BUSINESS: We Know When It Began, When Will It End?
If you are a fan of the horror genre the included infographic, depicting the sudden and precipitous drop in restaurant sales, is right up your alley. For everyone else it is the thing of nightmares. Clearly, no one was prepared for a pandemic. While many of you have responded quite well to the challenges, it does nothing to mitigate the wild uncertainty that is pervading the planet. In times like this, we are tempted to make analogies to other tough times we have endured. The most recent and closest analogy would be the events 9/11, but is it even relevant?
DID YOU KNOWS…
Global Workforce Could Lose $3.4 Trillion This Year
According to a preliminary assessment by the International Labour Organization (ILO), the COVID-19 pandemic will have a significant effect on labor markets around the world, with unemployment rising by up to 24.7 million people compared to a baseline scenario, depending on how badly global economic activity is impacted. While these numbers are alarming on their own, it’s important to consider the implications of such a steep increase in unemployment around the world. When people lose their job, they lose their primary income, which translates into lower consumption of goods and services and thus exacerbates economic weakness.
Quarter of Global Population is Under Lockdown
The biggest lockdown is currently in place in India where 1.3 billion people have been ordered to stay inside for 21 days. Other large-scale lockdowns are in place across the United States where around 20 states and several major cities have said that they would be enforcing strict stay-at-home orders. In Europe, there are nationwide lockdowns in France, Spain, the UK, Italy and elsewhere that are affecting more than 300 million people.
Coronavirus Creates Egg Price Jack
Not only are Americans stocking up on their TP, but also eggs. And that’s causing egg suppliers to jack up their prices. Egg sales have increased 44% since March 14, compared to 2019. That’s led the wholesale cost of eggs to jump anywhere from 30-55%, depending on your location.
Coronacrisis: Day 15
OUR CHOICE
Why it matters to you: You have options, here’s the one we chose.
So, it’s all bad news when it comes to this pandemic. At this writing, unemployment claims have skyrocketed to over 3.283 million for the previous week almost five times the dubious record of $695K. Who wants to wager what percentage of those folks work in our industry? As an employer myself, I have decided to continue to pay my team until I can’t anymore, but no one could judge any restaurant operator for not paying their staff when they have no revenue.
That is why I am applying for one of the emergency loans being offered by the Federal government via the SBA. The program promises to forgive loans if you keep people working. I am in no way suggesting anyone should follow my lead. Simply put, I believe the more you see the choices around you the better your response will be to any crisis.
Here is a link to the Small Business Administration’s Response to the COVID-19 crisis. There are multiple programs. The one I have chosen promises to be fast in its turnaround and we are only asking for a minimal amount of support. Again, everyone’s situation is different, but if any of this can help you, we wanted to be sure to share it.
Either way, we are in a storm that none of us can see the end of and we are doing everything we can to endure and survive it.
