Diner and Restaurant Representatives Meet with Senator Robert Menendez
Pan Gregorian Cooperative Leaders Identify Risks Threatening Their Industry and Present Proposal Designed to Save Family-Owned Food Service Businesses
The leaders and advisors of six regional food service cooperatives held a virtual meeting with U.S. Senator Robert Menendez (N.J.) on June 17, 2020 to present their proposal for additional assistance to meet the challenges faced by their members as diners and restaurants begin to reopen in the wake of the coronavirus pandemic. Harry Mihas and James Logothetis of Pan Gregorian Enterprises, Inc. of New Jersey, Dimitrios Kafhitsas of Pan Gregorian of Metro New York and Long Island, Sakis Tyrnas of Pan Gregorian of Upper New York, Chris Scabardonis of Pan Gregorian of New England, Nick Apostolopoulos of Pan Gregorian of the Carolinas and John Zoulis of Pan Gregorian Enterprises of Maryland, Inc. were among the cooperative executives who thanked Senator Menedez for his efforts to date, but emphasized that much more must be done if this crucial segment of the economy is to survive.
PPP Loans an Important Start, But Not Nearly Enough
Andreas Comodromos, CPA, speaking for the group, emphasized that the federal government’s PPP loan program was greatly appreciated, but that the continuing restrictions on operations in many states, the refusal of employees to return to work, mandatory social distancing requirements and the general public’s concerns about safety present serious obstacles to recovery. Although recent legislation extended the use of the PPP funds from 8 to 24 weeks, the reality is that the funds made available thus far are insufficient and fall considerably short of what is needed for a transition to recovery. A large numbers of family-owned eateries will face extinction unless additional significant steps are taken to support the industry.
Summary of the Proposal
Stephen M. Vajtay, Jr., Esq., counsel to Pan Gregorian of New Jersey, presented Senator Menendez with a summary of the group’s proposal (detailed copy attached) designed to provide the types of assistance that family-owned diners and restaurants need to survive. The proposal includes:
– A targeted federal program to provide grants to closely-held diners, restaurants and eateries in line with proposals made by the Independent Restaurant Coalition and the National Restaurant Association. The cooperative executives specifically endorsed the $120 billion Restaurant Act of 2020 proposed by Representative Earl Blumenauer (3rd District, Ore.);
– A new tax credit to be made available to closely-held restaurants that would reimburse owners to the extent they must supplement the lost tip income of their serving staff in order to satisfy minimum wage requirements;
– Immunity from tort claims if eating establishments follows all federal and state guidelines once they are permitted to reopen; and
– Elimination of current financial disincentives to return to work and implementation of a return-to-work bonus.
Senator’s Comments
Senator Menendez thanked the diner and restaurant representatives for their advocacy and said he was receptive to the group’s proposal while noting that many other industry groups were also competing for enhanced federal support. He noted that the federal government had already committed trillions of dollars to restarting the economy and that as a member of the Senate Finance Committee, he was keenly aware of the impact existing and future relief programs would have on the U.S. economy in the future. That said, the Senator acknowledged that family-owned restaurants face unique and critical challenges that need to be addressed. He and the industry group agreed to continue to communicate and collaborate on solutions to the post-pandemic hurdles confronting family-owned diners and restaurants.
A PROPOSAL FOR SPECIAL ASSISTANCE TO RESTAURANTS, DINERS AND SMALL EATERIES
At the end of the meeting Pan Gregorian Cooperatives submitted a proposal