2020
MARCH 2020: At the first closure, we immediately reinforced messages on the safety of our highly regulated industry with health officials and policy makers, and pushed for an emergency declaration, triggering federal relief eligibility. We engaged directly, urging swift relief for businesses and employees through grants, low interest loans, accelerated UI benefits and direct payments, housing protections and tax credits, eventually securing all in some form. We gathered, interpreted, and distributed guidance for operators to quickly implement new health and safety protocols. Our “Operating Now” series helped members modify operations.
APRIL 2020: We joined the Hospitality Roundtable, convened by the Minnesota Department of Employment and Economic Development. Through it, we led development of “best practices” as we assertively advocated for reopening, secured a $30M no-interest forgivable loan program; and fought to ensure that resort lodging could remain open and that campground “seasonals,” golf courses and marinas could open. When the Paycheck Protection Program passed and it was clear it didn’t work for hospitality businesses, we targeted getting it fixed. Despite initial resistance, we achieved approval for temporary wine and beer to-go.
MAY 2020: We organized a coalition of related industry associations and launched the #savehospitality campaign, which included member testimonial videos and an editorial by our Board of Directors in the Star Tribune. We pushed to get houseboat operators and outfitters open and achieved a delay in property tax remittance deadlines.
JUNE 2020: Through concerted advocacy, campgrounds opened fully just after Memorial Day, and restaurants, events and pools opened with capacity limitations. Seeking to maximize summer revenue, we helped secure municipal approvals expanding outdoor dining on patios, sidewalks and parking lots. Alcohol service on golf courses was allowed. Heeding our counsel on business reluctance to increase debt, the State dedicated $60M to business grants. Federally, Congressman Phillips introduced legislation to fix the PPP so that it worked better for hospitality businesses and their employees. It passed.
JULY 2020: We continued fielding questions as businesses settled into new reopening routines and we secured member-only pricing on high quality PPE. Federal efforts focused on calling the MN delegation to commit to passing PPP 2.0, Restaurant Revitalization Fund and other programs for hospitality operators and workers. We amplified an “open for business” and safety campaign, with our partners at Explore Minnesota Tourism (EMT), promoting hospitality and tourism. We fielded an economic impact survey, using it to accelerate our media strategy to underscore the devastation and need for help.
AUGUST 2020: As public relations efforts continued, we worked to rebut false narratives around safety by tracking and reporting on the data. Bar seating expanded. When the courts upheld the allowance of service fees, we provided information to the increasing number of operators turning to that model to address issues related to wage equity, benefits and other costs.
SEPTEMBER 2020: We celebrated as resorts and campgrounds reported higher summer revenue than the previous year, doubling their spring projections; the number of operators with “significantly” higher revenue than the previous year was 10x higher than spring projections. As colder weather approached, we continue our strong advocacy for the ability of our operators to welcome guests back indoors safely.
OCTOBER 2020: We achieved table seating increases from six to ten. As the month progressed, increasing COVID transmission fueled speculation about another closure. We continued rebutting the negative narrative about safety and pressed for remaining open. The Minneapolis Federal Reserve cited stronger performance in Greater Minnesota from a separate survey; our quarterly business conditions survey underscored the economic devastation in the restaurant and lodging sectors. Sharing applicant experiences with our national partners led to streamlined PPP loan application and forgiveness processes.
NOVEMBER 2020: The State moved to shutdown hospitality businesses again as cases and hospitalizations rose. Initial indications suggested there wasn’t state financial aid capacity. We took immediate action, leading a coalition – Minnesota Licensed Beverage Association, Minnesota Craft Brewers Guild, Minnesota Events Coalition – in publicizing the state of emergency to save our industry through financial relief and reopening. Within hours, Governor Walz announced a relief plan reflecting our suggestions, turning a “no” to a “yes” on financial aid, setting the framework for temporary relief to thousands of businesses.
DECEMBER 2020: The coalition launched #savehospitality 2.0, using the state’s own data, member videos, and a campaign to continue pressing for immediate reopening and state relief. A special session resulted in a $215M state and counties relief package. More than 13,000 Minnesota hospitality businesses received more than $1.5B through PPP 2.0 and the Employee Retention Tax Credit is estimated to result in hundreds of millions in relief coming to Minnesota. The City of Minneapolis capped third party delivery fees, a move we supported.
2021
JANUARY 2021: The Legislative Session opened January 5, and we had our full legislative agenda ready, encompassing both pandemic-related and broader member concerns. Restaurants and bars reopened at 50% capacity on January 11, and events and bowling alleys opened at 25%. The #savehospitality campaign saw direct results when thousands of hospitality businesses received checks providing limited “bridge” relief from the Department of Revenue. The program wasn’t perfect, leaving out many eligible businesses, and we continued pushing for them. Saint Paul and Edina capped third party delivery fees.
FEBRUARY 2021: Employing strong bi-partisan legislative and media engagement, we urged state government to develop an organized plan for full reopening. We worked at the Capitol developing the Roadmap to Recovery, a plan garnering bipartisan support, for reopening by May 1. Within the week, Governor Walz raised certain limits, as we continued to push for the bipartisan Roadmap. Compelled by data and advocacy, Minneapolis reopened bar seating. The BusinessCenter launched, offering members-only pricing on products and services.
MARCH 2021: Events and pools expanded to 50% capacity, and restaurants and bars expanded to 75% capacity in limited situations. Federally, $28.6B was approved for the Restaurant Revitalization Fund (RRF) in the American Rescue Plan (ARP), with an additional $8B coming to state and local governments to meet other pandemic-related needs. We urged direction of ARP funds to hotels, events, etc. The quarterly business conditions survey indicated that three-quarters of resorts and campgrounds had further stabilized, and that solvency was no longer a concern.
APRIL 2021: We continued to advance our top legislative priorities, including making PPP funds tax free, funding for the ProStart and Hospitality and Tourism Management Programs focused on workforce development, property tax and economic relief provisions. Meanwhile, with an eye toward the future of the industry, 22 students engaged in the hospitality industry through current work or career aspiration were awarded $38,750 in scholarships to support their post-secondary studies.
MAY 2021: A Hospitality Minnesota Opinion piece calling for additional state financial relief for hospitality businesses was published in the Star Tribune. Soon after, on May 28, all restrictions on hospitality businesses were lifted, a direct result of months of direct bipartisan advocacy work by Hospitality Minnesota had paid off. 86% of resorts and campgrounds reported that they were experiencing positive or growing financial health.
JUNE 2021: Minnesota’s final budget made PPP funds tax free; funded ProStart and Hospitality and Tourism Management Program expansion; increased property tax exemptions for commercial payers; provided $70M in grants for businesses hit hard by COVID and $5M in forgivable loans for NW Angle businesses. We blocked numerous untimely, costly new mandates and regulations, protected the lodging tax and helped secure statewide broadband and invasive species prevention investments. Federally, we continued calling on the congressional delegation to support full RRF funding aimed at thousands of foodservice operators in Minnesota.
JULY 2021: Overnight accommodations in every MN market posted the best occupancy rates in 15 months through June-July. With summer in full swing, labor challenges and supply chain issues became more evident. We called on Governor Walz, again to use a portion of the $500M in ARP funds allocated to his administration for hospitality relief; we activated a grassroots campaign and members followed through on our call to action. The majority of our congressional delegation became co-authors of bills fully funding RRF.
AUGUST 2021: Many businesses reported strong summer revenues – 60% of hotels/motels and 74% of foodservice operators reported growing/positive financial health, up 30-points from March. 96% of resorts/campgrounds report growing/positive financial health, with 82% indicating solvency is not an issue. We continued to press in the media and with policymakers to fully fund the RRF and help the 2,500 foodservice businesses left behind by this underfunded program, including a roundtable with the U.S. SBA and congresspersons Phillips and Craig, who have led on this issue.
So, where do we go from here?
The pandemic revealed an unexpected vulnerability AND amplified the dynamics of this industry that make it what it is. We have met this crisis with incredible resiliency, innovation, tenacity, and commitment. Minnesota’s hospitality industry has dug deep to find new ways to serve and welcome guests, and the same can be said of your association’s staff and board.
Many of our post-merger plans were slowed down or put on hold while we worked to provide support and guidance to member businesses. Even so, the confusion caused by the constant changes in the public health landscape and its impact on your businesses could not diminish one thing we about which we are absolutely clear – we are stronger together.
We’ll build on that. Navigating the vagaries of the pandemic and rebuilding businesses will remain a priority for the foreseeable future, and we'll be moving forward to develop new programs and services to strengthen the value of your membership.
We are grateful for all the ways you have continued to show up – for your employees, for your communities, for your association and for your industry. Your membership investment, intelligence from “the field,” participation in our surveys and calls to action, and your notes of support and encouragement are greatly appreciated and serve as the fuel for what comes next.
The pandemic revealed an unexpected vulnerability AND amplified the dynamics of this industry that make it what it is. We have met this crisis with incredible resiliency, innovation, tenacity, and commitment. Minnesota’s hospitality industry has dug deep to find new ways to serve and welcome guests, and the same can be said of your association’s staff and board.
Many of our post-merger plans were slowed down or put on hold while we worked to provide support and guidance to member businesses. Even so, the confusion caused by the constant changes in the public health landscape and its impact on your businesses could not diminish one thing we about which we are absolutely clear – we are stronger together.
We’ll build on that. Navigating the vagaries of the pandemic and rebuilding businesses will remain a priority for the foreseeable future, and we'll be moving forward to develop new programs and services to strengthen the value of your membership.
We are grateful for all the ways you have continued to show up – for your employees, for your communities, for your association and for your industry. Your membership investment, intelligence from “the field,” participation in our surveys and calls to action, and your notes of support and encouragement are greatly appreciated and serve as the fuel for what comes next.
