Bars and restaurants with liquor licenses and gyms must close at 10 p.m. daily. However, curbside pick up at restaurants may continue after 10 p.m.
The measures go into effect starting Friday at 10 p.m.
Cuomo said bars and restaurants are one of the main spreaders of COVID.
"Gyms are also an identified spreading elements," he added.
Cuomo cracked down on house parties as well, limiting to no more than 10 people in a private residence for a party -- unless it's 10 people who live in that household.
The governor said parties are one of the three great spreaders, as identified by the state's contact tracing.
"The states surrounding us have done something that is intelligent, and we are going to follow suit," he said.
RELATED: New Jersey targets indoor dining, bars, casinos amid rising COVID-19 rates
Meanwhile, parts of Staten Island will become a yellow zone.
"New Jersey has a very high rate," Cuomo said. "I think that's what driving the rate on Staten Island, which is higher than the rate in the rest of NYC."
A spokesperson for Mayor Bill de Blasio said the city "fully supports these actions."
"New York will order bars, restaurants and gyms to close at 10PM, cap private gatherings to 10 people, and make Staten Island a yellow zone," Bill Neidhardt said. "City Hall has been in discussions with the State on these guidelines and fully supports these actions. We must do everything we can to hold off a second wave and these steps will help us fight it back in New York City."
And Port Chester is going up from yellow to orange.
"Its right on the Connecticut boarder," Cuomo said. "By the way the seven-day average for Connecticut is like 10%."
Andrew Rigie with the NYC Hospitality Alliance released the following statement:
"At the time of the announcement, restaurants have not been provided important details by the State or City about the new restrictions on their businesses. They don't know if the restrictions apply to indoor and outdoor dining, and if customers need to leave the restaurant by 10:00pm or if they can finish their meals, which is creating more confusion, so we hope that information is released immediately. These new restrictions should be publicly justified with contact tracing data because they will make it even more difficult for these small businesses to survive. We demand that our elected leaders provide financial support to our city's restaurants and bars before they permanently shutter and put tens of thousands of New Yorkers out of work."
Melissa Fleischut, president and CEO of the New York State Restaurant Association, also released a statement and said the restrictions are "a huge blow."
"Today's news is a huge blow to the restaurant industry that is desperately trying to stay afloat," Fleischut said. "Our members have put in place procedures and protocols to mitigate the spread, and we'll continue to do so to ensure the safety of our employees and patrons. We understand the logic behind micro-cluster restrictions, but at this time we have concerns about blanket statewide restrictions like this."
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