It’s been an exciting year for hospitality, travel, and tourism in the City of Brotherly Love and Sisterly Affection, despite a rough start in early 2022 with continued uncertainty and threats of pandemic-related mitigation. While there have been both ups and downs this past year, we’re happy to report that the industry in Philadelphia is thriving and has lots of opportunity ahead. Recently, FIFA announced that Philadelphia would be one of 16 cities in the United States, Canada, and Mexico that will host the 2026 FIFA Men’s World Cup. The games are sure to help bring additional business to the region. Just a couple of months ago, we saw how much economic activity could be generated by a major sporting event—it’s been reported that the Phillies run to the World Series this past fall generated $78 million in total impact to the local economy, according to the Philadelphia Convention and Visitors Bureau. While Philadelphia prepares for 2023 and the new and unique visitors the city will likely greet, PRLA has been hard at work helping the industry create new opportunity for revenue and growth. During the pandemic, PRLA fought to expand outdoor dining options for Philly operators, which included an expansion of the sidewalk café program and the ability to establish streeteries with additional seating. We’re proud to report that streeteries are here to stay! We’ve worked with City Council and the Administration to assure that streeteries become a permanent fixture in the local Philadelphia economy. The program is not perfect, however, Philadelphia has become one of the first cities to create a permanent path forward for streeteries to operate. What we’ve learned about outdoor dining is that it’s a win-win-win. Philadelphians love the opportunity to eat outside in the city they love, businesses love being able to provide the service to customers, and visitors enjoy the vibrancy and atmosphere when dining outside. We’ve even heard some refer to Philadelphia as the “Paris of the United States!” We’ve also heard from many of you, operators in the industry, that you have been challenged with rising costs on raw materials, credit card processing fees, and that you’ve faced significant difficulties as it relates to the supply chain. In order to help mitigate those costs, we’ve worked with City Council on bill #210670, which has now been enacted as law in Philadelphia. The legislation caps the service fees that third-party companies can charge restaurants at 15 percent—10 percent for delivery and 5 percent for marketing and other fees. Restaurants that are interested in negotiating contracts with more premium services, however, are still able to do so. The bill also includes PHILLY HAPPENINGS language that allows the city to enforce the law and fine companies that overcharge. While we’re happy to celebrate a few wins, there’s certainly still a lot of work to be done. PRLA will continue to work with operators in the city and City Council to address concerns related to the outdoor dining program. It’s our goal to make this program the best in the nation, which we believe we can do, with your help. Lately, you’ve likely noticed a lot of changes as it relates to Philly government. That’s because the city will be electing a new Mayor in 2023. A handful of City Council members have resigned their seat on City Council, and have thrown their hats in the ring for mayor. City Council is now back to its normal size. We’re looking forward to working with the new City Council and we have some exciting ideas to share with you that will ultimately give the industry an opportunity to engage those candidates running for mayor. There’s a lot on the docket in 2023 and Philadelphia is going to be a very busy place. We appreciate the advice and guidance our Philadelphia members have provided PRLA as we look to navigate through the issues and challenges most important to the industry. It’s been a busy 2022, and we’re excited for all that we can accomplish together in 2023. Thank you for all the support! 18 • PENNSYLVANIA RESTAURANT & LODGING matters • Fall 2022
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