As the shelter in place order keeps people inside amid the coronavirus pandemic, Bay Area businesses are struggling to stay afloat and wondering how long it will be before they can return to some semblance of normal.
“We’re hearing from our smallest businesses — restaurants, bars, anybody who can’t open their business right now — and they’re struggling,” said Matt Mahood, head of the Silicon Valley Organization, San Jose’s local chamber of commerce. “They’re very concerned about their ability to stay in business for very much longer.”
Most small businesses, Mahood said, don’t have enough cash on hand to last more than 30 days or so. And while he understands the emphasis and focus on “flattening the curve” to try to slow the spread of the disease, he said, the impact on businesses has taken a backseat.
“The problem is the impacts to businesses are pretty immediate,” Mahood said. “If people can’t make payroll, then they’re going to lay people off, they go on unemployment, stress that system and how long does this go on?”
“This is completely unchartered territory for not just San Jose, but the county, state and nation,” Mahood continued. “Our resiliency is completely dependent upon how long the outbreak lasts and how quickly we can get back to normal as it subsides.”
Already, Mahood said, he’s heard from art groups and nonprofits struggling to survive. In an email chain with other chamber of commerce leaders, he said, the dialogue has centered around how big box stores like Target or giants like Amazon will be fine.
“But what about all those mom-and-pop businesses?” Mahood asked. “That’s who many of us are most worried about because those businesses are the businesses that make up Main Street, USA, Main Street, San Jose.”
Randy Musterer, the owner of Sushi Confidential, is one of those businesses.
Musterer has had to lay off most of his employees, temporarily shutter the San Jose location of his restaurant and turn the Campbell restaurant into a to-go and delivery operation only.
Customers have been supportive, he said, and he’s hoping to be up and bustling again with all his former employees soon. But he doesn’t know when.
“We’re coming out of the winter months. November, December, January, February — a lot of times those can be even losing months for restaurants,” he said. “And March, April, May, June, July, that’s when we start bringing in a lot of the money to build up the nest egg to get through the winter time. And a lot of people probably used that up hoping for this beautiful spring.”
But there are some bright spots amid the losses, too. Sushi Confidential, he said, has partnered with other local businesses — including Frost Cupcake Factory and Strike Brewing Company — to try to help them stay afloat. Now people can order cupcakes or beer through Sushi Confidential.
That kind of partnership is exactly what Silicon Valley Leadership Group CEO Carl Guardino said he wants to see.
“This is a perfect example of the instructions we’re given at the beginning of an airplane flight in case of an emergency,” Guardino said. “Put on your mask but then still do help the person next to you with their mask. That’s what Silicon Valley employers and truly all of us need to be doing.”Still Guardino, who had recently gotten off a call with CEOs and elected officials in the area, said he’s bracing for an economic slowdown and urging others to do the same.
“Having lived through three economic downturns, they are always longer and stronger than we hope or anticipate,” Guardino said, “and my sense is we should all be prepared for this to be three to five quarters, not months.”
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March 21, 2020 at 02:52AM
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Coronavirus: Silicon Valley businesses bracing for impact - The Mercury News
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