Carlo Capuano, owner of Carlucci’s Waterfront in Mount Laurel, brags that his Italian restaurant offers more than just panini and crab cakes to die for.
“We have the best outdoor seating,” said Capuano as he looked at the postcard-worthy image surrounding his restaurant located at 876 Centerton Road in Mount Laurel. “We’re right on the Rancocas Creek.”
Thanks to New Jersey Gov. Phil Murphy’s recent bill signing, outdoor dining at restaurants and certain bars will become a permanent fixture in the state.
Murphy signed Senate Bill S-3608 and its counterpart in the Assembly, A-4866, into law on Nov. 25.
The outdoor dining permits were established four years ago during the COVID-19 pandemic to allow food and beverage retailers to expand their licenses within designated outdoor spaces or on a public sidewalk to accommodate patrons.
As indoor spacing restrictions intensified and severely limited their indoor seating capacity, the outdoor space provided a lifeline for many restaurants.
But many didn’t make it. The pandemic triggered a wave of closures that devastated the restaurant industry.
By the end of 2020, more than 110,000 restaurants had closed permanently or long-term in the United States alone, according to the National Restaurant Association.
For the survivors in New Jersey, the outdoor permits issued four years ago were set to expire on Nov. 30, 2024.
Gov. Murphy, who signed the bill five days before the expiration date, said making outdoor dining permits permanent will provide year-round support to the food and beverage industry.
“Outdoor dining has proven to be an incredibly successful venture over the past four years, benefiting business owners and patrons alike,” Murphy said in a statement after he signed the bill. “I’m proud to continue this popular measure and look forward to seeing our restaurant industry continue to grow.
Assemblyman Roy Friedman, (D.-Somerset), prime sponsor of A-4866, said the new law “provides a much-needed boost to local businesses and create more inviting spaces for patrons to enjoy.”
“By giving restaurants and similar businesses the opportunity to extend their services outdoors, we are helping them thrive in a post-pandemic world,” Friedman said.
A 2023 report by the National Restaurant Association listed 20,373 restaurants in New Jersey last year, which generated $30.4 billion in sales.
The restaurant industry was the third largest private employer in the state. With 365,700 restaurant and food service jobs last year, the industry accounted for 9 percent of total jobs in New Jersey, according to the NRA report.
The new law allows any holder of a temporary outdoor dining expansion permit issued by the Alcohol and Beverage Control director to convert to a permanent permit.
The bill also “requires owners and operators of those establishments seeking to utilize outdoor spaces or public sidewalks … to file an application with the municipal zoning officer, including information concerning the use of the outdoor spaces or public sidewalks, as appropriate.”
The New Jersey Hospitality and Restaurant Association (NJHRA) strongly advocated for outdoor dining regulations to become permanent from the start.
“Outdoor dining and service … has allowed restaurants to adapt to changing consumer preferences, expand their capacity, and create vibrant outdoor atmospheres that attract both residents and visitors,” Amanda Stone, Interim President and Director of Government Affairs for NJHRA, said in an email this week.
“By fostering innovation and resilience, outdoor dining has become a cornerstone of the industry’s recovery and growth, highlighting the need for supportive policies and infrastructure to sustain its success,” added Stone.
“We thank the sponsors for listening to our members’ concerns and passing meaningful legislation that supports the continued growth and sustainability of outdoor dining.”
Tim Sullivan, CEO of the New Jersey Economic Development Authority, said the new law will also benefit the state’s downtowns and main streets by “helping to revitalize communities by attracting more foot traffic, spurring economic activity, and bolstering small businesses.”
Christine McHale, owner of Pie Lady Café and Bakery at 9 East Main Street in Moorestown, couldn’t agree more.
“Oh, 100 percent. I didn’t close one day during COVID because of outdoor dining,” McHale said as she sat beside her son, Brendan McHale, inside their restaurant last Thursday. Outside were a half dozen tables that were added in 2020, at the start of COVID.
Pie Lady Cafe currently seats 30 indoors and 35 outdoors.
“(Outdoor dining) is now more than half of my business,” Christine McHale said. “There’s a certain vibe with outdoor dining. It has opened up the opportunity to be more creative, in terms of music (acts) and other types of vendors, that we can have outside.”
Shopping malls—which, too, rely heavily on foot traffic—are also beneficiaries of the new law as restaurants are increasingly part of their retail mix.
Blue Fig Garden opened at Cherry Hill Mall two years ago and specializes in Mediterranean cuisine. It has indoor seating for up to 150 patrons and 21 outside.
“They love sitting outside. Just not today,” manager Sema Osona Jadalla said with a laugh as she worked behind the indoor bar on a frigid Thursday afternoon. “Outdoor dining has been a nice addition to Cherry Hill Mall. You can see people coming out with their shopping bags and sitting outside to eat.
Located just off Exit 43-B Delran on Interstate-295 South, is Carlucci’s Waterfront. The Capuano family purchased the property in 2001 after already acquiring a stable of restaurants in Pennsylvania and central and South Jersey.
Like all restaurants, the pandemic hit hard four years ago.
“We had to do whatever it took to stay open “ recalled third generation owner Capuano. “It was a very challenging time.”
But Carlucci’s Waterfront had the advantage of having had a patio since 2003. Seven years later, in 2010, it added outdoor seating with just umbrellas.
By 2012, the restaurant rolled out a seasonal tent, which it used from April to October every year until COVID hit in 2020. The tent became year-round, with enclosures and heaters, until 2022.
By then, the state of New Jersey mandated replacing the tent with a full-on structure, which Capuano said required going through a nearly two-year construction permit process.
According to Capuano, the last day of the tent was March 31 of this year, and after two months of heavy construction, the new fully enclosed structure debuted on June 7.
Its roof and windows open and close to accommodate fine dining, baby showers and other events year-round.
Capuano said that although Carlucci’s Waterfront had already taken steps toward having permanent outdoor seating before the new law was signed, its enactment would profoundly impact New Jersey’s restaurant industry.
“It’s definitely the right step for restaurants,” Capuano said. “It keeps more people employed at restaurants, and as long as the governor continues to help small businesses – the backbone of this country – that’s the most important thing. They need all the help they can get.”
The 2023 National Restaurant Association report said nine in 10 restaurants in America are small businesses.
