Local bars fight to survive with restrictions in place

By TAYLOR BROWN

tbrown@yourmvi.com

A bill that would allow take-out sales of liquor could make or break business for local bar and tavern owners, 

Under HB 327, which passed in the Pennsylvania House of Representatives last week, restaurants and hotels that lost at least 25% of their average monthly sales as a result of the coronavirus shutdown would be permitted to sell prepared beverages and mixed drinks and deliver them curbside.

It still needs approval from the state Senate and Gov. Tom Wolf.

Sponsored by Rep. Perry S. Warren, D-Bucks County, the bill states that the drinks must be in a lidded container and must not exceed 64 ounces per transaction.

The drinks must be carried to the trunks of cars or another area not occupied by the driver or passengers.

Many bars and restaurants have been offering curbside service for food and six-pack orders since Wolf ordered non-life-sustaining businesses to shut down in March.

Many restaurants decided to close entirely while pandemic restrictions are in place.

Brenda Lee Hoye, owner of Brenda Lee’s Bar & Grill in Washington Township, said the reason is simple.

“We can’t pay our bills if we cannot run our business,” Hoye explained.

Brenda Lee’s closed March 17 for fear of being cited by state police or the Liquor Control Board.

However, the stress to keep the lights on and pay bills came to a head.

“Due to the financial stress and the bills still coming in, along with our liquor license fee of $1,390 due by May 1, I figured doing a little bit of food business would bring at least some money in.”

The bar reopened for takeout with curbside pickup April 13.

It has continued to struggle financially, and Hoye is using money from her personal checking account to stay afloat.

“Our food sales can’t sustain the bills,” she said. “Especially licensing and insurance fees that need to be paid.”

The bar is operating three days each week — from 3 to 9 p.m. Mondays, Thursdays and Fridays — for take-out and curbside pickup.

“Our beer and alcohol sales are about 80% of our business, so we are really feeling the pinch right now,” Hoye said.

She doesn’t agree with the restrictions that have been imposed on small businesses.

“The mandates for small businesses have been absurd,” Hoye said. “You have the big-box companies allowing 500-plus customers in their establishments daily, while the small businesses, especially bars, don’t house that many people on a good night.

“Small businesses are at a lower risk of spreading COVID-19 than these big-box companies because of less interaction with the public. Plus, smaller businesses have a better chance of sanitizing between customers than the bigger businesses can.”

Hoye was excited when she heard about the proposed legislation, but ultimately doesn’t think it will make a difference.

Hoye said people go to bars for the experience.

“We’ve already been permitted to sell wine and six-packs to go, but the truth is, people want that interaction with other people, a place to unwind after a rough day,” Hoye said. “I don’t know how everyone else feels, but I like to be among all of my friends enjoying my cocktails, not sitting home drinking alone. So no, it’s not really going to benefit our sales that much.”

She has been able to remain open with help from two friends.

“I would never be able to do this without the help of my two right-hand people, Mackenzie Bennett and Denise Poole,” Hoye said. “I am so grateful every day for these two wonderful ladies.

“God bless all of us small businesses. We’ve got to remain strong and don’t forget to support each other once this is all said and done.”

Chub’s Pub in Donora has been in Steve Walko’s family for more than 30 years, but they have never faced anything like the COVID-19 pandemic.

Walko said the order for bars to close has resulted in a drastic financial impact to the point where he considered shutting down.

“I thought about initially closing in the beginning, but then it became apparent that this was going to carry on,” Walko said.

Once open seven days a week, the pub is now only open from 11 a.m. to 8 p.m.  Tuesdays through Fridays — and it delivers.

Since the start of the pandemic, Walko has lost 45% of his workforce.

“I gave everyone the option of working or taking a layoff if they were not comfortable working and we proceeded from there,” Walko said.

Despite losing 60% of business in dine-in food and alcohol sales, he has adapted.

“We’ve had to adapt, open earlier for takeout and delivery food service to tread water and meet payroll for the employees still working to keep the business afloat,” Walko said.

Food sales have increased since the lockdown, but times are still tough.

“Although food sales have gone up because of the tremendous support of our community, we are generating very little profit with losing a large percentage of business,” Walko said. “I’ve had to stop paying myself in order to keep the business operating in the black.”

Before the coronavirus crisis, food made up 30% of sales.

“Since COVID-19 food sales have picked up, but we are missing out on thousands in sales weekly,” he said. “Our food sales have increased about 30%, but alcohol sales are practically nonexistent.

“We count on dine-in consumption, and absolutely no liquor sales are mandated with on-site consumption right now.”

While Walko understands the mandates, he doesn’t think the bill will help.

“The novelty will wear off, especially in smaller areas like ours with low car and foot traffic,” Walko said. “It’s a very minor Band-Aid for a huge problem.

“I don’t feel comfortable promoting stronger mixed drinks being made and potentially leaving my premises and getting behind the wheel of a vehicle. That’s a liability that I’m not willing to risk.”

He intends to make the best out of a bad situation.

“I understand with my business why there are limitations on having people inside my premises during a pandemic,” he said. “It’s irresponsible to put money before anyone’s health. I also need to survive.”

He thinks state leaders could have handled things differently.

“The state of Pennsylvania caused hysteria and other states to benefit financially by shutting down the Fine Wine and Good Spirits stores across the state,” Walko said. “When we were required to stay home, people were traveling across state lines to neighboring states to purchase their alcohol, which is counterproductive to their intentions of keeping everyone inside.”

The cost of a liquor license also makes it difficult to survive.

“It’s a shame that Wolf doubled our liquor license fees two years ago,” he said. “My fee went from $600 to $1,300 yearly and they have not talked about deferring the fee until we can operate at 100%, or a few months to build our revenue back up, nor did they talk about reducing the fees to help ease the financial burden on us small bar and restaurant business owners.”

Roy Arthrell, owner of Roy’s by the Tracks in Finleyville, said the shutdown has caused a significant financial strain.

Gross sales have dropped from $8,000 each week to about $1,200.

“It has been tough,” he said. “We went from about 30% of sales being from the kitchen, to about 60% of our sales right now being food orders. But our sales are almost nothing.”

Arthrell also considered closing, but realized the importance of providing for employees and customers.

“I wanted to keep people working if I could to help them out,” he said. “But I am also trying to survive and keep our customers happy.”

Since the mandates, Arthrell has struggled to pay bills.

“I have had to lay off most of my people and have not been able to make my bills,” he said. “When you lose that much money, it gets hard to pay the mortgage, the gas and keep the lights on because I simply don’t have it.”

But Arthrell said he respects the current orders in place.

“I hate to say it, but I do support it,” he said. “People come in here from all over. I am scared; I am 70 years old and have medical issues. I have to be careful and I have to keep my employees safe, too.”

It takes $7,000 each month to pay all the bills and utilities for the bar.

“We are barely making that,” he said. “Not to mention ordering food, beer and all of the small expenses people don’t realize you spend in this business.”

Arthrell has spent time, manpower and the little profit he is making to remodel, but he may consider closing if the shutdown continues.

“I want to say no, but realistically I don’t know what will happen,” he said. “If it’s longer than I am thinking, it will have to be something I consider.

“When you stop making money, you have to think twice.”

When bars get the OK to invite patrons inside, he won’t have the stock they are used to.

“I will be ready, or at least try to, but I won’t have near the liquor I should have because I won’t have $3,000 or $4,000 to stock up,” he said. “But we’re excited to have our family back together. Because that’s what people who come here are to each other. A family.”

While owners are unsure of how the legislation would work, they remain hopeful to fully reopen whenever it’s safe to do so.

Hoye said the bar will return better than before.

“I plan on coming back stronger and better than ever,” she said. “Maybe have an after-quarantine reopening bash. I’m going to hold on to this business as long as I can. We’ve met a lot of new people and have a great support system at our small establishment. “

Her late husband, John, helped her to open the business.

“We decided to buy this bar/business because he had total faith in me that it was something I could do,” she said. “I’m not going to let him down. We’ve had a great couple of years and I will not let a few months ruin my livelihood.”

Walko said Chub’s Pub will also reopen whenever it’s safe.

“We will absolutely open when it makes sense to have gathering without fear of putting our community at risk,” Walko said. “We have been fortunate. Not everyone is in the same position, and that’s why it’s important to support local whenever you can during times like these.”

Arthrell believes people will flock to bars and restaurants as soon as possible.

“I think people have had enough and they can’t wait to get out,” he said. “And we’re excited to have them. I can’t wait to see everyone and everyone I talk to; they can’t wait either. They want to get back into the bars, if nothing else for the camaraderie.”

Arthrell said it will be a cause for celebration.

“We’re going to have a blowout,” he said. “As soon as I can put a stage up and have people here, it’s going to be big.”