JACKSON TOWNSHIP, Pa. — Jim DeLisio wears many hats. He's the president of the York County Licensed Beverage and Tavern Association and sits on the state board. However, perhaps the one that is giving him the most unease right now is as a bar owner.
DeLisio runs the Racehorse Tavern on North Biesecker Road in Thomasville. Bars and restaurants are running at 25 percent capacity since Governor Tom Wolf's executive order to limit indoor crowds in response to the COVID-19 pandemic.
The issue, DeLisio says, is many bars need to operate at 65-to-70 percent capacity just to break even.
"We’re doing the best we can to try to stay open and survive as a business," DeLisio said.
To make matters worse for bar owners across Pennsylvania is the looming date of July 25. That is when federal unemployment benefits from the CARES Act run out. Since March, those filing for unemployment have been able to make an extra $600 per week.
Bartenders, wait staff, line cooks and others who work at bars making a $2.83 plus tips minimum wage have relied on the extra money. With it going away, bar owners, like DeLisio, are presented with a growing problem.
Since bars and restaurants are operating at 25 percent capacity, the tips aren't coming in as much as they normally would. Because of that, bar owners have to make up the difference so employees can make a statewide $7.25 minimum wage. However, since bars are running at a quarter of the business they normally do, the money is beginning to run dry.
DeLisio estimates 10-to-15% of bars in York County have had to close for good, while another 30-to-40% are temporarily closing.
"Between the two, that's 50 percent of the bars in this area that are closing because they can't operate at 25 percent. They can't even open their doors at 25 percent," DeLisio said.
On top of that, those bars which are managing to stay afloat are losing staff for more secure jobs.
"I have bartenders who have worked for me for years that are like, 'Look, I don’t wanna do this but I’m going to a factory and I’m getting a job where I know I’m working 30 to 40 hours a week and I have insurance benefits and the pay maybe isn’t quite as good but at least I could put food on my table and pay my bills.'"
Congress is in the process of negotiating a new federal stimulus package. The Democratic led U.S. House passed the HEROES Act in May, a $3 trillion plan which would, among other things related to the coronavirus, restart emergency unemployment compensation. Republican leaders in the Senate want to trim the package to around $1 trillion.