Coronavirus hurting many businesses, boosting some others
It’s a good time to operate a store that sells hand sanitizer, face masks, toilet paper, flour, or rice in Ontario. When I visited Costco and Walmart in Ancaster, it seemed these common household items are now worth as much as gold. I saw one man walking out of Costco with enough toilet paper to last him a lifetime.
When I asked the staff at Costco when they would get more face masks, they said they had no idea. The irony of people rushing into a crowded place like Costco to protect themselves from a virus was not lost on me. Rumours on social media seem to be fuelling people’s decisions. Someone posts about a potential toilet paper shortage and suddenly all the stores are sold out. It seems no one has any idea what’s in store in the brand-new coronavirus era.
I run Clearway Law (www.clearwaylaw.com) with the goal of helping people relax during the most stressful times of their life. When clients come to us asking about divorce, they are often in a panicked state. It’s the job of a good family lawyer to calm their client down before the client does something irrational. I see the same frantic behaviour in the general public that I see daily in divorce clients. Politicians need to step up and get the general public to calm down. Hospitals are having a hard time buying face masks because they are in such demand.
I also help out with my friend’s organic health company, called Jusu Body. They just created an organic hand sanitizer and there are orders out the door from China. The problem is that we are trying to get certified in China and all the government employees are away from work right now. Everything is shut down.
Not every Ontario business is benefiting from the virus. The virus is causing customers to stay home and officials to order quarantines. Many of them, like local restaurants and retailers, operate leanly, with tight profit margins and just enough people on staff.
Companies that shouldn’t have been affected, such as Corona Beer, have had to go on the defensive in the media. They put out an explanation that they have nothing to do with the virus. A representative of Corona Beer said that their customers “understand there is no link between the virus and our business.” It seems ridiculous that they would even have to respond to the allegations. However, their social media is full of people posting about the virus.
Many businesses in Ontario are at risk of going under. Chinese restaurants, in particular, have been avoided. This is true even though Ontario is a 12-hour time difference from Wuhan. This means that Hamilton is on the exact opposing side of the world from China. You could not get any further away if you tried.
These restaurants are stuck spending around $10,000 on monthly rent and covering any staff on a salary. A restaurant owner I spoke to said he might not be able to cover his rent this month.
Many businesses that are not associated with China or the virus are also having to make changes. Starbucks has started putting out hand sanitizer and running out of certain supplies ordered from China. China is the factory of the world, and many factories are under the order of the Chinese government to shut down. This means that companies in Ontario are not getting the supplies they need.
Politicians need to come up with a short-term loan package for businesses. This would be an interestfree loan to help struggling entrepreneurs. If these businesses go under, then the unemployment rate will jump. Also, less business means fewer taxes. So, the government will have to make cuts.
I have a wedding coming up at the end of May. So, I’m hoping that things clear up so the guests can arrive safely from Beijing without having to go into quarantine. I’m also hoping that we can go to some Chinese restaurants, assuming they haven’t all shut down.