COVID-19 (AKA THE CORONAVIRUS) UPDATES
Monday, May 4
Guidance for Reopening Restaurants on May 11, 2020
Today, Governor Ducey announced that restaurants may resume dine-in operations on Monday, May 11, 2020. Restaurants choosing to reopen will need to implement protocols and best practices for guarding against the spread of the Coranavirus. To assist restaurants in this process, the Arizona Restaurant Association has developed "Welcome Back to the Table: Restaurant Guidance on Reopening Dining Room Operations." This document contains the guidance from the Centers for Disease Control (CDC), Arizona Department of Health Services (ADHS) as part of the Governor's order, as well as a series of best practices.
The Arizona Restaurant Association worked with industry leaders, public health experts, restaurant operators of all sizes, and our supplier partners to develop these guidelines to assure customers that the restaurant industry is taking a leadership role in protecting our community. While not enforceable by law, these guidelines should serve restaurants as they analyze the best and safest way to welcome customers back to the table
Access Back to the Table Guidance
Wednesday, April 29
May 12, 2020 is Target Date for Reopening Restaurants
Governor Ducey announced today that the State will begin opening up the economy next month, with May 12th-15th, 2020 as the target date for the limited reopening of restaurant dining rooms. In his announcement, Governor Ducey said he will continue working with the Arizona Restaurant Association (ARA) to develop guidance for restaurants to utilize during the reopening.
In response the ARA issued the following statement:
The Arizona Restaurant Association President and CEO, Steve Chucri has been working closely with Governor Ducey to create a strategy to safely reopen restaurants throughout the state.
"We appreciate the Governor's thoughtful and inclusive approach. And though we are not ready to open today, by working together we will get there soon," Chucri says. "The health and wellbeing of our employees, guests, and community remains our top priority and we look forward to safely welcoming back our valued guests to our dining rooms very soon!"
Meanwhile, the ARA asks that diners continue to be responsible and follow CDC rules and also do what they can to support restaurants via convenient delivery, take-out and curb-side pick-up options.
As more information is developed and released, we will continue to keep you updated.
Wednesday, April 22
Tell Congress: Restaurants Need A "Blueprint For Recovery"
- Eight million restaurant employees have already been laid off or furloughed—equating to two out of three of all restaurant jobs
- Four in ten restaurants have closed their doors, some with no hope of reopening
- Over 60 percent of restaurant owners say that existing federal relief—including the recent CARES Act—will not allow them to keep employees on payroll throughout the downturn
The impact of the restaurant industry cannot be understated—our sales exceed the agriculture, airline, railroad, ground transportation, and spectator sports industries combined. Yet, restaurants will be one of the slowest industries to bounce back from the effects of this pandemic.
The National Restaurant Association has prepared a “Blueprint for Recovery” that outlines how Congress can improve the industry’s chances for survival. Centered around a $240 billion Restaurant and Foodservice Industry Recovery Fund, this plan would provide dedicated government funding, tax credits, and much more to help restaurants prepare for current and future challenges as they recover.
Please take a few moments and contact your Representative and Senators—tell them that restaurants, employees, and consumers need Congress to act on the “Blueprint for Recovery,” so that your restaurant can survive the long road to recovery.
Senate Adds Funding to PPP
Yesterday, the U.S. Senate approved an additional COVID-19 relief bill that adds $310 billion to the Paycheck Protection Program (PPP). Of the $310 billion, $60 billion is being set aside for community lenders. In addition to the PPP funding, the measure also includes $10 billion for grants under the Emergency Economic Injury Disaster Loan (EIDL) program and another $50 billion for EIDL loans.
The House is expected to pass the measure on Thursday.
Govenor Ducey Gives More Details on Reopening Plan
Today, Governor Ducey held a press conference and outlined where Arizona is currently at in the COVID-19 crisis and put forward a series of pillars the State will use to decide how and when to begin opening up the economy. Governor Ducey made clear that the economy will be brought back online in a phased approach using public health data as a guiding principal. Additionally, the Governor hinted that as businesses are allowed to reopen, it will likely be under restrictions with additional sanitation protocols.
Tuesday, April 14
Tele-Townhall with Rep. Lesko and SBA
- Date: Wednesday, April 15, 2020
- Time: 10:00AM
- Who: Congresswoman Debbie Lesko and the SBA
- Call-in: 844-227-7553
Restaurant Operator Survey: We need your input!
As the National Restaurant Association and ARA continue to advocate on behalf of the industry, please help us quantify and further illustrate the economic impact that the coronavirus is having on the restaurant industry.
The National Restaurant Association Research Group developed a brief survey designed to collect important data to inform our ongoing advocacy activities. Please take a few minutes to complete the survey and help us continue to advocate for additional relief packages.
REMINDER: Renew your Liquor License
Governor Ducey Asks for input from Restaurant and Tourism Industries on Recovery
In a letter addressed to the Restaurant and Tourism Industry, Governor Doug Ducey asked business leaders from Arizona’s hospitality and food service communities to provide their feedback on a plan for economic recovery. The letter seeks recommendations to help accelerate a business and economic recovery including incorporating public health guidance into everyday business practices, policy suggestions, regulatory reforms and other executive actions.
The Arizona Restaurant Association is currently drafting a set of recommendations, best practices and contingency plans for reopening businesses while protecting the public and our staff.
Sunday, April 12
Tele-Townhall with Congresswoman Lesko and SBA
- Date: Wednesday, April 15, 2020
- Time: 10:00AM
- Who: Congresswoman Debbie Lesko and the SBA
- Call-in: 844-227-7553
Tell Congress to Improve Relief Measures
On Thursday, the National Restaurant Association sent a letter to Congress seeking a series of changes to the CARES Act to address the Act's shortcomings within the restaurant industry. Please assist our efforts by taking a moment to tell Congress we need these changes and we need them now.
ACTION NEEDED: The more people that ask for these changes, the louder our voice becomes. Click below to add your name!
Restaurant Operator Survey: We need your input
As the National Restaurant Association and ARA continue to advocate on behalf of the industry, please help us quantify and further illustrate the economic impact that the coronavirus is having on the restaurant industry.
The National Restaurant Association Research Group developed a brief survey designed to collect important data to inform our ongoing advocacy activities. Please take a few minutes to complete the survey and help us continue to advocate for additional relief packages.
Tuesday, April 7
Governor Ducey Issues Executive Order on Packaging and Labeling Rules for Local Restaurants
- Restaurants currently licensed or permitted to serve prepared food may sell grocery items including, but not limited to, paper goods, cleaning supplies, prepared food in bulk, meat and vegetables whether or not those items are normally packaged for resale, provided the following:
- Food sold must be wholesome and unadulterated.
- Open ready-to-eat foods must be within the date marking requirements to be sold.
- Products requiring refrigeration must remain under temperature control (41-degrees or less) until ready for pick up or delivery.
- Customers should be instructed to get food home quickly and placed under refrigeration.
- Bulk household goods should be sold in their original containers.
- Raw meats should be separated from other foods, especially produce and other ready-to-eat food items to prevent cross contamination.
- Businesses shall assess their customer traffic flows to ensure a takeout or curbside business model will maintain the Governor's social distancing requirements
Prepare Documents for Relief Programs
It is recommended that businesses start collecting the documents and records that you'll need to prove the financial impact of the coronavirus on your business. Whether you're applying for SBA loans or filing insurance claims, gather the documents you'll need and keep a daily log of your businesses' finances and operations for future reference.
Use this time to organize such documents as tax returns, sales history for the past three years, monthly profit/loss statements, insurance policies, and more.
Mental Health Resources from United Healthcare
ARA healthcare partner, United Healthcare (UHC), has recently launched several programs focused on mental health, substance abuse, and suicide prevention that are available to help employees in this difficult time.
Additionally, UHC is currently waiving cost sharing for COVID-19 related treatment until May 31, 2020 and is waiving cost sharing for in-network non-COVID-19 telehealth visits.
Access mental health resources
Monday, April 6
Governor Issues Relief for Commercial Renters
Today, Governor Ducey issued an Executive Order prohibiting commercial evictions, including lock-outs, notice to vacate, or any other attempt to inhibit the operations of a business. In a press release, Governor Ducey said “Arizona is grateful to the many landlords who are already working as good partners with small businesses during these challenging times. This order helps ensure no small business or nonprofit will face eviction due to COVID-19 and that landlords and small businesses work in partnership to make sure we get through this emergency together. There’s more work to do to ensure Arizona’s small businesses can make it through this public health emergency. As we continue to prioritize public health, we will continue to do everything in our power to support those in our small business and nonprofit communities serving us.”
Our restaurant operators thank Governor Ducey for providing this important relief.
Restaurants that have not been able to reach an agreement with their landlord and are interested in the protections provided by this order, you will need to meet these certain requirements:
- Notify your landlord in writing that you are seeking a delay in eviction, lock-out, a reduction or deferral of rent.
- Include any available supporting documentation of your inability to pay rent.
- If you receive any financial support from public programs (Paycheck Protection Program, SBA loans, grants, etc.), you must allocate a portion of the eligible assistance to any past or currently due rents.
Thursday, April 2
How to Apply for CARES Act Loans
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law March 27 by President Trump, makes low-cost loans available to you to help get you through the economic hardship caused by the pandemic. The two loan programs are the Small Business Administration’s existing Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP) loans created by the new law.
You can apply for both programs, as long as the applications and payments you make with the funds are for different purposes! For example, even though you’re allowed to make rent or mortgage payments with PPP loan proceeds, you can reserve those for funds obtained through an EIDL.
Check with your accountant or tax adviser to see which of these programs provides greater benefits and lower risks to your business. The programs are different, with different qualification requirements and terms, so you need to carefully consider the best way to help your business through the next few months of the crisis.
Learn more about the EIDL and PPP
Additional Webinar Resources
We know there are many questions operators still have about the many different laws and programs that have come on line in recent days. To help operators better understand which programs might be best for them, we are recommending, whenever possible, that operators participate in many of the webinar series that have become available.
In recent days, the National Restaurant Association (NRA), ARA partner law firm Ogletre Deakins, and the Arizona Commerce Authority (ACA) have all hosted webinars that address varies aspects of the FFCRA and the CARES Act.
Ogletree Deakins CARES Act Webinar
Tomorrow, join ARA accounting partner Henry+Horne as they walk you through the Paycheck Protection Program (PPP) section of the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
- Date: Friday, April 3, 2020
- Time: 9:00AM
Register for Henry+Horne Webinar
Wednesday, April 1
DOL Issues Rules on Paid Leave Requirements
Today, the U.S. Department of Labor issued a temporary rule detailing their regulations for the Emergency Paid Sick Leave (EPSL) and the Emergency Family and Medical Leave (EFML) provisions of the Families First Coronavirus Response Act (FFCRA). As part of this release, DOL also updated their Q&A document which helps to guide employers and employees on the implementation of these programs. The ARA encourages all owners and operators to review the information provided by DOL
Visit DOL's FFCRA Resource Page
National Restaurant Association Paid Leave Webinar
The National Restaurant Association will be hosting a webinar tomorrow, Thursday, April 2, 2020 at 12:00PM (3:00PM EST) with the law firm of Littler Mendelson to address implementation of the paid leave provisions contained in the “Families First Coronavirus Response Act.”
This webinar will include analysis and discussion of preliminary guidance recently issued by the U.S. Department of Labor and best practices for restaurants to meet regulatory compliance and avoid pitfalls. Speakers will include Michael J. Lotito and James A. Paretti, Jr., shareholders with Littler Mendelson; and Shannon Meade, Vice President of Public Policy and Legal Advocacy, National Restaurant Association.
Tuesday, March 31 - 6:15PM
New Resources on CARES Act and the Paycheck Protection Program
Today, the Department of the Treasury issued initial guidance on the Paycheck Protection Program (PPP). While there are still clarifications that need to be made, the new guidance addresses several questions we had around the administration of the program and is a good first step in providing direction to business owners.
PPP information for businesses
National Restaurant Association Letter to Dept. of Treasury
Additionally, the National Restaurant Association (NRA) published a Frequently Asked Questions (FAQ) document on several programs within the CARES Act. The FAQ document is a great resource as businesses analyze what programs or combination of programs will be best for them and their employees.
As more information becomes available on the CARES Act and the PPP, the ARA will provide updates.
CARES Act Webinars
On Friday, the National Restaurant Association hosted a CARES Act webinar that discussed what is in the legislation for operators and for their employees as well as a rough timeline of when these aid tools will be available.
NRA Cares Act Recorded Webinar
Tomorrow, the Arizona Commerce Authority (ACA) is hosting a webinar with the Arizona Bankers Association that will discuss the CARES Act and available resources at the state level.
Tuesday, March 31 - 2:40PM
Governor Ducey Delays Liquor License Renewals
Today, Governor Ducey announced the deferral of all liquor license fees by 90 days. In yesterday's update, the ARA reported that liquor license renewals were still due. However, in response to continued industry concern, Governor Ducey issued a press release clarifying that liquor license renewals will be delayed as part of his previous Executive Order.
This deferral is effective immediately, however businesses will still need to apply for a renewal under the 90-day deferral program. We are still waiting on additional information from the Department of Liquor Licenses and Control and once we have that we will send out another update.
Monday, March 30
Governor Ducey Issues "Stay Home" Order
Today, Governor Ducey issued an Executive Order requiring individuals to limit their time away from home and limiting business activity to essential services. The order establishes the "Stay Home, Stay Healthy, Stay Connected" policy for the State and goes into effect at 5:00PM tomorrow, Tuesday, March 31, 2020 and continues through April 30, 2020.
Restaurant operations are listed as an essential service, and in his address Governor Ducey clarified that "restaurants across the state will continue to offer takeout and delivery services." The Governor further encouraged individuals to "please patronize your local restaurants and be as generous as you can with your tips."
What does this mean for restaurants and restaurant employees? As stated above, restaurants are listed as an essential service and can continue to operate takeout and delivery operations and restaurant employees may continue to report to work as normal. There is NOT a requirement that individuals carry papers or provide any proof that their activities fall under essential services, so there is no need for owner/operators or employees to issue letters or have proof they are traveling to or from work.
The ARA will continue to provide updates as more information becomes available.
Read the Stay Home Executive Order
Read the Essential Services Executive Order
Bank Resources: Governor Ducey Announces Additional Help
Many of you may have seen Governor Ducey's press release announcing new protections for small businesses and families. The press release states that most banks have adopted a payment deferral program for business loans. While this is true, it is important to remember that not all banks have such programs and that not all programs are the same. If you have a current business loan, please check in with your bank and inquire about any payment deferral program they have.
Additionally, businesses should ask their bank if they are approved to process SBA loans. The SBA loan program included in the CARES Act will primarily be administrated by private banks that are a part of the program. These banks have experience in the SBA process and will be able to help businesses navigate the application process.
DOL Adds to Guidance on Paid Leave Under the Families First Coronavirus Relief Act
Yesterday, the U.S. Department of Labor published another round of guidance to its growing questions and answers list, which includes additional information on the small business hardship exemption (questions 58 and 59).
The guidance does not yet provide instructions related to the actual process for applying for the exemption. Previous guidance stated "to elect this small business exemption, you should document why your business with fewer than 50 employees meets the criteria set forth by the Department, which will be addressed in more detail in forthcoming regulations."
All restaurant owners and operators are encouraged to read the questions and answers list which can be accessed below.
Read DOL's Questions and Answers
Liquor License Renewals Still Due
Last week Governor Ducey issued an Executive Order for State agencies to defer or waive license renewals. While the ARA was hopeful this would apply to the Department of Liquor Licenses and Control (DLLC) there has been no announcement from the department regarding any delay in license renewals.
Under current rules, if a license is not renewed, the licensee cannot continue to sell alcoholic beverages and wholesalers are prohibited from distributing to them. Additionally, a license that is not renewed within 60-days of the due date, will be terminated. The Director of DLLC does have the ability to reinstate a terminated license if a licensee can show good cause for the non-renewal.
The ARA is still pushing for and are hopeful that additional rule changes will be made to provide relief to licensed establishments.
License renewal dates and fees
CARES Act NRA Resources and ACA Webinar
On Thursday, we sent out the National Restaurant Association (NRA) summary of the CARES Act which outlines the provision of the bill. Then on Friday, the NRA hosted a CARES Act webinar that focused on specific questions from operators.
NRA's Summary of the Cares Act
NRA Cares Act Recorded Webinar
The NRA and ARA will continue to provide updates and revise the guidance document as more information becomes available.
On Wednesday, April 1, the Arizona Commerce Authority is hosting a webinar with the Arizona Bankers Association that will discuss the CARES Act and available resources at the state level.
Thursday, March 26
CARES ACT Summary
Last night the U.S. Senate voted 96-0 to pass the Coronavirus Air, Relief, and Economic Security Act (CARES Act). The CARES Act represents phase-III of congressional action on the Coronavirus pandemic. The House is expected to pass the measure tomorrow by a voice vote.The final language provides:
- $349 billion in federally guaranteed loans to businesses
- A fix to the Qualified Improvement Property (QIP) to allow businesses to immediately write off improvement costs
- Employee retention tax credit
- Modifications for Net Operating Losses (NOL)
- Delay of payment of employer payroll taxes
- $454 billion for loans, loan guarantees, and investments to the Federal Reserve for businesses
- Additional tax relief
The National Restaurant Association (NRA) has put together a summary document for the CARES Act and we encourage all businesses to read it. The NRA will also be hosting a webinar (details in article below) tomorrow, Friday, March 27, 2020 at 12:00PM.
CARES ACT Webinar
Join us as the National Restaurant Association's Public Affairs team does a deep dive into the CARES Act (the third COVID-19 recovery bill). During this webinar, we will discuss what is in the legislation for operators and for their employees as well as a rough timeline of when these aid tools will be available.
When: Friday, March 27, 2020 @ 12:00PM (3:00PM EST)
All attendees are encouraged to read the CARES Act summary document prior to the webinar.
National Restaurant Association Research Group COVID-19 Impact Survey
The National Restaurant Association Research Group developed a brief survey designed to collect important data to inform our ongoing advocacy activities.
Please take a few minutes to complete the survey, and help us advocate for the strongest possible relief package. Your answers are incredibly important, not just for our national advocacy efforts, but also for our efforts right here in Arizona.
Assist in our Advocacy Efforts by Taking the Survey
Job Resources for Restaurant Employees
As restaurants across the State remain closed or open with severely limited operations, many restaurant employees have found themselves without work or with drastically reduced hours. While the access to unemployment benefits has been expanded, there are still job opportunities out there for interested employees.
Arizona Together has created a centralized depository for all employers needing temporary workers during the crisis.
Access the List of Temporary Job Opening
ServSafe Free Courses on COVID-19: Delivery/Takeout
For 30 years, ServSafe has been at the forefront of preparing restaurant and foodservice workers to deliver safe dining experiences for their guests, while also keeping themselves safe. Every day, we train the restaurant and food service industry on topics like cooking temperatures, safe storage, and cross contamination, as well as hygiene, sanitation, and other risk mitigation activities.
Because of the challenges presented by COVID-19, we have developed a set of free 10-minute courses aimed at keeping our workers and the dining public safe during delivery and takeout operations.
Wednesday, March 25
DOL Issues Guidance on Families First Coronavirus Response Act
On March 20, 2020, the National Restaurant Association sent a letter to the Secretary of the Department of Labor, Eugene Scalia asking for clarification on a series of questions related to the Families First Coronavirus Response Act.
On March 24, 2020, the Department of Labor published a Question & Answer page which provides additional guidance and an Employer Fact Sheet. We encourage all businesses owners and operators to read both documents (linked below). The ARA has also published an initial summary on our website.
CARES Act Delayed - Vote Still Expected
In the early morning hours today, it was announced that Senate Republicans and Democrats had reached a deal in conjunction with the Trump Administration to pass the $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act). By the early afternoon, hopes of quick passage had waned as senators hit a last minute snag regarding the unemployment provisions. The hope is to still have the Senate vote on the bill before the day is out to allow the House to take up the measure on Thursday. While final text for the CARES Act has not been released, the latest draft indicated the following provisions would be included:
- $349 billion in cash flow assistance for businesses
- A fix to the Qualified Improvement Property (QIP) - accelerated depreciation
- Modifications for operating losses
- Delay of employer payroll taxes
- Additional tax relief
- $150 billion for severely distressed sectors of the economy
The ARA will provide more information once the final text of the act is released.
"Arizona Together" Launched as Resource Hub
Yesterday, Governor Ducey announced the launch of the Arizona Together initiative to help connect businesses and individuals to available resources, raise money for community organizations, and provide information on volunteer opportunities.
The Arizona Together website will serve as a central hub to access resources through the State and other community organizations. The website includes sections for restaurant and hospitality employees seeking employment and for businesses looking for relief and resources.
ARA Creates Resource Page for Restaurant Industry
The Arizona Restaurant Association (ARA) has been sending out COVID-19 updates since the beginning of this crisis and has centralized those updates and resources on our COVID-19 page. As the news and resources available has grown, so has the need to make information easier to access.
To help our members better access vital resources, the ARA has created four separate pages to group resources and information. Our main COVID-19 page will continue to host all updates but will also have a link to the resource page.
Monday, March 23
Governor Ducey's Executive Order Includes Restaurants as Essential Service
Today, Governor Ducey issued an Executive Order defining what businesses and operations are considered "essential" by the State. The order included restaurants off-premises operations in the list of businesses. This action prohibits counties, cities, and towns from issuing any order that prohibits the performance or function of an essential service. In a press release Governor Ducey said "Arizona is focused on limiting the spread of COVID-19, while providing relief to families, individuals and businesses impacted. This proactive order will ensure the state has one consistent, overarching policy that is based on CDC and public health guidance — allowing business owners and workers to responsibly plan ahead. We will continue to proceed with a calm and steady approach and act with urgency, while providing certainty whenever possible.”
The order defines restaurants off-premises operations as:
- Restaurants and other facilities that prepare and serve food, but only for consumption off-premises through:
- in-house delivery
- third-party delivery
- drive-thru
- curbside pickup
- carry out
The order defines a multitude of other services and business as essential including the suppliers that restaurants rely on.
Read the Governor's Executive Order
AZ Legislature Appropriates $50 Million for Housing and Small Businesses
Today, the Arizona Legislature passed a budget that includes $50 million for the Governor to use in response to the COVID-19 crisis. The monies may be used for:
- Assistance to businesses with fewer than 50 employees
- Food bank operations
- Housing assistance
- Homeless support
The Governor is expected to approve the budget and release guidance on the use of the monies
DOL Expected to Release Guidance on Paid Leave
The effective date of COVID-2 (paid leave for workers and tax credits for small and midsize employers) is April 2, 2020. We are expecting the U.S. Department of Labor to start offering preliminary guidance this week on many of the ambiguous provisions that need clarification.
The regulations are likely to come out just before the effective date, so this preliminary guidance will be of great value. Additionally, the IRS is going to allow for expedited advance of the payroll tax credits and will be submitting a streamlined plan, which is expected in the coming week
NRA Recorded Webinar: Coronavirus Labor Law
In the current coronavirus public health emergency, employers are confronting difficult questions related to employment issues including leave and accommodation, workers’ compensation, Family Medical Leave Act, Americans with Disability Act, and other workplace laws and regulations.
Please watch the recorded webinar featuring Shannon Meade, National Restaurant Association Vice President of Public Policy and Legal Advocacy and legal experts from the law firm Littler Mendelson for a discussion of these topics and other guidance and resources for restaurant industry employers.
Reminder: New Alcohol Delivery and Takeout Guidance
As a reminder to operators, Governor Ducey issued an order on Thursday that temporarily allows restaurants to offer alcohol for delivery and takeout. This order was made in response to restaurant dining rooms being closed. The Department of Liquor Licenses and Control (DLLC) followed by issuing guidance for restaurants. One key aspect of the Executive Order was the closure of all service in a restaurant's dining room. This includes serving someone a drink while they wait to pick up their food. While restaurants are still allowed to sell alcohol, it must be done for off-premises consumption and in compliance with DLLC's guidance
Friday, March 20 - 8:05 pm
Governor Ducey Issues Executive Order Expanding Unemployment Insurance
Today, Governor Ducey issued Executive Order 2020-11 which makes several changes to the unemployment program in Arizona. These changes were pushed for by the Arizona Restaurant Association to help support the industry's employees. In a statement, Governor Ducey said "These are important steps to get help to Arizonans out of work and struggling to make ends meet because of COVID-19. These are just some steps out of many we will continue to take to support Arizonans in need during this time — and Arizona will get through this together."
The changes made by the the Governor's order includes:
- Allows employees that have seen their hours reduced or eliminated to qualify for unemployment benefits.
- Allows employees who are unable to work due to a quarantine and are out of paid leave to qualify for unemployment benefits.
- Allows employees who leave employment due to a risk of exposure or infection, or to care for a family member to qualify for unemployment benefits.
- Waives the one-week waiting period for receiving unemployment benefits.
- Waives the job search requirement for unemployment benefits.
- Prohibits the Department of Economic Security from using unemployment benefits grant due to COVID-19 to calculate the employer contribution rate.
- Applies the order retroactive to March 11, 2020.
The Arizona Restaurant Association thanks the Governor for taking this important step to provide help to our restaurant family during this crisis.
The Arizona Department of Economic Security has set up a resource page for bushiness and employees impacted by COVID-19 which can be found by visiting https://des.az.gov/services/coronavirus
Read the Governor's Executive Order
COVID-19 Emergency Measure Allowing Restaurants to Sell Alcohol for Off-Premise Consumption Guidance
On Friday, March 20, 2020, the Arizona Department of Liquor Licenses and Control (DLLC) issued rules to implement Governor Ducey’s Executive Order 2020-09 which allows restaurants to offer alcohol for sale along with delivery and takeout orders. Today, DLLC issued a guidance document for implementation.
DLLC Guidance:
- Restaurant licensees may temporarily sell alcohol through delivery, pick-up, and curb-side service.
- Restaurant licensees that use pick-up and curb-side to sell alcohol must still only allow individuals 18 or older to sell the alcohol.
- Beverages sold for delivery, pick-up, or curb-side service must be in a "sealed container" - a sealed container is any container of spirituous liquor which:
- has an unbroken tax seal from the United States, or
- has a cap, cork, or seal placed there by the manufacture.
- Licensees may sell mixed drinks if they seal the container before removing it from the licensed premises and ensure the seal remains in place until the consumer takes possession.
- Licensees may seal containers by capping and applying a plastic adhesive seal or by corking flush with the top of the bottle.
Licensees using delivery to sell alcohol must comply with the documentation requirements outlined by DLLC which can be accessed by visiting https://azliquor.gov/forms/inv_recdelivery_access.pdf
Arizona Restaurant Association Guidance:
Third-party delivery services
Alcohol deliveries should be made by restaurant employees and only made to individuals over the age of 21 with an ID that matches the name on the form of payment. Third-party delivery services lack crucial safeguards that help protect you from losing your liquor license, liability damages, and reputational damages. There is currently no way for third-party delivery services to perform proper ID checks and verify the ID matches order details nor is there a way for this to be documented as part of the record requirements. Additionally, since orders processed by third-party delivery services are paid to the third-party delivery service and not directly to the restaurant it would be a violation of Arizona Liquor Law since payment for alcohol must be paid to a licensed establishment. It is for these reasons we strongly advise against offering alcohol for sale through a third-party delivery service at this time until further clarification is offered by the appropriate authorities.
Insurance Considerations
There are two important insurance issues to consider when thinking about offering alcohol for sale with delivery or takeout.The first, does your liquor liability coverage have an exclusion for alcohol delivery or takeout and is your coverage sufficient for the expanded activity? You are highly encouraged to check with your broker and ask if you are covered at the appropriate level of your new offering.Second, if you are using employees to perform the delivery of alcohol (which is recommend by the ARA – see above) in their personal vehicles, you should check with your broker to make sure you have the proper coverage for DELIVERY. Your employees will need to have certain minimum limits on their personal coverage, and they should check to see if they are allowed to use their vehicles for business purposes. Ask your broker if the combination of your employee’s personal auto policy and your business auto policy is enough to protect you? Bottom line check with your broker and describe the activity you will be performing and ensure your policies are able to cover you!
We highly encourage restaurants to reach the full DLLC guidance memo by clicking the button below.
Read DLLC Guidance on Alcohol Delivery and Pick-Up
Friday, March 20
Governor Ducey Announces Restaurant Closures in Counties with Confirmed COVID-19 Cases
Last night Governor Ducey announced that he was taking additional steps to curb the spread of COVID-19. One such step is ordering the restriction of restaurant activities to takeout, drive-thru and delivery options. In a statement the Governor said “These latest actions are based on the facts and on data, and come after careful consultation with public health experts from every county in Arizona, our hospitals, local elected officials, and private sector partners.”
Provisions of the new order include:
- Beginning at the close of business on Friday, March 20, restaurant operations are restricted to takeout, drive-thru, and delivery options in counties with confirmed cases of COVID-19
- Beginning at 5:00PM on Friday, March 20, allows restaurants to sell alcohol for delivery and takeout
- Allows manufacturers, wholesalers and retailers to buy back unopened products from restaurants, bars and clubs
- Beginning at the close of business on Friday, March 20, closes all bars, theaters and gyms in counties with confirmed cases of COVID-19
- Halts all elective surgeries to free up medical resources
- Activates the AZ National Guard to assist grocery stores and food banks with re-stocking and heightened demand
- Delays expiration dates on Arizona driver licenses for residents over the age of 65
Arizona Restaurant Association Announces Arizona Takeout Week
The Arizona Restaurant Association (ARA) is responding to the recent state of emergency, by creating an all new marketing strategy to help support local dining establishments with the debut of Arizona Takeout Week..
The initiative serves to help diners and those who depend on restaurants as a food source find restaurants offering pick-up, curbside, and delivery options during this time and aid restaurants in marketing their service options during the closure.
“We appreciate and thank Governor Ducey for his efforts in working with the restaurant industry to mitigate the spread of the Coronavirus,” says Arizona Restaurant Association president and CEO Steve Chucri. “The Arizona restaurant family appreciates his work and that of all elected leaders in our State during this unparalleled time in our history.”
The culinary industry has a powerful impact on the state’s economy — and residents’ livelihoods. There are more than 10 thousand dining establishments that employ over 229,000 staff with annual restaurant sales of $13.4 billion.
“At the end of the day, we are the industry of ‘happy’ and that is what the hospitality industry represents. We hope to bring a bit of happiness to Arizonans during this extremely difficult time through Arizona Takeout Week while keeping our employees and restaurants afloat, Chucri continued.”
This initiative is free for restaurants and all are invited to email their current menus and service hours to takeout@azrestaurant.org.
AZ Senate Approves Unemployment Overhaul Bill
Yesterday, the Arizona Senate passed a measure that makes several changes to Arizona’s unemployment benefits program. The measure includes several priorities the Arizona Restaurant Association has been advocating for. As passed the measure:
- Allows the Arizona Department of Economic Security (AZDES) to increase unemployment benefits in accordance with the federal monies recently appropriate by Congress.
- Declares the intent of the legislation is to provide additional resources and flexibility for the unemployment insurance program for individuals and businesses affected by the coronavirus.
- Excludes increased benefits charged against an employer from the coronavirus response from being used in calculating the employer contribution rates.
- Increases the population of employees and employers that can participate in the Share Work Program.
- The Shared Work Program allows employers that reduce an employee’s hours between 10% and 40% and for the impacted employees to qualify for a portion of their unemployment benefit while keeping their job.
- This bill increases the eligibility requirement by adjust the top line lost hours from 40% to 80%. So now employers with employees that see hours reduced between 10% and 80% will be able to participate in the program.
We were hopeful that the Arizona House of Representatives would act quickly, but they instead adjourned until Monday. This measure is on the Association's top priorities and we will be pushing very hard for the House to act quickly on Monday.
Additional Guidance for Restaurants Shutting Down Draft Systems
As restaurants go through the process of shutting down operations or reducing operation should take steps to protect their draft system. Crescent Crown has provided recommendations from the Brewers Association on Draught Quality During Extended Bar/Restaurant Shutdown.
Thursday, March 19
SBA Approves Loans for Arizona Businesses Affected by COVID-19
Today, the U.S. Small Business Administration (SBA) approved an Economic Injury Disaster Loan declaration for Arizona that will help small businesses here in the state impacted by COVID-19. Individual businesses can be eligible for up to $2 million through the program.
The loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of COVID-19’s impact. The interest rate is 3.75 percent for small businesses without credit available elsewhere. The interest rate for non-profits is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay. Small businesses throughout the entire state that fit these criteria are eligible.
AZ Legislature Introduces Emergency Measure to Strengthen Unemployment Benefits
Yesterday, the Arizona Legislature introduced an emergency measure to create more flexibility in Arizona’s unemployment insurance program. This is an important step that will allow Arizona to access federal funds and get more money into the pockets of workers impacted by this crisis. The Legislature will be voting on a series of amendments today to strengthen the program and we will provide more information as it becomes available.
Unemployment Update
For the past week, the Arizona Restaurant Association has been advocating for the Governor to make changes to Arizona's unemployment programs. These changes include waiving the one-week waiting period, waiving the job search requirements, waive any fees or increased payments required by employers, and create a streamlined portal for our employees to utilize to quickly access benefits. However, since we know employers and employees need information now, we are providing the following while we wait on government action.
For Employers
Employers can access information on current unemployment programs by visiting:
https://des.az.gov/services/employment/unemployment-employer.
Additionally, Employers looking at reducing hours but keeping employees on should investigate Shared Work Program. The Share Work Program, administered by the Arizona Department of Economic Security (AZDES), is designed to allow employees to have seen their hours reduced to access a portion of unemployment while remaining employed. To apply for the Shared Work Program, please visit
https://des.az.gov/services/employment/unemployment-employer/shared-work-program-faqs
For Employees
Employees can apply for unemployment coverage by visiting:
https://des.az.gov/services/employment/unemployment-individual
PLEASE NOTE: The information provided here is likely to change with requirements changing with recent law changes and anticipate executive action. Please check our website for any updates and watch for future emails announcing changes.
Arizona Restaurant Association Seeks Relief for Restaurants and Employees
Earlier this week, the Arizona Restaurant Association (ARA) sent a letter to Governor Doug Ducey and Legislative Leaders seeking a series of executive and legislative actions to provide much-needed support for our industry and our employees. Specifically, the ARA is asking for the State Government to:
- Enhance Arizona’s unemployment insurance program by:
- Waiving the one-week waiting period
- Waiving the job search requirement
- Allowing employers to keep employees “technically” employed but with reduced or no-hours of work while allowing those impacted employees to access unemployment benefits
- Removing all costs to employers for increased claims of unemployment
- Create a one-stop-shop resource for employees needing support and employers needing to provide information to their employees
- Extend the filing period for sales tax remittance by 90-days
- Extend the filing period for estimated income tax payments by 90-days
- Authorize restaurants with a series-12 liquor licenses to sell sealed bottles of wine and beer for to-go and delivery orders
- Appropriate $100 million to a discretionary account
- $50 million to supplement unemployment insurance payments
$50 million to provide short-term, zero-interest loans to businesses
Phoenix Delays Vote on Mayor Gallego’s Emergency Declaration until Friday
After several hours behind closed doors, the Phoenix City Council emerged late last night and punted a decision on approving Mayor Gallego’s Emergency Declaration until tomorrow. The Council’s action leaves the order for restaurants located in the City of Phoenix to remain closed (except for take-out and delivery) in effect. The council will revisit the issue at a special meeting on Friday, March 20 at 12:00PM.
Tempe Mayor Orders Restaurant dining rooms closed
Earlier this afternoon, Tempe Mayor Mark Mitchell announced that he had issued an order which requires restaurant activities be restricted to carry-out, drive-thru, curbside pickup, and delivery.
Details of closure order:
Effective Date: March 19, 2020 at 8:00PM
End Date: Undefined
Specifics: Restricts restaurant activities to delivery and to-go orders.
Wednesday, March 18 - 7:41 pm
Sedona Mayor Orders Restaurant Dining Rooms Closed
Earlier this afternoon, Sedona Mayor Sandy Moriarty announced that she had updated the city’s emergency proclamation which requires restaurant activities be restricted to carry-out, drive-thru, curbside pickup, and delivery.
Details of closure orders:
- Effective Date: March 19, 2020 at 11:50 PM
- End Date: April 1, 2020 at 12:00 AM
- Specifics: All restaurants, food courts, cafes, coffeehouses, retail food facilities, and other similar businesses and establishments are prohibited from serving food and beverages on their premises. Businesses are encouraged to offer food and beverages using delivery service, window service, drive-through service, or drive-up service, and to use precautions in doing so to mitigate the potential transmission of COVID-19, including social distancing. The Mayor also order the closure of all bars, taverns, brew pubs, breweries, microbreweries, distilleries, wineries, tasting rooms, special licensees, clubs, and other similar businesses and establishments offering alcoholic beverages of spiritous liquor for consumption on-premises.
- Next Activity: The City will reassess the order prior to April 1.
- https://www.sedonaaz.gov/Home/Components/News/News/5071/473
Employee Workforce Reduction and Hour Reduction Update
- With several cities closing access to restaurants and many other restaurants feeling the slow-down in customers many are being faced with the horrible choice of laying off employees to allow them to access unemployment benefits. One alternative to this is Shared Work Program.
- The Shared Work Program, administered by the Arizona Department of Economic Security (AZDES), is designed to allow employees who have had their hours reduced, to access a portion of unemployment while remaining employed.
Employers interested in participating in this program need to fill out an application which can be found on the AZDES website or by clicking here.
Wednesday, March 18 - 3:07 pm
Phoenix, Flagstaff, and Tucson close restaurant dining rooms
On Monday, Mayor Coral Evans in Flagstaff announced that she had declared an emergency and ordered that restaurant activities be restricted to carry-out, drive-thru, curbside pickup, and delivery. On Tuesday the Mayors of Phoenix and Tucson also issued orders closing restaurants for on-premise consumption.
Details of closure orders:
City of Phoenix
- Effective Date: March 17, 2020 at 8:00PM
- End Date: Undefined
- Specifics: Requires bars to close and restricts restaurants (or bars that serve food) to takeout, delivery, or drive-thru activity.
- Next Activity: The Phoenix City Council will be voting on Mayor Gallego’s emergency declaration at their regular council meeting today.
- https://twitter.com/MayorGallego/status/1240067805531131904/photo/1
City of Tucson
- Effective Date: March 17, 2020 at 8:00pm
- End Date: April 1, 2020 at 12:00AM
- Specifics: All restaurants, food courts, cafes, and coffeehouses, retail food facilities and other similar businesses are prohibited from serving food and beverages for consumption on premises. Businesses are encouraged to offer food and beverages using delivery, window service, drive-thru or curbside service. Bars, taverns, brew pubs, breweries, microbreweries, distilleries, wineries, and tasting rooms are closed.
- Next Activity: The City will reassess the need for the order prior to April 1, 2020.
- https://www.tucsonaz.gov/files/PROCLAMATION.pdf
City of Flagstaff
- Effective Date: March 17, 2020 at 8:00pm
- End Date: April 2, 2020 at 12:00am
- Specifics: All restaurants, food courts, cafes, coffeehouses, retail food facilities, and other similar businesses and establishments are prohibited from serving food and beverages for consumption on premises. Members of the public are prohibited from entering and remaining to dine or consume beverages. Businesses that typically offer food and beverages for on-premises consumption are instead encouraged to offer food and beverage using delivery, window, drive-thru or drive-up service. If a business chooses to offer this type of “to-go” service, members of the public may remain on its premises for the purpose of picking up their food or beverage orders. The order also closes the following: Bars, taverns, brew pubs, breweries, microbreweries, distilleries, wineries, tasting rooms, special licensees, clubs, and other similar businesses and establishments offering alcoholic beverages for on-premise consumption.
- Next Activity: The City will reassess the need for the order prior to April 2.
- https://www.flagstaff.az.gov/AlertCenter.aspx?AID=COVID19-closures-2
If you are a restaurant in one of these cities or you are considering going to a carry-out, curbside pickup, drive-thru, or delivery model only, consider the following:
- Does the revenue model for carry-out, curbside pickup, drive-thru, or delivery only meet or exceed your required expenditures?
- If not, is it worth staying open with a negative revenue model? How long can you operate in a negative revenue model?
- Consider the options of taking on additional debt
- SBA Loans may become available
- Have a discussion with your landlord to reduce rents to somewhere around 6% of sales while operations are closed or reduced and for a period after full operations resume. Landlords should be our partners and be able to provide flexibility in this difficult time.
- Contact your utility companies and inquire about the programs they have to help businesses and your employees during this time. This may consist of a pause on payments.
If you choose to temporarily close all operations, considering using the following sample closing procedures:
A special thank you to our friends at 99 Restaurants, Darden Restaurant Company, and 110 Grill for furnishing their restaurant closing operational manuals
- Let staff take any food that cannot be frozen/saved
- Remove all trash from the building/cancel dumpster pickups
- Take pourers off and tightly wrap open bottle tops of liquor in saran
- Leave all exhaust fans running – in the unlikely event a gas leak or pilot goes out during the closing, the fans will help to exhaust any hazardous gas from the building
- Turn off any autopayment processes
- Cancel any scheduled deliveries. Examples include:
- Food and liquor distributors
- Knife sharpening
- Sanitary supplies
- Produce
- Beer line cleaning
- Soft-drink distributors
- Linen
- Dumpster
- Cable/TV
- Music service
- Armored Car pickup
- Close out your month end procedures
- Alert your payroll company to any layoffs and changes in payroll you are making
- Ensure you have updated contact info for all your employees
- Alert your health insurance provider to any layoffs or elimination of benefits
- Forward any email addresses for the restaurant
- Forward the restaurant phone line
- Cancel all reservations
- Take a final inventory of all food and beverage items remaining
- Prepare and transfer all perishable food
- Ensure all alcohol is locked in cages or an office
- Clean/blowout beer lines
- Set your thermostats to save on electricity without shutting the system off completely. Reconditioning the building after the air has been shut off can cause compromised HVAC systems to fail
- Set any tankless water heaters to off and shut off any gas supply
- Turn off water circulator pump
- Turn off all gas to kitchen equipment
- Ensure all kitchen knobs are set to the “off” position
- Empty all refrigeration on the line, unplug and leave doors open
- Unplug all refrigeration at the bar, remove any items that may spoil and leave doors open
- Ensure all lights are off in walk-ins, kitchen, dining room, and offices
- Ensure all doors are locked
- Remove all trash from the building and reline all cans
- Perform a final walkthrough to ensure all walk-in doors are closed and all exterior doors are locked
- Turn off any entertainment electronics
- Pull inside all patio furniture
For a printable version of this, please click here.
Monday, March 16
Today the White House issued updated guidance on the COVID-19 pandemic. The President presented the plan as a 15-day measure to slow the spread of the disease. The 15-day guidance includes:
• Avoid eating or drinking at bars, restaurants, and food courts – use drive-thru, pickup, or delivery options.
• Work or engaging in schooling from home whenever possible.
• Avoid social gatherings in groups of more than 10 people.
• Avoid discretionary travel, shopping trips, and social visits.
• Do not visit nursing homes or retirement or long-term care facilities unless to provide critical assistance.
• Practice good hygiene.
The reference to avoiding eating or drinking at bars and restaurants is the first mention we have seen of this restriction at the national level. While this plan is just guidance and non-binding we have seen several states that have already made the decision to close restaurants and bars.
HOWEVER, THAT IS NOT THE CASE IN ARIZONA AT THIS TIME.
Shortly after the White House statement, Governor Ducey held a press conference and said the state would be updating their rules after reviewing the new White House guidelines. The Governor did not say what those changes would look like but did issue the following statement:
“Arizona continues to take proactive measures to prevent the spread of COVID-19 and protect the health and well-being of Arizona citizens. With new guidelines announced moments ago by the White House and federal health officials, I will be working with Dr. Cara Christ and the Arizona Department of Health Services to ensure Arizona complies and updates our guidance to reflect these new recommendations. We will be working with county health officials, community leaders and the private sector to implement these guidelines.”
The ARA anticipates new rule/guidelines to be released by the State shortly and will continue to engage with decision makers and keep the industry updated.
Wednesday, March 11
On February 12, 2020, before The U.S. was measurably impacted by COVID-19, the Arizona Restaurant Association (ARA) sent out an article titled “Coronavirus and Restaurants – Information and Tools” which provided restaurant operators with information on the virus and initial guidance.
Today, the ARA felt an update was important for our members given the World Health Organization (WHO) declaring the COVID-19 crisis a pandemic and Arizona Governor Ducey declaring a public health emergency for the State of Arizona. Governor Ducey’s intent for declaring an emergency was to stay ahead of the virus and to give health care providers and health agencies the tools they need.
In an effort to provide you and the public with the most up-to-date information the ARA has compiled the information below and will very soon have a public facing flyer that restaurants can use to educate their customers about what restaurants are doing to keep them safe.
It is important for the public to understand the steps restaurants are already taking to keep everyone safe. Below is a summary of what is already in place to protect you, your employees, and the public, plus a list of additional guidance for restaurants.
What is already happening to keep customers and employees safe:
- Restaurants follow strict guidelines set forth in the food code and by our local health departments which requires our employees to be trained in and adhere to food safety standards.
- Restaurants encourage everyone to wash their hands often and with a proper technique, and to stay home when they are not feeling well.
- Arizona has a mandatory Paid Sick Time law that gives employees and our patrons the ability to stay home without undue financial strain.
- Food served at restaurants is stable and safe with our supply chains unimpacted by the virus and our food preparation requirements ensure a safe to consume product.
- According to the Federal Government the risk of contracting COVID-19 for an average American is still low.
Practical Guidance for Restaurant Operators:
- Review your staff’s ServSafe food manager and food handler certifications are up to date.
- Review your establishments Paid Sick Time policy and ensure it is communicated clearly to your staff – encourage staff members to use this time off if they are not feeling well.
- Review and reinforce safe sanitation and personal hygiene processes, including washing your hands for at least 20 seconds using soap and warm water.
- Reinforce your policies on washing, rinsing, and sanitizing food contact surfaces including sinks, tables, equipment, utensils, thermometers, equipment and public areas including tables and contact areas in the front of the house.
- Do not rely on surgical or similar face masks to keep you safe, these masks are permeable to airborne matter and do not provide protection.
- Keep your eye on your local county health department and the Arizona Department of Health Services guidance. While the federal government is tracking the overall spread of the virus, they are looking to our state and local officials to make on the ground decisions impacting the local community.
- Keep reminding employees and patrons that restaurant dinning is safe when employees practice good and effective personal hygiene and restaurants properly and thoroughly clean their facilities.
COVID - 19 Resources:
Coronavirus Information and Resources
Actionable Information from the Association
- Coronavirus: What You Can Do Fact Sheet (English & Spanish)
- Handwashing 101 Poster (English & Spanish) and Youtube Video
- Handwashing Infographic
- Before You Come To Work Poster
- Cleaning vs. Sanitizing Poster (English & Spanish)
- Clean-up of Vomiting and Diarrheal Event Poster
- Food Safety Focus Blog
- March 10 Webinar: Preparing for Coronavirus: Steps for Foodservice and Restaurant Readiness
- What Experts are Saying