Old Man Winter is right around the corner. In the claims world, we start thinking about frozen pipe claims. Those in the food and beverage industry should also be thinking about frozen pipe claims, and how to prevent them.

Did you know that water damage is the most common cause of insurance claims? Water claims, in general, are almost always preventable. According to the Insurance Institute for Business & Home Safety (IBHS), 37% of all frozen pipe failures occur in basements. All frozen pipes have one thing in common: inadequate heat to keep the water in the pipes and drains above the freezing point.

What are some preventative measures a business owner can take to avoid frozen pipes?

1. Watch the weather forecast – Technology today can predict, with moderate certainty, most weather conditions. In recent years, we have seen polar vortex conditions forecast for up to two weeks prior to the severe cold weather arriving.
2. The fall months are a great time to do a winter weather assessment of your property:
   • Exterior inspection for gaps and cracks in the exterior envelope of the building. If there is an opening, then wind can come in, making the space behind the opening colder than anticipated.
   • Consider having your roof inspected for openings around vents, HVAC units, and other protrusions. These openings allow in air and water that can diminish the insulating capabilities of any attic space, where pipes are often located.
   • Interior inspection of all areas of the building. Use your utility drawings, if available, to determine where pipes are located. Open doors to closets and storerooms to determine if they are heated spaces. Look for any light coming in where it should not be.
3. Implement a winter weather preparedness plan:
   • Caulk and seal any openings, including around doors and windows. Pay close attention to pipes entering the building.
   • Insulate pipes along the perimeter of the building, as well as interior of the structure where the space is not directly heated. This is the best way to keep pipes from freezing, especially if used in conjunction with other weather proofing measures discussed herein.
   • For piping systems that are easily accessible, consider an electrical heating tape. They make self-monitoring tapes that turn on/off automatically whenever it senses the pipe needs more heat.
   • If the building is on a crawl space, close the vents. This will decrease the cold air that can enter and impact any pipes located below the floor.
4. When sub-zero weather arrives:
   • Leave the heat on and be consistent in the thermostat settings. Any setting of at least 55 degrees Fahrenheit is appropriate to keep your pipes safe. Coverage for frozen pipe damage is dependent upon a business owner doing their best to maintain heat in the entire premises.
   • Open cabinets and interior doors. Pay special attention to spaces behind doors with no heat vent servicing the space.

Frozen pipe losses can be costly but are preventable and with a little due diligence, can be avoided. Please contact your Illinois Casualty Company Agent with any questions or Find an Agent in your area.

The above story was written by Phyllis Galbraith, Property Claims Supervisor, at Illinois Casualty Company. It appeared in the January 2022 edition of Pennsylvania Beverage Media, the official monthly magazine of the Pennsylvania Licensed Beverage and Tavern Association.

Illinois Casualty Company is the exclusive Preferred Business Insurance Company of the Pennsylvania Licensed Beverage and Tavern Association where qualifying Members can save 10% on their businessowners and liquor liability insurance. Among Pennsylvania brokers available to help you with ICC insurance are PLBTA Preferred Insurance Brokers Blue Ridge National and Hospitality Risk Consultants. Blue Ridge National can be reached by calling (484) 477-4950 or emailing Paul Mattus at PMattus@BlueRidgeNational.com. To reach Hospitality Risk Consultants contact Patrick Joliet at (814) 954-8799 or pjoliet@hrcnortheast.com.

Illinois restaurants and bars are facing a new wave of class action lawsuits over their use of biometric information to identify customers and employees. Although Illinois may have the first and strictest set of laws about this type of information, business owners across the country should be prepared for their states to follow suit.

Biometric information—think facial recognition, fingerprints, and retinal scans—can be incredibly useful for bars and restaurants seeking to increase profits. With this data, customers (and their past orders or preferences) can be instantly recognized.

Clubs that offer memberships can ensure that membership privileges are being enjoyed by the actual paying member (versus someone to whom a membership card or key fob has been “loaned”). Employers can have employees clock in or access a POS system with a fingerprint, which can help prevent employee theft and fraud. Bars can quickly scan faces and IDs for underaged drinkers and banned patrons.

However, believing there is too much uncertainty surrounding the privacy rights of individuals’ biometric data, the Illinois legislature passed the Biometric Information Privacy Act in 2007. Known as “BIPA”, the act seeks to protect data that is truly unique to the individual—and unlike a compromised social security number, cannot be changed.

BIPA went largely ignored for many years until 2015, when an Illinois Supreme Court decision allowed a 15-year-old to recover damages after his fingerprint was improperly used for admission to an amusement park.

What followed was a staggering 3,233% increase in litigation by employees and customers in just six years. Plaintiffs filing these class actions—many against small businesses—seek $1,000 per violation (plus costs and attorney fees) if the BIPA violation was negligent, $5,000 if it was intentional or reckless, or more if they can show higher actual damages stemming from a business’s failure to follow BIPA’s strict requirements.

What are BIPA’s requirements? In short, a business cannot collect biometric information without written consent, and it must disclose specific written details of how it intends to use, retain, protect, and ultimately destroy that information.
Technology can be a lifesaver for businesses looking to improve efficiency, especially when faced with staffing challenges as the coronavirus pandemic subsides. But it can expose a business to substantial liability if it is not handled according to the precise letter of the law.

Julia Suiter, Esq.

If you are considering any new software, program, or vendor that might make use of biometric data, consult with an attorney to be certain you are complying with all disclosure, consent, and storage obligations. If the software or program comes with a contract, be sure to carefully read the fine print to avoid unknowingly agreeing to defend and indemnify the vendor for allegations it has violated BIPA as a result of your use of the product.

This story was written by Julia Suiter, Esq., Chief Legal Officer at Illinois Casualty Company, a preferred vendor of the Pennsylvania Licensed Beverage and Tavern Association. It was published in the October 2021 edition of Pennsylvania Beverage Media, the official monthly magazine of the Pennsylvania Licensed Beverage and Tavern Association.

Chuck Moran, Executive Director

The following is a statement from Chuck Moran, Executive Director of the Pennsylvania Licensed Beverage and Tavern Association. The comments are the result of today’s legislative hearing held at the state capitol concerning the recent decision of the Pennsylvania Liquor Control Board to limit the sale of certain products as a result of a shortage.

Today, the Pennsylvania House Liquor Control Committee in coordination with the Senate Law and Justice Committee held a hearing to learn more about the recent decision by the Pennsylvania Liquor Control Board to place a two-bottle purchase limit per day on 43 products.

For small business taverns and licensed restaurants, the developing situation with liquor availability is yet another thing that the industry must work through as a result of the pandemic while waiting for help that was promised before the budget passed.

Various issues over the past 18 months are hampering recovery efforts. Between the lack of workers to shortages, as well as increased pricing of available supplies, difficulties for the industry continue.

There are several bills at the state capitol including grant funding, noise relief/outdoor seating, and liquor discounting that would help small business taverns and licensed restaurants by easing some pressure.

Now that both committees have learned more about the latest industry issue, our hope is that the state legislature will begin to move legislation to assist with recovery efforts including HB 1497 offered by Rep. Mike Jones.

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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.

As the Summer begins to wind down, and schools start to reopen, a question that all tavern and licensed restaurant owners should ask is “Are we ready for the fall?”

Consider the following:

1. If you hired students for the Summer, there’s a chance that they’ll be leaving for the Fall, or cutting back hours.
2. If you’re in a college town, you may see an uptick in fake identification cards.
3. Have you started planning for Fall events that can draw people into your establishment … football games, World Series, Halloween.

So, what can you do to get ready for the Fall?

We recommend you do the following:

1. Start looking for replacement help now. It’s tough finding good help!
2. Get that replacement help the RAMP training they’ll need. Remember, Members of the Pennsylvania Licensed Beverage and Tavern Association receive a discount for online RAMP training. Check it out at www.pataverns.com/RAMP
3. Get the schedules for your hometown high school football team, nearby college teams including non-Division I programs, and the popular pro teams your community follow. Plan staffing appropriately for those days, and remember to have the television sets ready to show the games. Advertise that they can watch the games at your establishment.
4. What are the non-sporting events in your area that you can tap to encourage patrons to come to your establishment? Homecoming? Halloween? Parades? Fall festivals?
5. Use your social media channels to get the word out about your Fall special events. Facebook, Twitter, Instagram and TikTok are tools that should be in your advertising toolbox.
6. Fall is always a good time to review your business insurances as well. Put that on your to-do list, and don’t forget that qualified Members of the PLBTA can save up to 10% on their businessowners and liquor liability insurance through Illinois Casualty Company.

And, if you’re in a college town, anticipate those fake ID cards by offering the following tips to your management and staff:

• Bend the card … fake IDs sometimes present a crease in the laminate.
• Feel the card … fake IDs often feel smoother.
• Beware of the Trojan Horse … know who you’re hiring as your bouncer and servers. You don’t want the popular frat guy letting all of his brothers in regardless of age.
• Scanners … use them, but also do a visual. Scanners will help you document the carding which may be useful later. Remember many fake IDs can fool a scanner. Scan, but don’t rely on it alone.
• Tough questions … ask the owner of the ID card tough questions such as “what’s your zodiac sign” to see if it matches up with their birthday on the ID card. Or ask them “can you tell me the location where you got your driver’s license photo taken?”
• Student ID … ask if they also have their student ID with them and if you can see it too.

To learn more about fake IDs, we recommend you read a story published in the August 2019 edition of Pennsylvania Beverage Media by clicking here.

The above story was republished from the August 2021 edition of Pennsylvania Beverage Media, the official monthly magazine of the Pennsylvania Licensed Beverage and Tavern Association. All Members receive a copy every month as a benefit of Membership. If you’re not a Member, you’re missing out. Consider joining or renewing today by clicking here.

The following is a statement from Chuck Moran, Executive Director of the Pennsylvania Licensed Beverage and Tavern Association, concerning today’s vote on HB 1154 in the Pennsylvania House, after it was stripped of a Senate amendment that many viewed as a veto threat.

This evening, the Pennsylvania House of Represenatives once again passed HB 1154, sponsored by Rep. Kurt Masser, after stripping the bill of a poison pill that was added in the Pennsylvania Senate recently, and would likely cause a veto by Governor Wolf. This time, the bill passed 170-31.

In its original form that the House passed in late May, 187-14, HB 1154 would allow taverns and licensed restaurants the ability to permanently sell mixed drinks-to-go, like the industry was able during the COVID-19 Emergency Declaration. However, once the bill moved to the state Senate, it was amended to allow “ready-to-drink” cocktails to be sold by beer distributors as well as others. This was viewed by many as a step towards privatization of the state’s liquor system, something that would have caused a veto by the governor.

While some in the industry were ok with the RTD language, the Pennsylvania Licensed Beverage and Tavern Association stood firm, demanding that the RTD language be removed, while indicating how the RTD language would hurt small business taverns and licensed restaurants. Earlier this afternoon, the House Rules Committee heard the concerns of our Members by removing the RTD language. The bill then moved to the House floor where it enjoyed a favorable vote.

The House did leave in the bill other parts of the Senate amendment that will be helpful as the industry recovers including changes to off-premise catering rules and the continuation of the temporary outdoor extensions.

For the past year, Pennsylvania taverns and licensed restaurants have had the right to sell mixed drinks-to-go on a temporary basis. It was a lifeline to help struggling establishments keep their heads above the water while the government worked to create loans, grants, and other forms of assistance. Many establishments took advantage of this opportunity, while many patrons safely enjoyed professionally mixed drinks in the comfort of their homes while supporting their local taverns and licensed restaurants.

It was a proven success with both licensees and patrons responsibly enjoying this new product. Frankly, for our industry, it was one of the innovations of the year that it made us wonder why they couldn’t do this before. With the success it had, it made sense to allow our establishments to continue offering mixed drinks-to-go to consumers on a permanent basis.

The Pennsylvania Licensed Beverage and Tavern Industry urges the Pennsylvania Senate to pass HB 1154 as is. Time is running out before the legislature will adjourn for the Summer, and the industry should be allowed to sell mixed drinks-to-go.

Pennsylvania’s small business taverns and licensed restaurants thank the Members of the Pennsylvania House of Representatives, who realized the problematic situation that developed, and took brave action today to correct the situation.

We also want to remind the Pennsylvania legislature and governor’s office that Pennsylvania’s hospitality industry is still in a recovery mode despite mitigation orders  removed and COVID statistics decreasing. There are several other bills that could help our Members with their recovery efforts. Pennsylvania’s small business taverns and licensed restaurants encourage the House to move HB 1497. This bill, sponsored by Rep. Mike Jones, would encourage outdoor dining and entertainment by creating fair noise regulations across the retail liquor license community, helping both musicians and establishments.

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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.

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 passage of HB 1154 in the Pennsylvania House of Representatives.

Today, the Pennsylvania House of Representatives passed HB 1154, sponsored by Rep. Kurt Masser, that would allow taverns and licensed restaurants the ability to permanently sell mixed drinks-to-go. The final vote was 187-14. The bill now moves to the Pennsylvania Senate for consideration.

Slightly more than a year ago, the Pennsylvania legislature moved a similar bill to allow such sales on a temporary basis, providing a lifeline to help struggling establishments keep their heads above the water a little longer while the government worked to create loans, grants, and other forms of assistance. Many establishments took advantage of this opportunity, while many patrons safely enjoyed professionally mixed drinks in the comfort of their homes while supporting their local taverns and licensed restaurants.

With the success that this new opportunity had during the past year, it makes sense to allow our establishments to continue offering mixed drinks-to-go to consumers on a permanent basis.

There’s no doubt that 2020 will turn out to be one of the worst years – if not the worst – of anyone’s life. The pandemic and its mitigation orders did considerable damage. Lives, businesses, and jobs were lost as the world got hit with the worst public health crisis in a century. Productivity dropped. Socialization decreased. Simply put, 2020 was not fun for any of us.

However, the pandemic forced many industries to innovate. As crazy as this might sound, one of the innovative breakthroughs and bright spots of the year for our industry was the cocktail-to-go … something so simple that it makes you wonder why licensed establishments couldn’t do this before.

The Pennsylvania Licensed Beverage and Tavern Association thanks Rep. Masser for taking the lead on this latest legislation. And, we thank the Pennsylvania House of Representatives for passing HB 1154. Our Association encourages the Pennsylvania Senate to take up this bill in a timely manner, and further support small business taverns and licensed restaurants by making mixed drinks-to-go a permanent right of licensed establishments.

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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.

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 Wolf Administration and COVID-19 Joint Task Force that mitigation orders will be listed on May 31.

Today we learned from the Governor’s Office that the Wolf administration in coordination with the COVID-19 Vaccine Joint Task Force will lift mitigation orders with the exception of masking on Monday, May 31, at 12:01 a.m. Masking will continue until 70 percent of Pennsylvanians age 18 and older are fully vaccinated.

Pennsylvania’s small business taverns and licensed restaurants are certainly ready for this change as the past 14 months have been some of the worst in industry history. There are countless stories of financial ruin and jobs lost.

But now the time has come in which we can move into a full recovery mode. It’s time to make the come back greater than the set back.

In recent months, our state legislature and administration have been working with our industry to help it survive and recover. We’re thankful for that assistance but want to remind both chambers and the Governor’s Office that the help shouldn’t stop just because mitigation orders targeting the industry appear to be coming to a close. There’s more work to be done, moving bills to bring back all patrons and rebuild a healthy industry again.

Speaking of patrons, as many tavern owners know, it was the support of patrons ordering take-out or buying gift cards during the roughest days of mitigation orders that allowed many establishments to keep their heads above water. The Pennsylvania Licensed Beverage and Tavern Association thanks all patrons who supported our Member establishments during the past year.

Finally, the PLBTA thanks all of its Members who stood with the Association as we navigated the past year together. We look forward to continuing to work on behalf of our Member establishments.

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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.

Tom Tyler, President, PLBTA

The Pennsylvania Senate Law & Justice Committee and Pennsylvania House Liquor Control Committee held a joint public hearing to receive testimony on the issue of ready-to-drink cocktails (RTDs). Pasted below is written testimony from Tom Tyler, president of the Pennsylvania Licensed Beverage and Tavern Association. Mr. Tyler owns McStew’s Irish Sports Pub in Bucks County.

Chairmen Regan and Metzgar, Chairmen Brewster and Deasey, members of the Senate Law and Justice and Liquor Control  Committees, thank you for allowing the Pennsylvania Licensed Beverage and Tavern Association to provide testimony concerning proposed legislation to allow Ready to Drink (RTD) product manufacturers to distribute their products for sale through the PLCB or through the existing three-tier system .

The Tavern Association represents more than 400 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 also may have R licenses.

In terms of business, our average Member makes a living primarily from alcohol sales. Based on our Membership studies, about 63 percent of their business is alcohol sales including liquor and malt beverages and 37% of sales are from food.

Historically, the state and stakeholders in the alcoholic beverage industry have agreed that within the three-tier system beer distributors would sell malt beverages, while state stores and other liquor licensees would sell wine and spirits products.

At one time, there was also agreement that beer distributors would sell larger volumes of malt beverages, while “R” licenses would sell smaller amounts, typically up to the equivalent of two six-packs.

Many tavern and licensed restaurant owners bought into that historic agreement, and willingly invested savings to purchase their properties, and licenses, built their businesses based on expectations under the existing law.

Act 39 broke that agreement in the name of customer convenience – on one side – when beer distributors were given the right to sell down to a single bottle, and given opportunities for them to sell slushies to go.  R and H licensees were still limited to 192 oz. of malt and brewed beverages, and clubs were still barred from even selling six packs.

A study conducted by the Tavern Association in 2019 to measure the impact of Act 39 on our Members discovered the following:

• 75% saw a drop in six-packs-to-go sales
• 81% indicated an overall drop in beer sales
• 32.5% saw a drop up to 10 percent in beer sales
• 29.2% had a drop up to 20 percent in beer sales

The sudden financial losses seen by many taverns and licensed restaurants across the state went hand-in-hand with the broken historic agreement.

And, then came the pain of COVID-19 closures, while beer distributors (and some R licensees like grocery stores and convenience stores) were allowed to remain open, further expanding their sales in those “to go” markets for beer and wine, and taking business from our members. That was like pouring salt in a wound.

Now, as we understand the proposed legislation, it would  allow beer distributors to sell ready-to-drink cocktails to go, again modifying the historic agreement amongst the industry, and expanding their markets, while being another gut punch to Pennsylvania taverns and licensed restaurants. It effectively would give beer distributors their first entry into selling liquor.

We do not know if this proposal would prevent beer distributors from creating to-go slushies with these products, much like they do with malt-based products.  But I can already see customers driving home from a beer distributor with a Malibu Pina Colada slushy.

If it is the committee’s interest to permit beer distributors to get into liquor sales, then a much bigger conversation should be held to discuss balancing the playing field for all parties involved on all licensee issues.

For example, because beer distributors may now sell as little as a single bottle of beer, we would suggest R, H, and E licenses should be allowed to sell more than the 192-ounces now allowed. And maybe the time has come to allow clubs to sell six-packs-to-go to their Members. Should grocery stores be allowed to sell liquor bottles like the state stores? Do we get out of the business of beer distributors and state stores as we know them today, and move into businesses like Liquor Barn that can be found in Kentucky?

These are all very good and fair questions, as Pennsylvania plans changes to the way it delivers alcohol products to consumers.  But until those larger questions are answered, the Pennsylvania Licensed Beverage and Tavern Association will oppose legislation that expands beer distributors rights at the expense of bars, taverns, restaurants  and club license holders … or that tilts the playing field even more instead of leveling the playing field for all licensees.  At this time, as we understand it, the Tavern Association cannot support RTD legislation that would allow beer distributors entry into selling liquor products.

We look forward to discussions of how R, H, E and club licensees can recover from the losses created by state orders during the 2020-21 Covid-19 response, how the Commonwealth can ensure all licensees have a level playing field in marketing and sales of alcoholic beverages, expand consumer convenience, and engage in those larger discussions over the future over Pennsylvania’s spirits, wine, and malt beverage economy.

Again, thank you for this opportunity to share our thoughts and concerns.

The following is a statement from Chuck Moran, Executive Director of the Pennsylvania Licensed Beverage and Tavern Association, concerning today’s votes in the Pennsylvania House of Representatives on HB 425 and HB 427. 

The Pennsylvania Licensed Beverage and Tavern Association applauds the State House of Representatives for passing HB 425 and HB 427 this afternoon, both by votes of 201-0.

HB 427, sponsored by now-retired Rep. Jeff Pyle, was highly endorsed by Pennsylvania Taverns, and would increase the discount licensed establishments receive from state stores when purchasing liquor products. Currently, taverns and licensed restaurants receive a 10 percent discount. This bill would increase the discount to 15 percent for three years, and has been a priority of our Association as part of the industry’s recovery phase.

HB 425, sponsored by Rep. Matthew Dowling, was also supported by the PLBTA and allows a licensee that is either closed for a long period of time or closes permanently to sell their liquor or wine to another licensee, helping those who did not survive the crisis.

It has been widely recognized that the tavern and restaurant industry has been one of the hardest hit during the pandemic, and has been in survival mode since March 2020. Now, with the continued success of the vaccine rollout, and mitigation orders being safely eased, there does appear to be a light at the end of the tunnel.

But, it’s a long tunnel and we’re not at the end of it yet. However, we have started to move into the recovery phase, which is why HB 427 is an important piece of legislative puzzle for those that have survived and are looking to rebuild their businesses.

Both bills now head to the State Senate. The Pennsylvania Licensed Beverage and Tavern Association encourages our Senate leaders to move both bills in a timely manner to help aid the industry’s recovery. 

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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.