Chuck Moran, Executive Director

The following is a statement from Chuck Moran, Executive Director of the Pennsylvania Licensed Beverage and Tavern Association, concerning today’s announcement from Governor Wolf to change event and gathering capacity limits.

Starting Friday Governor Wolf plans to allow increased attendance at events and gatherings, using new math that has many scratching their heads and wondering.

Two things stand out to us. First, where’s the science in the new math? And, second, the new math does more harm to small business taverns and licensed restaurants that can offer discrete gatherings.

Let’s first look at the science in the numbers. Using the Governor’s new math, an event with an indoor capacity of 2,000 people can have 400 attend, while another location that can handle 2,500 is only allowed 375.

Where’s the COVID-19 science in that?

Now, let’s look at the continued damage being inflicted on our mom-and-pop establishments. Our average Member has 100 or less seats. Previously they could have 25 people for a discrete gathering. Now it’s down to 20 with the latest math from the Governor.

The Governor’s decision is confusing, lacks science, and picks winners and losers.

While he may have thought he was helping the overall industry, Governor Wolf just put another nail in the coffin of your neighborhood, family-owned taverns and licensed restaurants.

# # #

About the Pennsylvania Licensed Beverage and Tavern Association
The Pennsylvania Licensed Beverage and Tavern Association is a statewide association based in Harrisburg, representing small business taverns and licensed restaurants in the Commonwealth of Pennsylvania. The Association formed in 1941, reorganized in 2019, and today advocates for best practices and rights within the industry as well as best experiences for patrons.

Members of the media interested in an interview on this topic should call (717) 232-8671.

The following is testimony provided by Jim DeLisio, Board Member of the Pennsylvania Licensed Beverage and Tavern Association, on October 6, 2020, in front of the Pennsylvania Senate Community, Economic, and Recreational Development Committee. The topic was VGTs and skill games. Mr. DeLisio is also owner of the Racehorse Tavern in Thomasville as well as the president of the York County Tavern Association.

Chairman Killion, Chairman Williams, members of the Committee, good morning. I’m Jim DeLisio, owner of the Racehorse Tavern in Thomasville. I’m also a Board Member of the Pennsylvania Licensed Beverage and Tavern Association as well as President of the York County Tavern Association.

With me is Chuck Moran, executive director of the Pennsylvania Licensed Beverage and Tavern Association. Chuck will be available to help answer questions afterwards.

Let me begin by thanking you for inviting the Pennsylvania Licensed Beverage and Tavern Association to testify today about gaming in taverns.

The Tavern Association represents more than 425 small business taverns, pubs, and licensed restaurants across the state. Most of our Members own “R” and “H” licenses while some may have an “E” or even a club license. For the most part, we are your local bars, taverns, pubs, and licensed restaurants. We do not actively recruit large chains, grocery stores, or convenience stores which have an R license.

In terms of business, our average Member makes a living primarily from alcohol sales. In fact, based on our Membership studies, about 63 percent of their business is alcohol sales and 37% of sales are from food. For what it’s worth, the most popular beer served would be Bud, while the most popular mixed drink would be Jack and Coke.

Based upon Membership studies, our average member employs about 16 individuals including the owner and family members. They serve less than 4,000 customers every month. If you count the chairs and barstools, throughout my Member establishments, you’ll find less than 100 per establishment.

Simply put, my Members are your locally-owned, family-owned, mom-and-pop businesses. But they still represent an industry that employs about 140,000 Pennsylvanians.

As you know, my segment of the industry has been hit particularly hard as a result of this year’s COVID crisis. Many jobs have been lost. In fact, an August study of our Membership indicates an average of 13 employees were laid off or furloughed per establishment. That’s more than 80% of those in the business.

Furthermore, many businesses have been closed either temporary or permanently as a result of the pandemic. Those that are open have seen their business operations limited. Our Members have told us that without any change in the state’s COVID-19 order, 70 percent of small business licensed restaurants are either closed or facing closing in the upcoming year. More than one in eight has never been able to reopen since March. In the next month, another five percent say they will close. Another 29 percent say they will likely close by the end of the year, while 23 percent say they will likely close in 2021. That’s 70 percent of the state’s bar and tavern businesses.

Financially, for both employees and employers there is a high degree of uncertainty moving forward.

The COVID financial crisis comes only a few years after legislation was signed into law in which my Members lost the exclusive right to sell six packs. That was a significant financial setback for many of my Members, who have a profit margin of well under 5 percent.

And when our members suffer financially, like the clubs, families and communities lose. We have less to donate to local churches, nonprofit organizations, and youth organizations, which are a big part of what we are at heart.

Needless to say, we believe it is very important for these small businesses to find opportunities for additional revenue streams to replace what has been lost in recent years.

And, that’s where gaming can play a role. If it’s set up correctly, it will help these small businesses, local organizations, the local economy AND the state budget.

The PLBTA has a general position on gaming. We believe our Members should be allowed to offer legal forms of gaming in their establishments to entertain their patrons. That extends from small games of chance to any other legal forms of gambling, including skill/video games.

Expansion of gaming through taverns can provide that extra revenue stream that these businesses need. Expansion would help create and maintain jobs.

There’s also a benefit to other local businesses. With increased revenue, establishments likely would put some of that money back into developing their business. Maybe it helps pay for a new roof. Maybe it helps pay for a new floor.

And, of course, there’s an opportunity to help Pennsylvania’s budget with a new source of revenue.

We do, however, need to remember lessons from the past. If the state chooses to expand gaming into taverns, it must not be set up like the past small games of chance or tavern games legislation.

The end result of that legislation was not positive for the state. Very few licensed establishments chose to offer small games – less than 75 at the moment. Why? There’s little profit after taxes and payment of supplies.

With everything that has happened to the industry in the last six months in combination with significant loss of six-pack sales as a result of Act 39, for gaming expansion in taverns to work, it would have to be attractive to the tavern owner.

As legislation is debated, taverns would seek a fair share of the revenue that would make it worth their time. Taverns would also seek assistance with any type of requirements that would require additional expenses for buildouts to place machines in their establishments. As these issues are considered, we would ask that our needs be considered and that we remain stakeholders in the process, to ensure such expansion will be financially attractive to our member bars, taverns and restaurants.

Again, I thank you for the opportunity to represent small business taverns and licensed restaurants today. Chuck and I will be happy to answer any questions you may have at this time and in the future.

Chuck Moran, Executive Director

The following is a statement from Chuck Moran, Executive Director of the Pennsylvania Licensed Beverage and Tavern Association, concerning today’s action in the Pennsylvania House of Representatives regarding today’s concurrence vote on HB 2513.

Today, the Pennsylvania House of Representatives agreed with the need to help small business taverns and licensed restaurants by concurring with HB 2513 after a bi-partisan vote of 145-56. The bill now goes to Governor Wolf.

Recent amendments to HB 2513 return the industry to standards that were in place before the July 15 mitigation rule changes that have done significant damage to our small business Members across the Commonwealth. The bill allows taverns and restaurants to operate at a minimum of 50 percent capacity with social distancing and barriers in use; eliminates the requirement that alcohol sales for on-site consumption may only occur if a meal is also purchased; permits customers to sit at the bar with appropriate social distancing and/or barriers; and allows the use of noncontinuous outdoor areas within 250 feet of the main licensed building.

The governor has already stated that he will veto this bill. We urge him to reconsider that action.  It’s time for him to help the industry which has done nothing but follow the mandated guidance for six months at its own loss.  HB 2513 takes into consideration a balance of COVID safety measures and business survival needs.

To date, other than bad news, Governor Wolf has delivered nothing to help the industry survive. Meanwhile, the industry has played and continues to play its role in the COVID-19 battle. No other industry has sacrificed more than small business taverns and licensed restaurants. The industry and its employees need this help.

The Pennsylvania Licensed Beverage and Tavern Association thanks the Pennsylvania House of Representatives for its action today, and will remember those who supported the safe reopening of the state’s bars, taverns and clubs this afternoon.  If there is a veto, we will expect those who stood up for us today to continue standing with us!

We look forward to working with the general assembly on future legislation to continue efforts in rescuing the industry and preserving jobs.

#     #     #

About the Pennsylvania Licensed Beverage and Tavern Association

The Pennsylvania Licensed Beverage and Tavern Association is a statewide association based in Harrisburg, representing small business taverns and licensed restaurants in the Commonwealth of Pennsylvania. The Association formed in 1941, reorganized in 2019, and today advocates for best practices and rights within the industry as well as best experiences for patrons.

Members of the media interested interested in this topic may call (717) 232-8671.

Chuck Moran, Executive Director

The following is a statement from Chuck Moran, Executive Director of the Pennsylvania Licensed Beverage and Tavern Association, concerning today’s announcement from the Governor’s Office to cut off alcohol sales at restaurants at 10 p.m.

Today’s announcement by the Governor may sound good, but as usual, the headline doesn’t fit the copy.  Announcing bars, taverns and restaurants can open September 21 to 50% does not solve the problems created by the shutdown and existing orders.

Our member bars and taverns are not making profits operating at 50% without bar service, and are facing a fall and winter without outdoor service. Furthermore, we’ve still seen no scientific justification for having to order a meal to get a beer.

Now, hidden in today’s announcement from Governor Wolf is a barely noticeable stipulation that alcohol sales at restaurants must stop at 10 p.m.

In his statement today, Governor Wolf wrote “Further, starting September 21 restaurants that have alcohol sales will close alcohol sales at 10:00 p.m.”

This rule totally discriminates against establishments that do not offer daytime service. Many establishments open late in the afternoon to serve dinner. In addition, this rule hurts shift workers getting off late who wish to have a drink with their dinner after work.

This hidden rule will help put many more establishments out of business. In a 2019 survey of Pennsylvania small business taverns and licensed restaurants, alcohol sales make up 63 percent of their business. Cutting four hours of sales off a 10- to 14-hour business operation hurts significantly.

Taverns and licensed restaurants should be required to follow science-based rules to help fight COVID-19 including masks and social distancing patron tables. But, where’s the science that says having a drink with a meal after 10 p.m. is any different than having a drink with a meal at 6 p.m.?

Already within only a couple of hours of his announcement, we are already getting many questions about the Governor’s newest rules for taverns and licensed restaurants. Why? Because this rule is very vague and confusing. For example, consider the following questions that we’ve either fielded through phone calls, emails, or on Facebook:.

How about take-out? Can a patron buy a six-pack to take home with their meal after 10 p.m.?

Since taverns and licensed restaurants typically have “R” licenses, how does this impact “R” licenses owned by grocery and convenience stores that stay open past 10 p.m.? Must they close sales of six-packs, wine and slushies at 10 p.m.? What about the clubs that sell both food and alcohol. Are they included as well?

While we’re thankful for being allowed to move back to 50%, but would prefer the same social distancing requirements of all other retailers, the 10 p.m. cutoff of alcohol sales effectively weakens any assistance Governor Wolf offered to these businesses through increased occupancy.

#     #     #

About the Pennsylvania Licensed Beverage and Tavern Association

The Pennsylvania Licensed Beverage and Tavern Association is a statewide association based in Harrisburg, representing small business taverns and licensed restaurants in the Commonwealth of Pennsylvania. The Association formed in 1941, reorganized in 2019, and today advocates for best practices and rights within the industry as well as best experiences for patrons.