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Gerber Financial Advisors


WHAT WE KNOW: RESTAURANT & BAR UPDATE

March 20, 2020
 
For our clients who own restaurants and bars, here is a summary of what we know about Governor DeWine's Order for closing onsite consumption:
 
Expansion of Unemployment Benefits
  • Workers will qualify for unemployment benefits if the employer lays off employees, shuts down operations, or if the employee is in mandatory quarantine because of a confirmed or suspected diagnosis of COVID-19.
  • The one-week waiting period for eligible Ohioans to receive unemployment benefits has been waived.
  • Penalties for late quarterly reports or payments will be waived.
 
Liquor Buy Back
  • Unopened high proof liquor products purchased in the last 30 days can be returned for a full refund by bringing it back to the Contract Liquor Agency where it was purchased.
 
Driver / Delivery Insurance Coverage
  • If up until this point, your original business practice has not included delivery service,contact your insurance company before offering first party deliveries. Your CGL policy might not cover it.

Communicate With Your Landlord
  • The Governor's Order will constitute a "force majeure" event in nearly every lease, which will:
    • excuse most bars from obligations such as a continuous operations requirement
    • arguably excuse restaurants from the continuous operations requirement if it is commercially unreasonable to operate as a carryout / deliver food service option only
  • Payment of rent may notbe excused by a force majeure event, unless your Rent Commencement Date has not yet occurred. Please review the force majeure clause in your lease to confirm options.
  • Unfortunately, the Governor's Order isn't usually a covered event under the business / rental interruption insurance policy. Business interruption insurance is almost always triggered by a property damage event, such as hurricane, tornado, bomb, etc.
  • We recommend opening the lines of communication with your landlord now, and being transparent about your financial statements, rent abatement, rent deferment and other repayment methods.

Personal Liability for Company Debts
There is personal liability for the following debts of a corporate entity:
  • Sales Tax
  • Withholding tax
  • Employee benefits and wages
Under the Perishable Agricultural Commodities Act, personal liability is possible for debts from the purchase of raw fruits, produce, vegetable and other perishable items whether or not they are frozen or packed in ice.
 
If you have additional questions, please reach out. We're here as your partner and will be by your side through this unprecedented crisis.
 
For More Information:
 
ONLINE:
 
 
BY PHONE:
Liquor Enterprise Service Center: 877-812-0013
 
CONTACT NAMES:
Bruce H. Burkholder
Alicia E. Zambelli


INDEX
  • WHAT WE KNOW: RESTAURANT & BAR REOPENING UPDATE
  • WHAT'S CHANGING WITH THE PPP
  • THE BENEFITS OF GROWING YOUR BUSINESS AT THE RIGHT RATE
  • HOW TO DETERMINE YOUR GROWTH RATE
  • HOW TO RESET YOUR GROWTH MODEL IN RESPONSE TO COVID-19
  • GROWTH WITH PURPOSE: 4 REALITIES THE COVID-19 PANDEMIC HAS EXPOSED FOR SMALL BUSINESS
  • GROWTH WITH PURPOSE: SOLIDIFYING YOUR CORE VALUES IN THE WAKE OF COIVD-19
  • GROWTH WITH PURPOSE: THE RIDE OF AN FGE BEFORE AND DURING COVID-19
  • GROWTH WITH PURPOSE DURING COVID-19: DON'T GROW FOR GROWTH'S SAKE
  • COVID-19 RESOURCE GUIDE
  • THE NEW TEMPORARY NORMAL
  • WHAT WE KNOW: RESTAURANT & BAR UPDATE
  • CONDUCTING BUSINESS IN THE MIDST OF THE COVID-19 OUTBREAK
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