In A Win For Strangled Restaurants, Molinaro Restricts 3rd Party Delivery Apps From High Delivery Charges

Dinner delivery.
Photo Credit: Katie Hellmuth Martin

Restaurants who are still open almost a year into the pandemic, after having been forced to shut down, and then open up with limited capacity, and now must close at 10pm, are relying on delivery and pickup in order to stay in business. Some restaurants have incorporated 3rd party apps like GrubHub and DoorDash, like Max’s on Main, Sukhothai, Isamu and Heritage. The apps can be a quick fix for a restaurant not needing to manage their own drivers or pay additional commercial auto insurance, but the quick fix can come with a price, to the tune of 30% of an upcharge as well as changing of the price on the app’s version of the menu, according to Dutchess County Executive Marcus Molinaro, a Republican, who just signed into emergency temporary law that that upcharge must be lowered.

Homespun, Meyers Olde Dutch (MOD) and Eat Church are using their own websites and POS systems (point of service) to publish their menus on, and avoided the 3rd delivery apps, partially based on avoiding the high take.

As Molinaro has been working to help struggling businesses throughout the pandemic, he took a highly targeted action today that regulates the business models of these technology companies by temporarily limiting how much money they can make off of the restaurant. A Little Beacon Blog is inquiring as to how this will be enforced, and if the change is showing up on the apps already.

The measure was encouraged by Beacon based Dutchess County Legislator, Nick Page (Democrat) . The press release issued by the County Executive’s office describing the action and reasoning behind this bipartisan move is in its entirety is below:

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Dutchess County Executive Marc Molinaro today signed Local Emergency Order No. 13, which supports local restaurants by temporarily capping service fees charged by third-party food delivery companies to no more than 15 percent of the cost of the food order.

Third-party food delivery companies, such as Grubhub and Door Dash, among others, provide customers with easy-to-use apps for ordering food online. These apps are vital for restaurants during the COVID-19 pandemic, as they are more reliant than ever on takeout and delivery orders. However, fee structures used by these companies, which can be as much as 30 percent for delivery orders, are cutting into local restaurants’ profits during this time of hardship for the entire food services and hospitality industry.

The Executive Order also prohibits third-party delivery services from publishing restaurants’ menus on the services’ apps and increasing the price of a food item to include an delivery fee – an additional concern that was brought to the County’s attention.

County Executive Molinaro said, “The economic fallout from the COVID-19 pandemic has negatively impacted many industries, but none more so than the foodservice and hospitality industry. By temporarily capping the fees to no more than 15 percent, the Emergency Order will provide much-needed relief to struggling local businesses and help ensure the survival of our local restaurants. I thank Legislator Nick Page for bringing this important issue to our attention.”

Between November 2019 and November 2020, employment in the leisure and hospitality industry dipped by more than 25 percent in the Dutchess-Putnam counties region; this was the largest drop in employment in the region among all of the tracked sectors. The struggles facing this region are indicative of a national crisis for the industry. A recent survey conducted by the National Restaurant Association found on average, sales were down nearly 30 percent, and 81 percent of respondents reporting staffing levels remain below normal levels. As of December 2020, 17 percent of restaurants nationwide – or over 110,000 establishments – had closed.

Gregg Pulver, Chair of the Dutchess County Legislature, said, “The misrepresentation of small businesses by third-party apps is a disruption of carefully curated business strategies. We support local entrepreneurs and will do everything we can to ensure a level playing field. I’m pleased the County Executive is exercising his authority to place local restaurants back in charge of their own products. As this is likely a statewide issue, Albany must act effectively and quickly to enact a permanent resolution.”

During the Local Emergency Order, the County will work with the restaurant industry and our local delivery drivers to manage any unintended consequences and ensure the best outcome for our community and our economy.

Assistant Minority Leader of the County Legislator Nick Page said, “I applaud the County Executive for enacting my caucus’ initiative to prioritize the survival of local restaurants in their time of crisis. Acting together, we can best weather the storm.”

In addition to the latest Emergency Order, Dutchess County Government has taken active steps to support local restaurants and other small businesses. In December, it was announced Dutchess County partnered with Community Capital New York (CCNY) to provide $430,000 to assist microenterprise businesses negatively affected by COVID-19. In June, the County Executive issued an order waiving local regulations and requirements to expedite the opening of outdoor dining. Throughout the last year, County staff has provided guidance on State requirements, advocated for support for small businesses from the Federal government, and worked with New York State officials to help provide foodservice establishments with flexibility and relief from onerous mandates.

County Executive Molinaro said, “Our local restaurants are part of the fabric of this community — they employ thousands, support local charities and organizations, and add to the character of our County — and we cannot sit by and do nothing as they struggle. We will continue to support small businesses in any way we can, whether it is working to find solutions on the local level, to provide flexibility to serve their customers in creative ways, provide direct support, or advocate for them at the State and Federal level.”

Old Law Of Mandatory 7 pm Close Time For Wine & Liquor Shops Challenged Tonight By Lawmakers

Photo Credit: Katie Hellmuth Martin

Wine and liquor stores in Dutchess County are required by law to close at 7 pm, as we discussed with Artisan Wine Shop when we discovered Artisan’s petition asking for extended hours. Wine shops in surrounding counties are able to stay open longer, but thanks in part to some liquor stores fighting years ago to keep a short leash on the closing time, the 7 pm law has remained in effect for Dutchess County. This law is being challenged on Thursday, April 4, by a new resolution authored by Dutchess County Legislator Frits Zernike and co-authored by Dutchess County Legislator Nick Page. The resolution proposes that stores be able to stay open until 9 pm. Frits will present the resolution tonight at the April 4 Legislative Committee Meeting, which is open to the public to attend and voice opinion.

“Dutchess County, for all its advances in recent years, remains a backward place,” said Frits to A Little Beacon Blog via email. “Our opening hours are the most restrictive in the state, and we lose business to neighboring counties with less antediluvian laws because of them.” In the past, county representatives from Beacon, including Jerry Landisi, have challenged this law. “Similar resolutions have been introduced in the past, and have never made it out of committee,” said Frits.

The resolution that Frits is proposing today requests that wine and liquor stores “be permitted from 9 am to 9 pm on weekdays, as well as on New Year's, Memorial, Independence, Labor, and Thanksgiving days, and on the day before Thanksgiving, December 18-24, and New Year's Eve,” as stated in the resolution he authored.

In April 2015, the City of Beacon created its own resolution to show support for extended open hours, and it was signed by nearly all of Beacon’s City Council at that time: Charles P. Kelly, Pamela Wetherbee, Ali T. Muhammad, Lee Kyriacou, George Mansfield, and Mayor Randy Casale (Peggy Ross was absent for the vote). But the law was never able to be changed.

Why The Opposition To Later Than 7 pm?

The reason seems to reside with stores located (more) upstate. Said Frits: “[The lack of change] seems to be because liquor store owners up county, in Poughkeepsie and beyond, are fearful of what expanded hours would mean. As they see it, they'd have to stay open later, never seeing their families, and face the certain prospect of being robbed after dark. There are various holes in those arguments, but in the past they've prevailed.”

This line of thinking was displayed in a letter submitted when this law was being challenged several years ago, from a wine and liquor store owner in Lagrangeville, NY. From the supporting documents, the letter reads: “Has anyone taken into consideration the already long hours that my family works and how this proposal will just increase our work hours and shorten our family time? Has anyone thought to think of the increased overhead this will create for our already struggling businesses? And finally has anyone thought of the increase in crime and burglaries that may occur if stores are allowed to stay open past 7 pm?”

The store owner went on to say in the 2015 letter: “You will be taking business away from us that would just come back to us the next day. The law to allow stores to open on Sundays has done nothing but take away from family time for our business. It has simply spread our sales out that we would have made on Saturday and Monday.”

In his support of longer hours, Frits point out that stores are not mandated to stay open longer. “Expanded hours won't force anybody to do anything; they'll just offer greater opportunity. Stores that wish will be able to stay open until 9 pm. Those wanting to close earlier can.”

Frits has written this logic into his proposed resolution, which reads: “WHEREAS concerns about crime, lost or increased business and revenue, as well as quality of life issues arising from decisions regarding hours of operation are best resolved by individual business owners, rather than subject to legislative regulation or edict.”

Artisan Has Acquired 200+ Signatures From Customers In Support Of Longer Hours

Artisan’s petition is in support of this resolution. Artisan Wine Shop has amassed more than 200 signatures from customers who do want longer shopping hours, who may not necessarily simply return the next day. Beacon is a commuter city, where many people are just beginning to arrive home at 7 pm. Shops who close at 6 or 7 often leave commuters shopping on the weekends if at all.

Beaconites often head off on day trips out of Beacon and may or may not be able to hit up wine stores in Beacon to stock up on bottles for the week if they can’t shop after 7 pm during the week. Wine shops outside of Beacon may benefit, however, as people are doing errands on Route 9 and are in other towns on day trips.

Editor’s Note: there are other wine shops in Beacon, and should we get input from them, we will update this article. Usually this requires us visiting them in person.

Where To Go to Voice Opinion

This resolution proposing a longer open time will be presented on Thursday, April 4, 2019 at a Committee Meeting at 5:30 pm in the County Legislature chambers. That location is at 22 Market St., 6th Floor, in Poughkeepsie. Members of the public are invited to speak on agenda items at the meeting. There is a three-minute time limit for each individual's comments.

Residents who want their voices heard about this issue are encouraged to email the general legislature email: CountyLegislature@DutchessNY.gov

Will Open Hours For Wine and Liquor Stores Change This Time?

Will the law change this time? Allowing wine and liquor stores to stay open past 7 pm? When the rest of retail locations like bars, breweries, beer stores and gas stations that sell beer are open long into the night? Stay tuned!

Airbnb Paid Over $220K in Taxes to Dutchess County in 2017

Photo Credit: Screenshot from Airbnb listings, A Little Beacon Blog.

As the City of Beacon considers legislation for short-term rentals in residential houses, everyone involved is looking at their finances. During a public hearing for the legislation, homeowners who rent their homes out on a per-night, short-term basis, came out to speak in favor of continuing to allow short-term rentals in their homes. Many of the homeowners discussed financial implications they would face if Beacon legislated against short-term rentals or limited the amount of nightly rentals to 100 per year per house (the City Council has since scratched out that maximum from the draft legislation currently being discussed at City Council's Workshop meeting on 4/30/18), or imposing a New York State fire code law for Bed and Breakfasts that requires a sprinkler system or special windows installed in the home.

Other Areas of Economy Impacted by Airbnb

A Beacon resident and Airbnb user, Eileen O'Hare, shed light on another economic area that is impacted by Airbnb rentals, and that is the service industry. According to Eileen's presentation at the public hearing, Airbnb recommends for homeowners to pay for house cleaning and lawn care in order to attract good and consistent bookings. She then posed this question to the City Council at that meeting: "I pay my cleaning lady $25 per hour. What do you pay yours?"

Tax Revenue Going to Dutchess County Generated by Airbnb Bookings

People who make money from Airbnb bookings, like house cleaners, also attended the meeting to request that the short-term rentals be allowed to continue. This got us to thinking about the wider economic impact of short-term rentals on the area, and so we reached out to Dutchess County Legislator Nick Page to get some answers about any revenue generated by the Bed Tax. That tax, as well as sales tax, goes straight to Dutchess County and does not directly get paid to the City of Beacon. Here are some economic statistics derived from tax revenue raised for Dutchess County through Airbnb short-term bookings, according to Nick's understanding, from conversations with the Dutchess County Department of Finance:

• Airbnb paid a total of $221,918 of the 4% Bed Tax to Dutchess County for 2017. 

• Dutchess County began collecting the 4% Bed Tax from hosts using the Airbnb platform on March 1, 2017. 

• The payments to the county are not broken down by municipality (i.e. city, town, or village) and the county does not have access to the host addresses from Airbnb.

• Airbnb remits one payment to the county by the 20th of each month for the preceding month's activity.

• Dutchess County is about to begin tracking other short-term rental sites as well. Currently, Dutchess County only collects from Airbnb.

The discussion continues, as the City Council meets tonight to go over the latest changes to the draft legislation based on feedback from the community. On the public agenda for tonight, this topic is filed under "Short-Term Rentals" and is currently #4 out of 12 topics to discuss. Bring your coffee.

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New City Council Ward Members and Dutchess County Legislators Sworn In for 2018

Photo Credit: Screenshot of swearing-in ceremony from video produced by Peter Skorewicz.
Graphic Art Credit: A Little Beacon Blog

On the first day of the new year of 2018, Beacon held a swearing-in ceremony for the brand new City Council ward members and two Dutchess County Legislators - all Democrats - who swept local elections after a tumultuous year in politics nationally. As reported by Jeff Simms for the Highlands Current, all citizens running were "first-time candidates, each [winning] by wide margins." The two at-large council members were old hands at this: Lee Kyriacou has served nine terms, and George Mansfield has served five terms so far.

Former City Council member Pam Wetherbee presided over the ceremony. Several notable people attended, including Kenya Gadsden, board member for the Beacon City School District Board of Education, and former Beacon Mayor Steve Gold, who is currently the Chief of Staff for New York State Assemblyman Frank Skartados.

Kicking off the ceremony were Cub Scout Pack 1, Boy Scout Troop 1, and Boy Scout Troop 141 of Beacon. Next, the Beacon High School Chorus, led by teacher Susan Wright, sang "This Land Is Your Land" by Woody Guthrie, which was a "song special to Pete Seeger, who was someone important to Beacon," Susan stated. (See this stellar New Yorker profile on Pete Seeger by Beacon local David Rees).

The Swearing In

Terry Nelson, representing Ward 1, was sworn in by his daughter and wife, promising: "I will do the best job I possibly can to represent everyone in the City of Beacon." Terry is also a founder of the Beacon Independent Film Festival, and a board member for BeaconArts.

John Rembert, representing Ward 2, was sworn in by his wife, showing gratitude: "I thank the citizens of Ward 2 and the citizens of Beacon, NY, and I will do my best for the citizens of Beacon, NY."

Jodi McCredo, representing Ward 3, was sworn in by her children. Jodi was also one of the founders of the Advocates for Beacon Schools, a group of parents and community members who pushed for change and awareness of the politics and policies in public schools. They were active during the time of a resignation of a Beacon superintendent in 2016 and in the election of three new board members to the Board of Education. That group built a website for publishing information, advocates12508.com, and a similar website has been created for disseminating information about building development projects in Beacon, development12508.com. Said Jodi: "I'm looking forward to what we can do together for Beacon and for Dutchess County."

Photo Credit: Screenshot of Swearing In Ceremony from video produced by Peter Skorewicz.

For her swearing-in, Amber Grant, representing Ward 4, placed the Constitution on her small niece, who was held by Amber's sister. Amber said: "I look forward to getting to work. Hopefully I'll see a lot of you here tomorrow as well (for the next City Council meeting)."

After George Mansfield was sworn in for his at-large position, he reflected: "I was first here eight years ago, when I first ran for office, and it never gets any less exciting. The burden of responsibility is great."

Lee Kyriacou, the City Council's other at-large member, selected The Constitution as his object to be sworn in on. He thanked his family, "my spouse, my two lovely daughters who indulge my passion to indulge in community service., and to the voters who turned out in amazing numbers. Please keep doing that." Lee continued, reflecting on what he called Beacon's journey of renewal. "Beacon has probably done the biggest turnaround of the Hudson Valley, if not, almost anywhere. It's been a pretty important set of roles for us to undertake. I've said from Day 1 - my first Day 1 was 1994 - that Zoning and Enforcement are the most important things that we do." He added, "We aren't going downhill - which is where we were heading in those days. We are headed uphill, but we have to chart a journey that works for our entire community. I look forward to my colleagues on the Council and the County Legislature in charting that journey together."

Frits Zernike for Dutchess County Legislator, District 16. Frits stated: "District 16 extends into Fishkill. It was Beacon's energy that won us this election. I hope to take the energy we have in southern Dutchess County and infuse the entire county legislature with it... Democracy is not a spectator sport. It's nice to be participating this way. I hope and I trust that you all will continue to participate, show up, pester us, and get done what we need done."

Nick Page for Dutchess County Legislator, District 18, was eager to get started, stating: "The election effort in Beacon was truly astonishing."

The event concluded with a benediction by Reverend Perry from the Springfield Baptist Church.

The local paparazzi (aka friends and families showing support).
Photo Credit: Screenshot of Swearing In Ceremony from video produced by Peter Skorewicz.