Executive Summary
Why the Controller’s Office Conducted the Review
In accordance with the Philadelphia Home Rule Charter, the Office of the City Controller (Controller’s Office) conducted a review of Philadelphia’s Outdoor Dining Program. Our objective was to analyze Philadelphia’s outdoor dining licensing process to identify any barriers that prevent businesses from fully utilizing outdoor dining opportunities.
What the Controller’s Office Found
The Controller’s Office identified significant obstacles including:
● Revenue Impact: The increase in business tax revenue from expanding outdoor dining would boost local business income and city tax revenue, balancing out any loss in parking meter revenue.
● Complex Processes: The application process for outdoor dining involves multiple steps and strict regulations on size, location, and compliance of outdoor dining setups, complicating the process for obtaining a license and operating once approved.
● High Costs: The city currently extracts a significant financial cost from restauranteurs to obtain licensure, in addition to constructing a streetery and maintaining all the requirements of the program, for negligible reduction in parking revenue.
● Regulatory Challenges: Strict regulations regarding size, location, and compliance of outdoor dining setups complicate the establishment and operation of these spaces.
What the Controller’s Office Recommends
The Controller’s Office has developed a number of recommendations to address the findings noted above and in the body of the report. These include:
1) Streamline the Application Process: Simplify the steps required to obtain an outdoor dining license and reduce the number of approvals needed from different departments.
2) Lower Costs and Financial Barriers: Decrease outdoor dining license application and renewal fees; and reduce insurance requirements and other costs of operating them.
3) Ease and Clarify Regulations: Clarify outdoor dining regulations regarding size and location to make compliance easier and provide clear, accessible information to business owners regarding all requirements and processes for establishing outdoor dining areas.
4) Strengthen Public-Private Partnerships: Foster collaboration between the city and private businesses to create a supportive environment for outdoor dining while engaging with local community groups to gather input and ensure the outdoor dining program meets the needs of the neighborhood.