North Carolina bar owners feel left behind by Cooper’s opening guidelines
Protesters in Raleigh call on the Governor to open bars in ‘Phase 2.5’ Source.
COVID-19 has been extremely damaging to businesses, but perhaps the class of establishment suffering the most are bars. Governor Roy Cooper has made efforts to reopen North Carolina, recently allowing the state to move from Phase 2 to a limited “Phase 2.5”. However, this expansion only allows a few new business sectors to reopen, none of which are bars. Currently, bars that serve food are able to open at 50% capacity but food sales must account for 30% of all sales. This has been difficult for bar owners who are suffering financially.
As of now, 85% of bars in North Carolina are open, yet roughly 1,000 private bars remain closed because they lack a food menu. Many of the closed bars have relied on to-go sales and selling merchandise in order to compensate. Nevertheless, the Alcohol Law Enforcement recently deemed to-go orders to be illegal. The executive officer of the Mecklenburg County ABC Board Law Enforcement Division, David McCoy, has questioned why bars are unable to fulfill to-go orders considering North Carolina’s ABC Commission spokesman has said beer and wine can be sold to-go. Cooper’s instructions have left county officials, bar owners, and McCoy himself confused about the issue.
Over the summer, Cooper restricted alcohol sales after 11pm in order to maintain social distancing. On August 31, Cooper extended the curfew until October 2, which would delay the reopening of bars. The decisions were reached after expert claims that it is more dangerous to open bars due to large crowds and the removal of masks in order to drink. While these concerns are understandable, North Carolina restaurants are open and face the same concerns. Furthermore, all but three states, including North Carolina, have opened their bars. Some of these states have strict guidelines, including social distancing and limited occupancy, so the question remains as to why bars specifically are closed in North Carolina. The effort to ensure people’s safety is understandable, however, Cooper also has the responsibility of ensuring the well-being of small businesses.
Economically, it is vital that bars open. According to Michael Walden, an N.C. State University economist, the closure of businesses due to the pandemic will already result in 2-3 years of a weakened economy. In addition, 40% of businesses will not survive. Pandemic closures have particularly hit the food and beverage industry hard, which is significant because the industry comprises 11% of North Carolina’s workforce and is responsible for billions of dollars in revenue each year. State Democrats believe the best way to handle the situation is to close businesses with a greater risk of transmission and fund them through grants. However, many businesses do not qualify due to the 90% rule, which requires a business to have retained 90% of its employees to receive funding. This may seem simple, however, at the beginning of the pandemic, businesses released workers in order to stay afloat and now cannot receive funding. State Republicans feel the best way to fix this issue is to allow these businesses to open.
Although some businesses have not qualified for North Carolina’s funding program, they have qualified for the Federal Paycheck Protection Program, but have not found the funding sufficient. Jackie DeLoach, the owner of Hattie’s Tap and Tavern in Charlotte, expressed her frustration with the federal loan and has now resorted to running a Go Fund Me page and hosting car washes in order to pay bills. The fact that a business has resorted to high school-style fundraisers to stay open is a testament to the havoc the virus has wrought on small businesses. Not only has it become evident that small businesses cannot rely solely on state funding, but it has also been demonstrated why it is important that businesses open, regardless of restrictions.
In June, bar owners created the North Carolina Bar and Tavern Association in order to sue Cooper in hopes of reopening; unfortunately, this was ineffective. Some owners are convinced the government has forgotten them due to the lack of information they have received regarding plans for reopening. In order to express their concerns, many have protested outside the Governor’s mansion proclaiming “save our bars”. They have attempted to gain the governor’s attention in order to show why it is crucial they open, however, they feel as though nobody is listening.
The pandemic has caused many to suffer financially, but especially small businesses. It is crucial these businesses open so they can have a chance to survive. Striking a balance between protecting public health due to the pandemic and closing businesses, and protecting the health of the economy by allowing them to reopen, has clearly been difficult, and business owners are suffering as a result.