Relating To Economic Recovery For Restaurants.
By introducing the restaurant service surcharge, the bill seeks to provide a lifeline to local eateries struggling with operational costs and declining patronage. In addition, SB1363 expands the capabilities of establishments holding a class 2 restaurant liquor license, allowing them to have liquor consumed anywhere on their premises, including outdoor spaces. This change is expected to enhance customer experience and potentially boost sales, providing additional support in a time of reduced operation due to health restrictions.
Senate Bill 1363, introduced in the State of Hawaii, aims to support the economic recovery of restaurants severely impacted by the COVID-19 pandemic. It addresses the critical challenges faced by the restaurant industry, with findings indicating that approximately 15% of Hawaii's 3,600 restaurants have closed permanently. The bill allows restaurants to institute a service surcharge of 2% on customers' bills, exclusively to generate revenue aimed at mitigating the financial fallout from the pandemic. This surcharge is claimed by the restaurants and meant solely for their economic recovery efforts.
Some points of contention surrounding SB1363 are likely to include concerns over how businesses will transparently implement the service surcharge and whether it will affect customer purchasing decisions. Additionally, while the bill facilitates broader alcohol service for restaurants, it raises questions regarding responsible service and the potential for increased alcohol consumption on premises, which could necessitate further regulatory oversight depending on community responses. The provisions set to expire on June 30, 2026, also suggest an interim solution rather than a permanent structural change to liquor laws.