New Alcohol Rule Helps Downtown Restaurants Defy Industry Trend, Bolster Summer Business

A simple ordinance change was all it took for Jane Halpin, manager of the Cellar Bistro in downtown Wheaton, to buck the economic headwinds and increase business at her downtown restaurant this summer.

At the beginning of the season for sidewalk dining last June, Halpin led the effort to change two city code ordinances which prohibited alcohol sales on public property. One section of the code disallowed alcohol consumption outside licensed courtyard eating areas. Another disallowed alcohol consumption on public property.

The Wheaton Liquor Commission unanimously approved the ordinance revision on June 10 and the City Council followed in a unanimous decision to change the law on June 21. As a result, three downtown restaurants experienced a significant increase in sales this summer.

Outside tables on a public sidewalk, where alcohol is not served, cost a fee of $25 per table per season, according to the ordinance. Tables with alcohol cost $50 per table, per season.

Halpin, along with managers from Front Street Cocina and Muldoon's, said that before they could have this option to serve alcohol outside, they lost customers.

"People would leave if there was no alcohol outside," said Steve Lobdell, Front Street Cocina manager. "Now, they can stay and we added more tables to increase our outside seating."  

Andy Carl from Muldoon's, spoke in favor of the ordinance change at a May hearing before the Wheaton Liquor Commission. He said that while he could not quantify the effect the ordinance change has had on sales, the atmosphere of allowing alcohol at sidewalk tables has been positive. 

All three managers agreed that seeing people sitting outside, enjoying a meal, has been good, free, drive-by advertising for their businesses. Halpin said it has been "a good way for people to see inside the Cellar Bistro from the outside."

For the Cellar Bistro, outside seating increases capacity by 35 percent, which translated to a proportional increases in sales over the summer, according to Halpin.

"Lunch wine sales have increased dramatically and it was noticeable on day one," she said.

"Our menu is designed to be paired with wine," she added. Therefore, before the ordinance changed, patrons did not elect to sit outside for dinner.

While Cellar Bistro, Muldoon's and Front Street Cocina have benefitted from this new opportunity for sales, Ivy and The Bank restaurants may have had to up the ante for loyal patrons with stronger competition. The Ivy and Bank have always been able to sell alcohol outside because their outdoor seating are on private property.

Jim Gates, manager at The Bank, said he hasn't seen a difference as a result of the new competition, compared to previous summers.

It's clear that the local restaurants who increased business this summer bucked the national trend. According to the National Restaurant Association, restaurant operators reported negative same-store sales and traffic in July, and the Restaurant Performance Index was reported as, "essentially flat."  The Expectation Index, which measures restaurant operators' six-month outlook on four industry factors, declined for the fourth straight month also.

Customers at downtown Wheaton restaurants will be able to have dinner outside (with alcohol) until the first measurable snowfall, or Nov. 1. No alcohol is served outside after 11 p.m.