Skip to main content

THE ALLIANCE OF ALCOHOL INDUSTRY ATTORNEYS & CONSULTANTS

Tennessee Pledge to Reopen Restaurants

Written by Brad Dawson on . Posted in Will Cheek's Last Call Blog.

blog

SHARE THIS

Tennessee Pledge to Reopen Restaurants

Apr 29, 2020

The Governor’s Economic Recovery Group issued Tennessee Pledge, “a plan to help Tennesseans return to work in a safe environment, restore their livelihoods and reboot our state’s economy.”

Restaurants are expected to follow the guidelines in the pledge. The pledge is mandatory for limited service restaurants, as specified in Executive Order 30.

Here is a copy of the Tennessee Pledge Guidelines for Restaurants

This is our summary of the guidelines for re-opening:

1. Screen employees for COVID-19 symptoms. Ask all employees:

Have you been in close contact with a confirmed case of COVID-19?
Are you experiencing a cough, shortness of breath, or sore throat?
Have you had a fever in the last 48 hours?
Have you had new loss of taste or smell?
Have you had vomiting or diarrhea in the last 24 hours?

2. Temperature screen all employees on a daily basis. 

Best practice: temperatures on site with a no-touch thermometer each day upon arrival.
At a minimum, employees take their own temperatures before arriving.
Normal temperature should not exceed 100.4 degrees Fahrenheit.

3. Any employee that answers yes to any of the screening questions or is running a fever, must leave the premises and seek medical care and/or COVID-19 testing.

4. Employees are to stay home when feeling ill, when exposed to COVID-19, or if diagnosed with COVID-19. Employees that are particularly vulnerable to COVID-19 due to age or underlying conditions are encouraged to stay home

5. Implement workplace cleaning and disinfection practices, according to CDC guidelines, with regular sanitization of high-touch surfaces at least every two hours.

6. Mitigate exposure in the workplace by implementing social distancing guidelines and modify scheduling. Further is safer, per the guidelines.

7. Employees must wear masks or cloth face covering (but not N-95 or medical masks).

8. Restaurant employees must wear gloves.

9. Provide ServSafe COVID-19 training for all food handlers as soon as possible

10. Plan for potential COVID-19 cases, and work with local health department officials when needed (e.g., monitor and trace COVID-19 cases, deep clean facilities).

11. Make employees aware of the provisions of the federal Families First Coronavirus Response Act, which allows for paid sick leave and expanded family and medical leave for COVID-19.

12. Update employee policies for COVID-19.  Staff should sign the policy, and the policy should be posted.

13. Limit self-service options (customer samples, communal packaging, food/beverages, etc.)

14. Post extensive signage on health policies to educate staff and guests about COVID-19 best practices, including the attached.

Specific guidelines for restaurants.

• Limit the number of customers in the restaurant to 50% of seating capacity

• Tables should be spaced at least 6 feet apart

• Limit tables to no more than 6 guests per table

• Mark any indoor or outdoor waiting area so that social distancing standards are met

(options can include a text system to alert guests of available seating, an intercom

system, or only one member of a party being allowed to wait in the waiting area)

• Bar areas should remain closed

• Live music should not be permitted

• Screen customers for illness upon their entry into the restaurant:

            Best practice: Temperature checks for every customer.

            Minimum: Question customers regarding COVID-19 symptoms:

                        Have you been in close contact with a confirmed case of COVID-19?

                        Are you experiencing a cough, shortness of breath, or sore throat?

                        Have you had a fever in the last 48 hours?

• Place hand sanitizer stations in restaurant lobby and bathrooms, as well as cashier stations

• Sanitize all front-of-house contact surfaces including door handles, screens, phones,

pens, keyboards and other areas of hand contact every two hours, at a minimum

• Use menus that are disposable or sanitized between each use

• Use rolled silverware/napkins stored in sealed bins (gloves should be used by staff while rolling silverware in designated sanitary areas)

• Sanitize all tabletop items, including condiments, after each table turns (or use disposables)

• Sanitize chairs, especially where contact occurs, after each table turns

• Do not offer self-serve buffets, condiments on a counter for use by multiple tables, or beverage station re-use

Although the pledge mandates that bar areas remain closed, many restaurants have set up their bars for carry out and delivery. As long as social distancing and other precautions are employed, we do not see this as violating the pledge.

Stay tuned for more guidelines.

Restaurants and Bars Shift Their Business Models, Prepare for Reopening

Written by Brad Dawson on . Posted in Will Cheek's Last Call Blog.

podcast

SHARE THIS

Restaurants and Bars Shift Their Business Models, Prepare for Reopening

Apr 28, 2020

Welcome to PointByPoint, conversations, interviews and legal commentary for today’s business professionals, brought to you by Waller.

Restaurants, bars, entertainment venues and tasting rooms have closed their doors as a result of “stay at home” orders. These businesses have rapidly shifted their business models in order to generate revenue and keep employees working – food and alcohol delivery, curbside pickup, and more. Will Cheek and Rob Pinson, leaders of the firm’s alcoholic beverage team, discuss the changes in licensing and regulations, what’s ahead for restaurants, bars, distilleries and other hospitality clients, and practical considerations as they contemplate the future of their businesses.

TTB-rolls-out-new-rules-for-distilleries-wineries-and-breweries---Last-Call-Blog.jpg

TTB rolls out new rules for distilleries, wineries and breweries

Written by Brad Dawson on . Posted in Will Cheek's Last Call Blog.

TTB-rolls-out-new-rules-for-distilleries-wineries-and-breweries---Last-Call-Blog.jpg

blog

SHARE THIS

TTB rolls out new rules for distilleries, wineries and breweries

Apr 27, 2020

The federal Alcohol and Tobacco Tax and Trade Bureau, fondly known as TTB, issued final rules that contain a few game-changers for the alcoholic beverage manufacturing industry.

We are particularly fond of the greater flexibility offered to distilleries. Distilleries can now count the years bourbon or whisky are aged in used barrels.  Previously, a whisky or bourbon could only list the number of years aged in new oak barrels.

“You can innovate, but not get punished for aging in an unconventional barrel,” observed Waller’s whisky lawyer to the stars, Rob Pinson.

Under the new rules, whisky aged for 4 years in new barrels, and an additional 3 years in used rye barrels, can be called 7-year-old whisky.  Previously, it was 4-year old-whisky.

The most controversial proposal did not make the final cut.  TTB did not attempt to define what constitutes an “oak barrel.”

In the past, we understand that industry member posed lots of questions about barrels:  Can I use square barrels?  Can I use 35-gallon barrels?  Does the barrel have to bulge in the center? TTB did not limit the type of barrels by specifying the shape and size of barrels used for aging.

In another nod to innovation, distilleries now have more stylistic freedom for labeling. In the past, the front label had to contain all of the information required by TTB. Now, a distillery can put a simple bold logo on the front, for example, with the required label information on the side or back of the bottle.  This will enable greater creative flexibility in graphic design, and potentially with bottle design.

Another big plus for the industry is doubling the threshold for errors in determining the proof for spirits. Distilleries generally add water as a final finishing phase of the distillation process. This is generally done right before bottling.

TTB previously required that the amount of alcohol in the bottle – say 80 proof (which equates to 40% alcohol) – had to be within 0.15% of the amount of alcohol stated on the label.

TTB audits distilleries and tests for the accuracy of alcoholic content. If a batch of spirits was off more than 0.15%, TTB often requires that the distillery dump the entire batch, reproof the spirits and re-bottle. What a pain.

Now distilleries have twice the margin of error when proofing. We see this as a big boost for the industry, while not having any impact for consumers. Even the most polished palate probably cannot detect a difference of 0.15% in alcoholic content.

On a personal note, we are looking forward to continued innovation for vodka. Castle & Key has quickly become our favorite, shaken over ice. Previously, the definition of vodka required that the spirit be “without distinctive character, aroma, taste or color.” 

Castle & Key has complex but subtle mash notes that make cocktail hour quite delightful. We look forward to distilleries crafting more innovative vodkas for our happy hours.

For those that are having trouble sleeping during the coronavirus pandemic, here is a complete copy of the TTB rules. 

Federal licensing expert Rob Pinson provides a handy summary below.  Keep cocktailing.

The TTB recently released final regulations related to Alcoholic Beverage Labeling and Advertising.  Here is a quick timeline for these new final regulations:

11/28/2018 – Proposed Rule issued 4/1/2020 – Final Regulations issued 5/4/2020 – Effective date of new regulations

The final regulations address some issues currently and defers others for further consideration.  Overall, they provide greater flexibility for the industry.  There were 1,143 total comments, with over 700 of those expressing opposition to the proposed definition of a barrel as a 50-gallon cylindrical container.

Brief Summary of Changes

Doubles to +/- 0.3% the tolerance applicable to alcohol content statements on distilled spirits labels Removes the current prohibition against age statements on pretty much all classes of distilled spirits except vodka Removes prohibition on use of term “strong” and other similar indications of strength for malt beverages Removes limitation on how producers “count” the number of distillations when making “Distilled      times” claims

What TTB Is Not Changing

Definition of “oak barrel” – they are confirming different shapes and sizes are permitted Setting restrictions on cross-commodity terms, including homophones of class/type Setting restrictions on disclosing components of intermediate products or listing ingredients in order of predominance Requiring the age statement for spirits to only include the initial barrel; age can include subsequent barrels Requiring whiskey that meets more than one specific type to be labeled as such – for example, straight bourbon whiskey vs. bourbon whiskey Incorporate interaction between TTB and FDA when product is deemed “adulterated” by FDA and/or “mislabeled” by TTB

Specific Changes – All Commodities

Clarifies which products do and do not meet FAA definitions of wine, spirits or malt beverage and which labeling regime applies to them Confirms that product exported outside of US in bond does not need to meet FAA labeling requirements Personalized Labels (as opposed to private labels) Incorporates prior guidance into regulations; allows producer to submit template label and not get each private label approved Cannot discuss alcoholic beverage or characteristics of alcoholic beverage in personalized portion; remainder of label must have bare minimum Examples are provided Advertisements – modifies existing rule requiring publication of name and street address (city and state only) of industry member running an advertisement to permit websites, email or phone number in lieu of street address

Specific Changes – Wine Only

Removes citrus wine class and combines it with fruit wine (since citrus is a fruit, of course!) Allows vintage dates on wine that is imported in bulk Provides that all wine must meet standard of “natural wine”; more about cleaning up existing regulations

Specific Changes – Spirits Only

Definition of “distilled spirits” does not include products containing less than 0.5% ABV ** Will not establish definition of “oak barrel”; confirms current language allows for different shapes and sizes Clarifies requirement for statements of age and origin for imported products Will not require disclosure of intermediate ingredients on labels nor require listing of ingredients in order of predominance ** Liberalizes placement of key brand label information (brand name, class/type, alcohol content) to be on any side of bottle as long as it is in the same “field of vision”; net contents can be on any label now instead of only be allowed on front label Keeps ‘bottled in bond’ requirements with change for gin to allow paraffin-lined or unlined barrels; vodka retains paraffin-lined requirement ** Increases alcohol content tolerance from +/- 0.15%  ABV to +/- 0.30% ABV Allows age statements for all spirits except neutral spirits and vodka ** Confirms that multiple barrels can be used for “age counting” as long as initial barrel requirements are met – for example, as long as new charred oak barrel used for straight bourbon whiskey, you can age in used barrels after initial requirement and count time spent in used barrels in the age statement on the label ** Allows distilleries to count all distillations, including each plate distillation, when listing the number of times product is distilled; number may be understated but not overstated Creates new “agave spirits” class, of which tequila and mescal are a part; removes need to submit formula; at least 51% of mash must be agave and up to 49% can be sugar ** Revises vodka definition to remove the “without distinctive character, aroma, taste or color” and be distinguished by its specific production standard – no aging and limited sugar and citric acid Country of Origin – Since Customs & Border Patrol (“CBP”) already has regulations on listing the country of origin, the TTB is removing its similar requirements for distilled spirits and referring to CBP’s requirements ** Makes optional the use of a more specific type name when a class name also applies – for example, not required to use the ‘straight’ for bourbon whiskey even though it qualifies Defers creating a standard of identity for absinthe, but does remove the lab testing requirement for products made with wormwood

Specific Changes – Malt Beverages Only

Permits brewers to also add ABW information on label as long as it is together with ABV Removes restrictions on “draft” or “draught” on labels Removes restrictions on “strong”, “full strength”, “extra strength”, etc. on labels

Gov. Lee leaves Tennessee delivery and curbside alcohol in limbo

Written by Brad Dawson on . Posted in Will Cheek's Last Call Blog.

blog

SHARE THIS

Gov. Lee leaves Tennessee delivery and curbside alcohol in limbo

Apr 24, 2020

With Governor Lee’s order allowing curbside and delivery of alcohol set to expire at midnight April 30, we were expecting to see an extension of these privileges in connection with new guidelines for re-opening restaurants.

We have the guidelines, but no mention of alcohol delivery and curbside service. The governor could still extend these privileges, but so far, he has not. Governor Lee said the state is releasing additional guidelines next week. We may see language regarding alcohol delivery at that point.

At yesterday’s Tennessee ABC meeting, the ABC requested that the Governor’s Economic Recovery Group extend carryout and delivery for an additional 30 days and that the privileges be reviewed on a rolling 30-day basis. The ABC recommendation is Tennessee-wide; not just for areas that may still be experiencing local restrictions when the statewide Stay-At-Home order is lifted. 

ABC Director Russell Thomas has already conveyed the message to ERG Chair Mark Ezell. Read the message here. We applaud the Commission for being proactive and supporting this option to help keep restaurants afloat.

Tennessee Pledge Guidelines for Restaurants

Here is a summary of the guidelines for re-opening:

1. Screen employees for COVID-19 symptoms. Ask all employees:

Have you been in close contact with a confirmed case of COVID-19?
Are you experiencing a cough, shortness of breath, or sore throat?
Have you had a fever in the last 48 hours?
Have you had new loss of taste or smell?
Have you had vomiting or diarrhea in the last 24 hours?

2. Temperature screen all employees on a daily basis. 

Best practice: temperatures on site with a no-touch thermometer each day upon arrival.
At a minimum, employees take their own temperatures before arriving.
Normal temperature should not exceed 100.4 degrees Fahrenheit.

3. Any employee that answers yes to any of the screening questions or is running a fever, must leave the premises and seek medical care and/or COVID-19 testing.

4. Employees are to stay home when feeling ill, when exposed to COVID-19, or if diagnosed with COVID-19. Employees that are particularly vulnerable to COVID-19 due to age or underlying conditions are encouraged to stay home

5. Implement workplace cleaning and disinfection practices, according to CDC guidelines, with regular sanitization of high-touch surfaces at least every two hours.

6. Mitigate exposure in the workplace by implementing social distancing guidelines and modify scheduling. Further is safer, per the guidelines.

6. Employees must wear masks or cloth face covering (but not N-95 or medical masks).

7. Restaurant employees must wear gloves.

8. Provide ServSafe COVID-19 training for all food handlers as soon as possible

9. Plan for potential COVID-19 cases, and work with local health department officials

when needed (e.g., monitor and trace COVID-19 cases, deep clean facilities).

10. Make employees aware of the provisions of the federal Families First Coronavirus Response Act, which allows for paid sick leave and expanded family and medical leave for COVID-19.

11. Update employee policies for COVID-19.  Staff should sign the policy, and the policy

should be posted.

12. Limit self-service options (customer samples, communal packaging, food/beverages, etc.)

13. Post extensive signage on health policies to educate staff and guests about COVID-19 best practices, including the attached.

Specific guidelines for restaurants.

• Limit the number of customers in the restaurant to 50% of seating capacity

• Tables should be spaced at least 6 feet apart

• Limit tables to no more than 6 guests per table

• Mark any indoor or outdoor waiting area so that social distancing standards are met

(options can include a text system to alert guests of available seating, an intercom

system, or only one member of a party being allowed to wait in the waiting area)

• Bar areas should remain closed

• Live music should not be permitted

• Screen customers for illness upon their entry into the restaurant:

            Best practice: Temperature checks for every customer.

            Minimum: Question customers regarding COVID-19 symptoms:

                        Have you been in close contact with a confirmed case of COVID-19?

                        Are you experiencing a cough, shortness of breath, or sore throat?

                        Have you had a fever in the last 48 hours?

• Place hand sanitizer stations in restaurant lobby and bathrooms, as well as cashier stations

• Sanitize all front-of-house contact surfaces including door handles, screens, phones,

pens, keyboards and other areas of hand contact every two hours, at a minimum

• Use menus that are disposable or sanitized between each use

• Use rolled silverware/napkins stored in sealed bins (gloves should be used by staff while rolling silverware in designated sanitary areas)

• Sanitize all tabletop items, including condiments, after each table turns (or use disposables)

• Sanitize chairs, especially where contact occurs, after each table turns

• Do not offer self-serve buffets, condiments on a counter for use by multiple tables, or beverage station re-use

Stay tuned for more guidelines and updates on delviery.

Mayor Cooper approves continued take-out for beer – but no word on delivery in Tennessee

Written by Brad Dawson on . Posted in Will Cheek's Last Call Blog.

blog

SHARE THIS

Mayor Cooper approves continued take-out for beer – but no word on delivery in Tennessee

Apr 23, 2020

Metro Nashville Mayor John Cooper announced a detailed plan for the staged reopening of restaurants, bars and music venues, as soon as May 1. The real question is: will anyone reopen their dining room on May 1st? You can read the entire Roadmap here.

Initial reactions do not look good if you are in the market for a sitdown meal on May 1.  We only found one restaurant planning to open its dining room on May 1, based upon inquiries we made within the first couple of hours of release of the Mayor’s Roadmap. 

A silver lining is take-out. The first three of the four phases specifically references take-out “alcohol” sales.  The order also specifically authorizes the sale of alcohol at tables.  We think that only applies to take-out beer. Use of the term alcohol is unfortunate.

The Roadmap does not mention delivery. The Metro Beer Board has authorized delivery of beer until May 31, with proper authorization from the Beer Board, but delivery is officially in limbo at the moment. 

The big question is:  Will Governor Lee extend delivery of all alcohol beyond midnight April 30, when his order authorizing alcohol delivery expires. We hear guidance may be forthcoming Friday April 24.

Not only does Gov. Lee’s power apply to the entire state, we believe that only Gov. Lee or the state legislature has the authority to be able to authorize delivery of wine, spirits and high gravity beer. Individual cities have power to regulate beer, but no authority to regulate the sale of wine and spirits at restaurants, bars and other venues.

Although the Roadmap specifically refers to the word “alcohol,” we see the Roadmap as only authorizing take-out of beer.

Beginning May 1, dining rooms at restaurants and “bars serving food from a menu” can open:

At half-capacity
Physical distancing in kitchens and dining rooms
Screen all employees daily for temperature and respiratory symptoms
Employees with 100.4 fever or higher must leave immediately
Employees with any symptoms of illness must be tested and stay at home until negative test results
Create policies that make it possible for employees to isolate and quarantine
Clean facilities
Explicit guidelines to maintain hygiene
Cloth face masks for employees, but not required for patrons
Bar areas to remain closed
No live music
No self-service or shared condiments

Phase 3 adds these requirements, which appear to be left out of Phase 1, perhaps by oversight:

Require that restaurants clean all surfaces after single use by patron
Recommend use of disposable menus

Bars, entertainment and cultural venues cannot reopen until Phase 3. “This includes museums, tours, attractions, bowling alleys, movie theaters.” At half-capacity. Live music is also permitted in Phase 3 for restaurants and bars serving food.

In order to initiate the reopening plan, the city will be required to meet the following criteria:

    •  Proof of a decline or flat cases of COVID-19 over a 14-day period

    •   Adequate testing and PPE capacity in the region

    •   A robust public health infrastructure to conduct contact tracing cases

Mayor Cooper confirmed that the decision to reopen will be data driven, as opposed to date determinative. When Nashville’s Safer at Home order expires on May 1, Metro health officials will evaluate case data and other metrics collected over the past 14 days to determine if there has been a positive, stable improvement necessary to begin Phase One of the reopening plan.

We understand that yesterday’s spike in Covid cases was the result of significant increases in the amount of people tested, and that the 14 day period did not restart. We see more testing as a good thing .

Stay tuned for more news as this story develops. 

Nashville’s Roadmap for Reopening Restaurants and Bars

Written by Brad Dawson on . Posted in Will Cheek's Last Call Blog.

blog

Apr 23, 2020

UPDATED: May 7, 2020

Mayor Cooper has ordered Phase 1 of Metro Nashville’s Roadmap for Reopening to begin May 11. Restaurants and stores can open at half capacity starting Monday.

The big  question is: how many restaurants will reopen their dining room on the first day? You can read the entire Roadmap here.

Initial reactions did not look good if you are in the market for a sitdown meal on day one.  We only found two restaurants planning to open dining rooms on day one, based upon inquiries we made within the first couple of hours of release of the Mayor’s Roadmap. 

Beginning May 11, dining rooms at restaurants and “bars serving food from a menu” can open:

At half-capacity
Physical distancing in kitchens and dining rooms
Screen all employees daily for temperature and respiratory symptoms
Employees with 100.4 fever or higher must leave immediately
Employees with any symptoms of illness must be tested and stay at home until negative test results
Create policies that make it possible for employees to isolate and quarantine
Clean facilities
Explicit guidelines to maintain hygiene
Cloth face masks for employees, but not required for patrons
Bar areas to remain closed
No live music
No self-service or shared condiments

Phase 3 adds these requirements, which appear to be left out of Phase 1, perhaps by oversight:

Require that restaurants clean all surfaces after single use by patron
Recommend use of disposable menus

Bars, entertainment and cultural venues cannot reopen until Phase 3. “This includes museums, tours, attractions, bowling alleys, movie theaters.” At half-capacity. Live music is also permitted in Phase 3 for restaurants and bars serving food.

In order to initiate the reopening plan, the city will be required to meet the following criteria:

    •  Proof of a decline or flat cases of COVID-19 over a 14-day period

    •   Adequate testing and PPE capacity in the region

    •   A robust public health infrastructure to conduct contact tracing cases

Mayor Cooper confirmed that the decision to reopen will be data driven, as opposed to date determinative. When Nashville’s Safer at Home order expires on May 9, Metro health officials will evaluate case data and other metrics collected over the past 14 days to determine if there has been a positive, stable improvement necessary to begin Phase One of the reopening plan.

From May 1 until May 8, Davidson County health data must show an average of 80 or fewer new cases per day in order to maintain or improve a downward trajectory in the 14 day metric of new cases.

Stay tuned for more news as this story develops. 

When will Tennessee’s bars, restaurants be open for business? Here’s our educated guess

Written by Brad Dawson on . Posted in Will Cheek's Last Call Blog.

blog

SHARE THIS

When will Tennessee’s bars, restaurants be open for business? Here’s our educated guess

Apr 17, 2020

This post is out of date. Look for specifics about reopening at our newer posts at Last Call. 

There has been plenty of speculation about what the new normal will be for dining out after stay-at-home orders are lifted. 

California took the lead in providing some guidance for restaurants. At a press conference on April 14, California Governor Gavin Newsom discussed what the new normal will look like for dining in a restaurant.  As Yoda might say, “Normal, it will be not.”

Precautionary measures include:

Checking customer temperatures
Waiters wearing masks and gloves
Reducing tables by 50%
Disposable menus

Governor Newsome called these “likely scenarios” once stay-at-home orders are lifted.

The California approach may serve as a model to other states trying to navigate the transition to reopening economies.

Tennessee has yet to weigh in on the new normal for restaurants. There are ongoing questions—such as whether continued delivery of alcohol by restaurants will be permitted to continue.

Count on this: the new normal will look different from what we are all used to, and guidance is sure to change as the situation evolves.

The $64,000 Question: When Will Restaurants Open?

Recent Vanderbilt Department of Health Policy coronavirus modeling for Tennessee  and federal guidelines provide insight into the timeline and new normal for Tennessee bars and restaurants. Vanderbilt modeling includes projections for coronavirus peaks under three scenarios: additional reduction, status quo and lifting of social distancing measures.

Image title

Under the status quo scenario, projected hospitalizations in Tennessee peak mid-June.  Status quo means stay-at-home is in place at least through mid-June.

Under federal Guidelines for Opening up America Again, criteria for opening states or regions include:

a downward trajectory of symptoms and either positive tests or documented cases within a 14-day period ; and
hospital treatment without crisis care and testing for at-risk workers in the healthcare industry.

Based on the Vanderbilt model, let’s presume that mid-June is June 15. Let’s also presume that the number of people testing positive for COVID-19 tracks the rate of hospitalization.

Federal guidelines require a 14-day period where the number of cases declines. Doing a little math – yes we know math is dangerous for liquor lawyers – 14 days from June 15 is June 29. 

Restaurants will not open until June 29, based on the Vanderbilt projections. All this is guesswork at this point, but June 29 is a long, long time to wait and reopen to 50 percent capacity.

The good news is that other modelling shows Tennessee’s hospitalization peak occurred April 16. We have been tracking the Washington Institute for Health Metrics and Evaluation’s metrics here. But April 30 sounds aggressive for reopening.

Guidelines for Opening up America Again

According to federal Guidelines for Opening up America Again, the reopening of restaurants will involve strict protocols for physical distancing. 

The guidelines include three phases of opening, along with suggested criteria for states or regions to meet to move into phase one initially and from each phase into the next.

The amount of social distancing is not specified and we are skeptical about sporting venues, movie theaters and places of worship reopening in Phase One.

Bars do not reopen until Phase Two under the federal guidelines. 

Guidance for restaurants and bars under each phase are highlighted below.

Phase One

Must satisfy criteria for required 14-day period.
Large venues (including sit-down dining, sporting venues, movie theaters) may resume operation under “strict physical distancing protocols.”
Bars remain closed.

Phase Two

Must satisfy criteria again for required 14-day period and show no evidence of rebound.
Large venues operate with “moderate physical distancing protocols.”
Bars may reopen, with limited occupancy.

Phase Three

Must satisfy criteria again for required 14-day period and show no evidence of rebound.
Large venues operate with “limited physical distancing protocols.”
Bar occupancy may increase.

These phases may be implemented statewide or by county, at Governor Lee’s discretion.

Stay tuned as we learn more about “the new normal.”

How about a little John Hiatt and Back to Normal?

I’m back to normal

(He’s going over her)

I’m back to normal

(With his thermometer)

I’m back to normal

(She’s getting normal)

No COVID-19 tax holiday for sales and liquor by the drink taxes

Written by Brad Dawson on . Posted in Will Cheek's Last Call Blog.

blog

SHARE THIS

No COVID-19 tax holiday for sales and liquor by the drink taxes

Apr 13, 2020

We keep hearing this question from industry members. 

“I do not have to pay sales and liquor by the drink taxes under the Governor’s executive order, do I?”

Not true. All sales and liquor by the drink taxes collected in March, April and subsequent months must be paid over to the state.  If you do not pay the taxes, expect a nastygram like this.

There is one important caveat. 

Wine, spirits and high gravity beer sold to-go or delivered during the COVID-19 pandemic are not subject to liquor by the drink taxes.  The rationale is that to-go and delivery sales are not for on-premises consumption, and therefore, should not be subject to the 15% on-premises tax. All alcoholic beverage sales to go or for delivery are subject to sales tax. 

All this talk of driving around with alcohol reminds us of Meat Loaf’s hit “Paradise by the Dashboard Light”

Well, I remember every little thing

As if it happened only yesterday

Parking by the lake and there was not another car in sight

It is possible that the state will declare a tax holiday, but at this time, make sure you are paying your sales and liquor by the drink taxes as they come due. There is personal liability for these taxes and you do not want to be personally liable.

For the record, liquor and grocery stores do not pay the 15% tax on wine and spirits. They do pay sales tax.

My bar or restaurant has closed for coronavirus. Now what?

Written by Brad Dawson on . Posted in Will Cheek's Last Call Blog.

blog

SHARE THIS

My bar or restaurant has closed for coronavirus. Now what?

Apr 2, 2020

On the heels of Gov. Bill Lee’s Safer at Home Order, we are seeing a second wave of restaurant closures. Which begs an important question: Should I let the ABC and local beer board know that my business is closed?

Although we have not seen any formal guidance from the ABC or beer boards on temporary corona closures, we do not expect any citations to issue for closed restaurants, bars, hotels and other licensed establishments.

If you are the cautious sort, you may want to upload a letter into your RLPS record documenting that your establishment is closed indefinitely. You can also mail a similar notice to your local beer board.

We have created a handy template for you to use here. The lawyer in us has to say that this is not legal advice. Facts and circumstances can differ and you may want to take a different course of action.

Safer at home during the corona closure, we have been wearing out Jack White’s killer tune “Alone in my Home.”

All alone in my home

Alone in my home

Nobody can touch me

And now, here are a few operational changes at the ABC.

Inspections.

The ABC ceased in-person inspections in the middle of March. ABC agents have the discretion to inspect by telephone, Facetime or other visual aids. We have continued to obtain licenses during the corona closure.

Late fees for Citations.

The ABC is extending the time period for paying or otherwise resolving citations without penalty from 20 days to 80 days. This is a 60-day extension of the normal 20-day period.

Late fees for renewals.

The ABC has granted a 60-day extension for renewals. We encourage restaurants and bars not to wait to until the 60th day after your renewal deadline. If you discover that you have tax issues or other problems with the renewal, you may find yourself in a situation where you are unable to renew within the 60-day extension. In these cases, the ABC has advised that they may issue citations.

How to deliver beer in Bristol, Chattanooga, Knoxville, Memphis and Nashville during the Corona closure

Written by Brad Dawson on . Posted in Will Cheek's Last Call Blog.

blog

SHARE THIS

How to deliver beer in Bristol, Chattanooga, Knoxville, Memphis and Nashville during the Corona closure

Mar 25, 2020

UPDATED: April 10, 2020

One has to ask: Is imitation the sincerest form of flattery? Bristol, Chattanooga and Knoxville have all adopted the Nashville model for beer delivery.

Bristol became the latest city to authorize delivery, curbside and takeout sales of beer at its April 7 City Council meeting. On-premise, breweries and on-off beer permit holders can deliver inside the Bristol City limits after first informing Lt. Walter Brown, City Beer Board Secretary, and waiting on his confirmation.

Keep in mind that the state-wide delivery order only applies to restaurants, limited service restaurants, and wine-only restaurants. The city delivery laws allow breweries, and hotels and other businesses that do not hold ABC restaurant licenses to deliver beer within city limits.

There also is no food-service requirement with beer delivery, and no restrictions on quantities.

Consistent with the Nashville model, only employees of Bristol beer permit holder can deliver — meaning no third-party services like UberEats, Post Mates, or DoorDash. Delivery personnel must be 21 years of age or older. The City can revoke permission to deliver beer at any time, if the Bristol Police Department finds evidence they sold beer to a minor or an intoxicated person.

Knoxville adopted the Nashville beer delivery model by emergency ordinance. Attached is a copy of the ordinance. 

Chattanooga joined the list of cities allowing beer delivery on March 27, 2020. Mayor Andy Burke entered an executive order that essentially adopts the Nashville process. The process is explained in the order (Executive Order 2020-05.pdf).

Memphis was the second city to authorize delivery and to-go beer sales by restaurants. All businesses holding an on-premise beer permit can sell sealed containers of beer to-go, including curbside, drive-through and delivery. It looks like delivery is limited to employees. The motion is attached here. (Memphis Beer Delivery Motion 4845-1834-5144 v1.pdf)

In a spot of good news for carryout, Memphis city officials are bagging downtown meters to allow temporary parking for curbside delivery and takeout.

ORIGINAL POST

The Metropolitan Beer Permit Board of Nashville has enacted an emergency regulation allowing restaurants, hotels and most breweries to apply for a new beer permit to deliver and sell beer curbside and to-go.

Establishments with Tennessee ABC restaurant, limited service restaurant and wine-only licenses have greater privileges under Executive Order, as we explain here.

Nashville beer delivery is the only option for hotels, caterers, premier-type tourist resorts, convention centers and other ABC special license types, as well as beer-only, on-premise permit holders, such as beer bars and breweries that do not hold ABC liquor licenses.

As of posting, we have filed delivery applications for 65 restaurants, hotels and breweries.

Here’s how to exercise delivery privileges in Nashville:

1. Give notice. Before selling to go, curbside or delivering, the Regulation requires notification to the Metro Beer Board via email at beerboard@nashville.gov and providing the following information:

Name of the Permittee

Physical Address of the Permittee

E-mail Address

Phone Number

On or On/Off Premise Beer Permit Number

There is no application fee. The staff will issue a 30-day temporary “on/off” permit that allows the restaurant, hotel or brewery to immediately begin to-go, curbside and delivery of beer. Attached is a copy of the draft Regulation, which was adopted. 

You can start delivering as soon as the beer board responds. Response has been quite brisk, during business hours. The beer board will also e-mail you a new temporary on-off permit, which you should post.

2. Employees only. The emergency Regulation requires that deliveries be made by employees. No delivery of beer by UberEats or other third-party delivery services.

3. Universal carding. The Reg requires mandatory carding by the employee making the delivery, curbside or to-go sale.

4. Drive thru windows. The Reg also authorizes sale of beer at drive-thru and delivery windows.

We find ourselves humming the Talking Heads completely cryptic single:

Once in a Lifetime

Same as it ever was

Letting the days go by

Same as it ever was

Same as it ever was

Stay tuned for more updates.