Goldberg: Non-renewals will tell story of toll on bars, restaurants
Up to 35% of retail alcoholic beverage licensees and 20% of state licensees may not renew in the new year due to the COVID-19 pandemic’s “major economic toll” on bars and restaurants, according to Treasurer Deb Goldberg.
“The outlook for fiscal year 2022 is not strong,” Goldberg told lawmakers Tuesday during a hearing on state revenue expectations for the next budget cycle.
While her assessment was limited to alcohol license holders, rather than the state’s revenue picture at large, the treasurer’s comments underscore troubles in an industry that is scrambling to survive after watching about 250,000 of its 300,000 jobs evaporate when COVID-19 arrived here in March.
The Alcoholic Beverages Control Commission, which regulates about 9,000 licensees, will in early January know more about how many bars and restaurants opt not to renew licenses. But if industry non-renewal estimates hold up, Goldberg, who oversees the ABCC, said the state could see licensing revenues fall by $200,000 to $350,000.
“That’s sobering news to hear about the potential amount of licenses that may not be renewed for next year,” House Ways and Means Committee Chairman Rep. Aaron Michlewitz told Goldberg. “Not surprising though, in terms of where what we’re seeing in all our districts throughout the Commonwealth.”
Michlewitz, whose downtown Boston district is spackled with restaurants, wore a Regina Pizzeria mask to show his support for the industry, which has had to adapt to reduced capacity requirements, new takeout options, and enforcement to guard against virus transmission.
When restaurants were shut down in the spring to slow the spread of COVID-19, the ABCC, working with the Massachusetts Restaurant Association and the Massachusetts Wholesalers, issued an order allowing repayment plans to alleviate licensee cash flow problems. Those plans have been successful, she said.