The identity of New York, known as the 'city that never sleeps,' is becoming blurry. According to state law, bars in New York can sell alcohol until 4 a.m., but recently, the barriers to obtaining late-night operating licenses have been increasing. As a result, more bars are entering 'early closure' despite incurring substantial losses.
On the 17th (local time), The New York Times (NYT) reported, citing multiple industry sources, on the situation of New York's nightlife, where late-night operations are being reduced. According to NYT, bar owners are increasingly sighing as it becomes gradually difficult to obtain approval for late-night alcohol sales.
Andy Simmons, a bar owner who has operated in the Bushwick area of Brooklyn for nearly a decade, said in an interview with NYT, 'When I first opened the bar in 2015, it wasn't difficult to get a permit to operate until 4 a.m., but now the situation is different.' He added, 'As more bars open in the vicinity, the Community Board (CB) is reluctant to grant approvals.'
The CB is an official body that receives residents' opinions on public decisions that can affect the community, such as budget execution and land use. The State Liquor Authority (SLA), which oversees alcohol sales licensing in New York City, decides on operating permits based on the opinions of the CB.
According to NYT, New York City CB is requesting to limit bar closing times to 2 a.m. due to ongoing concerns regarding noise, trash, and crime. Raphael van Kooten, a commissioner of the Brooklyn CB, stated, 'There will be no more permits for 4 a.m. operation,' adding, 'This area has already reached saturation with bars.'
In response, some bar owners wishing for late-night operations are fiercely opposing. Michael Cummings, who operates a cocktail bar, emphasized, 'It's not always the case that sales are high from 2 a.m. to 4 a.m., but being able to welcome guests who arrive after late-night events holds significant meaning.'
In fact, the impact of late-night operations on New York City’s economy cannot be ignored. According to data compiled by the New York City Department of Small Business Services (SBS) in 2019, late-night operations create approximately 300,000 jobs annually and generate about $697 million (approximately 991.8 billion won) in tax revenue.
In some cases, whether or not to operate during those hours can determine the sustainability of a business. Jim Morrison-Hebert, who runs a queer nightclub in Williamsburg, noted, 'The two-hour difference is a crucial factor in whether we can continue to operate,' adding, '12% of our club's weekend revenue comes from the hours between 2 a.m. and 4 a.m.'
As a result, NYT reported that there are increasing cases of acquiring enterprises that hold permits for 4 a.m. operation or obtaining late-night operating permits through signatures from local residents. While there is also a method to directly appeal to the SLA, this could take several months just for review, so bar owners are actively looking for solutions.
There are also calls to revitalize late-night operations to revive New York's nightlife industry. Previously, Bill de Blasio, the Mayor of New York City, established the Office of Nightlife (ONL) under SBS in 2017 to enhance late-night operations in New York.
Ariel Palitz, the director who led the creation of ONL, emphasized, 'The brand value of New York as the 'city that never sleeps' is disappearing,' noting that 'late-night operations should be regarded not just as a part of the nightlife culture but as an integral part of our economy.'