This means outdoor dining will be allowed across the state with some restrictions. For example, you will have to wear face covering if you go inside the establishment to use the restroom.
Also, more retail establishments will be able to reopen for in-person shopping.
Many businesses in Haddonfield, New Jersey are excited about this transition.
"Zero, we have not had a sale in months due to the fact that our retail business has been closed," said Jaden Little, store associate of The Hive. "We're not able to maintain an online presence in the same manner."
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"With a furniture store, you know we can put little pieces outside," said Little. "But you can't put the entire store in the court. It's a retail business that you have to go in see, feel and touch."
Many shoppers are also excited to buy clothing in person again.
"To buy clothes I really like the opportunity to feel the fabric, try it on, and make sure it looks the way I want so I can buy it," said Kathleen Sheridan of Berlin, New Jersey.
Along with retail, outdoor dining is also allowed under New Jersey's phase two plan.
Doug Schmitt, manager at Kings Road Brewery said, "We're hoping that business will pick up, we're hoping that the whole town will pick up at that point in time with all the small businesses. We've been hurting a little bit."
Kings Road Brewery hasn't had outdoor seating before, they've used their outdoor patio for standing room only. But now they'll try to fit 30 tables spaced out in the front and back.
Inside seats 100 people, but this will help boost business.
"I know everybody wants to get out of their house to a certain extent," said Schmitt. "It's going to be tight, as many people safely."
Many people say they can't wait to dine out again. "We're certainly looking forward to it," said Jack Sheridan of Berlin, New Jersey.