Q: Outdoor service areas continue to offer hotels and restaurants much needed relief from the COVID-19 closures. What do I need to know about opening or expanding an Outdoor Service Area today?
A: The rules of the Michigan Liquor Control Commission (MLCC) pertaining to outdoor service areas have been the same for many years. However, the policies and procedures for those seeking approval for outdoor service areas have changed dramatically.
Every restaurant, bar, and hotel were adversely affected by governmental restrictions due to the pandemic. From complete indoor dining bans to restricted outdoor dining, operators were required to navigate the ever-changing regulations set forth in the Governor’s Emergency Orders and the Orders of the Michigan Department of Health and Human Services.
Due to mandates and restrictions, operators turned to outdoor service areas as a lifeline to continue service during the most trying times. While the COVID-19 restrictions have been lifted, the pain and loss suffered by the operators in the restaurant and hotel industry have not subsided. The ability to offer outdoor services is necessary for businesses to recoup losses, to continue to offer customers safe options for dining, and to prepare for possible future shutdowns or restrictions due to new waves of the virus.
The MLCC and municipalities provided initial relief from the usual process of obtaining required approvals for outdoor dining. While some municipalities continue to offer businesses “relief-oriented” options for outdoor dining, others have cut back all such relief. The MLCC no longer offers the streamlined process for obtaining approval for outdoor dining.
Neither the Liquor Code nor the rules promulgated thereunder have changed pertaining to requirements for outdoor service areas. However, the policies and procedures for obtaining initial outdoor service area permits or for expanding existing outdoor serve areas have changed. Since it is likely that businesses do not know about these new policies, many are learning about the MLCC’s current policies while making their way through the approval process.
Therefore, if you are applying for a new outdoor service area or want to expand or add outdoor service areas to your business, you should know the following.
A: The rules of the Michigan Liquor Control Commission (MLCC) pertaining to outdoor service areas have been the same for many years. However, the policies and procedures for those seeking approval for outdoor service areas have changed dramatically.
Every restaurant, bar, and hotel were adversely affected by governmental restrictions due to the pandemic. From complete indoor dining bans to restricted outdoor dining, operators were required to navigate the ever-changing regulations set forth in the Governor’s Emergency Orders and the Orders of the Michigan Department of Health and Human Services.
Due to mandates and restrictions, operators turned to outdoor service areas as a lifeline to continue service during the most trying times. While the COVID-19 restrictions have been lifted, the pain and loss suffered by the operators in the restaurant and hotel industry have not subsided. The ability to offer outdoor services is necessary for businesses to recoup losses, to continue to offer customers safe options for dining, and to prepare for possible future shutdowns or restrictions due to new waves of the virus.
The MLCC and municipalities provided initial relief from the usual process of obtaining required approvals for outdoor dining. While some municipalities continue to offer businesses “relief-oriented” options for outdoor dining, others have cut back all such relief. The MLCC no longer offers the streamlined process for obtaining approval for outdoor dining.
Neither the Liquor Code nor the rules promulgated thereunder have changed pertaining to requirements for outdoor service areas. However, the policies and procedures for obtaining initial outdoor service area permits or for expanding existing outdoor serve areas have changed. Since it is likely that businesses do not know about these new policies, many are learning about the MLCC’s current policies while making their way through the approval process.
Therefore, if you are applying for a new outdoor service area or want to expand or add outdoor service areas to your business, you should know the following.
The relevant Rule regarding outdoor service areas, states:
“R 436.1419. Outdoor service without approval prohibited; requirements for outdoor service if approval is granted. Rule 19. (1) An on-premises licensee shall not have outdoor service without the prior written approval of the commission. (2) If approval for outdoor services is granted, then the on-premises licensee shall ensure that the outdoor service area is well-defined and clearly marked, and the on-premises licensee shall not sell, or allow the consumption of alcoholic liquor outdoors, except in the defined area.”
The only written requirement for an outdoor service area is that the area be well-defined and clearly marked. Until recently, the MLCC did not usually place additional requirements on approvals for outdoor service areas.
Current policies include:
The message is that operators should be prepared to address the current policies. This often involves construction, engineering and staffing concerns.
“R 436.1419. Outdoor service without approval prohibited; requirements for outdoor service if approval is granted. Rule 19. (1) An on-premises licensee shall not have outdoor service without the prior written approval of the commission. (2) If approval for outdoor services is granted, then the on-premises licensee shall ensure that the outdoor service area is well-defined and clearly marked, and the on-premises licensee shall not sell, or allow the consumption of alcoholic liquor outdoors, except in the defined area.”
The only written requirement for an outdoor service area is that the area be well-defined and clearly marked. Until recently, the MLCC did not usually place additional requirements on approvals for outdoor service areas.
Current policies include:
- Outdoor service area must be well-defined and clearly marked.
- Outdoor service areas must be enclosed with enclosures which are generally 42 inches in height.
- The types of enclosures are being scrutinized to ensure that customers cannot get through or around the enclosures.
- Signage should be placed at the exits of outdoor service areas stating that alcohol cannot be removed from the outdoor service area.
- The size of the outdoor service area is being considered when placing requirements on the enclosures and signage. Most large outdoor service areas are brought to the MLCC’s attention.
- The amount of distance between the licensed business and the outdoor service area is considered. The MLCC often requires that additional trained staff continuously monitor outdoor service areas which are not directly adjacent to the licensed premises.
- The MLCC prefers that photos or video be provided to the MLCC in addition to diagrams.
- The MLCC prefers that an applicant provide business and security plans for the operation of the outdoor service areas. This means that if anything other than dining is taking place in the area, such as activities like corn hole games, the activities must be described in a business plan. Also, the plan for securing the area with the barriers, staff, and signage should be submitted in writing.
- If a proposed outdoor service area is in a parking lot or other area where there may be vehicular traffic, the MLCC will consider this and likely require the applicant to ensure that cars cannot be driven in the area.
The message is that operators should be prepared to address the current policies. This often involves construction, engineering and staffing concerns.
