Data from Denver’s finance department shows that the temporary outdoor dining program that was put in place in May to help restaurants stay afloat during the pandemic has helped save about $287 million in estimated revenue this summer for restaurants across the city.

The outdoor dining program – which was recently extended through October 2021 after facing mounting pressure from the business community to keep the program going – allows restaurants and bars to utilize adjacent outdoor space, including parking lots, streets and sidewalks, to resume sit-down service while maintaining physical distancing amid the coronavirus outbreak. 

Denver’s Department of Finance estimated Tuesday that the program has also resulted in a projected $24 million in retained tax revenue for the city, which would have otherwise been lost had local restaurants not been able to reopen for business, the agency said in a release. The estimate accounts for 101 days of operations, 342 participating businesses and an average of 12 chairs in an expanded service area. 

“The creativity and resourcefulness of our restaurant and bar industry has shined bright during these uncertain times with creative and safe outdoor dining expansions,” Mayor Michael Hancock said in a statement. “Combined with the hard work of many city agencies to launch this successful program, these public health steps have provided hope to these businesses as we continue to focus on keeping our community healthy and supporting the safe re-opening of our economy.”

Restaurants and bars are the single largest contributor to Denver’s sales and use tax revenue, the finance department estimates. The pandemic this year decimated consumer spending, causing a $220 million budget gap in 2020 and an estimated $190 million in lost revenue in 2021. 

“The patio expansion program is a great example of a program that was good for restaurants, the city, and the community,” Sonia Riggs, CEO of the Colorado Restaurant Association, told Colorado Politics on Tuesday. “For restaurants, it added much-needed capacity, which saved many from what would have been catastrophic loss or even closure. For the city, it preserved tax revenue in a tight year. And for the community, it created vibrant spaces on our streets, and helped the restaurants that make our communities feel like our communities survive a few more months.” 

The newly extended outdoor dining program will allow businesses that do not impact the public right of way to request a 120-day extension past Oct. 31, 2021. Those that have outstretched into the public right of way can request a 90-day extension past next Halloween, which will give Denver’s Department of Transportation and Infrastructure time to review street, sidewalk, alley, parking and travel lane closures associated with the program. 

Under new rules, businesses can apply for additional extensions, after they’ve been approved for their 90- or 120-day extension. The city will also consider permanent expansions and is encouraging restaurants and bar owners who want to make the leap to get started on the application process this fall. 

The initiative is implemented through a partnership between the Department of Transportation and Infrastructure, Excise and Licenses, Community Planning and Development and Denver Economic Development and Opportunity.

The program was developed in collaboration with the mayor’s Economic Relief and Recovery Council, an advisory group established in April that is tasked with providing recommendations to Hancock and the city’s executive leadership on how best to navigate a way out of the storm. 

The group is made up of more than 100 business and community leaders, who are assigned to one of the five specialized committees, including one focused on the restaurant and entertainment industry.

“We’re grateful to the City for making this program possible, and for expanding it through October of next year,” Riggs said. “Expanded patios are not a silver bullet, however, and restaurants continue to struggle – especially with colder weather and further restricted indoor capacities. We continue to advocate for cash and capacity at all levels of government, the two things restaurants say they need most to survive.”