# NYC Adds Dining Out Tax in an Effort to Help Restaurants

Published 2020-09-22 · Updated 2026-07-23 · Food & Beverage on MarketScale
Canonical: https://www.marketscale.com/industries/food-beverage/nyc-adds-dining-out-tax-in-an-effort-to-help-restaurants-hurt-by-covid

> Small business restaurants have been particularly hard hit by COVID’s lockdown measures. In NYC, a COVID hotspot, restaurants have only recently reopened to limited capacity. As the weather cools and outdoor dining becomes more difficult, restaurants face continued revenue obstacles. According to Food & Wine, the city aims to combat this economic hardship by allowing…

Small business restaurants have been particularly hard hit by COVID’s lockdown measures. In NYC, a COVID hotspot, restaurants have only recently reopened to limited capacity. As the weather cools and outdoor dining becomes more difficult, restaurants face continued revenue obstacles. [According to Food & Wine](https://www.foodandwine.com/news/nyc-restaurants-covid19-surcharge), the city aims to combat this economic hardship by allowing restaurants, excluding chains and food trucks, to enact a temporary 10% surcharge.

On this [Business Casual](https://marketscale.com/industries/podcast-network/business-casual/) segment, Daniel Litwin and Tyler Kern consider the cost this tax passes on to the consumer. At least some customer dissatisfaction is inevitable, so who will take the brunt of it; employees or owners? Litwin and Kern brainstorm ways to increase revenue without increasing prices.

KEY POINTS:

- In mid-July, Yelp data showed close to 16,000 restaurants nationwide closed permanently due to the pandemic.
- NYC approves restaurant tax to help struggling dining establishments mid-COVID.
- Restaurant customers in NYC face up to a 10% surcharge on bills.

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