeholders attribute the decline to complex regulatory processes and delays in permit approvals.

Restaurant owners report that handling the city’s application system for outdoor dining permits has become increasingly difficult. Lengthy review periods and stringent requirements have slowed the approval pace, limiting the number of establishments able to offer outdoor seating. Some operators have described the situation as a “disaster” for their businesses, citing lost revenue opportunities during the key spring and summer months.

The outdoor dining program, initially expanded as a pandemic-era response, remains an important component of many restaurant business models. It provides additional seating capacity and helps attract customers seeking open-air environments. Despite its ongoing value, the current regulatory framework appears to be a barrier to wider participation.

City officials have acknowledged the slowdown in permit issuance but have not outlined immediate plans to streamline the process. Meanwhile, restaurateurs continue to push for reforms that would ease the administrative burden and expand outdoor dining options as the season progresses.

Editorial Transparency. A first draft of this story was produced with AI-assisted writing tools, then reviewed for accuracy and tone by the named editor before publication. More on our process: Editorial Policy.

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