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The pause effect on bars and restaurants

I feel terrible for them, but what could we do at this point?

Ed Noyes was trying to get some shut-eye when he woke up to seven different texts Friday morning.

Three of the five bartenders at his Fort Worth establishment — plus his girlfriend — delivered the news: Malone’s Pub had to shutter immediately under the governor’s orders. His employees wanted reassurances: Would the business survive? Should they file for unemployment? What were his next steps?

“We were just all in shock,” Noyes said.

On Friday morning, Gov. Greg Abbott delivered another economic blow to bars and other places that receive more than 51% of their gross receipts from selling alcohol. The establishments had to shut down by noon after a statewide surge in coronavirus infections officials said was largely driven by activities like congregating bars. There’s no immediate plan for when they’ll be able to reopen.

“The announcement just came out of nowhere,” Noyes said. “When I went to bed last night I thought we’d be open for the weekend, so this really blindsided me.”

Restaurants were ordered to scale back their operations to 50% capacity. And Abbott also banned river-rafting trips. They were his most drastic actions yet to respond to the post-reopening coronavirus surge in Texas.

But bars arguably faced one of the biggest challenges to operating in pandemic. Every tantalizing aspect of the nighttime hotspots — large crowds, prolonged bouts of close contact, mouths constantly open to drink or speak — clash with the health guidelines put in place as COVID-19 ravages the state.

[…]

Last weekend, the Texas Alcoholic Beverage Commission launched “Operation Safe Open” to ensure bars and restaurants were following coronavirus safety rules. As of Wednesday, 17 bars — out of nearly 600 businesses visited by the commission — got their alcohol permits suspended for 30 days.

In some enclaves, residents have complained about staff not wearing masks, social distancing measures not being enforced and tables not being cleaned after use.

“I went with a friend for a quick night out,” Steven Simmons, who lives in Tyler, said of a June 11 visit to a local pub. “Easy to enter the bar, just checked IDs and that was it. No social distancing being enforced, no hand sanitizer anywhere, tables were not cleaned after use or anything. Employees were not wearing a mask at all.”

But in other parts of Texas, including Austin and San Antonio, some bar owners say they’re trying to strike a balance between their livelihoods and business and public safety.

“We joke at the Friendly Spot Ice House that we make a ‘bestie pack,’” said Jody Newman, the owner of the San Antonio hotspot. “The pact is that people ‘friendly’ distance, that they mask up, that they have clean hands and that they be friendly and understand we’re all going through this together.”

Still, since opening during the first week in June, Newman said she’s seen about 30% of the business she would normally get at this time of year.

With Friday’s announcement, Newman said, “thousands and thousands of livelihoods hang in the balance.”

Here’s a local view of this dilemma.

“The whole thing is a mess for everyone. Obviously, we’ll have to adjust again,” said Alli Jarrett, owner of Harold’s Restaurant & Tap Room in the Heights, adding that reducing capacity means she will not be able to bring back workers she had hoped to re-employ. “It’s not just restaurants. It’s every single business – every segment of the population. We’re all in the same boat. It’s just really, really hard.”

[…]

Brian Ching, owner of Pitch 25 in EaDo, fears the worst. “I don’t know if the business will be here in a month, two months,” said Ching, who also is readying another bar, East End Backyard, to open in July. “We were able to get PPE but we’ve burned through it all.”

He is most concerned for his workers, he said. “This time around, being closed with no PPE, we are likely going to have to furlough employees. I feel for all of them. There seems to be no end in sight.”

Bar owner Andy Aweida said he worries what the bar shutdown will mean not just to his staff but to all those in the bar industry.

“We did everything we were asked and did it well. It’s unfair to them and many others. So many people are doing what is needed and playing by the rules,” said Aweida, a partner in the Kirby Group whose bars include Heights Bier Garten, Wooster’s Garden and Holman Draft Hall. “I truly feel horrible for all those amazing employees, staff and many other good, hard-working people this affects.”

Lindsey Rae, who opened Two Headed Bar in Midtown only six months ago, conceded that the first year for any business is the toughest. But the bar closures are catastrophic.

“This is going to be a financial disaster for us,” she said. “We are down 85 percent since the pandemic. All of our revenues are exhausted. We can only afford to operate for about one more month unless Gov. Abbott will give us some gleam of hope.”

Hope, however, seemed fading on Friday for Lukkaew Srasrisuwan, owner of the new Thai restaurant Kin Dee in the Heights. She saw six reservations cancel after the announcement.

“This is going in the wrong direction,” she said. “We are complying with the guidelines. We are a small restaurant and we just opened. This is tough.”

At 75 percent capacity, Kin Dee was “doing OK,” Srasrisuwan said. But not for long. “We can’t sustain at this level for more than one or two months,” she said. “I’ve seen the number of COVID-19 increase so I am not surprised by Gov. Abbott’s announcement but I am worried. We don’t want to lose our staff but I don’t know how to keep operating at this rate.”

For some restaurant owners, Abbott’s pullback was not unexpected.

“It’s about time, to be honest. I thought we reopened too soon,” said Christopher Williams, chef/owner of Lucille’s in the Museum District. “It’s the most responsible thing I’ve heard from (Abbott) in a while.”

Williams said he will be able to weather the capacity reduction because he was able to remain solvent by streamlining his menu, dropping prices, and increasing take-out. “At a time like this everyone needs to take profitability out of the equation. It’s about sustainability.”

George Mickelis, owner of the iconic Cleburne Cafeteria, said he was grateful for Abbott’s decision, and said he would be able to continue staying in business even at 50 percent.

“Obviously, no one wants to return to a complete shutdown and we pray that that is absolutely never necessary again,” Mickelis said. “We are all Texas tough and we will prevail.”

Two things can be true at once. This is a terrible blow to a crucial part of the Texas economy and culture. I’m much more of a restaurant person than a bar person these days, but bars are a key ingredient to neighborhood life, and a vital hang-out place for many people. They also employ a lot of people who’ve just been put back out of work at a time when we don’t know if there will be further federal assistance coming and the state of Texas has gone back to requiring out-of-work people to be actively job searching in order to get unemployment benefits. It’s also the case that we should have been a lot more careful and deliberate in allowing bars to reopen in the first place, precisely because everything about them makes them a prime vector for spreading a disease like COVID-19. I don’t know what else we could have done now, but it’s surely the case there are things we can and should have done differently before now.

Other businesses are now in a similar bind.

In the backyard of her business, Cutloose Hair, salon co-owner Ashley Scroggins watched a livestream Friday morning on her phone. On the screen was an image of Harris County Judge Lina Hidalgo speaking of the risks of COVID-19 to the region.

“Today we find ourselves careening toward a catastrophic and unsustainable situation,” Hidalgo said. “Our current hospitalization rate is on pace to overwhelm the hospitals in the near future.” She called for nonessential workers to stay at home.

Scroggins put down her phone and put on her mask. Then she walked into her salon, shut down the online booking system and began calling upcoming reservations: The salon was closing until cases subsided.

Officials have moved to contain the number of known COVID-19 cases spiking across the state, often through conflicting messages that left businesses attempting to weigh health risks against economic concerns.

While Hidalgo recommended nonessential workers stay home, she no longer had the power to enforce such a plan because Gov. Greg Abbott had superseded it with his own plan to reopen the state. Friday morning, Abbott rolled back portions of that plan — ordering bars and tubing and rafting establishments to suspend services and restaurants to cap dine-in capacity at 50 percent — but maintained other businesses could remain open.

That left salons, restaurants, gyms, offices, retailers and other businesses Friday to decide whether to heed Hidalgo’s call to return to the stay-at-home precautions she had the power to enact in March.

Many, like Cutloose Hair, decided shutting down on-premise operations was the right thing to do.

“It’s not getting better,” Scroggins said of the pandemic. “And the only way we can truly support our city is just to do what they’re asking us to do.”

It’s not an easy choice for many. My company, for which I’ve been working from home since March 6, two weeks before the city shut down, has suspended its plan to start bringing workers back to the office until further notice. I suspect there will be a lot more like this, and there should be. If you can reasonably work from home, there’s no good reason not to.

One possible small bit of hope for the bars and restaurants:

Under current state rules, restaurants and bars can sell beer, wine and liquor, but only in closed containers with their manufacturer’s seal intact.

The organization Margs For Life is lobbying to change that.

Founder Kareem Hajjar, also a partner in the Austin law firm Hajjar Peters LLP, is talking with Texas food and beverage associations to build support for an emergency order to let bars sell mixed drinks in containers that they seal on premises.

“While that work continues today, Margs For Life has evolved into a community of people who are either in the industry or support the industry, where we can share news and events, and help one another be as profitable as possible during this pandemic,” Hajjar told the Current.

Margs for Life’s proposed rule change, proponents say, would help restaurants and bars reduce inventory — and allow some facing dire financial circumstances to stay afloat.

“I’m privileged that I work at a bar that has granted me the ability to do to-go cocktail kits… But bars and restaurants would benefit from FULL to-go kits,” said David Naylor, a bartender at San Antonio craft-cocktail bar The Modernist, via a Facebook post. “Manhattans expertly built, Negronis that don’t require you to amass a stocked bar… ALL these are possible if [Gov. Abbott] would allow it.”

Abbott has expressed support for this idea.

Abbott originally signed a waiver March 18 allowing to-go alcohol sales, in an effort to support struggling restaurants after they closed their dining areas. The waiver was originally to last until May 1, but it was extended indefinitely. Abbott teased that this change could be permanent, tweeting at the time, “From what I hear from Texans, we may just let this keep on going forever.”

Abbott again tweeted late Saturday that he supports the idea of extending his temporary waiver. State Rep. Tan Parker, R-Flower Mound, replied, saying that he will file a bill in the upcoming legislative session to make it happen, also advocating to allow restaurants to continue selling bulk retail food items to go.

[…]

The Texas Restaurant Association submitted a proposal Thursday evening to Abbott’s office, asking to expand the waiver to also allow mixed drinks with liquor to be prepared, resealed and sold.

Cathy Lippincott, owner of Güero’s Taco Bar in Austin, said its margarita to-go kits were very popular during the beginning of the restaurant shutdowns, but as dining rooms began to reopen, sales dwindled. Now, days could go by without the restaurant selling a single kit.

Under the Texas Alcoholic Beverage Commission guidelines, restaurants can only serve liquor in manufacturer-sealed bottles and with the purchase of food. For several restaurants, including Güero, this means their drinks are served in do-it-yourself kits, where customers mix the ingredients and liquor together.

Lippincott believes that if mixed drinks were also allowed to be served to go, she could see that being a popular option.

I support this as well, and any action that can be taken now to achieve this should be taken. And then, when the Lege convenes in January, we should not only pass a law to make this permanent, but also revisit all of our archaic and anti-competitive laws that govern the manufacture and sale of beer, wine, and liquor. You know what I’m talking about. Let’s please at least let this terrible pandemic be a catalyst for something good.

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2 Comments

  1. David Fagan says:

    I know what you’re talking about, Kuff! I’m all for making my own alcohol at home too! Cut out the middle man anti competitive, and archaic laws! WHOO-HOOO!

  2. […] one way to cure that disparity would be to order that all of them be closed for all except to go service. We’d also need to […]

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