State’s spirit buyback provides $3.3M

Bars, restaurants can use funds for payroll, food and operating costs

Brian Cardwell said the coronavirus pandemic has been tough and emotional for those in the restaurant industry.

Cardwell, general manager of Penny Black Grill and Tap, said the downtown Rochester eatery is still providing carry-out service, but has seen an 80 percent drop in revenue due to the coronavirus pandemic. The business has had to layoff around 29 of its 35 employees with dine-in services suspended under state order effective March 16.

As part of the Michigan Liquor Control Commissioner’s (MLCC) spirit buyback program, the restaurant received $25,353 in cash, which provides some financial relief that can be used for payroll, operating, and food costs. Bars and restaurants keep possession of the product and have 90 days after the state of emergency is lifted to repurchase the liquor by selling it and paying the MLCC back interest free.

“We are employing two managers and two members of our kitchen staff,” he said. “We still have operating expenses and we still have to buy food to support our carry-out orders and to keep us going. It’s tough with only 20 percent of what we usually make coming in.”

Cardwell said the COVID-19 pandemic has “literally just cut a big hole” out of the restaurant industry. He keeps in contact with his employees via text message to make sure “they are doing alright” because “it’s all about helping each other at this point and having their back.”

“I was a bartender for years and I feed off of people,” he said. “It’s tough for most of us in the restaurant industry that feed off of that human contact and our regulars coming in to say hello. I actually consider myself to be a pretty mentally stable

guy, but this has definitely challenged me.”

The state’s 100% cash buyback program was able to provide more $3.3 million in financial relief to 657 bars and restaurants across the state owners across the state, with an average of $5,000 per business. Eligible licensees applied for the program directly through the MLCC from April 14-24. Once applications were approved, checks were issued to licensees from the Michigan Department of Treasury.

Gov. Gretchen Whitmer said the financial losses have been incredibly devastating to business owners in the hospitality industry during this COVID-19 pandemic.

“I am pleased that through this innovative program, we can provide muchneeded cash to hundreds of Michigan’s bars and restaurants that are struggling right now, to help tide them over until they’re open for business again,” she said.

Cardwell is confident the restaurant can survive the pandemic due to its large and loyal customer base. He said some of those customers have even provided donations, so that the restaurant can cook meals for frontline employees at area hospitals.