BUSINESSES FEEL PINCH OF ECONOMY ROLLBACK
From gyms to restaurants, less foot traffic means declining revenues
LZOMINsTZR » Businesses across the region and around the state are feeling the effects of the rollback to Phase 3, Step 1 of the state reopening plan, which went into place on Dec. 13 after Gov. Charlie Baker outlined new restrictions statewide related to hospital capacity, mask compliance and distancing due to increased COVID-19 cases and hospitalizations.
Businesses in sectors that include arcades, indoor and outdoor recreational businesses, driving and flight schools, gyms and health clubs, libraries, museums, retailers, offices, places of worship, lodging common areas, and golf facilities capacity have been reduced from 50% to 25%. In addition, movie theaters are limited to a maximum of 50 people per theater.
New guidelines put into place for gyms and workplaces include required mask wearing by office employees at their places of work when not in their own workspace and alone, and gym patrons must wear masks at all times. Employers are encouraged to close or limit the use of break rooms.
Set the Tone, a sports perfor
mance and adult group training facility on June Street in Leominster, has certainly been affected by the regulations and recent rollback.
“It’s been frustrating mostly because we are in a field where we are promoting health and providing training and helping with education on maintaining a healthy lifestyle, but we are being held back in doing so,” said owner Chris Cote.
Cote said the reported COVID-19 numbers do not reflect that the virus is being spread in fitness facilities. According to him, from July to December Massachusetts fitness facilities reported nearly 2 million member check-ins and under 75 positive cases of COVID.
“Gym owners across the state are jumping through hoops to meet requirements and adhere to restrictions on capacity while spending thousands to adapt their business to stay open and clean,” Cote said. “They are putting these business owners under water financially and there is very limited help coming our way.”
Cote said he is thankful for the continued support from the community and patrons.
“At Set the Tone we are grateful for the opportunity to continue helping people live healthier lives,” he said. “We are confident that we are doing it the right way and look forward to changing more lives as we grow this business.”
A survey conducted in November by the North Central Massachusetts Chamber of Commerce found that over 75% of businesses have been negatively impacted by the
COVID-19 pandemic. Nearly 64% of businesses reported losses when compared to 2019 and nearly 25% reported losses of 50% or more. In addition, 25% of businesses estimated they could stay operational on current cash flow and reserves for just six months or less.
“The recent survey conducted sheds light on the tremendous toll that the pandemic is having on our local economy,” said North Central Massachusetts Chamber of Commerce President and CEO Roy Nascimento. “While the pandemic has impacted most businesses in one way or another, customerfacing businesses have been particularly hard hit. Retailers, restaurants, hotels and venues, gyms and related businesses have seen the largest impact.”
The rollback presents plenty of challenges for businesses, with any number of possible ramifications — worst case scenario being not surviving the pandemic.
“Our businesses have been working hard to operate safely, but many are still struggling from the economic impacts brought on by the pandemic,” Nascimento said.
The revised capacity limit does not apply to sectors that do not currently have a percentage-based capacity limit including smaller restaurants, laboratories, and close contact personal services. Current guidelines for restaurants and other venues include that patrons must wear masks at all times except when eating and drinking, restaurants cannot seat more than six patrons per
table and must impose a 90-minute time limit on tables, musical performances at restaurants are no longer permitted, and food court seating will be closed in malls. Customers are encouraged to dine only with members of the same household.
Even before the rollback was announced, many businesses were once again adapting and adjusting to the way they serve customers.
Luccas American Kitchen, which is located on Lancaster Street in Leominster, went back to takeout only on Oct. 31, and Brady’s restaurant, on Mechanic Street in Leominster, posted on social media on Dec. 10 that staff “made the difficult decision to temporarily go into hibernation” and close until at least March.
Luccas owners Jodi and John Davick said they took down the tent for outdoor dining in the middle of October and opened back up for indoor dining after having custom partitions built between the booths and going above and beyond when it came to following required protocols. Within 10 days they “made the tough decision” to scale back on take-out only.
“Unfortunately, we knew that our employees were doing the right thing, but you certainly can’t control all of the other outside elements,” Jodi Davick said. “It was clear that after only a week of being inside, regardless of how careful we were, that we had to do something. This was singlehandedly one of the toughest decisions we have had to make on behalf of our business and employees. The health and safety of our staff, customers and ourselves were of the utmost importance. We are in uncharted times and both John and I felt it was more important to be part of the solution instead of the problem. While we understood not everyone would agree with us, we strongly believed it was the best decision for our restaurant and community.”
The Davicks said business is “not even close” to what it was prior to the pandemic, and that they have had to cut back hours of operation and have limited full-time worker hours.
“Luccas was going strong, we never thought something like this would happen and completely change our business plan,” Jodi Davick said. “Both John and I feel that any business that is open and has remained open since the March 2020 closure will be here in the end. It hasn’t been easy, but I am confident that Luccas will make it and in the end be better because of it.”
Businesses have expressed frustration surrounding the rollback and the reaction from state and local government when it comes to providing financial assistance and other lifelines, as well as voiced needs that they are looking to be met.
“Beyond financial support, help with communications, marketing, and social media to reach their customers was the most requested resource when we surveyed businesses,” Nascimento said. “Businesses also indicated that they need help in finding qualified workers, as many have dropped out of the workforce due to childcare issues or health concerns related to the pandemic.
According to Nascimento, since the pandemic started the chamber has been committed to doing what it can to support businesses as they navigate the stormy waters of the pandemic — including launching several marketing campaigns to encourage consumers to shop, eat and visit locally and support small businesses.
The chamber has provided emergency loans, assistance with grants, business counseling, webinars and education, advocacy, and marketing support. It also expanded its popular online jobs board to host more than 1,000 local job opportunities in an effort to connect job seekers and local employers.
“( We are) focused on providing strong leadership and as much assistance as possible to help local businesses and our communities weather this crisis,” Nascimento said.
With the arrival of the COVID-19 vaccine and phased allocation of it currently happening, Nascimento said he is “cautiously optimistic” that things will improve this spring.