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Weekend reservations at Midtown restaurant Chartreuse are down 75 percent. (Photo: Yelp, Madhurima G.)
Small Detroit businesses are already feeling the crunch from coronavirus, with some shutting down, temporarily laying off workers or taking steps to buck slumping sales as customers limit time in social environments. But many fear they won’t survive a prolonged outbreak.
Michigan health officials are encouraging residents to avoid large gatherings, as the state reports its 25th case of the virus. Gov. Gretchen Whitmer issued an executive order prohibiting gatherings of more than 250 people, including religious services.
Detroit's Marble Bar announced this week it would shut down for the foreseeable future. Other businesses say they could soon do the same should sales continue to plummet.
“It was a really hard decision for us, because we have our workers to think about,” said Rafi Blake, co-owner of the New Center nightclub. “But we felt a responsibility to lead by example instead of waiting for things to get really bad. If all businesses that are based in social gathering don’t change what they’re doing, this thing is going to spread and the economic effects will be even worse.”
Chartreuse on Friday night. (Deadline Detroit photo)
The bar, Blake says, operates on a “very tight margin” and still has to pay thousands of dollars in monthly bills despite the closure. He says the business would be in jeopardy should it remain closed for more than four months.
For now, it will focus on raising money for temporarily laid-off workers through GoFundMe or merchandise sales.
Almost a quarter of Michigan small businesses are already being negatively impacted by the coronavirus outbreak, according to a new survey from the National Federation of Independent Business, a small business association and advocacy group. More than 40 percent expect they'll be hurt if the virus spreads in their immediate area, while another nearly 40 percent say they’re unsure how they would be impacted.
In addition to Marble Bar, southwest Detroit music venue El Club will temporarily shut down events. Founders Brewing Company will close its Detroit and Grand Rapids taprooms until April 5.
Larry Mongo (blue jacket) at Cafe D'Mongo with workers and customers on Friday night. (Deadline Detroit photo)
Cafe D’Mongo’s Speakeasy downtown, which typically draws a shoulder-to-shoulder weekend crowd for live music, plans to stay open for now, but may adjust as needed.
“I’m going today to discuss this with (our) workers,” said owner Larry Mongo. “Anyone who wants to take off can take off. If everyone wants me to close, I‘ll close.”
Other bars and restaurants are trying to weather the storm by expanding delivery options. Midtown restaurants Chartreuse and Babo will offer doorside delivery to residents in the Park Shelton, upstairs from their ground-floor location.
Chartreuse, typically booked solid on weekend nights, has seen a flurry of cancellations and says reservations are down by about three-quarters.
“It’s extremely concerning,” said owner Sandy Levine. “Hopefully we can ride it through the next few weeks and won’t have to ride it through more than that, but no one has ever experienced this.”
Sammy Hammoud says business has fallen steadily throughout the week. (Photo: Violet Ikonomova)
The restaurant has been cutting workers from every shift on a volunteer basis and is pushing gift card deals to maintain cash flow. Levine says he’s considered some “doomsday scenarios” should sales continue to dip, noting that supply-chain issues forced a fine-dining restaurant in hard-hit Seattle to convert to a part-time bagel shop with carside carryout.
Downtown bar-restaurants Grand Trunk Pub and Checker Bar were planning to limit menu options and reduce staff, but said for now, their supplies remained strong.
All three restaurants say they've stepped up sanitation measures.
In Detroit’s central business district, party store Downtown Snacks is feeling the pinch as thousands of workers in Dan Gilbert-owned companies like Quicken Loans stay home to work remotely. The business, which has been on Griswold Street for 16 years, was already struggling to regain customers after it was forced closed for more than a year by renovations in its building.
Sales are down 80 percent since the start of the week, according to owner Sammy Hammoud.
“This is so stressful,” Hammoud said as he printed a lotto ticket for a customer Friday morning. “This is our bread and butter; this is what pays the bills and keeps us going,” he said of he and his wife, who helps manage the store. “This is our only business.”
Both he and Blake were frustrated with what they saw as the federal government’s mishandling of the crisis. Instead of taking steps to stabilize the stock market, they said it should provide monetary relief for small businesses and workers.
“All they care about is rich billionaires and the stock market and us here, trying to earn an honest living, nobody cares,” said Hammoud. “They haven’t told us anything.”
President Trump has announced a three-month tax holiday for small- to mid-sized businesses. He's also called on Congress to devote an additional $50 billion to a Small Business Administration disaster loan program.
Seattle, meanwhile, plans to issue $1.5 million in grants to businesses affected by the outbreak.
Detroit officials say their current focus is slowing the spread of the outbreak.
