‘It might be too late.’ North Carolina bars closed since March will struggle to reopen

North Carolina bars can reopen their outdoor spaces later this week, but the question remains: How many of them will make a comeback following a six-month shutdown?

Phase 3 of the state’s reopening plan begins at 5 p.m. Friday, allowing bars to reopen at 30% outdoor capacity or 100 guests, whichever is less. N.C. Gov. Roy Cooper made the announcement Wednesday.

But some say it’s not enough to help struggling businesses.

“Gov. Roy Cooper had a chance to do the right thing today and give North Carolina bar owners a chance to survive,” said Zack Medford, president of the N.C. Bar and Tavern Association. “Instead, he chose an unworkable path.”

Under Phase 3, bars without outdoor seating can serve up to seven customers per 1,000 square feet.

Medford, who owns several bars, said in a written statement that most municipalities do not issue occupancy permit certificates for outdoor spaces.

He also said he surveyed 93 bars around the state and found that only six qualify to have 20 or more customers at once under the new order. Having fewer than 20 customers would make it nearly impossible financially to stay afloat, he said.

Before Wednesday’s announcement, Medford spoke with The News & Observer about the struggle bar owners have experienced since March, when the governor ordered them to close to help slow the spread of the coronavirus.

“A lot of people have given up,” Medford said. “They’ve already lost everything they’ve got, so even if they are allowed to reopen it might be too late.”

Jeff Strickland, public affairs director for the N.C. ABC Commission, said 57 businesses in the state canceled or withdrew their private-bar alcohol permits between May 22 and Sept. 11, when he responded to a public records request.

May 22 is the day Cooper allowed restaurants to reopen.

Permanent permits are classified as canceled, while temporary status permits are classified as withdrawn, Strickland said.

Only two of the 57 bars went through the process of receiving mixed-beverage restaurant permits instead.

“Our staff has spoken with several business owners who are interested and have questions about the process, so our expectation is that more businesses may pursue this option,” Strickland said.

Mike Tadych, a Raleigh-based attorney representing the N.C. Bar and Tavern Association in a lawsuit against the governor, said some of his clients tried unsuccessfully to reopen as restaurants.

Tadych, who also represents The News & Observer, said he was involved with a handful of businesses that tried to navigate the ABC Commission’s guidance on private bars.

“They followed all of those rules and they weren’t open but a few hours and an (Alcohol Law Enforcement) agent was there telling them that they were violating the order,” Tadych said.

Not wanting to risk losing their ABC license, the bar owners decided to close, he said.

“If you are a permanent ABC holder in North Carolina then there is a 30-day audit of your stuff before you can even attempt to switch to a restaurant,” Medford said. “I don’t even know what they would be auditing or what that even means.”

Tadych said a lot of bars served food prior to the pandemic with special nights for tacos, hot dogs or steaks, but the state doesn’t classify them as restaurants.

Local ordinances, codes, and permit and inspection requirements are standing in the way of some bars being able to reopen, Medford said.

Strickland agreed, saying some permit applications have been delayed because zoning compliance forms and other items must be reclassified.

Some bars that turned in their alcohol permits may still have other active permits or may consider applying for another type of permit, Strickland said.

Medford said some bars have successfully turned in their liquor licenses but kept their wine and beer licenses. But he called it a risky move, as it requires bar owners to forfeit their liquor or keep it locked away.

Meanwhile, Tadych said he has requested data from the state showing a need for bars to remain closed. Most of them are already open, he said, because they served food pre-pandemic.

“We still don’t have the first responsive record,” Tadych said. “I think if you’re going to open 85% of bars there’s no reason to keep the other 15% closed.”

This story was originally published September 29, 2020 at 6:34 PM with the headline "‘It might be too late.’ North Carolina bars closed since March will struggle to reopen."