Cartwright

Cartwright

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<p>Friedman</p>

Friedman

WILKES-BARRE — A group of regional restaurant owners and managers Wednesday discussed the impacts they have experienced during the COVID-19 pandemic during a virtual meeting with U.S. Rep. Matt Cartwright.

The participants agreed on one major issue that they are concerned about: as cold weather approaches, outside dining will end and, they all said, their businesses will suffer.

”As the weather gets colder, our businesses are definitely going to suffer,” said Rob Friedman, who owns six restaurants, two wedding venues and two music venues.

So what can be done to help?

Cartwright, D-Moosic, has called for stronger relief for the hospitality industry businesses and workers to be included in the next coronavirus aid legislation.

During the virtual meeting, Cartwright heard the restaurant owners and managers detail how they are working to keep their employees and patrons safe amid the virus threat, and how relief programs for restaurants could be improved in future aid legislation.

Cartwright said based on federal data, it is estimated that U.S. restaurants experienced $120 billion in losses between the months of March and May. Those losses have resulted in more than 8 million restaurant employees being laid off or furloughed, according to the U.S. Bureau of Labor Statistics.

Cartwright was joined in the meeting by:

• Justin Genzlinger, CEO, Settlers Hospitality Group

• Cathy Kutchi, Manager, Carmen’s Bakery & Deli

• Jean-Luc Vitiello, Owner, Pocono Brewery

• Rob Friedman, Owner, Friedman Hospitality Group

• Patrick and Bill Nasser, Owners, Backyard Ale House

Cartwright discussed his support for the Restaurants Act (H.R. 7197) — legislation supported by both Democrats and Republicans that would create a $120 billion Restaurant Stabilization Grants program that would be available through the rest of 2020.

The Restaurants Act creates a new $120 billion grant program to provide structured relief to restaurants through 2020, Cartwright said.

Cartwright said the legislation has been introduced in both the U.S. House and Senate.

He said the funds could be used to cover expenses such as payroll, supplies, utilities, food and more.

Cartwright also highlighted key provisions for the industry included in the Heroes Act, which was passed over two months ago in the U.S. House.

“Restaurants, hospitality and tourism are not just essential to Northeastern Pennsylvania’s economy, they’re core parts of the social and cultural fabric of our area. Unfortunately, we know our restaurants and their employees have been among the hardest hit by the global pandemic,” Cartwright said. “That’s why it’s so important for us to come together to provide support to both the restaurants and the hardworking Americans they employ. The Restaurants Act and business aid provisions in the Heroes Act offer hope for meaningful relief for these struggling businesses, and they should be enacted as part of the next coronavirus bill as soon as possible.”

Friedman mentioned that outside dining also brought additional expenses, such as tents and heaters.

“Outside dining has been good, but it is expensive for us,” Friedman said. “And the wedding business has also suffered. Nobody wants to get married under these conditions of wearing masks and social distancing. And this has also affected photographers and linen companies, to mention a few.”

Friedman and the other panelists also said the requirement imposed that patrons can not just drink in a bar/restaurant and must have food has also impacted their businesses. They said alcohol sales are the most profitable for them.

Another issue raised was the difficulty in getting workers. They said many prefer to collect, especially with the additional $600 benefit that was implemented during the pandemic.

“It’s been difficult to convince them to return to work,” Friedman said.

The panelists also told Cartwright that while low interest loans are good, grants are better.

Cartwright said the Heroes Act includes improvements to the Paycheck Protection Program (PPP), a small business loan program primarily designed to help employers keep employees on payroll.

These improvements would support the hospitality industry in the following ways:

• Extending the loan “covered period” end date from June 30, 2020 to December 31, 2020.

• Loan forgiveness reductions will be “held harmless” for some employers who can show an inability to rehire or find “similarly qualified” employees before December.

• Authorizing an additional $10 billion in grants to small businesses that have suffered financial losses as a result of the coronavirus outbreak.

Cartwright also joined several of his colleagues in sending a letter to his colleagues in House leadership in July reiterating the importance of making PPP more flexible so that funds can be used for equipment, supplies and other capital expenses.

Cartwright told the group that hew anted to gather information so that he can return to Congress and inform his colleagues what should be done to help the businesses get through the pandemic.

“For every dollar spent in a restaurant.bar, $1.91 goes back to the state’s economy,” Cartwright said.

Cathy Kutchi, Carmen’s Bakery & Deli, said she installed Plexiglas shields and took other precautions, yet customers are still reluctant to come out.

“We need working capital,” she said. “People are more willing to sit outside rather than come inside a building.”

Reach Bill O’Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.