Philadelphia sidewalk cafe license: Streets approval, notice and fees

Sidewalk seating is one of the best things a Philadelphia restaurant can add, and one of the easiest to get wrong. The order of the steps matters: the Streets Department comes first, a public notice has to be posted before you apply and the license is issued by a different agency. The city and the Department of Licenses and Inspections, called L&I, are the authority. Seating in the parking lane, called a streetery, is a separate license.

When do you need a sidewalk cafe license?

The city says you need a Sidewalk Cafe License to place seating on the public sidewalk outside a bar or restaurant. The cafe must be in an authorized area under Section 9-208 of the Philadelphia Code. Outside those areas, you need a City Council ordinance, which starts with your district council member's office. So the first question is whether your block is an authorized area, and the second is whether you can get an ordinance if it is not.

What comes first, the Streets Department?

Yes. Before you apply for the license, you need pre-approval from the Streets Department Right-of-Way Unit. You submit a Sidewalk Cafe Plan application through the city's online licensing system, eCLIPSE, and review the plot plan requirements. A plot plan is a scaled drawing of the sidewalk showing your tables and the clear path. Ask the Streets Department for its instructions and sample drawings before you hire anyone to draw.

What is the public notice?

You must post the required notice on the building for at least 10 days before you apply, and upload a time-stamped photograph as proof. Treat the ten days as part of your timeline. Post the notice the day your plan is approved, take a clear photo showing the date, and set a reminder for the tenth day. Keep the photo with your application file in case the city asks for it again.

What insurance is required?

You must provide comprehensive general liability insurance, including contractual liability, of at least $1,000,000 per occurrence, with the City of Philadelphia named as additional insured and certificate holder. Confirm the figure with the city. Ask your insurance agent for a certificate with the wording the city expects, and check that the policy period covers the whole season. Tell your agent how many tables and chairs you plan to put out, because the answer can change the premium. Keep a paper copy of the certificate with the license on the premises.

What does it cost?

The license fee is $227, with a $20 non-refundable application fee applied toward it and the remaining $207 due after approval. Renewal is $227. Paying online adds a card fee of 2.10 percent for credit cards or $3.45 for debit cards, and there is a $20 returned check fee. Renewing more than 60 days after the due date adds 1.5 percent of the license fee for each month since expiration.

How do you renew?

The license is renewed annually. Renewal requires that you be current on city taxes, have a current liability insurance certificate and a valid email address. Put the renewal date in your calendar, and ask your agent to send the new insurance certificate early. Walk the cafe before you renew and compare it with the plan you filed. If tables have crept toward the curb or an extra heater has appeared, fix it first, since the license covers the layout the city approved and not the one you drifted into over the summer.

What about alcohol?

If you plan to serve alcohol on the sidewalk, you also need a Pennsylvania liquor license. Ask the state liquor authority and your licensing lawyer whether your existing license covers the sidewalk area or must be amended before you pour a drink outside.

How long does the city take?

Online applications are reviewed within five business days. If approved, you receive a notice to pay the balance. If not, an email lists what is missing. In-person applications can often be reviewed while you wait, by appointment at the Permit and License Center, which is open from 8 a.m. to 3:30 p.m., Monday to Friday. The license is issued to the legal entity on your Commercial Activity License and tax account, so make sure the names match. A typo in the legal name can send an otherwise complete application back, so read it twice.

What should you do next?

Check whether your block is an authorized area. Call the Streets Department about the plan. Post the notice on a date you can document. Ask your agent for the certificate. Then apply online with every document ready. When the license arrives, review your hours and your liquor license, and brief the staff on the boundaries of the cafe. Walk the sidewalk with them once, and show where the clear path runs.

More guides for your business:

• Philadelphia food truck and mobile food business license steps
• Pennsylvania liquor license and BYOB rules for restaurants
• How to register and file Pennsylvania sales tax for a restaurant

More in the US guides for food businesses.