Res. No. 1375

Resolution calling upon the New York State legislature to pass, and the Governor to sign, S.8392, which would allow licensed premises to continue selling alcohol through delivery and take-out, for two years after the pandemic ends.

By Council Member Powers

Whereas, The spread of SARS-CoV-2, the virus responsible for causing the new disease known as COVID-19 has wreaked havoc across the world; and 

                     Whereas, By early July 2020, there have been over 220,000 cases of the disease and more than 22,700 deaths in New York City alone; and

                     Whereas, In order to help slow the spread of the virus, Governor Cuomo signed the New York State on PAUSE executive order (PAUSE) that, amongst other things, closed all non-essential businesses effective March 22, 2020; and

                     Whereas, The PAUSE executive order has had a devastating impact on the City’s hospitality industry; and

                     Whereas, While food establishments were able to offer take-out and delivery during PAUSE, according to the Mayor’s office, in the first four months of 2020, restaurant revenue was down by 90 percent, compared to the same time the previous year; and  

                     Whereas, Similarly, according to a New York Restaurant Association survey, restaurants across the state expected to lose $3.6 billion in sales a month, due to PAUSE; and

                     Whereas, Profit margins within the restaurant industry are notoriously slim, but alcohol sales can help increase profits; and

                     Whereas, Around 30 percent of a restaurant’s revenue typically comes from alcohol sales, and for bars, this percent is obviously much higher; and

                     Whereas, Recognizing this revenue opportunity, Governor Cuomo also suspended part of the State’s liquor licensing law to allow licensed venues to sell alcohol for take-out and delivery during the COVID-19 crisis; and

                     Whereas, This suspension was recently extended until August 5, 2020, and also allows establishments offering outdoor dining to sell alcohol on their premises; and

                     Whereas, Prior to the authorization of outdoor dining, restaurant owners in New York City expected to open for reduced-capacity, indoor dining, once the region hit Phase Two for reopening; and

                     Whereas, However, given recent spikes in COVID-19 cases across the Country, indoor dining has been further delayed; and

                     Whereas, Even if restaurants were able to resume indoor dining within the next few months, the previous months of restrictions means that the industry will take a long time to fully recover; and

                     Whereas, Therefore, it is important to provide as many avenues as possible for new and safe revenue streams; and

                     Whereas, Allowing alcohol delivery and take-out sales is one such example; and

                     Whereas, The suspension of current liquor laws to allow these types of sales have been issued in blocks of time, making it difficult for businesses to have certainty on whether they can count on this revenue stream; and

                     Whereas, The current order, for example, expires on August 5, 2020, and there are no assurances that this will be extended again; and

                     Whereas, To provide the hospitality industry with more certainty around their future sales opportunities, State Senator Brad Hoylman has introduced S.8392, which would allow licensed premises to continue selling alcohol through delivery and take-out, for two years after the pandemic ends; and

                     Whereas, Many jurisdictions across the Country allowed alcohol to be sold for consumption off-premises, even prior to the pandemic, while others have eased restrictions in order to support the struggling hospitality industry; and

                     Whereas, It may take years for New York’s hospitality industry to return to its vibrant heyday, so giving restaurants a reliable income stream into the future be a welcomed relief; now, therefore, be it

Resolved, That the New York State legislature pass, and the Governor sign, S.8392, which would allow licensed premises to continue selling alcohol through delivery and take-out, for two years after the pandemic ends.

LS #14998

7/10/2020

LMS