This is pretty common in Europe, where they have created pedestrian streets/plazas, and the al fresco dining areas are in the middle of the street/plaza, rather than being abutted right against the building. It will definitely be something that restaurants and servers will have to get used to.
The main benefit I see is that it should improve traffic/visibility for adjacent retail stores, as it will allow better pedestrian flow, closer to the store fronts. Right now, Stephen Ave is a bit of a mine field of permanent/semi-permanent patios along the edges. To me, this is problematic, because pedestrians have to navigate around the fencing/planters that restaurants have installed, which is a particular waste of space during the winter months, when these patios are not in use. I also think this could provide some flexibility for smaller restaurants to expand their outdoor seating area, as they are likely currently limited to the width of their restaurant frontage.
It's also my impression that restaurants will still be able to have patios in the "edge zone", immediately abutting the building, but I'm guessing that it will have to be more "cafe style" furniture, without a defined fencing/planter boundary.
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