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By in Latest News Comments Off on PaTaverns Congratulates New PLCB Chair Darrell Clarke

PaTaverns Congratulates New PLCB Chair Darrell Clarke

The following is a statement from Chuck Moran, Executive Director of the Pennsylvania Licensed Beverage and Tavern Association (PaTaverns), regarding today’s announcement from the Pennsylvania Liquor Control Board concerning Darrell Clarke being named its new chair.

 

Today, Governor Josh Shapiro announced that Darrell Clarke has been named the new chair of the Pennsylvania Liquor Control Board (PLCB), replacing Tim Holden, who recently retired at the end of his term.

The Pennsylvania Licensed Beverage and Tavern Association (PaTaverns) congratulates Mr. Clarke on his new role at the PLCB, and also wishes Mr. Holden the very best.

PaTaverns has had a solid relationship with the PLCB through Mr. Holden’s leadership, and we look forward to the same type of relationship as Mr. Clarke takes over. Already, we’ve worked directly with Mr. Clarke through the Stop-and-Go Legislative Task Force during a hearing that he led. You can read my testimony in front of Mr. Clarke’s task force by clicking here.

Our Association advocates for best practices and rights within the industry as well as best experiences for patrons of our Member establishments. We know Mr. Clarke is a proven leader and a skilled statesman. We fully believe he will provide the right leadership to industry oversight, offering fairness and balance in decision making while helping to safely advance Pennsylvania’s licensed establishments.

PaTaverns looks forward to working with Mr. Clarke and his team at the PLCB.

 

# # #

The Pennsylvania Licensed Beverage and Tavern Association is the statewide political voice for small business taverns and licensed restaurants. Based in Harrisburg, the Association formed after Prohibition in 1941, reorganized in 2019, and today advocates for best practices and rights within the industry as well as best experiences for patrons. To learn more, visit www.pataverns.com or follow the Association on Twitter via @TavernPA.

By in Latest News Comments Off on Ways to Mitigate Weather-Related Hazards at Your Bar

Ways to Mitigate Weather-Related Hazards at Your Bar

by Illinois Casualty Company, Loss Control Team

Power outages

  • Arrange a freezer / refrigeration truck
  • Power generator
  • Keep coolers and freezers closed

Flooding

  • Installation of French drain or sump pumps in basement – keep maintained
  • Keep perishable food storage elevated

Winter-related issues

  • Keep parking lots and sidewalks shoveled and salted
  • Warning signage near entrance and parking lot (slippery when wet, watch for falling snow and ice, watch your step, etc.)

Thunderstorms

  • Keep combustible materials away from the building
  • Disconnect electrical equipment (if possible)
  • Keep trees trimmed
  • Secure outdoor objects
  • Install impact resistant windows, reinforced doors and shutters
  • Keep roof maintained (repair as needed)

Miscellaneous situations

  • Inspect exterior (parking lot, sidewalks, building) at different times of the year and weather events. This can determine a number of different issues.
    • Where patrons typically park and walk
    • The location of public egress and ingress points
    • Identify cracks and potholes
    • Determine the location of snow drifts, ice accumulation, snow pack or other snow removal issues
    • Examine the condition of downspouts
    • Check for buildup of dried leaves in gutters
  • Keep updated copies (off site) of important documents, including photos of equipment, appliances, and inventory
  • Keep a list of all contractors and suppliers in the event of a severe weather emergency
  • Pre-plan procedures in the event of an emergency and make sure employees know their roles and responsibilities
  • Make sure emergency lighting is installed and operating properly

 

Editor’s Note: Illinois Casualty Company is the exclusive preferred vendor of the Pennsylvania Licensed Beverage and Tavern Association for liquor liability insurance. Qualifying Members can save up to 10% on their businessowners and liquor liability insurance. To find out more about insurance programs from Illinois Casualty Company and to locate an agent in your area, visit www.ilcasco.com/insurance-programs.

 

By in Latest News Comments Off on Fire Safety Tips

Fire Safety Tips

By Michelle Crowe, Head of Safety Education
Illinois Casualty Company

By following these tips and being proactive in fire prevention, restaurant owners and kitchen staff can significantly reduce the risk of kitchen fires. Remember, prevention is always better than dealing with the aftermath of a devastating fire.

Stay vigilant, stay prepared, and keep your restaurant kitchen safe.

EDUCATION
Educate staff on:

  • where to find extinguishers and how to use them
  • where to locate all exits in case of fire
  • the importance of cleaning, especially greasy equipment and surfaces
  • how to activate the hood system (manual pull station, just in case)

EQUIPMENT
Ensure all equipment is regularly inspected and well maintained. Malfunctioning kitchen equipment, such as stoves, ovens, and deep fryers are one of the leading causes of kitchen fires. Grease traps can be not only a fire hazard, but also a slip hazard.

OILY RAGS
Oily/greasy towels should be stored in a metal container with a lid. They should be laundered by a professional service. Oily/greasy towels can spontaneously combust in laundry bags or the dryer!

FIRE SUPPRESSION
There are strict regulations for maintaining fire suppression systems. These regulations include regular cleaning and servicing. You MUST comply to avoid potential legal issues or fines and, most importantly, to be sure your systems are ready to function as intended if there is a fire. Failure to clean and maintain systems could result in a fire loss that is not insured.

EMERGENCY ACTION PLAN
Work with your local fire department and create an emergency action plan that outlines what to do in case of fire. Review the plan regularly with your staff. Many fire departments offer free training for fire prevention and emergency preparedness.

 

Illinois Casualty Company is the Exclusive Preferred Vendor for liquor liability and business insurance. Qualifying Members can save up to 10% on their businessowners and liquor liability insurance. To find out more about these insurance programs and to locate an agent in your area, visit www.ilcasco.com/insurance-programs.

By in Latest News Comments Off on Testimony: Philadelphia’s Stop-and-Go Problem

Testimony: Philadelphia’s Stop-and-Go Problem

Chuck Moran, Executive Director

Provided by Chuck Moran, Executive Director
Pennsylvania Licensed Beverage and Tavern Association
On July 16, 2024
In front of the Stop-and-Go Legislative Task Force

Senator Williams. Members of the Stop-and-Go Legislative Task Force, thank you for inviting the Pennsylvania Licensed Beverage and Tavern Association to provide testimony on a concerning issue for the City of Philadelphia. That issue is what we all know as “Stop and Go’s.” We commend the chair and members for taking this problem seriously and working to do something to take state action to get these places under control, and closed where appropriate.

The PLBTA, often just called the Pennsylvania Tavern Association, represents Pennsylvania’s small business, family-owned taverns, bars, and licensed restaurants, and have Philadelphia members in neighborhoods from Eastwick to Somerton and in between. Part of our mission is education and training for members to help them run the most efficient, legal and safe establishments possible. We take that mission seriously.

Thankfully, we can’t say that we see Stop and Go types of businesses across the state. In fact, we only hear complaints in Philadelphia. And, in a nutshell, these are businesses, often a convenience store or deli, that somehow found a way to qualify for and purchase a liquor license.

As you know, having 300 square feet of “serving space,” food prep on site and seating and chairs for 30 people are the minimum requirements for an E license to sell beer and malt beverages. That by itself isn’t a problem. Across Pennsylvania there are convenience stores like Sheetz and Rutters that have liquor licenses, are not problematic, and run respectable businesses.

The establishments that we are talking about today often do not meet all of these requirements to hold either an E or an R liquor license – such as the seating – are sometimes associated with crime, and simply put are nuisances to the community. Furthermore, it’s not unusual to find health and safety issues within the business despite the requirement that they have current and valid health licenses.

Frankly, the negative things happening inside and outside these establishments act like a magnet to bring the wrong crowds.

All of that makes any honest licensee scratch their head and wonder why these businesses are allowed to operate … either with our without a liquor license.

The Pennsylvania Licensed Beverage and Tavern Association is concerned that these problematic businesses are giving all of us a black eye. And, we want them stopped.

But, as this committee knows, we are not the PLCB. We are not Liquor Control Enforcement. So, we can’t take their licenses away. That has to be done through others. And, in defense of the PLCB and LCE, they sometimes have their hands tied due to state laws and procedures that they must follow.

However, we can reaffirm our promise to you, Chairman, to work with you and help you lobby for changes in the liquor code that make sense, clean up Philadelphia, and don’t cause collateral damage to honest establishments across the state.

But let me add that this issue clearly goes beyond the liquor code. And changes to the liquor code by themselves won’t be the remedy to fix it. You can easily track this issue via Google back at least 8 years. During that time span, you can see the discussions and efforts taken to fix it.

We believe that resolving this issue will require looking at other aspects within the City neighborhoods that contribute to the problem. Community health, crime, and illegal drugs are some things to consider within the conversation. Likely, a true solution will also involve Philadelphia local policing as well as community health and treatment options may also be part of the solution.

Let’s face facts … today, the PLCB already has special arrangements with the City of Philadelphia for police patrols at the state’s liquor stores. The PLCB pays a lot of money for this arrangement with the local police. We all know that state stores only sell liquor to go. Yet, they appear worried about potential crime. Possibly those police patrols are key.

With all that said, as an Association, outside of lobbying for change, there is one other thing we can do immediately to help you. We don’t want these businesses as Members of our Association. We would invite you to provide a list of such establishments that we can use when we review member applications.

Again, we thank you for inviting the Tavern Association to be a part of the conversation on this important matter, and we renew our pledge to continue working with the Task Force, the General Assembly and the PLCB to get action directed to stopping the problems associated with these Stop-And-Go’s.

 

 

By in Latest News Comments Off on HB 829 Statement: More Happy Hours And Other Bar Marketing Perks Coming To Pennsylvania Soon

HB 829 Statement: More Happy Hours And Other Bar Marketing Perks Coming To Pennsylvania Soon

HB 829 includes several improvements for bar businesses

The following is a quote from Chuck Moran, Executive Director of the Pennsylvania Licensed Beverage and Tavern Association (PaTaverns), regarding today’s passage of HB 829 in the State Senate. HB 829 in its original form addressed workforce issues within the hospitality industry but was later amended to include numerous changes to the liquor code. This statement covers three of those changes that will benefit tavern owners and patrons. The bill does include other changes not covered by this statement.

At the start of this legislative session, the Board of Directors at the Pennsylvania Licensed Beverage and Tavern Association set a goal to address older regulations that limited opportunities for the state’s bars, taverns, and licensed restaurants to creatively market their businesses.

Several elements of HB 829 led by efforts of PaTaverns that passed in the State Senate, 47-3, update regulations by giving bar owners opportunities to increase happy hours, create discounted combo meals with adult beverages, and include the price of two drinks in any self-sponsored event an establishment is hosting.

In the past, happy hours were limited to only 14 hours per week. HB 829 increases the total hours to 24. It’s well known that happy hours are used to pull customers into establishments through special drink offerings. By increasing the total hours per week, we’re hopeful that through creative marketing each establishment will be able to use this tool to attract more patrons.

Previously, combo meals at bars, taverns, and licensed restaurants that included adult beverages were not allowed to be discounted. With consumer’s expecting a discount for combo meals, there was really no incentive for bars, taverns, and licensed restaurants to create and advertise combo meals that are very popular at non-liquor restaurants. This part of HB 829 provides a new tool for bar owners to use within marketing efforts by combining food and adult drink combos at discount for patrons.

Also in the past, self-sponsored events at bars such as Super Bowl parties could not include any drinks in the price of a ticket to attend. HB 829 changes that by allowing up to two drinks to be included.

PaTaverns thanks leadership in both the State House and State Senate for working with our Association in making these changes possible. We’re also thankful for the members of the State House Liquor Control Committee and Senate Law and Justice Committee for their efforts.

The Pennsylvania Licensed Beverage and Tavern Association encourages Governor Shapiro to sign this bill once it arrives on his desk.

 

#     #     #

 

The Pennsylvania Licensed Beverage and Tavern Association is the statewide political voice for small business taverns and licensed restaurants. Based in Harrisburg, the Association formed after Prohibition in 1941, reorganized in 2019, and today advocates for best practices and rights within the industry as well as best experiences for patrons. To learn more, visit www.pataverns.com or follow the Association on Twitter via @TavernPA.

By in Latest News Comments Off on Workplace Safety Tips

Workplace Safety Tips

June is National Safety Month. The Pennsylvania Licensed Beverage and Tavern Association along with our partner Illinois Casualty Company offers the following tips to help owners and employees with safety in Pennsylvania bars, taverns, and licensed restaurants to prevent injuries and unnecessary time off from work healing.

Burn Prevention

  • Be Familiar with Fire Extinguishers – Know where all the fire extinguishers are located, as well as how to use them. Fire prevention is also burn prevention.
  • Watch Pots and Pans – Assume that all pots and pans are hot when you encounter them. Don’t overfill them either.
  • Use Caution with Hot Oil – Never carry or move oil containers when the oil is hot or on fire. Additionally, be very careful when placing anything in hot oil.
  • Do Not Stretch Over Heat – Don’t reach over a stove or grill. Be aware of what you’re doing and where you’re at in the kitchen at all times.
  • Use Oven Mitts – Use oven mitts or long gloves when handling anything hot or around the stove.
  • Be Aware of Handles – Carefully place all pots and pans so handles do not stick out. If anyone bumps into a handle and the pan falls, this could cause a bad burn or other injury.

Knives and Cutting

  • Use a Cutting Board – A cutting board provides a stable surface and is designed for use with knives. Plates or countertops don’t offer the same advantages.
  • Use the Right Knife – Not all knives are created equal. Trying to chop an onion with a butter knife is not a good idea. Size up the job and choose the right knife.
  • Keep Knives Sharpened – Dull knives need more force to cut into food, which could lead to a slip and cut of the finger. Keep them sharp to make the job easier and safer.
  • Cut in the Right Direction – Always cut away from your body. If the knife slips, this lowers the risk of an injury.
  • Carry Knife Properly – Carry only one knife at a time and keep the tip pointed down at your side. This prevents hurting yourself or someone else if you drop the knife or run into a coworker.
  • Keep Knives Visible – Knives are hazardous, especially if someone doesn’t know one is there. Make sure the knives aren’t covered up with other items and that coworkers are aware of where they are placed.

Meat Slicers

  • Use Guards and Glides – Wear cut resistant gloves while using a meat slicer and use the provided guards and glides. Make sure everything is in the proper position.
  • Use Proper Settings – Just like chopping ingredients by hand, size up the task to determine the proper slicer settings. Slicing something too thin can lead to a higher injury risk.
  • Never Reach Across the Blade – This one is simple: never reach across the meat slicer blade. This carries too high of an injury risk.
  • Keep Both Hands Visible – Along with never reaching across the blade, keep both hands visible during use of the slicer to lower injury risk and eliminate any confusion.
  • Turn Off After Use – Turn the slicer off after use and set it to zero. Don’t risk forgetting and leaving it turned on.
  • Unplug When Cleaning – Unplug the slicer before cleaning it. After it has been cleaned, make sure all guards and safety devices are put back in place.

Preventing Back Injuries

  • Teach Proper Lifting Techniques – Many employee injuries can be prevented if they know how to properly lift something heavy. Make tips available and share them regularly as a reminder.
  • Place Objects Off the Floor – Employees can spare their backs a lot of strain by not having objects on the floor to be lifted. Use shelves, cabinets, and other storage.
  • Raise or Lower Shelves – Try to keep shelving in a convenient location for most employees to minimize bending or straining. Raise or lower shelves accordingly.
  • Use Carts – Have carts available to minimize lifting and carrying heavy items for larger distances.
  • Ask for Help – Tell your employees to ask for help when needing to life something heavy. Encourage them not to try picking something up if they aren’t sure it will be safe for them.
  • Have a Lifting Plan – Explain the importance of planning your moves. Size up the object, clear a path, and determine whether you need help. Offer help to others if they are lifting something.
  • Listen to Your Body – It’s of utmost importance that employees know not to strain to lift something. They should set the item down and ask for help if it’s too heavy to lift on their own.
  • Minimize Hazards – When moving a heavy item from the kitchen to the patio, for example, make sure a path is clear and that any hazards are addressed.
  • Work on Coordination – Proper coordination and balance can make all the difference in minimizing back pain and injuries. This is especially important when carrying trays or piles of plates.

Editor’s Note: Illinois Casualty Company is the exclusive preferred vendor of the Pennsylvania Licensed Beverage and Tavern Association for liability insurance products. Qualifying PLBTA Members can save up to 10% on their business owners and liquor liability insurance. To find out more about these insurance programs and to locate an agent in your area, visit www.ilcasco.com/insurance-programs.

By in Latest News Comments Off on Pennsylvania’s Official Summer Adult Cocktail of 2024 declared by PaTaverns, PaClubs

Pennsylvania’s Official Summer Adult Cocktail of 2024 declared by PaTaverns, PaClubs

Pennsylvania-based distillery turns official drink into fundraiser to benefit rare diseases

(Harrisburg, Pa. / May 2, 2024) Two leading statewide liquor industry associations are joining forces this year to declare Pennsylvania’s Official Summer Adult Cocktail of 2024, while one Pennsylvania-based distillery says they’ll use the official drink to raise funds to benefit those suffering from rare diseases.

The Pennsylvania Licensed Beverage and Tavern Association (PLBTA) along with the Pennsylvania Federation of Fraternal and Social Organizations (PFFSO), both based in Harrisburg, named the Watermelon Crush as Pennsylvania’s Official Summer Adult Cocktail of 2024. In the previous two years, the official drink was the Orange Crush and the Bloody Mary.

“We’ve named some tasty drinks that Pennsylvania adults have enjoyed since our state’s official summer cocktail program started,” said Chuck Moran, executive director of the PLBTA. “We hope citizens across the state will try a Watermelon Crush this summer while enjoying time with family and friends.”

Ted Mowatt, executive director of the PFFSO said, “We’re declaring a refreshing adult drink as the state’s official summer cocktail that I know Pennsylvanians will enjoy, especially as the summer temperatures climb.”

Both Mowatt and Moran urge bar and club patrons to ask their bartenders for a Watermelon Crush this summer, and are encouraging their Members to put this drink on their summer drink menus.

Raising Funds For Rare Diseases

Meanwhile, Holla Spirits, based in York County, has agreed to make a donation to Uplifting Athletes for every bottle of their watermelon lollipop-flavored vodka sold to a bar or club this summer to make the official drink, or ordered online directly from consumers.

Patrick Shorb, founder of Holla Spirits and a rare disease survivor, says for him this is an opportunity to work on an issue close to his heart. The Penn State grad says he’s thankful for past care he received and is delighted his company can help raise funds for Uplifting Athletes.

“Every year, as part of our mission, Holla Spirits works to find ways to assist those facing life-changing illnesses,” said Shorb. “A diagnosis of a rare disease is shocking and scary to the patient and the patient’s family. The more we can do to raise funds for research and patient assistance the better.”

Both Moran and Mowatt say that it’s great to see how the official summer adult cocktail can be turned into a fundraiser. They challenge other distilleries to do the same.

Rob Long, executive director of Uplifting Athletes, knows how life changing a rare disease can be. The former Syracuse punter with a high likelihood of playing in the NFL saw his life change after being diagnosed with anaplastic astrocytoma, a rare and aggressive form of brain cancer.

“There’s so much work to be done to fight rare diseases and help those who just had their world turned upside down,” said Long. “It’s certainly reassuring that there are many caring individuals and businesses that step up to the plate to play a role in fighting this battle.”

Uplifting Athletes is a nonprofit organization founded in 2007 that harnesses the power of sport to build a community that invests in the lives of the more than 30 million people impacted by rare diseases in America. Since its inception, Uplifting Athletes has raised more than $9 million by engaging athletes to positively impact the rare disease community through driving action, awareness, and funding research. To learn more about Uplifting Athletes, visit upliftingathletes.org.

 

Watermelon Crush Recipe
1.5 oz vodka (using Holla Watermelon Lollipop Vodka will result in a donation being made to Uplifting Athletes)
.5 oz Triple Sec
Equal parts watermelon juice and lemon lime soda

By in Latest News Comments Off on Secrets to Lower Liquor Liability Insurance Premiums

Secrets to Lower Liquor Liability Insurance Premiums

Howard Beck

By Howard Beck, CPCU, AU
Chief Underwriting Officer
Illinois Casualty Company

The liquor liability line of the insurance business has always been difficult.  Many carriers are reluctant to offer this product and even fewer are willing to make a commitment to it.  Since COVID, plaintiff’s attorneys have become increasingly creative and aggressive while juries cooperate with head scratching awards.  This combination of factors has caused a few traditional liquor liability carriers to withdraw from certain states or from offering liquor liability insurance completely.  The situation has reached a point in some states where bar owners are closing their doors because they can’t obtain insurance or afford the limited options that are available (e.g., South Carolina).

As the challenges increase across the country, license holders grow increasingly frustrated and feel that the situation is totally out of their control.  They actually have more control than they think if they are willing to view risk management differently.  With this mindset, they can control, and even lower, their liquor liability insurance premiums.

So, what does this mean for you, your employees, and your business? Here are some considerations on how to take control of your liquor liability insurance costs.

We work in an industry where people drink and often drive.  Sometimes those customers get into accidents, and innocent people get hurt.  When that happens, the insurance company takes over, investigates, applies the policy to the law, and strives for the most favorable financial outcome.

The best way to control the cost of liquor liability insurance is to do everything possible to prevent claims.

The next best way is to do everything possible to enable the insurance company to defend you.

How do you minimize the chance of a liquor liability claim?

  • Make a true commitment to responsible serving!
  • Train your staff repeatedly and consistently.
  • Create a culture among your staff to recognize signs of intoxication and collectively cut off service effectively.

If there is a claim, how can you help the insurance company defend you?

  • Invest in security cameras and long-term storage of recorded images.
    • Plaintiff’s attorneys will paint a very different picture of what happened.
    • Video doesn’t lie.
  • Have documented procedures in place that detail your commitment to training your staff and not over-serving customers.
  • Have a reputation for running a good business.

Recently, ICC settled a claim involving a patron who slipped on the stairs and faceplanted in the landscaping, suffering a broken nose and some broken fingers.  The establishment was sued for negligence. The patron claimed that the stairs were unsafe and demanded $150,000 as compensation for his injuries.

Fortunately, the business saved a video recording of the incident, which showed the patron fumbling in his pocket for his keys and failing to watch where he was walking.  Prior to trial, the case was settled for less than 10% of the demand.  Having recorded images of the incident made a huge difference in the negotiations, final settlement, as well as the claims history for the insured.

Plaintiff’s attorneys go after the easy money.  Businesses that don’t make these commitments are the desired target.  Avoid the claims, but if you have one, do everything possible for the insurance carrier to properly defend you and minimize the impact.

There are resources available to you through ICC or the Pennsylvania Licensed Beverage & Tavern Association.  We are here to help. Contact the Association or your agent for more information.

 

Editor’s Note: Illinois Casualty Company is the exclusive preferred vendor for liquor and business liability insurances. Qualifying Members can save up to 10% on their businessowners and liquor liability insurance. To find out more about these insurance programs and to locate an agent in your area, visit www.ilcasco.com/insurance-programs.

By in Latest News Comments Off on PLBTA Testimony: Gaming In Taverns

PLBTA Testimony: Gaming In Taverns

The following testimony was provided on March 26, 2024, by Jim DeLisio in front of the Pennsylvania House Republican Policy Committee. Mr. DeLisio is vice president of the Pennsylvania Licensed Beverage and Tavern Association and president of the York County Tavern Association. He is the owner of the Race Horse Tavern in Thomasville, Pa.

 

Chairman Kail, Representative Diamond, members of the Committee, good morning. I’m Jim DeLisio, owner of the Race Horse Tavern in Thomasville, York County. I’m also Vice President 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. In the past I’ve enjoyed speaking with this committee on other issues so I’m humbled to be invited back.

Today, we’ll be talking about gaming in taverns with an emphasis on skill games. Gaming in general is a topic that I’ve testified in front of other committees in recent years, and I want everyone here to know that my establishment is one of a few Pennsylvania bars that has an active tavern gaming license. In fact, a license search conducted on March 11, 2024, shows there are only 39 of us with one.

For the sake of comparison, the most recent annual report from the PLCB shows there are slightly more than 11,200 R and H licensees in the state that could be eligible for a tavern gaming license. If you do the math, that’s about one-third of one percent.

As background, the Pennsylvania Licensed Beverage and Tavern Association was established in 1941 and today represents small business bars, taverns, and licensed restaurants throughout the state. Our perspective comes from the so-called “mom-and-pop” businesses that own either an R, H, or E liquor 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 that have R licenses.

Based on past Membership studies, about 63 percent of our member’s business is alcohol sales and 37% of sales are from food. 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.

The Tavern Association 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 tavern gaming to any other forms of gambling, including VGTs and video skill games.

As you know, small business bars have been hit hard for about the past 8 years. Our financial struggles began in 2017 when Act 166 of 2016 officially went into effect. That act stole an exclusive right that bar owners had … the right to sell six-packs and growlers to go. Act 166 gave beer distributors the right to sell to consumers any amount including amounts below a case down to a growler.

That in combination with other alcohol sale changes through Act 39 drove a stake through the heart of small business bars. Our membership studies show that during that time, 85 percent of our Members saw a decrease in beer sales. And, 30 percent of our Members saw a decrease between 11 and 20 percent. That adds up to thousands of dollars in lost revenue.

Clearly, small business bars became collateral damage of Acts 39 and 166.

We know that was not the intent of the legislature when it passed those bills and Governor Wolf signed them into law. But, you need to know that past legislative actions seriously damaged many small business bars across the state and we hope to work with you to correct the situation.

With revenue dropping as a result of those Acts, bar owners began to look at other options to fill their income void and stay profitable. Bars were locked out of the opportunity to have VGTs in their establishments when truck stops got them. So VGTs were not a legal option, although we wish they were.

That’s when video skill gaming entered the picture – and at least for now, court decisions have declared them not to be slot machines.

I can’t tell you how many skill games are in Pennsylvania bars at this time. That data is not something we collect. Businesses that sell and distribute skill games should have data on how many they’ve put into Pennsylvania.

But I can tell you based upon conversations I’ve had with colleagues at other establishments and across the state, skill games filled at least part of the void. Those with skill games are using the profits to pay bills, upgrade establishments to compete with newer license types, or offer benefits to employees.

We certainly hope this legislature will take action soon to finally put to bed the debate on whether or not skill games are legal, and whether skill games and VGTs should be in Pennsylvania bars. We do, however, need to remember lessons from the past including those from tavern gaming and the current situation with skill games.

First, tavern gaming did not take off and the state did not generate the revenue that it had projected. As mentioned earlier a shockingly low number of licensed establishments chose to offer tavern gaming. Why? There’s little profit after taxes and payment of supplies. I can talk more about that during the Q&A.

Any legislation that you would write to allow skill games and VGTs in bars would need to be careful not to carry a high tax. Also there can’t be a small cut for the bars.

Second, the current distribution of skill games is questionable. Unlike VGTs in truck stops that are regulated and monitored, skill game distributors have put their machines in locations that are easily accessible to anyone including minors.

There are also issues related to security and safety of some locations where these machines have been placed. You probably saw recent news articles out of Philadelphia that indicate the city has taken initial steps to ban skill games. Apparently, players have been robbed after winning.

I’ll conclude by thanking you for the opportunity to represent small business bars, 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.

By in Latest News Comments Off on POS Scheme Sparks Significant Loss for Restaurant

POS Scheme Sparks Significant Loss for Restaurant

By Tawnya Dinh
Property Claims Representative
Illinois Casualty Company

In this industry, we are always amazed at the new methods criminals can devise to steal money! Recently, I handled an interesting claim that involved employee theft.

The employer’s POS machine had a tab called “On Account” that was not utilized by the business in its regular operations. An employee figured out that they could purchase gift cards “On Account”, then use those gift cards to pay for a customer’s cash order and pocket the cash.

The theft went on for many months and resulted in over $35,000 in stolen funds.

Interestingly, the theft was not detected by the business but was unveiled by the employee, who could not help but brag to a friend who also knew someone at the business. The employee was confronted and eventually confessed.

The business owner was unaware of the “On Account” tab. Once the employee’s theft was discovered, the owner immediately contacted their POS vendor to have the tab removed.

The employee turned out to have a lengthy history of prior criminal activity. This history went undiscovered due to a lack of background checks completed by the business. Unfortunately for the business owner, the Employee Dishonesty limit was insufficient to cover the extent of the theft.

In addition to the importance of having a full understanding of the components of the POS machine, this claim highlights how important it is to conduct background checks as part of your hiring process. With the current labor shortage, it may seem necessary to skip this step and get positions filled. Doing so could cost you and your business a lot more in the end.

Editor’s Note: Illinois Casualty Company is the exclusive preferred vendor of the Pennsylvania Licensed Beverage and Tavern Association for liquor liability insurance. Learn more about ICC by clicking here.