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By in Latest News Comments Off on Survey Results: Small Business Taverns, Licensed Restaurants Severely Damaged Due To Pennsylvania’s COVID-19 Order

Survey Results: Small Business Taverns, Licensed Restaurants Severely Damaged Due To Pennsylvania’s COVID-19 Order

A survey of small business taverns and licensed restaurants indicates Pennsylvania could see a significant loss of locally owned establishments from closings as a result of the Commonwealth’s COVID-19 Orders.

The survey, conducted by the Pennsylvania Licensed Beverage and Tavern Association between August 25 and August 28, 2020, included 10 questions exploring financial difficulties.

Most troubling are indications that only 30 percent of the participating neighborhood-based establishments might survive the crisis. This is consistent with national surveys suggesting a possible loss of 70 percent of establishments.

In the PLBTA survey, participants were asked “Without any change to the Governor’s Order or financial assistance from the state and/or federal government, which best describes the future of your business after September 2020?”

Thirteen percent are already closed. Another five percent indicated they will close within a month, while 29 percent say they will likely close by the end of the year and 23 percent say they will likely close in 2021. Only 30 percent said they would not close.

Major layoffs and furloughs were also identified in the survey, again along the same lines as national studies. On average of those establishments participating in the survey, 13 employees per location lost their jobs as a result of COVID-19 Orders. When extrapolated across the industry, considering small business R and H license locations alone, about 109,200 Pennsylvania jobs were lost.

Financially, July 2020 proved to be troubling. The average establishment completing this survey lost $227,179 in July 2020 compared to July 2019.

Only 29 percent of the survey participants said they have not faced any cash flow problems. That suggests 71 percent have had difficulty paying bills including rent, utilities, and loan repayments.

“These results shouldn’t surprise anyone,” said Chuck Moran, executive director of the PLBTA. “When you’re limited to 25 percent indoor capacity and have seen increased expenses along with other difficulties due to state orders, you can expect a serious crisis to develop. This industry can’t sustain itself under these conditions. Changes in state restrictions along with survival and recovery financial packages are needed.”

The survey also explored other business-related difficulties including food and beer deliveries as well as supply deliveries for items such as paper products and cleaning items.

Of those participating in the survey, 89 percent were small business, single-location establishments, while eight percent were small businesses with more than one location. All own either an “R” or “H” liquor license. Three percent were clubs with club liquor licenses. No national or regional chains participated in the survey.

A total of 1,234 invitations to take the survey were sent statewide. There were 100 businesses that completed the survey during the three days. As a result, this survey has a 10% margin of error with a 95% confidence level when considering small business R and H licensees in Pennsylvania.

Working members of the media may request a copy of the results by emailing pataverns@pataverns.com. Please include your name and media affiliation.

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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.

By in Latest News Comments Off on Pennsylvania Licensed Beverage and Tavern Association Renews Its Call For State To Set Up Special Relief Program For Tavern, Restaurant Industry

Pennsylvania Licensed Beverage and Tavern Association Renews Its Call For State To Set Up Special Relief Program For Tavern, Restaurant Industry

(Harrisburg, PA – July 20, 2020) In light of revised state-directed COVID-19 orders negatively impacting taverns and licensed restaurants and the industry’s workforce, the Pennsylvania Licensed Beverage and Tavern Association (PLBTA) last week called on the General Assembly and Wolf Administration to create an industry relief package to help these small business establishments.

With the situation becoming more desperate as each day passes, this week the PLBTA again is urging state officials to move quickly to save an industry that is at a tipping point.

“The Tavern Association’s members have suffered as much or more than any other segment of Pennsylvania business and industry since mid-March,” said Chuck Moran, Executive Director of the PLBTA. “Our small business taverns, bars, and licensed restaurants have been closed, then limited in reopening, and been forced to comply with rigid and expensive requirements that make profits impossible, because the state has a hammer over them in licensing through the Pennsylvania Liquor Control Board.”

The costs for these mom and pop operations he noted, which exist on slim profits in the first place, have resulted in the closing of taverns, in the cause of preventing spread of the Covid-19 virus.  Many more are barely hanging on, in hopes that reopening would begin to limit their losses.  They have complied with every requirement, accepted every closing and limitation, and done their fair share and more to support the state’s effort to slow down the spread of the virus, Moran says

“The Governor’s action last week that threw the industry – and just one segment of the state economy – back into a virtual ‘yellow phase’ has jolted these small businesses, and made it increasingly difficult for them to survive,” Moran said.  “State Government needs to recognize the social and economic value of our community-based taverns and licensed restaurants, and provide them with support to avoid the permanent loss of hundreds of thousands of jobs.”

Moran predicts that with the governor’s most recent declaration the industry’s continuing financial hardships will continue likely until either a vaccine or herd immunity is established.

“We’re going to need a bigger lifeboat to save this sinking industry from the jaws of coronavirus,” Moran said. “Outdoor seating – and service of alcoholic beverages only with a meal is not a business model built for survival.  Sales of alcoholic beverages comprise the majority of income for many of these businesses, and food sales have been reduced to ten percent of their norm.  Loss of both has been devastating.  The latest proscriptions for these businesses make it virtually impossible to make a profit while maintaining the jobs they have created.  And being realistic, those that can survive through outdoor seating season will experience additional hardships once colder weather arrives in the fall and winter months, making outdoor seating impossible.”

To provide a lifeline to these businesses, today the Tavern Association again called on leaders in Harrisburg to act quickly on a restaurant and tavern industry relief package that would include the following:

  1. Passage of HB 2615, sponsored by Rep. Todd Stephens (R, Montgomery County), creating a Community Cornerstone Grant Program, to provide grants to small business restaurants and taverns to assist with COVID-19-related business losses, and expenses including costs associated with new outdoor seating, educational expenses including trade association memberships, hand sanitizer, staff PPE, indoor separators (plexiglass installation), digital thermometers… etc.
  2. Elimination of all license fees and surcharges for liquor-related service establishments for two years, provided the establishment had previously allowed on-site consumption.
  3. Elimination of all small games of chance license fees for R, H, E, and clubs for two years.
  4. Passage of SB 1194 or similar legislation providing limited civil Immunity from liability for bars, taverns and restaurants that attempt, in good faith, to adhere to the provisions of the COVID-19 emergency declaration, the Governor’s 3-16-2020 COVID-19 Business Closure Order or any other executive order relating to COVID-19, or any guidance issued by the Pennsylvania Liquor Control Board, the Department of Health or the Secretary of Health.
  5. Creation of a Small Business Tavern and Licensed Restaurant Promotion Program coordinated by both the PLCB and the Pennsylvania Licensed Beverage and Tavern Association to equal those financed for the beer, wine and spirits craft industries.
  6. Create a Liquor Licensee Specialty Council consisting of specialty associations within the industry including taverns, clubs, brew pubs, wineries, and distilleries to build future industry/state government dialogue.
  7. Permanent acceptance of mixed drinks-to-go as a business practice under the state Liquor Laws.
  8. To save money from delivery charges, allow licensed establishments the ability to pick up and deliver their own malt beverage orders, like the model followed when ordering spirits through the PLCB.
  9. Encourage outdoor seating by making the free temporary licensed premise extensions permanent at no additional cost to the licensee.
  10. Encourage outdoor seating expansion and support the entertainment industry by allowing up to 75 decibels of noise on a property line for all establishments with a liquor license, not just some.
  11. Modernize the state’s sanitation requirements to require tap cleaning once every 14 days.
  12. Cap third-party delivery charges for home delivery of meals from all restaurants and taverns.
  13. Increase discount that licensed establishments receive when purchasing liquor through state stores.
  14. Eliminate the $50 minimum purchase requirement at state stores in order for a licensed establishment to receive a discount.

 

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