The Arizona State Legislature passed a bill earlier this year allowing licensed restaurants, bars, and liquor stores the opportunity to sell mixed cocktails to-go. This new market will expand Arizona’s to-go and delivery industry. 

To-Go Alcohol 2021 was one of the largest changes to Arizona Liquor law in the form of HB 2773 to the Arizona Restaurant Association. The bill will provide any business that obtains an approved lease the ability to sell mixed cocktails for off-premise consumption. 

Following the onset of the COVID-19 pandemic, restaurants, bars, and liquor stores across the state faced closures and shut-downs, but Gov. Doug Ducey signed an executive order in March 2020 legalizing the sale of spirits to-go. The sale of alcohol to-go becomes permanent with the implementation of HB 2773, even after the pandemic ends.

Upon signing HB 2773 Gov. Ducey , “House Bill 2773 will make sure restaurants and bars have the opportunity to expand operations and meet the needs of their customers, especially after weathering the effects of the pandemic.”

The bill gives businesses two different ways to access this new market, one for mixed cocktails and one for packaged goods. Mixed cocktails refer to any drink combined on the premises of the business that contains liquor and one other ingredient. Packaged goods refer to liquor, wine, beer, or other types of spirituous liquors that are in the original container. 

The legislation was sponsored by Chander state Rep. Jeff Weninger, a restaurateur. 

“Many businesses were hard hit by the pandemic, but smart policies like permitting to-go beverages helped keep many afloat,” Weninger at the time of the bill’s passage. “House Bill 2773 will help bars, liquor stores and restaurants grow, and it will attract new businesses to our state. This is a major win for Arizona’s food and beverage industry, and I thank Governor Ducey for signing this legislation.”

Beginning October 1, bars and liquor stores were able to start selling mixed cocktails to-go. Restaurants that are licensed to sell alcohol are able to apply for a lease granting them the ability to participate in this new way of selling. If a restaurant is approved by the Department of Liquor Licenses and Control (DLLC), the business will be assigned an automatic yearly renewable lease for to-go cocktails. Restaurants will have to pay a fee of $200 for the application and a fee of $2,500 for the lease.

The to-go mixed cocktails must be sold in a container that is clean, approved by the national sanitation organization, and does not exceed 32 ounces. There is no limit to how many containers one can buy in an order, but each individual container must be under 32 ounces. These containers must only be filled with the drink on the premises of the business after it has been ordered. It must also have a ‘tamper-proof seal,’ all government warning labels, and the business’s logo or name. 

In a similar fashion to restaurants, any bar is given the ability to sell packaged goods to restaurants for off-premises consumption on a lease. The DLLC must approve the lease and there is a $200 application fee. Beer and wine bars only can sell beer and wine, whereas bars can sell beer, wine, and other spirituous liquors to restaurants. 

Both bars and restaurants are also given the ability to do alcohol deliveries, directly from the business or utilize a third-party delivery system only during the hours of 6:00 am to 2:00 am of the next day. Any third-party service must register with the DLLC before starting to deliver alcohol on behalf of businesses.  

Any time an order is placed for both to-go cocktails and packaged goods, a business or third-party delivery system is allowed to ask for age verification and documentation requirements.

The new law still ensures that restaurants follow certain regulations regarding alcohol distribution. Restaurants must maintain a 40/60 ratio of food to alcohol, all employees must be given liquor training, restaurants may receive no more than 30% of their total alcohol sales from to-go sales, and they must make sure that all to-go alcohol sales include food.

The Arizona Restaurant Association has cheered the new law.

“Restaurants, bars and liquor stores throughout the state will have the opportunity to drastically expand their operations thanks to the signing of House Bill 2773,” Arizona Restaurant Association President and CEO Steve Chucri said. “To-go cocktails will help businesses bring in revenue and attract new customers, and it will draw new restaurants and bars to our state. My thanks to Representative Weninger for sponsoring the legislation, and to Governor Ducey for signing it.”

Further information and guidelines are expected to come out from The Department of Liquor Licenses and Control and the DLLC later this month.If you’d like to read more, check out

Author: Flannery Sloan, Arizona Junior Fellow

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Governor Doug Ducey last month lifted all Covid-19 restrictions on restaurants, bars and other businesses. But that doesn’t mean that dining and drinking establishments are taking off their masks and packing in crowds. 

Far from it, said the president and CEO of the (ARA), Steve Chucri.

“Restaurants across Arizona have done an incredible job at implementing mitigation measures, protecting patrons and staff, and remaining flexible,” Chucri said. “Our restaurants know what to do and they’re first priority is keeping employees and diners safe.”

Federal guidelines also require employers take precautions to prevent the spread of COVID-19, he said.

To discourage bad players, the association is working to educate operators about federal health and safety guidelines, help get hospitality employees vaccinated, and assist employers with obtaining grants and aid to help pay for supplies like personal protective equipment. 

Under federal guidelines, employer’s duty to prevent spread of COVID-19

Governor Ducey’s order lifted restaurant specific requirements such as social distancing and buffet prohibitions. It also eliminated mask mandates. 

Employers, however, should be aware of their obligation under the Occupational Safety and Health Act (OSHA), Chucri said. Under the act’s guidelines, employers must protect employees from COVID-19 hazards at the workplace. That includes providing masks, social distancing, and enhanced sanitation protocols. 

OSHA also recently updated its guidance on COVID-19 and is in the process of developing additional standards for employers. Before revising a mask policy for employees or customers, operators should consider the OSHA guidelines, Chucri said. 

“While we do not have specific examples of how OSHA will enforce these provisions in restaurants, we do know that the restaurant industry is high on the agency’s priority list.” 

Before making any changes, Chucri recommends that operators review the OSHA guidance document: .

Encouraging Arizonans to get out of the kitchen

With more than 4 million Arizonans having received at least one dose of vaccine, business is picking up at bars and restaurants statewide. The association, chambers of commerce and restaurant owners are encouraging  Arizonans to get out of the kitchen and head to their favorite restaurant or night spot, even if just for takeout. 

“Most edible time of the year” – Spring Restaurant Week

One way to start is to dine in or take out during 2021 Spring Restaurant Week Friday May 21 to Sunday May 30. This annual statewide event takes diners on a taste tour. Eateries offer a prix-fixe dinner menu for $33 or $44 per person or per couple. 

Restaurants already on board this year are Elements at Sanctuary Camelback Mountain Resort, T. Cook’s at Royal Palms Resort & Spa, Citizen Public House and The Gladly, and more. There are also West Valley restaurants, like Litchfield’s and Red’s Bar and Grill at The Wigwam, plus Urban Margarita and Arrowhead Grill. Other participants include Buck &Rider and Pedal Haus Brewery, according to the , a sponsor of the event. Currently, restaurants can still sign . For diners, a list of participating restaurants and menus will be posted soon at . 

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Restaurants, bars and other food service providers in Arizona could see more relief to carry them through the final throes of the pandemic that has negatively impacted almost every dining and drinking establishment here. 

On Saturday, the U.S. House worked into the wee hours to pass the $1.9 trillion that includes $25 billion in restaurant relief. Now, the package is  in the Senate for consideration. While there are disagreements over some sections, a provision to help restaurants and bars that are still struggling has strong support. 

Relief for small and mid-sized restaurants

Included in the package is the Restaurant Revitalization Fund (RRF) to provide $25 billion in relief for small and mid-sized restaurants. It is based on an amendment overwhelmingly approved by Congress last month that added a dedicated restaurant relief fund to the plan.The amendment was introduced as a bipartisan, bicameral effort from four senators and representatives including Arizona U.S. Senator Kyrsten Sinema (D).

“Arizona restaurants fuel jobs across our state, and these employers need support now more than ever,” Sinema said. “Establishing a restaurant rescue plan will get Arizonans back to work and ensure local Arizona restaurants can keep their doors open as we continue to fight the ongoing pandemic and lay the groundwork for a full economic recovery.” 

Forgivable grants would provide aid for payroll, mortgage, utilities and more 

Restaurants, bars and other food service businesses that receive grants through the relief package would not need to pay them back as long as they use the funds for essential operating expenses such as payroll, mortgages, rent, utilities, and personal protection equipment. 

“Senator Sinema’s bill is a game-changer for an industry that is a critical jobs and economic driver for Arizona. Almost 90 percent of restaurants have furloughed or laid off employees, and that number is on track to only get worse as this pandemic wrecks the industry,” said Steve Chucri, president and CEO of the Arizona Restaurant Association. 

Food trucks, caterers, food stands and brew pubs included in aid package 

In addition to restaurants and bars, other entities eligible for support from the RRF include food stands, food trucks, food carts, caterers, saloons, inns, taverns, lounges, brewpubs, tasting rooms, taprooms, and any licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products.

The act allows for grants equal to a pandemic-related revenue loss of up to $10 million per entity or $5 million per physical location. The grants are calculated by subtracting 2020 revenue from 2019 revenue. Entities are limited to 20 locations.

Restaurant relief grants could be used for a variety of expenses including:

• Payroll costs
• Principal and interest payments on a mortgage, not including any prepayments on principal
• Rent payments, not including prepayments
• Utilities
• Maintenance expenses including construction to accommodate outdoor seating and walls, floods, deck surfaces, furniture, fixtures, and equipment
• Supplies including personal protective equipment and cleaning materials
• Food and beverage expenses within the eligible entity’s scope of normal business practice before the covered period, which runs from Feb. 15, 2020, through Dec. 31, 2021, or another date as determined by the Small Business Administration (SBA)
• Covered supplier costs
• Operational expenses
• Paid sick leave

Economically disadvantaged, women and veterans would receive priority 

During the first 21 days of the grants, the SBA will prioritize applications from restaurants owned and operated or controlled by women, veterans, or socially and economically disadvantaged individuals.

The plan requires applicants to make a good-faith certification that the uncertainty of current economic conditions makes the grant request necessary to support the applicant’s ongoing operations and that the applicant has not also applied for or received a grant.

The plan sets aside $5 billion for eligible applicants with 2019 gross receipts of $500,000 or less. The bill also charges the SBA with awarding the other $20 billion in grants in “an equitable manner to eligible entities of different sizes based on annual gross receipts.”

Concern over $15 an hour mandate in the bill 

Many restaurant owners and small businesses in Arizona expressed concern over a provision that sought to raise the federal minimum wage from $7.25 to $15 an hour over four years. It also proposes to eliminate tip credits. The changes would mean that employers would have to pay every worker at least $15 an hour, even if they receive tips. 

Flagstaff, Ariz. already has a $15 an hour minimum wage. If Congress were to approve a federal wage hike, Flagstaff would automatically see its minimum wage raise to $17 an hour due to a measure approved by the Flagstaff City Council. 

For now, the controversial provision is unlikely to appear in a final deal. The Senate parliamentarian, a neutral arbiter of the chamber’s rules, issued guidance saying she thought it didn’t meet the guidelines for a budget reconciliation package. Under reconciliation, bills can pass with a simple majority, rather than the 60 votes required to invoke cloture, which ends a filibuster on a bill.

What else is in the American Rescue Plan 

Other measures included in the rescue plan are:

• An extension of federal unemployment benefits from $300 to $400 per week through the end of September
• A new $15 billion grant program for struggling small business owners, separate from the existing Paycheck Protection Program, along with a $35 billion investment in local financing programs that provide businesses with low-interest loans
• An extension of eviction and foreclosure moratoriums until the end of September, with $5 billion set aside to help tenants struggling to pay rent.
• Restoration of emergency paid sick leave through the end of September
• $350 billion in aid for state and local governments
• $170 billion in aid for K-12 schools and higher education
• $50 billion for Covid-19 testing
• 15 percent increase in SNAP benefits through September
• $20 billion toward a national vaccine program, in partnership with state and local governments
• Increasing the Child Tax Credit to $3,000 per child ($3,600 for children under 6) and making it refundable for the year

Read the full text of the proposal at:  

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Millions of independent restaurant owners and employees displaced or struggling because of the pandemic could soon see relief through federal legislation that specifically targets them for help. 

A bipartisan bill introduced in both houses of Congress last month called the RESTAURANTS Act 2020 would provide $120 billion in grants to assist restaurateurs to rehire workers and for other operating expenses. 

Arizona Sen. Kyrsten Sinema, a Democrat, is the lead Senate sponsor along with Mississippi Sen. Roger Wicker, a Republican.

Their goal is to preserve independent and small franchise operators like the corner cafe, the tamale store, the neighborhood bar. 

“The introduction of this bill provides hope of survival for small business restaurant owners from the smallest towns to the broadest urban streets. It will help these struggling businesses who are still facing a difficult and uncertain future,” Sean Kennedy, executive vice president of public affairs for the National Restaurant Association said when the bill was introduced. 

Millions of restaurant workers remain jobless 

The pandemic has been particularly hard on independent food and drinking establishments. Even with inside dining now allowed in many states, customers continue to be wary and social distancing guidelines limit the ability to turn a profit, Kennedy said. 

And while U.S. Bureau of Labor Statistics show that hiring kicked up significantly in June, with food and drinking establishments adding 1.5 million jobs, more than 3 million restaurant workers still remain jobless. 

�鶹��ýӳ��om and pops facing “devastation”

In Arizona, independent operators are among those struggling to survive — if they haven’t already closed shop, said Steve Chucri, president and CEO of the Arizona Restaurant Association (ARA), which represents the industry that had $14.7 billion in sales in 2018. 

“In Arizona, the economic fallout has been devastating,” said Chucri, adding that Arizona restaurants lost roughly $29 million a day during the peak of the virus, and a total $815 million in April.

Before the pandemic, the industry employed 310,600 people, representing 11 percent of Arizona’s workforce, he said. 

A survey released last month by the ARA showed that, among restaurants still in operation, 89 percent have laid off or furloughed employees during the pandemic. 

On average, establishments are reporting a 63 percent decline in sales during the period from May 1 to May 15, according to the survey. 

Without a relief package, 72 percent of restaurant operators said it is “unlikely” that their restaurant will be profitable within the next six months.

Strong bipartisan, bicameral support   

There is strong bipartisan, bicameral support for the measure.

Representatives Earl Blumenauer, D-Ore. and Rep. Brian Fitzpatrick, R-Pa., introduced the House counterpart to the Senate version introduced by Sinema and Wicker. 

“Arizona restaurants fuel jobs across our state, and they need support now. Establishing a Restaurant Revitalization Fund will help get Arizonans back to work and ensure our local Arizona restaurants can keep their doors open as we continue to fight the ongoing coronavirus pandemic,” Sinema said. 

What the restaurant bill does  

The RESTAURANTS Act, which stands for the Real Economic Support That Acknowledges Unique Restaurant Assistance Needed to Survive Act of 2020, would establish a $120 billion revitalization fund through the U.S. Department of Treasury. 

Among the measures :  

• Funding would be available to food service or drinking establishments that are not publicly traded or part of a chain with 20 or more locations doing business under the same name
• Eligible expenses include: payroll, benefits, mortgage, rent, utilities, maintenance, supplies including protective equipment and cleaning materials, food, debt obligations to suppliers, and other costs
• The first 14 days of the grant’s opening would only be available to restaurants with annual revenues of $1.5 million or fewer, ensuring that the smallest restaurants are prioritized
• The grant values would cover the difference between revenues from 2019 and projected revenues through 2020 
• The legislation includes administrative funding toward outreach and engagement to restaurants owned and operated by women, veterans, and people of color. 

A study on this proposal found that the fund would generate at least $183 billion in primary benefits and $65 billion in secondary benefits — more than double the amount of the fund.

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Arizona Center, the mixed-use shopping center in downtown Phoenix, was constructed in 1990 to jump-start the city’s revitalization of its urban core.

Now, the work-shop-play hub has a $25 million renovation, transforming Arizona Center into a modern, functional destination for local students, families and businesspeople.

“When we looked at first acquiring Arizona Center, we saw what we thought was a generational opportunity to acquire a 16-acre ‘super-block’ in an urban center, and that’s very rare anywhere in America,” said Matt Root, CEO and managing partner at San Diego-based , which acquired Arizona Center in 2015.

Among the additions to the property are a 60-foot LED screen on the northeast corner of Van Buren and Third streets, all-new landscaping and water features, additional lighting and signage, new colors, more bike racks and a stage for live entertainment.

The Grotto, a three-acre park at the center of the property, features new seating and cleanly remodeled fountains; the original Arizona Center frog statues are still standing.

“People want to move to cities with a high quality of life and cities that have long-term job formation, and Phoenix is really at the top of that list,” Root said. “There’s a big growing movement to restore the vibrancy and really enhance the experience of urban life for people; that’s really what we’ve been working off of.”

The “city of the future” is one that values walkability and a variety of uses, and the “right urban mix” of utility and entertainment draws more residents, creating a denser city center, Root said.

“That density raises values, and that vibrancy attracts investment capital, and that’s what you’re seeing in downtown Phoenix today; all those things are happening,” he said.

The establishment of Arizona State University Downtown Phoenix Campus, which houses the Walter Cronkite School of Journalism and Mass Communication and the College of Nursing and Health Innovation, was the catalyst that kicked off more than a decade of refurbishment and revitalization in the area, and a number of developments followed.

Other nearby attractions include CityScape, a high-rise mixed-use development completed in 2012; , another high-rise mixed-use project at CityScape slated for completion later this year; , an urban arts district that features local artists, musicians and food vendors at its monthly events; and the , which completed its most significant expansion yet in 2008. The Translational Genomics Research Institute (), a state-of-the-art nonprofit genomics research institute, is from the Arizona Center.

“Employees today, they desire a work-life balance and something that encourages community-building, collaboration and engagement,” Root said. “We think of that as ‘place-making’ — creating a sense of place where people want to encounter each other and share daily life; walkability, creating urban environments that people can live, work, shop, learn without having to rely on cars; sustainability — always big — and then a mix of uses.”

Several large sports, music and entertainment venues are within walking distance, including Chase Field, home to the baseball team; , home to the Phoenix Suns basketball team; Herberger Theatre; Phoenix Symphony Hall and the Orpheum Theatre.

Urban areas filled with an engaging variety of activities can generate 24/7 activity, Root said. The new-and-improved Arizona Center features “great restaurants, health-and-wellness amenities, an immersive cinema experience, amenities that really create a more personalized experience and help employers attract and retain talent and help employees want to go there.”

The new Arizona Center launched in January 2019, bringing more than 40 local small businesses and farmers to the Grotto every Wednesday from 4:00 p.m. to 8:00 p.m.

New tenants in the retail space include Freshii, a fast-casual nutritious food joint, Bosa Donuts, a popular local shop with locations across the Valley, and Kwench Juice Café. ASU’s Thunderbird School of Global Management has leased office space, too.

The AC Hotel by Marriott will in May of this year on the east side of Arizona Center. The “urban-inspired” hotel will stand 13-stories tall and comprise 199 “classic, yet modern” rooms, as well as a fitness center, rooftop bar, pool and lounge.

Palm Court Tower, a 31-story, 350-unit luxury residential complex is by North American Development on the northwest corner of Van Buren and Fifth streets later this year. About 10 percent of the units in Palm Court Tower will be designated affordable housing, according to the Arizona Center.

The existing AMC Arizona Center 24 movie theater is 90,000 square feet and has 24 screens, which Root said is an “outdated” model. A cinema about half its size will be constructed in its place, and additional retail and residential space — possibly student housing — will eventually be attached on the theater’s north side.

“We have a number of regional and national theaters right now that we’re finalizing negotiations [with], including our existing operator, AMC, to redevelop that whole footprint into a more immersive theater that changes the way we experience film,” Root said. “Think of in-cinema dining, bar offerings, reclining seats, really just a great experience to bring people together.”

Root estimates the coming development will have an impact totaling $300 million to $400 million. He said he believes the changes will create a “tremendous economic boom” for downtown Phoenix.

The key to the Arizona Center’s future success is in creating an authentic community atmosphere in a public space that makes people want to meet each other and “feel the joys of daily life,” Root said.

“You don’t want to force it; you want to make it happen organically,” he said. “You want to feel like, ‘I want to go there,’ and it’s an engaging, immersive experience, and I think that’s what’s happening at Arizona Center.”

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True Food Kitchen announced earlier this month that Oprah Winfrey will invest in the company and join its board of directors. Her investment in an Arizona-originated restaurant concept epitomizes the strength and rapid growth of Arizona’s restaurant industry.

According to the National Restaurant Association, Arizona’s more than 9,000 restaurants brought in roughly $12 billion in revenue in 2017. In fact, Arizona restaurant sales experienced a 5.7 percent increase from 2016, the fourth-highest growth rate in the nation. This is even more impressive when comparing sales to 2010; in the past seven years, sales have jumped over 52 percent.

Additionally, restaurants in Arizona continue to add new jobs. According to the same report, Arizona restaurants have employed more than 300,000 Arizonans in 2018, which accounts for 11 percent of state employment. In the next decade, the state expects to add over 48,000 more restaurant jobs.

As Arizona continues to draw in more tourism with and other , restaurants will play a major role in generating revenue for the economy. Visit Phoenix Director of Research & Business Analysis Eric Kerr explains, “All those mega-events bring sales to the industry. For example, the Super Bowl will have a lot of fine dining restaurant sales because it’s based on a lot of corporate activity. On the other hand, the Final Four will generate a wider distribution of restaurant sales because it brings students and families to the area.”

In fact, Kerr states that according to a 2017 Tourism Economics report, 23 percent of Arizona visitor spending was on food and beverage in 2017, which accounted for $1.79 billion in sales. This represents a 6.8 percent increase year-over-year from 2016.

Furthermore, he goes on to cite a Longwood International consumer report, which shows that Phoenix has a much higher average of tourists participating in fine dining experiences than the national average. 24 percent of Arizona visitors eat at fine food restaurants, compared to 20 percent nationally.  

Arizona’s growing restaurant industry continues to attract the attention of investors like Oprah. As the major metropolitan areas of Arizona receive more opportunities like the Super Bowl and the restaurants will continue to generate revenue for the state.

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