By Matt Roy
Twitter: @AzNewsmedia

A week after the governor issued renewed social distancing measures — closing down some businesses, which had only just reopened — restaurant industry advocates remain unsure how to apply the new rules.

Gov. Doug Ducey on June 29 issued an executive order, closing some types of businesses to the public as the novel coronavirus continues to spread unabated.

“As part of continued efforts to reverse the trend of COVID-19 spread in Arizona, Governor Doug Ducey today signed an executive order to prohibit large gatherings, cease the issuance of new special event licenses and pause the operations of bars, gyms, movie theaters, water parks and tubing rentals,” the governor’s office stated in a press release.

The move came just 45 days after Mr. Ducey’s March 19 executive order expired after temporarily limiting restaurants to serving only takeout and delivery customers.

Among several new requirements, most bars must close to public again — at least until July 27, the order states.

“Bars, meaning an entity who holds a series 6 or 7 liquor license from the Department of Liquor Licenses and Control and whose primary business is the sale or dispensing of alcoholic beverages,” the governor stated in his order.

But while Mr. Ducey’s new order targets bars specifically — not restaurants — the wording has created confusion and concern for those businesses navigating the gray area between bar and grill.

Susie Timm — CEO of Knife & Fork Media Group and a public relations and media consultant to over 25 local restaurants, as well as the Arizona Restaurant Association — explained a point of contention raised by the most recent regulation.

“The guidance remains unclear on how exactly a business should determine if they fall into this category. This has left many businesses that operate as a traditional restaurant but have a series 6 or 7 wondering if they can continue to operate,” Ms. Timm stated.

She said because the licensing definitions are broad, it’s hard to know how many establishments are affected or exempt from the requirements.

“There are 1,292 establishments in Arizona that hold a series 6 license and 845 establishments that hold a series 7,” Ms. Timm stated. “However, several of these are held by entities we would not consider restaurants or bars (such as barbershops, salons, etc.) Because of this, we can’t provide an exact number.”

Continued confusion

The Arizona Department of Liquor Licenses and Control issued a clarification for bars and restaurants on June 30, stating businesses which operate under multiple licenses may continue to do so.

“Holders of stacked licenses related to their series 6 and series 7 licenses may continue to operate under one’s other license types in compliance with Executive Order 2020-40 and associated ADHS requirements, if their primary purpose is not the sale of alcohol. For example, a series 7 beer and wine bar license that obtained a series 12 restaurant license at the same location, and continues to meet the definition of or otherwise operate as a restaurant, may determine that its primary purpose is not the sale of alcohol and continue to operate,” agency officials stated at the DLLC website, azliquor.gov.

But despite the example offered, the agency contends each business owner should interpret whether the executive order applies to them or not — while the DLLC cannot.

“The department cannot provide guidance to its thousands of licensees regarding the nature of their businesses. Each licensee unsure of requirements are encouraged to consult with their own legal counsel regarding compliance with Executive Order 2020-43,” the DLLC memorandum states.

While individual businesses wrangle with the new regulations, Ms. Timm urges restaurateurs to do everything to protect public safety.

“Abide by all the protocols set forth by the CDC and the state of Arizona. Take them very seriously and do your part to stop the spread every single shift,” Ms. Timm stated.

In his June 17 executive order entitled “Containing the Spread of COVID-19 Continuing Arizona Mitigation Efforts,” Mr. Ducey required virus mitigation efforts for those restaurants who do stay open to dine-in business.

The requirements include:

• Clearly marking 6-foot spacing in all interior areas where patrons queue for service or congregate.
• All restaurant employees who interact with customers must wear cloth face masks at all times.
• Restaurant management must develop and enforce PPE standards and post signs at the entrance to prohibit anyone showing symptoms from entering.
• And performing wellness checks of employees — including temperature checks — for all restaurant personnel as they arrive and before opening for business daily.

Industry shifts

Following the governor’s March 30 executive order, many restaurants quickly pivoted to focus on takeout and delivery business.

From touting convenient curbside pickup and carryout specials to increased use of ride-share services for deliveries, establishments across the Valley adapted as they tried to hold onto their customers.

Among ARA members participating in the group’s twice-annual Arizona Restaurant Week promotions this year, many upscale eateries that had previously only allowed dine-in service embraced the take-home option for the first time, according to Jamie Stone, director of marketing at the association.

“The first serving of Arizona Restaurant Week helped provide a small bump in sales for local eateries. We had a great response from our foodie followers across social media outlets and some restaurants reported seeing large growth in week over week business,” Ms. Stone stated.

The semiannual promotion ran from June 19-28, during which restaurants offered three-course prix fixe menus at reduced prices, ranging from $33 per couple up to $44 per person.

The majority of them offered takeout this time around.

“Out of the 112 participating restaurants, over 80 of them offered their special ARW menu for takeout as well as dine-in,” Ms. Stone stated. “Being able to evolve the event to match current dining trends allowed for these restaurants to capture diners who may not have felt comfortable dining in.”

The fall edition of Arizona Restaurant Week is slated for Sept. 18-27 and association leaders hope to see the takeout trend continue.

“We are still highly recommending participating restaurants offer their menu in a to-go format,” Ms. Stone stated. “We already have over 80 restaurants signed up and eagerly awaiting the fall event. Everyone is very hopeful come September we will have a little bit of normalcy back and consumers will again be excited to support our restaurants through this great event.”