Chinatown’s struggle could be a portent for others.
Businesses that were hit by rumors see slowdown that’s likely to spread
A sign posted at a Chinatown tailor on Bellaire Boulevard tells customers it’s no longer doing alterations because of the coronavirus. A few doors down, a popular Sichuan restaurant has laid off some of its kitchen staff and is planning to launch a delivery service to help make up for lost dining room business, which is down more than 50 percent.
Throughout Chinatown — which has been living with dwindling demand since the new coronavirus first broke out in China at the end of January — bakeries, restaurants and other small businesses have closed or limited their hours because they can no longer afford to operate.
Now, as consumer businesses around the Houston region prepare for weeks or potentially months of diminishing sales and profits as people are told to stay away from crowds, the situation in this west Houston economic hub could portend what’s in store for businesses in parts of the city that have yet to feel the full impact from the spread of the coronavirus.
Restaurants have been particularly hard hit. Some have seen sales plummet by more than 50 percent and have begun cutting staff and thinking of ways to begin delivering food directly to consumers.
Such moves reflect the economic impact of the prolonged reduction in crowds and have become a necessity in New York City, Los Angeles and Chicago, where mayors have ordered restaurants and bars closed, forcing them to go takeout only. Late Monday, Harris County Judge Lina Hidalgo announced that all clubs and bars in the county will be required to close Tuesday morning. Restaurants will become delivery only, she
said.
“For those employees that are not getting enough shifts to serve tables and earn the tips, we can push more delivery services … so they can earn the money,” said Cori Xiong, who along with her husband Heng Chen, owns Mala Sichuan Bistro at 9348 Bellaire Blvd. Last Friday at lunchtime, four servers waited on a handful of tables at the popular Sichuan-style restaurant. On a normal Friday afternoon, six servers would be working the lunchtime rush, and the line would be out the door.
“It hurts us to see they can’t bring home enough money,” Xiong said. “They have loans, they have family, they have children to support.”
Business in Chinatown first dropped off in late January after a false rumor spread on social media that an employee of one of the grocery stores had the virus. The rumor snowballed and others began incorrectly posting that the store had closed.
The rumor was costly to a lot of area businesses, said Kenneth Li, chairman of the Southwest Management District, which includes a large part of the Chinatown area.
“We have over 100 restaurants. If everybody goes down 50 to 70 percent, that’s millions of dollars,” Li said. “Especially the supermarket. They lost thousands of dollars every day.”
Some of Houston’s nonAsian businesses rallied around Chinatown. Last week, the owner of a Spring Branch bar and restaurant said he would close his business every Monday in March to have dinner with his regulars at a different Chinatown restaurant.
“If you have a depressed market for weeks, that’s really hard to survive,” said Kyle Pierson, owner of The Branch on Long Point.
Reality has since caught up to the rumor that hurt business in Chinatown, and with restaurants shutting down amid orders to limit gatherings, Pierson has since said he’ll no longer organize a large group for dinner, but that he and his staff will still go out Monday nights to support small businesses in Chinatown and elsewhere.
“What was Asiatown’s problem has become the plight of restaurants throughout the city,” Pierson posted on The Branch’s Facebook page Monday.
Downtown bars Axelrad and Bovine & Barley had been offering customers who bring in receipts from Chinatown establishments a free beer.
Chinatown appreciated the help. For some though, it was too late.
“The damage was already done,” Chen said. “Chinese people tend to say ‘better safe than sorry.’ That’s the mentality. Even though they know that it’s probably safe, they wouldn’t take any chance.”
Alice Lee, executive director of the Southwest Management District, worries about what will happen when more service workers get laid off or can’t work because they’re caring for children who are out of school.
“People live paycheck-topaycheck,” she said. “I think the greater impact is still yet to come.”
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