More bars reopen with new restaurant status

Another wave of San Marcos bars have reopened with a new restaurant status after the Texas Alcoholic Beverage Commission (TABC) made emergency amendments that allowed bars to more easily qualify for a Food and Beverage Certificate.

Following Governor Greg Abbotts’s June 26 Executive Order GA-28, restaurants that make less than 51% of their profits from alcohol can open for dining in, and businesses that have not previously reported alcohol sales below 51% can apply to qualify as a restaurant. 

On Aug. 25, TABC removed some of the more difficult and expensive requirements of the permit process so bars do not need to make major changes to their business models or invest in expensive equipment, according to the TABC website. 

Just that, bar owners are confused and frustrated by a process that does not require them to make many substantial changes, but not left with much of a choice to stay afloat, saying a new certificate does not make their establishment any safer. After qualifying as a restaurant, these establishments have to comply with all social distancing, capacity and other health and safety protocols that are required by local, state and federal law, the same ones they followed prior to the mandate that shut down bars. 

“Having food on your premises doesn’t change a thing,” said Joel Hosmann, owner at Riley’s Tavern in New Braunfels. “It doesn’t make it healthier than any other establishment. In my opinion it’s a money grab for the state.”

Riley’s Tavern already had many of the current health and safety protocols built in to their outdoor venue and beer garden business model even before COVID-19 hit. 

The one acre beer garden has tables set up six or more feet apart, and now does not allow any seating at the bar and requires masks when not seated.

Chase Katz, owner-operator at Zelick’s Icehouse thinks the new permitting and closing and reopening of different establishments adds a layer of confusion for people who are not in the service industry. He thinks it's more about public perception than a revenue stream for TABC, saying going through extra hurdles to reopen will hopefully make bar-owners and patrons take health and safety precautions more seriously.

“We are operating the same way it was before [bars were closed],” said owner at Zelick’s Icehouse, Chase Katz. “Everyone is seated, no standing at the bar and you have to wear a mask when you walk around.”

Harper Hall & Veranda Rooftop also recently received a Food and Beverage Certificate as announced on their Facebook, however owner Sean Neal declined to comment.

Business owners had two options for reopening under GA-28. One option was to submit an alcohol sales reporting affidavit which required having food service facilities and offer at least two entrees that customers can order for all the hours that alcohol is offered. Businesses can then submit an affidavit showing previous sales or projecting future sales to be less than 51% alcohol based on the new business model.

The 51% non alcohol sales can come from food and other items like tshirts, merchandise, or even airbnb revenues in the case of Riley’s Tavern. 

Hosmann used the opportunity to collaborate with his son who started smoking meat in a commercial trailer after working at Black’s BBQ for many years. 

The other option that many local bars have pursued to reopen is to apply for a Food and Beverage Certificate which has the same requirements as for submitting an alcohol sales reporting affidavit. 

Riley’s Tavern just reopened on Thursday with their Food and Beverage Certificate and Hosmann is happy to be serving drafts and hosting live music once again outside, surely reminiscent of the day when 87 years ago they were the first bar to open in New Braunfels when Prohibition was lifted.

Zelick’s was eager to reopen for the sake of their 25 employees who had no income the last two months, but also to aid in providing a safe sense of normalcy to the community. 

“People want to be able to experience the local San Marcos Community and this is a community-oriented establishment,” said owner-operator Benji Ackerman. “We wanted to make sure we could reopen for San Marcos.”