Something has to be said and done about the chaos created by

the governor’s ill-informed orders and the lack of coordination

and communication with TABC. Someone needs to investigate
and talk about this. It’s affected at least 1,500 bars and
restaurants and caused unemployment to over 35,000 Texans.
The problem is with the governor’s baseless choosing of 51%
food sales and the TABCs inconsistencies in auditing and
executing those orders. The result is an unconstitutional and
sometimes discriminatory shut down of businesses.

I have 4 bar & grill locations, in 4 different cities, spread across

3 counties (Dallas, Collin, an Denton). These are mom and pop
“cheers” type local bar and grills that locals eat at every day.
We have identical menus with over 70 menu items. Full-time
salaried General Managers and full-time salaried Kitchen
Managers. Permanent kitchens in each, nearly identical
equipment. All have venthoods, pizza ovens, griddles, stoves,
etc.

Between all stores, our food/alcohol mix in 2019 averaged 30%

food and 70% alcohol. During May and June of this year, the
last two full months of operations we had between the two
closures (after we shifted operations to be more Togo and
delivery heavy) - we are averaging 49% food 51% alcohol.
We’ve worked hard to get to this food/alcohol mix, and we have
more plans to continue staying that that mix (including
additional menu overhauls).

You would think that these similarities would imply I have the
same type permit everywhere and they’re all equally affected by
the order - but it doesn’t. There’s also little consistency between
TYPE of permit and whether you’re open. TABCs archaic rules
when combined with local regulations mean I have 3 different
types of permits. It means as of last week I had 2 locations shut
down by the orders and 2 open. The two open have RM
(restaurant permits) BUT after a call from TABC, they will be
shutting another one of them down soon. So I am about to have
3 shut down and 1 open.

There are severe issues with discrepancies or a disconnect

between governors orders or his understanding of TABC rules
and the way TABC is interpreting and executing his orders

The governor’s most recent order said 51% of sales must be

food.
On his previous order, he clarified that he MEANT those with
the 51% sign. In order to have a 51% sign, you have to have
40% food sales.
This time, he did not. So he intended to leave it at 51% of sales
must be food - regardless of your permit type. Even restaurants
with an RM license are subject to closure because of this
arbitrary 51% ruling.

TABC has taken it upon themselves to interpret and execute

this in various ways. The Arlington TABC office (which oversees
DFW and surrounding area) has decided that they are basing
your %s off of your sales records from quarters relative to when
you last renewed. NOT right now. NOT on the time that is
relevant right now. NOT based on operations you have in place
now. BUT instead on a time that has nothing to do with actual
operations of businesses since the pandemic started affecting
us. Not based on operations that businesses are currently
running or sales they’re currently making because of changes
they’ve put in place to weather the COVID storm.

My four licenses:
MB (considered a bar) - Renewed August 2018 - Shut down
RM (considered a restaurant) - Renewed May 2019 - Notified
they are shutting us down
RM (considered a restaurant) - Initial Approval November 2019
- Open
N (considered a bar/private club) - Renewed June 2020 - Shut
down

We’ve been told varying dates of audits based on these renewal

dates: 2nd quarter of 2019. 4th quarter of 2019. 1st quarter of
2020.

Why does any time period other than the time we’re in right now
matter? 1st quarter of 2020 actually makes a little sense,
although I’d argue 2nd quarter is more relevant. But what does
the 2nd quarter of 2019 have to do with anything? What does
the 4th quarter of 2019 have to do with anything?

Many businesses are realizing that now, in today’s world, the

changes we’ve had to make due to COVID, that they ARE
operating above 51% food sales. Definitely above 40%, which
happens to be the cutoff for an FB permit. FB certificates are a
subordinate tack-on license that says you’re a restaurant
because you sell over 40% food. FB certificates have always
been based on FUTURE PROJECTIONS. What you WILL be
doing going forward based on your business plan. This is fair.
This is what current “bars” (a blanket term that really has no
meaning when one “bar” is a nightclub with 0% food sales and
another “bar” is a bar & grill with 39% food sales) are realizing
they need because the current situation does have them
increasing online food sales, Togo orders, etc and they now will
be selling over 40%.

TABC has now started notifiying customers that apply for FB

permits that just because they have an FB, they might still shut
them down if their food sales are between 40% to 49% food. FB
permits have always been future based - but now they’re saying
they aren’t. So... what period will they audit? It’s anyone’s
guess! Nothing is in writing. No guidance for the 1500 bars that
are shut down.

TABC loves to tell you that “we are allowing you to sell Togo
alcohol” as if that means anything. No one is buying a Togo
martini from a closed down bar. It’s laughable. There’s no
motivation for Togo drinks when they can still go to the bar of
any restaurant and drink indoors there. And if you happen to be
stuck in the worst scenario - having a private club permit - you
can’t even sell Togo drinks. Don’t ask me why. The point of a
private club is you only sell to members. Well, if I sell to a
member picking up - what’s the problem? TABC has decided,
for whatever reason, that it’s a no-go. That’s not in the
governor’s order, by the way. Just another rule TABC made up.
Again, even if your private club has a permanent kitchen selling
Togo food for pickup to it’s members - you cannot sell a Togo
drink to that member. Just some extra regulation to make
matters worse for businesses stuck in the club loop-hole.

The inconsistencies from office to office are a joke. Ask around

small towns - their TABC office isn’t even enforcing it, so
reporting a restaurant with an RM that only has 20% food sales
does nothing. They’re allowed to operate.

It’s unclear if this inconsistency is a byproduct of poor planning

or understanding on the governors part, poor communication
between the governors office and TABC, or intentionally aimed
at a section of businesses deemed immoral in a blue-law driven
state. Texas has some of the most heavy handed laws in the
entire US when it comes to alcohol regulation. TABCs rules are
NOT business friendly in a state that touts itself as such.
Meanwhile, churches, nail salons, gyms - all open. Schools,
reopening. Restaurants with full bars everywhere. Closing bars
ALONE wasn’t the solution. If you’re going to continue to
classify bars vs restaurants along a 51% line - then you just
need to close them ALL down. There’s a big difference between
a nightclub with no kitchen (classified as a bar) and a local bar
and grill that families eat and drink at every night (classified as a
bar).

Something has to change. Classifications, the 51% cut off, the

discrepancies between the Governor’s intent and TABC
interpretations/execution of his order.

It’s just all wrong.

Solutions:
• Close ALL restaurants and bars.
• Close all bars that don’t have permanent kitchens (with
venthoods is usually the determining factor)
• If alcohol and the way it inhibits peoples’ ability to wear a
mask is the problem, then just close ALL restuarant and
bars service of alcohol on-premise. Togo is okay, but no
one can serve it onsite. That way, if you’re there you’re
there to eat. And there’s no risk you’ll drink so much you
disregard your safety or the safety of those around you.
• Allow bars and restaurants to have outdoor service of food
and alcohol, because spread outdoors is less likely than
indoors
• Allow all to be open but hold them all to the same
occupancy maxes.
Any of the above solutions make more sense than the chaos
that is governing bars and restaurants right now. The industry
needs consistent and fair rules and application of those rules.
The arbitrary choosing of 51% and the inconsistent (between
TABC offices) enforcement of the order create unfair
competitive advantages for some businesses. If the Governor
truly cared about stopping the spread - he’d close down all
restaurants and bars. And the call centers. And the nail salons.
And the gyms. But by focusing on bars and leaving half of them
open has just shifted traffic away from 1500 businesses to the
remaining open businesses. That doesn’t solve anything or slow
the spread. If restaurants that serve alcohol operating at 50%
occupancy aren’t an issue - than neither are bars also operating
at 50% capacity. There’s just no logic there.

Someone needs to look into and talk about this. There are
dozens of lawsuits against the state right now. There’s a lot of
confusion. There’s a lot of bankruptcies on the horizon. Does
any of it make sense to you?”