Should You Expand Your Outdoor Service Area?
Both the Centers for Disease Control (CDC) and Arizona Department of Health Services (ADHS) has stated that dining outdoors significantly decreases the risk of viral transmission. In addition to the health reasons, expanding your service area has a big upside for revenue generation. For most of Arizona, expansion of premises had not been a viable option during the summer months due to the heat. Because of this, we have been able to look at other areas of the country to see what benefits these temporary expansions have brought. In the City of Denver, restaurants were able to bring in an extra $287 million in revenue during their summer months with extended areas.
Things to consider before starting:
- What size of area will you need for your extension?
- What are you staffing needs?
- What kind of tenting or other structures will you be using?
- If you plan on serving alcohol, what kind of temporary barriers will you use?
- If you intend to do food preparation in the extended area, have you contacted your County Health Department to check what additional requirements they have?
- Do you have permission from your landlord for the extension?
- Does your landlord have any resources available to help with the extension process?
Steps for Expansion:
Landowner Authorization
If you are on leased property or plan on expanding into an area owned by another, you must first receive authorization from the property owner to use the proposed space. Most cities require a written authorization.
Application Process
Now that you have received authorization from the property owner the next step is to begin the application process with your city or county (if you are located in an unincorporated area). Each jurisdiction’s process is slightly different, but they all share some common elements. Establishments should be prepared to provide, at a minimum:
- Aerial photograph (google maps images will work) or sitemap
- Labels on the aerial photograph or sitemap denoting:
- roads
- emergency exits
- fire lane access
- Ability to show that Americans with Disabilities Act (ADA) access is available
Some jurisdictions may require further information in their application process. To find your jurisdiction’s process and begin the application, please visit http://www.leagueaz.org/e/covid_19/restaurant_roadmap.html and click on your city.
DLLC Extension of of Premises
If you are planning on conducting alcohol service in your extended area, you will need an approved permit from the Department of Liquor Licenses and Control (DLLC). This application must first be submitted to your local governing body (city, or county if in an unincorporated area). Many cities have included the DLLC application in their process. If your jurisdiction has not included the DLLC application in their process, you can access a copy here: https://azliquor.gov/forms/inv_extprem_access.pdf
This application may be submitted to your local jurisdiction at the same time as the city’s extension application. Please note that the DLLC application is used for both permanent and temporary expansions. The process outlined here is only for a temporary expansion, so please ensure you check the correct box. If you are interested in an permanent expansion, please contact your city to determine that process.
Insurance Coverage
Contact your insurance broker and see if any changes need to be made your insurance policies in order to extend coverage to your expansion. If your proposed expanded area will use public rights-of-way or go onto city property, check with your city about any additional insurance requirements that may be needed.
Submit Your Application
Submit your application (including the DLLC application if you plan on serving alcohol) to your local governing body. If everything is in order, you should hear back in 5 to 15 days depending on your jurisdiction’s process.
NOTE: If at any point, you run into issues with the permitting process, please contact Dan Bogert at the ARA for assistance – dan@azrestaurant.org.
Financial Assistance
Once you receive your approved permit from your local governing body (and DLLC, if applicable) you may apply for grant up to $10,000 from the Safest Outside Restaurant Assistance Program.
Safest Outside Restaurant Assistance Program
The State of Arizona created the Safest Outside Restaurant Assistance Program, which is designed to assist bars and restaurants with funding for the infrastructure needed to expand their premises. With $1 million total in the fund, businesses may apply for up to $10,000 to cover expenditures for items restaurants need to extend their premises, such as outdoor furniture, barriers, patio heaters, or parklets.
Eligible Applicants:
- Licensed bar or restaurant legally owned and operated in Arizona and complying with all COVID-19 related executive orders. Must be open to the general public and in good standing with the Arizona Department of Revenue.
- Applicants must have no more than 50 full-time equivalent employees.
- Must demonstrate either:
- New extension of premise: For restaurants without an existing patio, the extension of premise must be approved by the local governing body and approved by the Arizona Department of Liquor Licensing and Control (if applicable). A new extension of premises is any outdoor expansion that increased the outdoor square footage of the restaurant premises that opened for service on or after October 1, 2020.
– OR –
Increase operating space in an existing patio: Restaurants that have an existing patio that is not fully operational due to the need for furniture or weatherization supplies (heaters, tents, umbrellas, etc.) may apply to the Program and must provide detail regarding the operational status of the current patio and the supplies needed for the patio to become fully operational. Appropriate approvals must be submitted with the application if applicable. Enhancements to existing patios that are not related to weatherization or do not create an increase in operational capacity will not be considered for funding at this time.
- New extension of premise: For restaurants without an existing patio, the extension of premise must be approved by the local governing body and approved by the Arizona Department of Liquor Licensing and Control (if applicable). A new extension of premises is any outdoor expansion that increased the outdoor square footage of the restaurant premises that opened for service on or after October 1, 2020.
- Applicants may receive 1 award, up to $10,000 for eligible expenditures. The $10,000 of expenditures may be used at multiple locations that have obtained approval to extend premises. Applicants should submit one application — regardless of the number of locations at which the funds will be used — and include all approval documents for those eligible locations.
- Individual applicants that own multiple separate business entities may not apply for multiple grants in excess of $10,000 per individual owner at this time.
Applicants will be required to complete the following sections of the online application:
- Demographic information: Name of Applicant; Name of Restaurant/Business; Address(s) of eligible restaurant(s) or bar(s); County; Number of full time equivalent employees; Year business was established.
- Scope of Work: Description of the extension of premises. The description must include the number of additional customers that the bar / restaurant will serve, how the extension will help ensure the financial viability of the business and safely serve customers, and expected timeline for the purchase of eligible equipment.
- Documented approval for the extension of premises: Documents that demonstrate completed approval for the extension of premises from all required bodies, which may include landlords, the local governing body, and the Arizona Department of Liquor Licenses and Control.
- Budget: Details of the specific costs and quantities of eligible expenditures. Applicants may apply for expenditures incurred on or after December 1, 2020 including items not yet purchased.
- Attestation that the applicant will use the funds to facilitate the approved extended premises, and that the applicant has not received any other public dollars to reimburse the eligible expenditures.
- Attestation that applicant is in good standing with the Department of Revenue.
- Attestation that the applicant has applied for only one Safest Outside Restaurant Assistance Program Grant, regardless of the number of separate business entities the applicant owns.
Outdoor Equipment Resource
Amazing Jumps, Tents, & Events offers Tents , Tables & Chairs, Heating and Cooling Units, Barricades for Liquor License Expansion, Outdoor Flooring, & more. We have setup for BJ’s Restaurants, Twin Peaks, Applebee’s, Jason’s Deli, and many more very appreciative mom and pop restaurants. We have also setup in Colorado, Texas, and New Mexico. Discounts for ARA members. Call (602)962-5867 for more information.