The following is a statement concerning an anticipated announcement on April 22 that Philadelphia is removing the reinstated mandatory mask mandate. It comes from Chuck Moran, executive director of the Pennsylvania Licensed Beverage and Tavern Association. The PLBTA, based in Harrisburg, is the statewide political voice for small business taverns, bars, and licensed restaurants.

(April 21, 2022) Multiple news reports on Thursday night indicated the City of Philadelphia will end its recently reinstated mask mandate for indoor locations such as taverns, bars, clubs, and licensed restaurants. The announcement is anticipated to be officially made Friday morning, and comes after an apparent vote by the city’s Board of Health.

I’m sure Members of the Pennsylvania Licensed Beverage and Tavern Association will be thankful. Such mandates often put bartenders, servers, and managers in a position of being the mask police, something that they’re not really trained to do. Ask hospitality staffers what it was like enforcing city mandates, and I’m sure many can share stories about patrons who simply did not want to comply. Some may even be able to share situations that felt threatening.

But, while they’ll be thankful, they’ll also be asking questions. What happened between Monday, when the mandate was reinstated, and Thursday night? Was the reinstatement really necessary? If there wasn’t enough confusion this week on masking, the sudden change of mind is likely to have people scratching their heads, wondering about the reliability of formulas used to make the initial reinstatement decision.

Philadelphia’s family-owned taverns, bars, and licensed restaurants have been through way too much during the past two years. They deserve better than what city officials did to them on Monday, only to quickly walk back that decision.

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Have you ever wondered if mobile bars are legal in Pennsylvania? Well, we have the answer for you, directly from the Pennsylvania Liquor Control Board.

Recently, a licensee in Johnstown asked if his establishment could convert a horse trailer into a mobile bar, and then use that mobile bar with its current “R” license at different locations that are not on its licensed premise.

An Advisory Opinion from the PLCB on March 28, 2022, suggests it’s possible, but you better know how to do it right.

According to the PLCB, there is no license that allows a licensee to sell alcohol in a mobile bar or similar unfixed location. Licenses are generally issued only for use at specific, identified, stationary locations.

However, there are two ways for an “R” licensee to take advantage of a mobile bar, the PLCB says.

First, nothing would generally prohibit the use of a mobile bar by a licensee to sell alcohol on its licensed premises. So if you have a big licensed property, you may be in luck if you want to try a mobile bar.

Second, nothing would prohibit the use of a mobile bar by the holder of a special occasion permit or an off-premises catering permit, so long as the mobile bar remains on the property that is covered by the permit.

To learn more about a special occasion permit or an off-premises catering permit, click here.

This educational licensee update is brought to you by the PLBTA and is funded by annual Member dues. We are making this specific piece available to all licensees as an industry courtesy, and hope that non-members will join our Association and be a part of Organized Taverns. To join online, click here.

By Igor Ovsyannykov [CC0 or CC0], via Wikimedia Commons

As required by Act 90 of 2013, “The Impact of Tavern Gaming on the Pennsylvania State Lottery” annual report was presented to the State Legislative Budget and Finance Committee today.

Overall, the report is a clear sign that the tavern gaming business model is broken, and not meeting the needs of both the state and tavern owners. Consider the following highlights from the report:

• There are currently only 45 active tavern gaming licenses statewide, a decrease from the previous year.
• Since 2013, only 80 establishments have applied for a tavern gaming license with 71 approved.
• Tavern Games revenue has dropped in the last four years from $1.6 million in 2018 to $1.3 million in 2021 with a low of $856k in 2020.

When tavern gaming was debated prior to Act 90, the Governor’s Office of the Budget estimated that 2,000 establishments would be licensed, generating an estimated annual net revenue of $156 million. The actual statistics are far less than what was anticipated.

The Pennsylvania Licensed Beverage and Tavern Association on several occasions in the past four years have indicated in front of legislative committees or through the media that changes to the tavern gaming business model are needed. The limited number of games, expensive fee and tax structure, and little profit made by establishments make it unattractive for the overwhelming majority of small business taverns, bars, and licensed restaurants.

Furthermore, although there was a fear in 2013 that it would negatively impact the Pennsylvania State Lottery, the report’s analyst told the state committee today that “tavern gaming did not have a material impact” on the state lottery. In fact, during the last five years, total revenue from tavern gaming was $6.6 million compared to the Pennsylvania State Lottery’s $8.2 billion in revenue.

As we have said in the past and will continue to do so in the future, if the state wants to see better results and collect more money for its general fund, then tavern gaming must be overhauled and made more attractive to establishments.

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Tom Tyler, owner of McStew’s Irish Sports Pub in Levittown

The following is a statement concerning the introduction of SB 1138, a bill to permanently allow the sale of cocktails-to-go. It is written by Tom Tyler, president of the Pennsylvania Licensed Beverage and Tavern Association (PLBTA). Mr. Tyler is also the owner of McStew’s Irish Sports Pub in Bucks County. The PLBTA, based in Harrisburg, is the statewide political voice for small business taverns, bars, and licensed restaurants.

Today, Sens. Daniel Laughlin (R-49) and John Yudichak (I-14) introduced SB 1138, a bill that would allow taverns, bars, and licensed restaurants to permanently sell cocktails-to-go.

While cocktails-to-go served as a lifeline during the COVID-19 emergency declaration, it also provided a way for family-owned establishments to expand their product offerings and increase customer convenience. Unfortunately, the end of the emergency declaration also meant the end to these products. This was a loss to both our industry and our patrons.

A recent report from the Independent Fiscal Office paints a clear picture showing our industry was hit hard during the pandemic. Figures from the report are concerning and suggest the industry continues to need assistance as part of its recovery.

By introducing SB 1138, Sens. Laughlin and Yudichak have demonstrated their concern for the future success of small business taverns, bars, and licensed restaurants. The Pennsylvania Licensed Beverage and Tavern Association and our Members, representing tens of thousands of employees and many more patrons, thank both senators for introducing this bill.

We encourage the state senate to move this bill as is with no amendments.

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Wikimedia photo

The following is a statement concerning today’s announcement that Philadelphia is removing the mandatory mask mandate in most places. It comes from Chuck Moran, executive director of the Pennsylvania Licensed Beverage and Tavern Association. The PLBTA, based in Harrisburg, is the statewide political voice for small business taverns, bars, and licensed restaurants.

Today, Dr. Cheryl Bettigole announced that Philadelphia was moving to the “all clear level” and thus not requiring masks to be worn at many businesses across the city including Members of our Association.

Family-owned taverns, bars, and licensed restaurants are thankful for this change, and for now view it is another step towards normalcy, not only for the industry but also for all Philadelphians and visitors to the city. After nearly two years of being put into the role of enforcer of the city’s hospitality mandates, our Members are looking forward to better times which allow them to instead focus on providing cold drinks, outstanding food items, and a good night out for patrons.

The recent city data and the “all clear” signal are good signs. We hope these build confidence with patrons and bring them back to their favorite locally-owned establishments. But if there is still some hesitancy, our Members won’t discourage them from wearing a mask.

The Pennsylvania Licensed Beverage and Tavern Association thanks Dr. Bettigole for the announcement and her dedication to the safety of Philadelphians.

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The following is a statement from Chuck Moran, executive director of the Pennsylvania Licensed Beverage and Tavern Association, concerning Governor Wolf urging the Pennsylvania Liquor Control Board to pull Russian-made vodka off the shelves of state stores. The PLBTA, based in Harrisburg, is the statewide political voice for small business taverns, bars, and licensed restaurants.

Today Governor Tom Wolf in a letter urged the Pennsylvania Liquor Control Board to pull all Russian-made vodka off the shelves of state stores.

The Pennsylvania Licensed Beverage and Tavern Association supports the governor in urging the PLCB to do so. This is a reasonable option for the Commonwealth to take to show its disapproval of the Russian invasion of Ukraine and the damage the attack has done to world peace.

As far as our Association knows and so that we do not confuse them with “Russian-themed” vodkas, there are a few actual Russian-made vodkas sold in Pennsylvania’s stores. They include Russian Standard and Ustianochka. Russian Standard is owned by Roustam Tariko, a Russian oligarch.

With many great vodka options available, our Association is encouraging Pennsylvania’s family-owned taverns, bars, clubs, and licensed restaurants to avoid using Russian-made vodka for now. It will be a minor inconvenience for some, but national American brands like Tito’s from Texas and locally made vodkas like Holla Spirits in York are good options when mixing drinks that require vodka.

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The following is a statement from Chuck Moran, executive director of the Pennsylvania Licensed Beverage and Tavern Association. He comments on the City of Philadelphia adjusting its COVID mandate on the tavern and restaurant industry. The PLBTA, headquartered in Harrisburg, is the statewide political voice for family-owned taverns, bars, and licensed restaurants.

Today, the City of Philadelphia announced it would ease mandates on taverns and restaurants that require their patrons to show proof of vaccinations in order to dine in. The adjustments include a four-level tiered system based upon COVID statistics. Mandates would be reduced as COVID statistics improve.

Philadelphia’s improved COVID situation along with hospitality rules being adjusted is welcome news for both the industry and our patrons. It allows our Philadelphia Members to join their colleagues from other parts of the state that never had this type of mandate.

Unfortunately, while such mandates have good intentions to protect the health of individuals, they do come at a cost to communities that are now dealing with higher costs due to supply and workforce issues. In addition, for taverns and restaurants, Philadelphia’s mandates caused stressful scenarios, while putting establishments at a disadvantage compared to neighboring counties.

Yesterday’s report from the Independent Fiscal Office during a budget hearing in front of the state House Appropriations Committee is the proof. It helped paint a picture of the struggle the industry faces. The report showed the industry lost 30,000 employees in Pennsylvania, while also dealing with higher food and beverage supply prices and increased hourly costs of employees.

It’s time for our small business taverns, bars, and licensed restaurants to have a chance to heal their financial wounds and move closer to normalcy. The decision by Philadelphia begins that process for our Members located within the city.

(Wikimedia Photo: Beer-on-tap by JMacPherson)

Today, materials submitted by the Independent Fiscal Office (IFO) to the Pennsylvania House Appropriations Committee in advance of state budget hearings paint a clear picture exactly how hard the tavern and restaurant industry was hit financially during the pandemic. According to the Pennsylvania Licensed Beverage and Tavern Association, the figures in the IFO report are concerning and suggest the industry continues to need assistance as part of its recovery. The Pennsylvania Licensed Beverage and Tavern Association is the statewide political voice for family-owned taverns, bars, and licensed restaurants.

Key Findings Related to Taverns, Licensed Restaurants (Dec. 2019-Dec. 2021)

• Full-service restaurant industry in the state lost 30,000 jobs between December 2019 and December 2021. (p. 3 of report)
• The costs for food and beverage purchases (15% of the total) increased in that same time frame, at rates higher than all other segments of the economy except energy and durable goods (which comprise 16% of the total). (p. 5 of report)
• At the same time, the average hourly cost of employees in the leisure and hospitality industry increased in June 2021 by 7.8% over 2020 and in December of 2021 by 14.9% over the previous year, more than double any other industry. (p. 5 of report)
• Tax revenues from sales of Malt Beverages this year to date was at $13 million, a year over year decline of -5.9%. And tax revenues from sales of liquor totaled $260 million, a YOY increase of 6.0%. (p. 10 of report)
• Related to the tavern industry, the Brewers’ Tax Credit was estimated at a value of $5 million in 2021-2022. The report notes smaller brewers can’t fully use the credits. IFO noted: most state brewer incentives place a limit on production and target small brewers, and it recommend targeting smaller brewers going forward. The credit is likely a windfall to large brewers, and the report says Pennsylvania should provide a mechanism for smaller brewers to use the credit better, perhaps by converting it to a grant or making the credit refundable. (p. 20 of report)

PLBTA Statement from Chuck Moran, Executive Director

It’s been a difficult time for family-owned taverns, bars, and licensed restaurants for the past two years. Mitigation orders, variants, supply shortages, and workforce issues have set the industry back. Today’s report from the IFO isn’t surprising. It’s something everyone in the industry realizes has happened, but is now confirmed in hard data. Industry costs including supplies and labor have jumped.

As small businesses within the hospitality industry face continued struggles, the legislature has the opportunity to be the hero by passing meaningful legislation that supports family-owned taverns, bars, and licensed restaurants. Bills that would provide financial assistance sit waiting for action. In addition, bills addressing customer convenience through industry innovation would be helpful. Our Association has testified in front of state committees on these bills during the past year.

Bills introduced that would be helpful address the following issues

1. Legislation to increase the liquor discount from 10 percent to 15 percent. This legislation passed the House in 2021 with a unanimous vote. This would be across the board, and have a minimal impact on the PLCB’s profits, but be very meaningful to our members’ cash flow as they struggle to stay afloat financially.
2. Grants and tax incentives through recently introduced legislation would financially prop up struggling small businesses as part of their recovery.
3. Legislation to level the playing field for all liquor licensees, and standardize the rules for amplified sound limits at property lines. Modification of these rules would help incentivize our members to expand outside, and allow entertainment which attracts consumers.
4. Allow business owners more opportunities to get creative with special promotions and happy hours, opening channels for new specials and specially priced combos. Our Happy Hour laws – like many others in this industry, are a throwback to earlier times, Blue laws, and control, not reflective of today’s consumers or markets. It’s time to allow liquor licensees to make these financial decisions for themselves.
5. Mixed drinks to go. Legislation to do this has passed the House twice with 170 votes or more. During the Covid-19 restrictions, this gave our members a small opportunity to maintain cash flow and expand offerings, without any increase in the incidence of liquor related accidents or arrests.

Privatization of Pennsylvania’s liquor business may be a good idea, but the statewide association representing licensed family-owned bars, taverns and restaurants has questions about how the State House bill to do so could impact their businesses and their customers before they can support such a change.

Because of those questions, the Pennsylvania Licensed Beverage and Tavern Association (PLBTA) is taking no position on HB 2272, sponsored by Rep. Natalie Mihalek (R, Allegheny), but instead is offering to help plan for privatization so that small businesses don’t suffer unintended consequences if the legislation and constitutional amendment pass.

Tavern and restaurant owners are concerned that the proposal is too simple for a complex state liquor system. The main text of the bill reads, “The Commonwealth shall not manufacture or sell at wholesale or retail, liquor.” Beyond that, the bill gives the state 18 months to get out of the liquor sales business.

The PLBTA Board of Directors recently agreed that the state should not be in the wholesale and retail liquor businesses, but said it is critical that, if the state does exit liquor sales, it be done in a way that protects small business taverns and licensed restaurants and their customers through meaningful protections and liquor code changes.

“Our Members have really taken a number of gut punches in recent years between Acts 39 and 166 of 2016 followed up by COVID mitigation orders, variants, supply chain issues, and workforce problems,” said Chuck Moran, executive director of the Harrisburg-based trade association. “The last thing any family-owned tavern or restaurant needs now is a change in the system that puts these small businesses at yet another disadvantage at a time when they are already struggling to recover and stay open.”

The PLBTA says a privatization effort should address problematic and antiquated liquor codes, and should be done with the public understanding that that small business taverns and restaurants and their customers will benefit with a different wholesale and retail arrangement.

Moran says his members in philosophy favor privatization but are concerned that without meaningful protections for small businesses, privatization could place them at a disadvantage compared to large multi-state chains.

“We anticipate well-funded, major players including those from out-of-state would view HB 2272 passage as an opportunity to have a ‘redo’ of the liquor code,” Moran says. “As such, beyond privatizing wholesale and retail sales, the eventual privatization plan could impact all phases of liquor control, licensing, and supply.”

Customer convenience is also an issue for the PLBTA, as it has been seeking various customer related changes already, including increased discounts, cocktails-to-go and modernization of Happy Hour regulations.

According to Moran, the PLBTA Board came to its position after thoughtful discussion and a review of input from its members, positions of other associations, and political realities.

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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.

Tom Tyler, owner of McStew’s Irish Sports Pub in Levittown

The following is testimony given by Thomas Tyler, president of the Pennsylvania Licensed Beverage and Tavern Association, on January 26, 2022, in front of the Pennsylvania Senate Community, Economic, and Recreational Development Committee. The hearing was held to discuss other forms of aid for small businesses to help them through the COVID era. Mr. Tyler is also the owner of McStew’s Irish Sports Pub in Bucks County and a committed member of Organized Taverns through the PLBTA.

Chairman Yudichak, Chairwoman Cappelletti, and members of the Committee, thank you for allowing the Pennsylvania Licensed Beverage and Tavern Association to provide testimony concerning legislation to support the economic recovery of small businesses negatively impacted by past COVID mitigation orders.

Also, I want to acknowledge my establishment’s state senator. Thank you, Sen. Tomlinson.

As background, the Tavern Association is the statewide voice for small business taverns and licensed restaurants. We represent family-owned taverns, pubs, and licensed restaurants across the state. Most of our Members own “R” or “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.

Our average Member has only 16 employees, possibly the smallest of the small businesses within the hospitality industry.

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 percent of sales are from food. This is a major reason why the events of recent years have created financial hardships for my membership.

Many people don’t realize that COVID was the second financial gut punch our Members took in recent years. The first came a few years earlier through Act 166 of 2016 when the tavern and licensed restaurant industry lost the exclusive rights to sell six-packs to go.

A study conducted by the Tavern Association in 2019 to measure the impact this Act had on our Members discovered that 75 percent of our members saw a drop in six-packs-to-go sales, with about 30 percent losing about 20 percent in beer sales.

And other changes to liquor laws related to that Act which promoted specific segments of the alcoholic beverage industry tilted the playing field and resulted in even more lost revenue for our small family-owned businesses.

And, then came the pain of COVID-19 closures in 2020, which continued off and on through part of 2021, followed by related issues that continue today such as variants, supply shortages, and workforce issues. As many as 20 percent of our small business bars and taverns found themselves closed for business.

Our bars, taverns and restaurants greatly appreciate the efforts and intentions of Sen. Aument, and the other cosponsors of SB 983 and SB 984. There’s no question that our members need support from the state to recover from the losses they’ve suffered while complying with state edicts over the last two years.

Needless to say, we don’t believe any small business will complain about receiving a no-interest loan as a result of SB 983 or receiving a grant through SB 984. We support both but offer some thoughts on each.

Regarding SB 983, the Tavern Association supports the concept of interest-free loans being made available. Some of our members will certainly make use of these no interest loans. At the same time, given their already problematic economic situations – and still trying to get back to some form of normalcy, more borrowing may not be a solution for those bars and taverns who have lost income and already dipped into their life savings to stay open.

And, regarding SB 984, again, the premise is sound. Grants for our members who did not receive grants previously – only about one in three did – and basing the grants on lost profits/losses and loss of employees just makes sense. Hopefully, the system for approvals will be improved from our experiences with the state’s CHIRP program or Washington’s Restaurant Relief Fund which sounded good, but left a sour taste in the mouths of many of my Members who applied but received nothing.

I would also note that the other pieces of legislation included in the small business relief package, including changes in Net Operating Loss offsets, waiving fees for retail food and liquor licenses, and the ability to deduct property taxes from owners’ CNI or PIT liability, are all positive steps, and would benefit our members.

Finally, I’d like to share that there are several other bills that would be helpful to our small businesses attempting to climb out of the economic hole created by state actions. Some of these may come to this committee, while others will be addressed elsewhere.

For example:

• Legislation to increase the liquor discount from 10 percent to 15 percent. This legislation passed the House in 2021 with a unanimous vote. This would be across the board, and have a minimal impact on the PLCB’s profits, but be very meaningful to our members’ cash flow as they struggle to stay afloat financially.
• Legislation to level the playing field for all licensees, and standardize the rules for amplified sound limits at property lines. Today, one of our members could be fined for ANY sound at their property line – but other licensees do not have the same restrictions. Modification of these rules would help incentivize our members to expand outside, and allow entertainment which attracts consumers.
• Allow business owners more opportunities to get creative with special promotions and happy hours, opening channels for new specials and specially priced combos. Our Happy Hour laws – like many others in this industry, are a throwback to earlier times, Blue laws, and control, not reflective of today’s consumers or markets. It’s time to allow licensees to make these financial decisions for themselves.
• And, we would again request you consider mixed drinks to go. Legislation to do this has passed the House twice with 170 votes or more. During the Covid-19 restrictions, this gave our members a small opportunity to maintain cash flow and expand offerings, without any increase in the incidence of liquor related accidents or arrests. According to the Distilled Spirits Council of the United States, 33 states adopted alcohol-to-go programs in the early days of COVID-19. Of those, 15 have extended approval of the programs, and 16 have passed laws enshrining the practice for good, including Among our neighbors, Ohio, Maryland (through 2023), and West Virginia and Delaware continue to allow this, and Delaware is voting on legislation to make it permanent as well. New York Governor Kathy Hochul just called for that state to make mixed drinks to go permanent there. New Jersey passed legislation last year allowing local governments to authorize cocktails to go and open container laws.

Decisions on the small business package and these pending issues are important to our family-owned businesses. Permanence in these rules gives us as small business owners some certainty to start rebuilding our business models. And our customers – your constituents – will benefit as well.

The Pennsylvania Licensed Beverage and Tavern Association looks forward to working with members of this committee and other senators on these issues.

Thank you again for inviting our Association to testify today. I’ll be happy to answer any questions you may have at this time.