Small businesses are battered by pandemic
MIDDLETOWN » Small business is not for the faint of heart, even in the best of times. But with the COVID-19 crisis, Delaware County small businesses are confronted with unparalleled challenges.
Small businesses employ up to
8 million Americans and comprise roughly 40 percent of retail jobs.
A survey of business owners across the county underscores the challenges.
“So, business is changing,” said Lou Marcozzi, owner of Wayside Market, a Middletown establishment with 30 seats and 20 employees, open from breakfast to dinner. “We’re trying to reinvent ourselves to compensate and meet the needs of our customers.”
Marcozzi, the father of ten, some of whom work in the shop, others who have their own careers, said breakfast has dropped off. The catering business has dried up but there still have a bit of a lunch business. They’ve seen a spike in dinners, and have been expanding the items that can be taken home and heated up.
“Thirty percent of our business was sit-down; that is gone. Twenty-five percent was catering; that’s gone,” Marcozzi said. “We’re going to do what we can to keep everyone eating and civil.”
He said his income from his job as a state constable has also been reduced since courts are closed.
“We can sustain it a while,” Marcozzi said. “Luckily, I live in the back of my store.”
“This shutdown is crushing my dream,” Richie Riot wrote in an email Tuesday. He just opened a small rock-n-roll themed clothing store, Rock and Roll Knife Fight, in Lansdowne in late February. “I barely got off the ground when I am forced to close my doors only a few weeks later. The only thing that is keeping me alive at the moment is my online sales, but now they are even dwindling.”
Riot said his online sales are down 58 percent compared to this time last year. He has been trying to apply for assistance from the
Small Business Administration, but they turned him down.
“All I wanted was a place for people of all ages to go who shared my same passion for music,” he said. “I love my customers and consider them all family. I miss the social aspect of my store. Going in everyday to work on the Internet sales is very depressing with no one else there. What keeps me going is my work ethic. I grew up a punk kid who believed in the DIY philosophy since I was in high school. I know it won’t be easy but I won’t give up.”
Patrice Callahan also opened a brick and mortar store recently, BLVD boutique in Haverford. She describes her store as eclectic clothing and products made in the USA. They have a shop in Cape May and one in Phoenixville.
Callahan said she is scrambling to apply for a small business loan from the SBA. Other businesses owners have questioned the interest rate of the loans but she was not fazed by that. “I survived on credit card loans; I can handle 4 percent,” she said.
“I believe in the retail experience as an experience. I don’t sell online. I love dealing with customers,” Callahan said. “I’m really proud of these clothing lines that are made in USA. I know we’ll get through it.”
The past few months, Antonella and Raymond Santacroce, owners of Antonella’s Italian Kitchen, in Garrett Hill, Radnor, have been riding high. Their business was recently featured on the Cooking Channel’s “The Best Thing I Ever Ate” series and was doing well.
“I employ seven stylists, who are now out of work applying for unemployment. I’m not sure going forward when we will be back,” said Kathy DiMario, who owns Joyce’s Salon on County Line Road in Ardmore, which her mom opened 50 years ago. “I just came back to the salon after having colon cancer surgery. I was out for four weeks, now this. Restaurant owners with curb-side pick-up say their business is at 50 percent; I have zero coming in.”
DiMario said a number of salons are offering pre-mix hair color for their customers. They mix it in the store and bring it to the customer at curbside, where the person then takes it home and applies it herself. She herself is not doing that, questioning the safety and liability of the practice.
As far as personal finances go, DIMario said she will be okay because her spouse has a secure income. She wants to talk to her bank about a loan for the business but they have not been open. She is also concerned that once her salon can re-open, they will be limited by new social distancing or health requirements.
“Even if we get back, we’re going to have to watch our occupancy. It’s the new normal,” DiMario said.
“We were riding an amazing tide and it came to a screeching halt,” said Antonella Tuesday. “All that dried up.”
They reduced staff hours, stopped taking a salary and find themselves happy to hit a minimum benchmark in receipts most days.
“After 25 years, I never thought it would come to this, but we are surviving,” said Raymond. “We were very comfortable. Now we’re not bringing in a third of our income and are really thrilled to bring in $500.”
The business, which had always avoided food delivery services because of the high service charge, just announced it will use Grubhub deliveries.
John Fisher, president of Winding Way Records i in Newtown Square, worries about artists and musicians.
“My music business and clearly everyone is impacted by the coronavirus but musicians are getting a double hit because most of them have had all of their shows canceled and since many have a second job in hospitality, almost all of them have lost it. We are rethinking how we can help them and most importantly help others cope in isolation,” Fisher wrote in an email.
They are helping artists focus, organize, online to stream their performances and financially matching their fan donations.
“We hope that with so many people at home, they find live music as something to watch and engage with and this might help them with loneliness, anxiety and fear that is typical during a pandemic,” Fisher said.
For Joshua Irons, the CEO of the marketing agency River Avenue Digital in Prospect Park, it has been a busy time helping his small business clients navigate the changing times.
“Everyone faces a bit of a different challenge. For Realtors, we are reminding them to stay at top-of-mind. Stay out there, don’t disappear. It could be hard to get back into customers recognition if you do,” Irons said. “Other businesses, like home cleaning companies, are having people cancel all of their appointments. They go from having hundreds to zero overnight.”
He said they are urging small businesses to pivot and adapt to the new environment. It won’t be like it was before. His company is offering free brainstorming sessions to help small business.
Emma Kelly of Upper Darby runs Minnie and Moon, a company focused on environmentally friendly home and garden products. It has a website and sell at farmers markets and shows throughout the year.
“It’s interesting times - that is for sure,” said Kelly. “The farmers markets have cancelled and there are no shows on the books. Online is significantly up, a nice offset.’”
She said a number of her manufacturers have closed as they have been unable to find suppliers that are considered essential and which can stay open.
“People have resourceful to keep their business up and running,” she said. “As long as the product can come in and go out, I will too, but it is day-to-day.”
Christo Garavelas, vice president of Service Painting in Trainer, said he and his six employees can’t work from home. Their specialty company paints piping and specialty structures.
He has been reaching out to the Delaware County Chamber of Commerce and the area business association for advice.
“It’s scary. You want to do the best for them, but there is only so much a small business can absorb,” Garavelas said. “There is nobody making deliveries. There are companies holding onto money, holding payment. It looks like it is just getting worse. We are still working two days. That is about it. It’s been a really tough past couple weeks. I don’t know what will happen.”