NYC's Open Storefronts Program
The Open Storefronts program assists existing ground-floor storefront businesses who want to use outdoor areas on a temporary basis. The program allows eligible businesses to conduct activity on sidewalks, on roadways in the Open Streets: Restaurants program, or a combination of both. In addition to businesses engaged in retail trade, repair stores, personal care services, and dry-cleaning and laundry services are able to use outdoor space for seating, queuing, or display of dry goods.
There's some relief for small businesses across the five boroughs as NYC's Open Storefronts program.
Under the new program:
- Businesses can utilize the sidewalk directly in front of their storefront.
- Businesses on existing Open Streets: Restaurants can use curb lane directly in front of store.
- Businesses on the same street block can join together and apply for an Open Street.
One rule, there must be an 8-foot path for pedestrians to safely walk by.
For information on how to apply, visit nyc.gov/openstorefronts.
The mayor signed the executive order during his morning press conference on Wednesday. He said that it was important for him to get this initiative started ahead of the holidays.
"It's a crucial time for every small business," de Blasio said. "We can all make a difference by buying local."
The program runs through December 31, 2020.
Open Storefronts FAQ
Download the Open Storefronts FAQ in Arabic, Bengali, Chinese, French, Haitian Creole, Korean, Polish, Russian, Spanish or Urdu (pdfs).
Who is eligible to apply for Open Storefronts?
Any ground floor storefront business predominantly involved in the sale of goods directly to the public. In addition to businesses engaged in retail trade (i.e. clothing and equipment stores, retail food stores, health and personal care stores), repair stores, personal care services, and dry-cleaning and laundry services are able to use the space for seating, queuing, or dry good display.
A “ground floor storefront” business is a business which is directly accessible from the street and has store frontage on the sidewalk.
What activities are / are not allowed in the Open Storefronts program?
- May erect temporary signage (i.e. A-frames), display goods, complete transactions, place seating and ropes/stanchions, conduct promotional activities, and place collapsible umbrellas and tents in eligible sidewalk areas and in roadway areas as part of Open Streets: Restaurants
- May not place heaters in outdoor areas
- May sell only dry goods outdoors, excluding items prohibited from outdoor sale (i.e. liquor, cigarettes/tobacco/e-cigarettes, pharmaceuticals, adult content)
- May not conduct personal services (i.e. haircuts, cosmetology) outdoors
- May only sell goods outdoors that a business is already licensed to sell indoors, or do not need a new license to sell
- Must abide by all existing permits and regulations that relate to product display and sales
- May allow for outdoor drop-off & pick-up of customer purchases
- Amplified sound is prohibited
- May not allow other businesses to use fronting sidewalk or roadway (for free or otherwise) except for a restaurant with permission to do so
- May conduct eligible activities from October 30 through December 31, 2020
- Must suspend all outdoor activities while a DSNY Snow Alert is in effect
What sidewalk or street is eligible?
All sidewalks in New York City wider than 8’ may be utilized by the Open Storefronts program in line with siting criteria.
All streets participating in the Open Streets: Restaurants program may be utilized by the Open Storefronts program in line with siting criteria.
When can my establishment begin using outdoor sidewalk space?
Establishments seeking to utilize additional public sidewalk for business operations must submit an online form at nyc.gov/openstorefronts and may commence once submitted.
Open Storefronts
Concerns by Community
Frustrated City Council members and small business advocates took to a hearing Tuesday to express their concerns about the Open Storefronts program launched recently by Mayor de Blasio after outcry from the business community, particularly smaller retailers. Small businesses, many of which are struggling to hold on if they haven’t already closed due to the pandemic and a lack of government help, can enroll in the program that, as of now, will give them through December 31 to sell their merchandise right outside their establishments.
After months of city government action mostly focused on the restaurant industry, the city’s Business Improvement District Association wrote a letter in early October to the mayor and City Council Speaker Corey Johnson calling for such an initiative, proposed to mirror the success of the Open Restaurants program, increase foot traffic, and drive up sales for retailers. The BID Association pushed for the inception of the program for months before its launch on October 28, weeks after its open letter.
Tuesday’s City Council hearing was led by the Council Member Andrew Cohen, a Bronx Democrat who chairs the Council Committee on Consumer Affairs and Business Licensing, and Council Member Mark Gjonaj, also a Bronx Democrat, who chairs the Council Committee on Small Businesses.
Cohen began by acknowledging the effect online shopping has had on local communities, citing a lack of storefronts in “typical high-traffic areas.” He acknowledged the impact of COVID-19, calling the pandemic a “final nail in the coffin” for some small businesses and large retailers alike. He attributed the survival of small retailers to either resilience or “pure New York-style hustle,” but also pointed out that as of November, small business’ retail revenue was down 35% compared to January. Whether it’s due to the lack of the tourist market, the number of people working from home or avoiding shopping, or the capacity restrictions for stores, even small businesses that are weathering the storm are still suffering, he said.
Open Storefronts is intended to combat some of these trends, and help small businesses in the city survive.
“Today, the committees are eager to hear directly from retailers on their experience with the program,” Cohen said. “We are also grateful that the administration has made time to be here today, as we would like to hear the reasoning for some of the elements of the program. For instance, I’m curious as to why the program was not started earlier, perhaps in the summer when people could take advantage of the good weather. I’d also like to know why the program doesn’t fully extend the same permissions as the outdoor dining initiative…We’re also keen to hear how widespread the program is. Outdoor dining has been well-received so much so that we have passed legislation to make it permanent, but the success of outdoor retail is less clear.”
Gjonaj opened with a handful of daunting statistics regarding unemployment rates, revenue loss, and business closures. “According to a city comptroller report,” he said, “over 800 retail establishments have closed permanently between March 1 and July 10, causing a permanent loss of jobs and wages in the city, as well as tax base.” He acknowledged gratitude small business owners feel for the city Department of Small Business Services’ funding assistance programs and thanked SBS Commissioner Jonnell Doris for his work to get the initiatives up and running.
But Gjonaj also made clear his worries of whether or not it's enough to sustain struggling businesses. “I fear that small retail stores will soon be a relic of the past,” he said. “They need more than we’ve given them, and they need it today.”
According to Commissioner Doris, roughly 40,000 businesses across the city are eligible to participate in the Open Storefront program, but just 563 businesses are signed up so far — a rate Cohen called “modest.”
When asked, Doris did not have data for how many retailers do not qualify for the program due to issues like a lack of sidewalk depth (participating stores must have 8 feet clearance for foot traffic as well as space for merchandise).
The commissioner cited a couple of reasons for limited participation thus far. “One, we know that some of the stores are already participating in the program,” he said. “We also know that many of the stores put their wares out front [without applying], so we have to go around––which we have been doing––to just tell them to sign up for the program. That’s just that information gap there. The reality, the harsh reality, is that...we’ve heard from some of our BID partners, we’ve heard from businesses, as well, that the pandemic has caused somewhat of a slowdown, [with the] uptick in COVID transmission in hot zones, et cetera.”
In response to Cohen’s question on why the urgency to create this program wasn’t parallel to that of the urgency for Open Restaurants, Doris responded, “We do know that this is the time that our small businesses need it––particularly our storefront businesses. This is the time that they actually get 70% of their sales. We want to make sure that we highlight this time and give them the opportunity to do it during the holiday season. The last several months of the year [are] when they make the majority of their sales.”
While “no one is turned away” from the application according to Doris, there was a general acknowledgement at the hearing that there is a lack of awareness about the program. Council Member Karen Koslowitz, a Queens Democrat, said that while walking down Austin Street, the “5th Ave of Queens,” she noticed only one store had their merchandise displayed outside. The commissioner explained that outreach is “extensive,” noting they are partnered with 76 BIDs, have conducted 233 webinars and done trainings, have taken to the grounds to speak with businesses, connected with the chambers of commerce in the boroughs, utilized media, and sent out materials.
The hearing, however, demonstrated that there are multiple concerns––the narrow timeline being one of them. Responding to Gjonaj’s question on whether or not the program will be extended after the end of the year, Doris said he did not have an announcement to make but that the administration is open to, and reviewing, the idea. Gjonaj urged Doris and the administration to give small businesses a “fighting chance” and to make the decision sooner rather than later, adding, “They’ve got four more weeks, hopefully, to the end of the year. They’re second-guessing whether or not they should make any investment, and the creativity of how to market their products, enclosures, so on and so forth…There’s no reason to wait for the last moment.”
In final remarks, Cohen acknowledged the work SBS has done facing a daunting task.
***
The part of this story covering the City Council hearing was written by Angelica Crisostomo, Gotham Gazette. Read the full article here.
