It’s in the public interest for cities to convert the parking lanes of their major streets to outdoor seating, with chairs and tables. On the commercial avenue of the modern city, land use at street level is in large part restaurants, bars, and cafes, and some of the remainder of the storefronts could use outdoor seating as well, for example bakeries. In contrast, street parking is of little value – it creates more car traffic.
The main benefit here is that it turns the street into an open-air food court. This has the usual benefits of shopping centers, which at any rate were invented to simulate commercial streets, without the interference of cars. But it has an additional benefit that I have not seen mentioned by urbanists: it pools seating between different cafes and restaurants, in contrast with today’s outdoor seating, where each place has its own few tables according to the width of its storefront.
Pooling seats this way means that people who buy from in-demand establishments can take adjacent seats. I saw this, by chance, during the corona lockdown, in which outdoor dining was technically banned as well as indoor dining, but some restaurants in Mitte near Alexanderplatz had permanent outdoor seating, and people would go there with food from anywhere. Even before the lockdown, when one such place was closed, some people, including myself, would colonize its seating with food from elsewhere. In effect, it reduces the rental costs of the places that make the most in-demand food and drinks, or other products.
This system of pooled seating, at the expense of parking, also has other benefits. It means people can eat different foods together. It distributes demand, which may differ by time of day or day of week, with restaurants most popular at typical lunch and dinner times (and sometimes different restaurants have different peaks), bars at night, and cafes in between. These both increase efficiency, but even at a fixed peak, this has benefits, in letting restaurants compete on food quality.
Taxes, in general, are progressive: the rich pay more than the poor as a proportion of their income. But trying to apply the same logic to small and medium enterprise regulations is wrong. It doesn’t produce any income redistribution to speak of – the redistribution occurs only among the class of business owners, who already skew wealthy, to the detriment of the customers. In the case of storefronts, letting restaurant and cafe patrons sit outside wherever they’d like means not forcing the most desirable businesses to pay more in rent to acquire more seating space; the redistribution involved in the implicit rental tax under the present-day situation is entirely among owners, and to some extent from business owners to landlords. It’s not the same as when I pay higher taxes than a minimum-wage Aldi cashier and lower taxes than a CEO who doesn’t receive lower-taxed stock options.
And then there’s the positive impact on urban transport. City boulevards as a rule have too much car traffic and this includes ones in Berlin or Paris that Americans hold up as positive examples that they compare with noisier American arterial roads. The abundance of parking especially encourages people to drive to errands rather than walking, biking, or using public transportation; the present-day situation is that restaurants sometimes put out seats, reducing sidewalk width and with it the available space for cyclists to use the streets.
So instead, public seating, in lieu of on-street car storage, has the positive effects of distributing seats better as outlined above, while also reducing the space available for people to use cars in a city that needs more quiet and cleaner air.