@Linkat,
I don't see a problem with it. My thoughts pretty much just off the top of my head.
- Yes, there is a cleaning burden to the city for outdoor dining. I think another approach would be to pass an ordinance saying businesses who utilize public areas for their businesses are responsible for cleaning said area, but I don't see anything inherently wrong with a fee.
- You have a public resource, in this case the street, that a private business wants to use for its profit. If a business decided to take over a park gazebo and sell food, I think a lot of people would say "hey, that's a public area, you can't just take it over!" During the pandemic, towns and cities made exceptions to support local businesses that were struggling but long term, I don't think we really want restaurants spilling over into public areas. I want to be able to walk the sidewalks downtown without dodging through tables of diners. Restaurants are not entitled to this space.
- Businesses don't have to pay this fee. They can just go back to the dining options they had before the pandemic. If they want to expand their businesses, they can pay for it. If they think this fee is unreasonable, they can expand the old-fashioned way of renting a bigger space. It ends up being a business decision with a cost/benefit analysis.