Good afternoon,
Below are updates on the latest City of Chicago Covid mitigations, City of Chicago lawsuits against several third party delivery apps, and a few details on Congress replenishing the crucial Restaurant Revitalization Fund program. Along with news updates on the overall City economy and recent troubling public safety issues in nightlife districts.
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State of Illinois and City of Chicago both issue Indoor Mask Mandate
"In the first weekend after the mask mandate began, BACP said it conducted 55 investigations, which resulted in at least 16 citations. During that same time, eight businesses were issued a "notice to correct" for things like failing to post "required mask mandate signage."The following weekend, another 61 investigations were done, with five businesses cited for not abiding by the mandate, the department said."
HBAC has requested copies of the enforcement reports to glean additional guidance for member businesses, however repeated points of emphasis by BACP staff have been:
1) Bars, restaurants, and music venues MUST have the City mask order sign posted at each customer entrance to a business. You can download the required sign here.
2) Staff on the clock MUST wear masks when indoors including security/host staff at or near entrances.
HBAC will share the details on other BACP enforcement trends as soon as possible once the mask mandate inspection records are available. Meanwhile get those City signs up at your entrances and ask your door staff to mask up whenever they step indoors.
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Governor Pritzker approves many changes to Liquor Control Act
ILCC takes over delinquent list Jan 1, cooperative purchasing agreements allowed
On Friday, August 20th Governor Pritzker signed Public Act 102-0442 into law a lengthy bill making many adjustments to the Illinois Liquor Act. Many of the changes are primarily applicable to brew pubs and small brewers and oddly, producers of mead. The main changes for bar, restaurants, and music venues are threefold:
1) Management of the Delinquent List for Wine & Spirits invoices will move from the Wine and Spirits Distributors of Illinois to the ILCC on January 1st, 2022. While this should be a minimal change for most retailers, HBAC will work with both the ILCC and WSDI to minimize disruptions to retailers placed on the Delinquent List thru administrative error or bona fide payment disputes with a wholesaler. Also note that the State of Illinois takes more paid holidays than the WSDI office does so quick removal may not be as readily available to retailers placed on the Delinquent List.
2) In a much needed and long overdue reform, the new law also makes a retailer's emergency run to a corner store to replace some out of stock wine or spirits a warning offence and not an automatic fine for first and second offenses in any 12 month period. Please note that retailers on the Delinquent List are NOT allowed to do this, and would still face major potential penalties for a violation if they purchased products from a retailer. This change aligns Illinois with Wisconsin and allows retailers a little much needed flexibility in these times of rampant out of stocks at wine and spirit wholesalers. Please note: Buying beer or hard seltzer from other retailers remains a fine-able offense for any Illinois retail liquor licensee.
3) The new law also allows the creation of "cooperative purchasing agreements" by retailers for wine and spirits purchasing. This concludes (hopefully) a contentious, years long dispute between Chicagoland's chains of smaller liquor stores and the wine and spirits wholesales. Under the new law, groups of those liquor stores or on-premise retailers can aggregate their orders of wine and spirits to obtain better pricing. The minimum combined cooperative order is for 250 cases, and every member of the cooperative must take at least 2% (5+ cases) of the product in question. The cooperative purchasing agreement must also be in writing and submitted to the ILCC.
In theory this would allow on-premise retailers to combine for superior pricing on bulk purchases. However several years ago before this became an area of intense dispute HBAC attempted to assist two large, fairly cohesive groups of retailer members pursue these types of deals and the agreements generally fell apart as the small businesses disagreed on multiple matters. However these cooperative quantity discounts are definitively now legal so please contact HBAC if you and fellow retailers are interested in pursuing one and we'll be happy to assist you in navigating the new legislation.
HBAC will offer a webinar after the Labor Day holiday covering all these new changes in more detail. Registration details in our next HBAC newsletter.
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Restaurant Revitalization Fund Update
UPDATE: NOTHING'S CHANGED, KEEP CALLING AND SOCIAL MEDIA POSTING YOUR MEMBERS OF CONGRESS AND ASK THEM TO #ReplenishTheRRF.
As most HBAC members are well aware, a majority of Chicago Restaurant Revitalization Fund (RRF) applicants have yet to be funded. Efforts are ongoing in Congress to replenish the RRF to provide this badly needed assistance to every eligible applicant. Unfortunately on August 7th, 2021 Senator Rand Paul (R-Ky) blocked efforts to fast track replenishing the RRF in the Senate. With the vast majority of US Senators in support RRF will very likely receive additional funds in the next several months, but the timeline is far from clear.
Please use this excellent toolkit from the Independent Restaurant Coalition to contact your members of Congress and educate your customers and staff on the importance or replenishing the RRF. Even though much of the Chicagoland congressional delegation is fully in support of replenishing the RRF every bit of outreach you, your staff, or your customers send to Congress increases the urgency on Capitol Hill to fully fund this critical program for Chicago's bars, restaurants, and eligible event venues.
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Chicago Bar, Restaurant, and Music Venue News Briefs
"The city of Chicago has filed separate lawsuits against Grubhub and DoorDash alleging the third-party delivery companies “engaged in deceptive practices to prey on its affiliated restaurants.” The lawsuits, filed today, August 27, in Cook County circuit court, contain a multitude of allegations, including that the companies use bait-and-switch tactics to fool customers into thinking they’ll be paying lower fees compared to what they’re ultimately charged."
HBAC will cover the new lawsuits in more depth in our next newsletter after the third party food delivery apps file their lawsuit replies, and/or City also files suit against Postmates or UberEats.
HBAC, at a minimum, will continue to urge City Council members to adopt permanent legislation in Chicago banning the apps from re-directing customer phone calls from bars and restaurants, and listing businesses on their apps without consent (aka Postmates).
"CHICAGO (WLS) -- Two men were robbed and beaten in River North over the weekend as bystanders looked on and took video, video shows.
Video from the city's POD security camera, first obtained by CWB, shows the scene in the 400-block of State Street around 1:30 a.m. Saturday.
It starts with shoving and what appears to be some kind of street argument, and quickly develops into a pile-on beating. There is no rush by bystanders or anyone else to stop the attack."
"Even as tax receipts show that the city’s hospitality industry has yet to rebound from the pandemic, Chicago collected 6.5% more revenue through July than it expected, driven by taxed generated by Chicago’s red-hot real estate market, Park said."
"CPD surveillance video shows a woman wearing a leopard print dress firing a gun at 455 North LaSalle around 10:21 Sunday night, shortly before the 32-year-old victim walked up to a group of people outside Boss Bar, 420 North Clark, and said he’d been shot in the neck, Assistant State’s Attorney Darryl Auguste said.
As three bystanders treated the bleeding man’s injury, a woman in a leopard print dress walked up and shot the victim again at point-blank range in his back, according to Auguste. Once again, the shooting was captured by surveillance cameras."
A simple reminder that working security cameras in your bar or restaurant can be invaluable in defending your business against lawsuits and in aiding Chicago Police Department investigations. And also that Chicago Municipal Code requires liquor licensees to promptly cooperate with City agents when they request security camera footage. So make sure your managers know how to contact you or operate the video export function on your security camera system.
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HBAC partnered online BASSET Training
Did your State required BASSET certification for responsible alcohol service expire during the pandemic? Illinois requires it for all bartenders, servers, and staff who check customer identification.
Not sure if your State of Illinois BASSET certification is current: You can easily check your certificaiton on the Illinois Liquor Control website here: ILCC BASSET card lookup tool.
HBAC in partnership with SureSell Training offers State approved BASSET Training online for on-premise retailers which covers all required areas including responsible service and ID verification basics. The course cost is a competitive $12.95 and HBAC also receives a commission on all enrollments to help fund Responsible Service programs. The HBAC responsible service programs include generating and sending certificates to the hundreds of bars and restaurants who successfully pass Chicago Police undercover Sales of Alcohol to Minor (SAM) stings every year.
In addition using the HBAC SureSell portal allows us to easily find past student records of course completion and help them obtain replacement cards as needed, a huge time savings to you and HBAC.
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Hang in there,
Pat Doerr
Managing Director
Hospitality Business Association of Chicago
312-494-5880
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Hospitality Business Association of Chicago • www.HBAChicago.org
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