The Municipal Corporation of Delhi (MCD) has faced a significant decline in interest for its open-air dining policy, with licensed units falling from 201 to 98 over four years. Originally launched in September 2020, the initiative aimed to allow restaurants and cafes to operate in open spaces, rooftops, and terraces, but has struggled due to high licensing costs and adverse weather conditions. The fees, set at ₹200 per sq ft for most establishments and ₹500 per sq ft for high-end restaurants, have been criticized as economically unviable by industry representatives such as Sandeep Anand Goyle, head of the Delhi chapter of the National Restaurant Association of India. He emphasized that the steep increase in fees was not discussed with the industry and called for a reevaluation of the rates. Additionally, Delhi's winter pollution deters outdoor dining from October to January, further complicating the policy's success. Although the MCD introduced an online application module in 2023 to facilitate the process, feedback from the hospitality sector remains negative, with officials noting that many establishments could not generate enough revenue to cover costs.