COVID-19 Lockdowns Devastating Local Businesses

CCB MEDIA PHOTO
The sign at the Cape Cod Chamber of Commerce welcomes visitors.

HYANNIS – Preliminary results from a survey issued to local business owners by the Cape Cod Commission and the Cape Cod Chamber of Commerce suggest severe impacts to the Cape Cod business community due to COVID-19 lockdowns.

“We put out a business survey that will create a baseline for business conditions during the pandemic,” said Wendy Northcross, CEO of the Cape Cod Chamber of Commerce.

“The purpose of this is really to try to measure what we know is really not a good economic environment at the moment but try to measure where we are during the pandemic and then track progress toward restoration of the local economy.”

Currently, over 350 business owners with businesses in all 15 Cape Cod towns have responded to the survey, representing industries including accommodations, retail, restaurants, catering, food and beverage services, construction, real estate, health care, and recreation.

The preliminary results show a decline in customers and sales, along with reduced hours of operation.

While most closed businesses plan to reopen according to the survey results, some will remain shuttered, and others are unsure.

The survey showed that most businesses were able to avoid layoffs, and a small amount were able to transition to remote work.

Over one fourth of respondents furloughed employees.

According to the data acquired, revenue loss is significant.

Losses of more than 50 percent, and in some cases more than 100 percent, were reported by numerous respondents.

The summer months are expected to bring an increased revenue for some businesses, however 45 percent of respondents are still anticipating revenue losses of more than 50 percent over the next six months, when compared to a typical year.

“It’s a valid statistical response so we think we have a good baseline to measure forward progress,” continued Northcross.

“Bookings at our hotels and short-term rentals showed a strong increase following Governor Charlie Baker’s announcement of Phase Two. We are seeing signs of improvement as our local businesses begin to open.”

Survey respondents said the assistance they need most beyond financial assistance, is help with communications and marketing.

Operational assistance, such as technical support in marketing, financing and management, was the second-highest identified non-financial need.

Both the commission and the chamber are stressing that the survey is an ongoing one and that local businesses are encouraged to respond at any time.

“We will continue to collect data through future iterations of this survey,” said Cape Cod Commission Executive Director Kristy Senatori.

“Responses will be used to support economic recovery now and in the coming weeks and months, and can be leveraged by businesses, towns, and other organizations in future grant applications and reports.”

The Cape Cod Chamber has also been working on multiple campaigns letting the public know that Cape Cod is open.

“We’ve launched a direct sponsored content campaign through social media, search engine optimization campaigns, that gets the message out there that Cape Cod is open, we want you to be safe and we are working to keep you safe,”

“We will ramp that up even further as we near the beginning of Phase Three.”

Local business owners interested in taking the survey can click here.

For more information on the Cape Cod Chamber of Commerce, click here.

For more information on the Cape Cod Commission, click here.

The Following are the preliminary survey results from The Cape Cod Chamber of Commerce and Cape Cod Commission Press Release:

Summary of Preliminary Survey Results:

Respondents represent a wide range of local industries from across the Cape

Over 350 respondents with businesses in all 15 Cape Cod towns; 90% are Barnstable County residents
The number of years respondents have been in business on Cape Cod ranged from less than 1 to 100; the average is over 21 years
The top 3 industries of respondents are Accommodations, Retail, and Restaurants/Catering, and the majority of the respondents were open year-round (72%)
The top 3 impacts felt by the business community due to COVID-19 are decline in customers/clients (69%), decline in sales (64%), and hours of operations reduced (52%)
63% temporarily closed their business
- Of those businesses temporarily closed 74.6% plan on reopening, 19.8% are unsure, and about 5.6% do not anticipate reopening
- For those who were unsure about reopening:
  - They were waiting for the safety guidelines from the state (educational institutions and beauty salons in particular voiced this concern)
  - They wanted support in understanding how to keep staff and the public safe
  - They were waiting for changes to restrictions around occupancy of indoor spaces (including offices, restaurants, and short-term rentals)

Challenges in retaining workforce

Out of the businesses who responded, 28% furloughed staff and 29% laid off staff; 34% reduced employee hours
Of those that furloughed or laid off staff, 65% of respondents anticipated those employees returning in 2020; 30% did not
- Respondents noted concern about their viability given the requirements in the Reopening Plan, unemployment compensation being better than wages, and reductions in tourism (among other comments)
- Several businesses noted that employees requiring a visa to work were unable to get them this year
21% of respondents transitioned employees to working remotely

Significant revenue loss

Comparing April 2019 to April 2020, 66% saw revenue losses over 50%; 28% reported losses over 100%
5% still anticipate revenue losses of more than 50% over the next six months

Businesses desire help with communications and marketing

The top resources being used to manage COVID-19 impacts are personal savings (62%), participating in a program to mitigate layoffs (e.g., Payroll Protection Program, Workshare, or Rapid Response) (38%), or Unemployment Insurance (for sole proprietors) (21%)
Beyond financial assistance, the most needed support was communications/marketing/social media assistance (45%), followed by operational assistance (32%)