Pa. restaurants hope for financial aid as they struggle ‘more than they did in 2020′
January 26, 2022

Between tracking down supplies, hiring workers and juggling daily responsibilities, restaurant owner Jennifer Fertenbaugh said she’s exhausted.

On Wednesday, Fertenbaugh, co-owner of Cafe Fresco Center City and Level 2 nightclub in Harrisburg testified during a Senate Community, Economic and Recreational Development Committee hearing about the struggles she’s facing as a small business operating during the pandemic.

“We’re at the very beginning of recovery, and in this new market that has to be a consideration or Café Fresco and restaurants like that won’t be a place for you gentlemen to dine because they won’t exist.” said Fertenbaugh, who owns the businesses with her husband Brian Fertenbaugh.

Restaurants and other small businesses in Pennsylvania suffering as a result of the pandemic could see more financial relief in the future. Sen. Ryan Aument, a Lancaster County Republican, continues to push for two bills he originally proposed in 2020 that would inject restaurants, bars, taverns and small businesses with financial assistance.

“If we want to emerge from this crisis stronger than ever before, we need to make a concerted effort together to create a favorable environment for business and job growth,” Aument said.

Under his proposal, the Pennsylvania Treasury on a temporary basis would offer no-interest loans funded through a long-term bond to businesses shut down by Gov. Tom Wolf in the early days of the pandemic.

The second bill would establish a temporary improvement tax program to allow businesses that have done well during the pandemic to make a donation to struggling businesses in exchange for a tax credit. The program would be capped at $500 million.

The two bills, Aument said, would provide immediate and long-term relief for bars, taverns, restaurants and small businesses, which have been hard hit by the pandemic. It will take years, not weeks or months, for these businesses to fully recover, he added.

Zak Pyzik, director of government affairs for the Pennsylvania Restaurant and Lodging Association, stressed additional relief is needed for the restaurant industry to create a safety net and give owners a predicable path forward.

He noted sales nationwide are down 30% compared to this same time of the year in 2019, while 93% of restaurants report staffing shortages and 65% are experiencing higher food costs. Many restaurants have reduced hours while others are closed on days they normally would be open and many are experiencing a drop in demand due to the omicron variant, he said.

“Many small businesses are struggling more than they did in 2020,” he said. “There’s a new economy that they have been left to navigate. Operators face new difficulties every day such as the staffing crisis that we’re seeing, supply chain issues and rising costs on raw materials.”

Thomas Tyler, president of the Pennsylvania Licensed Beverage and Tavern Association, said its members need support to recover from the losses incurred over the past two years.

While the idea of no interest-free loans is good one, Tyler, who operates McStew’s Irish Sports Pub in Levittown, said more borrowing may not be a solution for all bars and taverns, especially those who already have dipped into their life savings.

As for the grants, he said basing the criteria on lost profits and loss of employees makes sense and he hopes for a fair system of approvals. Tyler said many were left with a sour taste after applying for other programs such as the Pennsylvania’s COVID-19 Hospitality Industry Recovery Program and Washington’s Restaurant Relief Fund and receiving nothing.

Pennsylvania allocated $145 million to businesses adversely affected by the coronavirus pandemic.

He noted there are several other bills that additionally could help the industry including proposals to increase liquor discounts from 10 to 15%, better happy hour laws and the return of mixed drinks to-go.

https://www.pennlive.com/food/2022/01/pa-restaurants-hope-for-relief-as-they-struggle-more-than-they-did-in-2020.html

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