RICHMOND, Va. -- Richmond restaurant owners are joining forces to voice their frustrations about meals tax penalties they say are the result of the city finance department’s mismanagement of calculating and collecting those payments.
The National Restaurant Association estimates a mere 20% success rate for all food and beverage businesses with 60% failing in their first year of operation and 80% failing within five years of opening.
So imagine being hit with unforeseen bills from the city in the hundreds and even tens of thousands of dollars for penalties and interest on late meals tax payments due to poor communication and errors potentially made by the city.
For the past month, CBS 6 News has given discouraged business owners a voice on the issue that now has the attention of Mayor Levar Stoney and Gov. Glenn Youngkin.
In-Depth
Richmond Restaurant Owners: 'Fix the problems'
Patrick Stamper, a co-owner of Beauvine Brewing, said restaurants generate a lot of revenue for the city, but he feels there is no urgency to fix the problem.
“I don’t want to leave the city,” Samuel Veney, the co-owner of Philly Vegan, said. “We want this to be our home base, but it puts a bad taste in your mouth when the city doesn’t have your back and all you’re trying to do is the right thing.”
Latitude Seafood Co. owner Kevin Grubbs said the way everything has been handled with his business makes him feel Richmond is “extremely untrustworthy.”
John Giavos, who owns ten restaurants and six markets across Richmond, said there was no urgency from the city to fix the issue.
“I just wish the city would fix the problems that they’ve been telling me they would fix for years,” Giavos said.
Matthew Mullett, the manager of Richbrau Brewing, said he has been in a battle with the city since 2019. The issue stems from meals tax payments on draft beers that an employee from the city’s finance department originally told him he didn’t have to collect from customers. But then he was later told the business owes that money.
“It doesn’t register to me that there is anybody in that Finance Department that really cares about small businesses and what they can do for the community,” Mullett said.
But after sharing his story on CBS 6 News, Mullet said he has more optimism.
“We were contacted a few times in the last two weeks by the city, Lincoln Saunders had some encouraging words about what they were going to do to correct the situation,” Mullet said. “And I feel like if those words turned into actions, then it could result in a good outcome.”
Mullet credited media coverage in the push for change.
“You guys have really brought this issue to light,” Mullet said. “And without that help, there wouldn't be the action on the other end because there wasn't for four years.”
Mullet also encourages any restaurant owner who has questions or simply needs advice to reach out to the Richmond Food and Beverage Alliance at rvafoodandbeveragealliance@gmail.com. This organization serves as a conduit to City Hall and can help get restaurant owners in front of the right people.
Local News
Richmond restaurant owners to city leaders: 'We want our money back!'
Progress So Far
- City plans to roll out a new billing system for meal tax payments
- Virginia Restaurant Association worked with state lawmakers to introduce legislation to the general assembly to help correct these problems
- Richmond City Council is also putting forth legislation that would amend the city code to separate delinquent accounts from current accounts
- City is conducting a thorough review all delinquent tax accounts
Tyler Layne questions Mayor about Richmond meals tax challenges
Depend on CBS 6 News and WTVR.com for in-depth coverage of this important local story. Anyone with more information can email newstips@wtvr.com to send a tip.
