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Falls Church restaurant owners reported sharp New Year’s Eve revenue declines after the city replaced much of its traditional outdoor Watch Night celebration with a smaller event centered on indoor venues.

The concerns dominated Tuesday night’s Economic Development Authority meeting at City Hall. The seven-member authority, chaired by Ross Litkenhous with Jim Coyle as vice chair, advises City Council on economic development and efforts to attract visitors, businesses and residents.

Owners of roughly a dozen restaurants had previously met with EDA members to raise grievances about changes to Watch Night. City Council did not budget for the approximately 30 staff members needed to close streets, so most activities were moved inside locations including Falls Church Presbyterian and Falls Church Episcopal churches.

The restaurant owners said the scaled-down celebration significantly hurt their New Year’s Eve sales.

EDA members broadly agreed that the city government and the authority cannot serve as the primary organizers or funders of citywide seasonal celebrations. However, funding may be available when outside organizations propose events and seek city support.

Possibilities discussed included reviving the street-closing Watch Night format, replacing the city’s Fourth of July fireworks, or introducing Mardi Gras and Oktoberfest celebrations.

Outdoor alcohol district moves forward

The authority also reviewed Falls Church’s application for a Designated Outdoor Refreshment Area license. A DORA designation would allow alcoholic drinks purchased from approved businesses within a defined district to be consumed outdoors, potentially supporting events such as bar crawls.

Nearby jurisdictions already have similar licenses. Falls Church must develop a security plan in coordination with law enforcement and the Virginia Alcoholic Beverage Control Authority as part of its application.

Members also discussed conducting a census or survey of city businesses to improve communication between owners and the EDA. Other topics included developing a rotating calendar for street-banner themes and possibly finding an outside organization to fund the banners.

Falls Church Restaurant Week, running Jan. 23 through Feb. 1, has attracted more than 60 participating restaurants, including 14 at Eden Center.

Several business openings are also approaching. Best Buns is expected to open across from Jubilee Ice Cream in West Falls, while Ian Sushi is under review for a Founders II location. Wonder is targeting an April 2 opening at the former Brown’s Hardware site.

Mayor Letty Hardi has been speaking with Wonder about recognizing the legacy of Brown’s Hardware, potentially through a mural.

The EDA’s next meeting is scheduled for Feb. 3, 2026.