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Texas Whiskey Association

Bar owners still mad at Abbott

Can’t blame them, but the situation is complicated.

As Gov. Greg Abbott outlined his latest reopening plan this week, bar owner Greg Barrineau watched in disbelief. Abbott, who announced that Texas restaurants could expand dine-in service to 75% capacity, said bars must remain closed.

“Some bars and their associations have offered some very helpful ideas,” Abbott said of reopening, “and we will continue to work with them on that process.”

But Barrineau, who has laid off his 12 staff members and suffered hundreds of thousands of dollars in losses at Drink Texas, a bar with locations in San Antonio and Boerne, said that assertion of collaboration is “insanity — he doesn’t care about small businesses.”

Michael Klein, the head of Texas Bar and Nightclub Alliance, which represents thousands of bars, said that Abbott’s statement about working together was “incorrect,” carefully choosing his words. The TBNA laid out a six-point plan to reopen in August, but Klein said the governor, whom he referred to strictly as “anti-business Abbott,” has not responded to the plan.

“We’ve never heard back from them,” Klein said. “We believe that he is disingenuous.”

Abbott’s office did not respond to requests for comment.

While restaurant owners applauded Abbott’s move to allow them to increase operations, Klein said Thursday’s ruling was “completely unacceptable” for many bars and other facilities where alcohol sales make up more than half of the revenue. It could leave 30% of Texas bars and 39% of distilleries permanently closed within six months, industry leaders said.

[…]

Spread from conventional bars and nightclubs has been widely documented throughout the U.S., and infectious disease experts caution going inside establishments that don’t follow social distancing protocols.

Kristin Mondy, chief of the infectious disease division in the University of Texas at Austin’s medical school, said there is increased risk in spreading the virus if strangers mingle in a tight, closed space, especially as drinking could cause bar customers to loosen their inhibitions.

Klein said the industry’s plan would reduce those issues by complying with Centers for Disease Control and Prevention requirements.

Some of the requirements in TBNA’s plan include ensuring all patrons are seated at their own tables, barring dance floors and mingling among groups, requiring face masks for all servers and customers when not at their tables, and conducting temperature checks upon entry. Mondy said these procedures could help as long as mask-wearing and social distancing are enforced.

[…]

Cord Switzer, who has helped run Fredericksburg Winery for almost 25 years with his family, said he has been able to technically and legally become a food server — but no one that comes is actually eating the food. That’s not why they go to a winery, he said.

“It makes no sense to me,” Switzer said. “We have never been interested in being in the food service business. We have no intent of doing that in the future, but it was our only choice.”

Switzer started wine tastings on Saturday for the first time in two months and hopes to begin recouping his losses after making 30% of last year’s revenue. But he doesn’t understand the governor’s categorization, and industry advocates share Switzer’s confusion.

“Texas winery owners continue to be perplexed by Governor Abbott’s steadfast refusal to recognize that the lion’s share of Texas alcohol manufacturer’s tasting rooms have little, if anything, in common with bars and nightclubs,” said Patrick Whitehead, the president of the Texas Wine and Grape Growers Association, in an email. “Governor Abbott’s arbitrary, and frankly unfair, act of lumping our tasting rooms into the category of bars is like a surgeon operating with a chainsaw rather [than] a scalpel.”

Switzer’s money troubles are not unique; nearly half of distilleries surveyed by the Texas Whiskey Association have experienced revenue losses greater than 60%. Spence Whelan, the head of the association, which represents distilleries across Texas, said continued restrictions could be disastrous for the industry, which normally relies on a big fourth quarter in holiday sales to stay afloat. This fall, with little or no visitors, that could be wiped out. Under Texas law, whiskey distilleries cannot ship or deliver whiskey directly to customers, nor can they sell more than two bottles of whiskey per person.

At the very least, Whelan said, those rules should be relaxed. Many places don’t want to open yet anyway, and there are other ways to bring in money. He said the industry has sent more than 15,000 letters to the governor’s office asking to waive those restrictions and has received no response.

Let’s acknowledge that bars are a high-risk environment for COVID-19, and the reopening of bars in May was a significant contributor to the subsequent outbreaks that swept the state in June and July. We should also acknowledge that there’s evidence that the reopening of restaurants, even at lower capacities, is also a risk factor in spreading COVID-19. The bar owners’ complaint – and wineries’, and distilleries’, and craft breweries’ – is that Abbott has been particularly rigid about how these risks are categorized, and has been unresponsive to any input that would allow these entities to operate in a lower-risk fashion.

I have a lot of sympathy for these complaints. Some bars have been able to reopen by creative interpretation of the 51% rule, by incorporating to-go service, and by a recent rule change that lets them have food trucks on their premises. But this doesn’t work for every bar, it imposes extra costs on them, and it doesn’t change the fundamental nature of their business. The only good thing that may come out of it is the expanded allowance for to-go service, and maybe if we’re very lucky a broader rethinking of our antiquated regulatory scheme for alcohol. I don’t know how effective the risk-mitigation strategies that have been proposed by the various industry groups would be, but we could study them and try the ones that comply with known best practices. We could surely let the places that have ample outdoor space like wineries and craft breweries with beer gardens take advantage of those spaces (to some extent we already are permitting this), and we could make allowances for those that have large and well-ventilated indoor spaces where social distancing would work. And, you know, Abbott and Dan Patrick could put a little pressure on the two Republican Senators to support a relief bill in Congress that included funds for bars and other places that rely heavily on alcohol sales (such as music halls) that just can’t be allowed to reopen right now. Abbott has done none of this, and as noted in the story has been repeatedly unwilling to engage in any discussion about it.

So this is both a legitimate set of concerns by members of a significant sector of the Texas economy, and a real opportunity for Democrats going forward. Dems don’t need to pander or reverse course on their properly-held principles about minimizing COVID risk. They just need to be willing to consider the various risk-mitigation strategies that have been proposed, and to continue to push for a response from Congress that truly addresses the broad economic pain that much of the country is still experiencing. Good policy is so often good politics, and the opportunity to do both here is enormous.

Wineries and distilleries

I’m happy to keep beating this drum, but I’d really rather not have to.

The owners and patrons of Ironroot Republic Distillery in Denison hardly consider the business to be a bar in the traditional sense.

There’s no loud music or dancing. The doors closed at 5:30 p.m. most nights before the pandemic. On Saturdays, they closed at 3 p.m. Most of its business came from out-of-towners booking tours who wanted to sip the “World’s Best Bourbon,” as designated by the World Whiskies Awards.

Nonetheless, Ironroot Republic Distillery was shut down late last month with the rest of the bars in the state under Gov. Greg Abbott’s latest executive order. Meanwhile, other businesses like restaurants, theme parks and bowling alleys are still open with limited occupancy. Abbott’s order required any business that gets 51% or more of its revenue from alcohol sales to close.

“We’re tourism industry businesses, we’re not bars. So they shouldn’t treat us like bars,” said Dan Garrison, owner of another tasting room, Garrison Brothers Distillery in Hye, a community in the Texas Hill Country.

Distillery, winery and even some restaurant owners with high alcohol sales say they are unfairly being caught in the crossfire of the statewide bar shutdown, despite running starkly different operations from those Abbott warned against when he issued his latest executive order.

“We’re all struggling to survive right now,” Garrison said. “And we’re about to lose a heck of a growing industry if the governor doesn’t do something.”

[…]

When Ironroot Republic Distillery shut down, most of the people who booked tours could no longer purchase bottles unless they were local to the area, owner Robert Likarish said. Delivering or mailing liquor to consumers isn’t allowed unless there’s a restaurant attached and the business has a mixed beverage permit.

Because it’s in a rural area, it’s been a challenge to get traffic to the distillery for curbside pickup. And even if people do come, state law only allows distilleries to sell two bottles of liquor to a customer within 30 days.

“Essentially, all the things that we’d normally do to help sell and push movement of our product are gone,” Likarish said.

Spencer Whelan, executive director of the Texas Whiskey Association, said the governor’s executive orders didn’t take into account the business models of distilleries and similar businesses.

“It was just kind of generally a wide-swath brush applied to everybody in the alcohol manufacturing industry if they had any kind of retail onsite consumption,” Whelan said.

Whelan is calling for the two-bottle limit to be waived and Sunday sales be allowed. But more than anything, he is urging Abbott to allow age-verified delivery — so that distillers can sell their products across the state.

[…]

Wineries, which often have spacious outdoor vineyards and patios where patrons can spread out, say they’re also being unfairly targeted.

“We were highly impacted by the shutdown and the pandemic just because we were forced to basically close our tasting room, which is where 90% of our sales are generated,” Lost Draw Cellars owner Andrew Sides said.

After missing out on sales in April and May — the months that typically perform best — the Fredericksburg winery reopened at the beginning of June with new rules: All tastings were moved outside, and only one group of people who came together was allowed at a time.

But then, along with bars, the winery was forced to close.

Sides said he wished that Abbott’s order had been more specific — his permit is different from bars’ permits, and people are largely taking the wine offsite to consume at home. It’s frustrating for him when other similar businesses — like a local salsa maker who allows onsite testing — can stay open.

“The whole intent for most tasting rooms and wineries is for people to come and try wine, buy it and leave,” he said.

As you know, I agree with all of this, even more so for outdoor tasting rooms. Let the places that serve food continue to serve food for pickup and delivery, and even for limited outside seating if they have it. None of that is particularly risky, and it will help a business community that really needs it. And of course, I’m all for dismantling our ridiculous system of regulations on beer and liquor. (Turns out that ridiculous anti-competitive beer distribution laws aren’t just for Texas, too.) Let the distilleries sell more bottles, and let them all sell on Sunday. It seems like some of this ought to be an easy Yes for Abbott, so I’m kind of puzzled why he’s not taken any action to help these folks. Whatever the reason, I hope they get some help before it’s too late.