Ómicron hits American companies: “We have suffered a great fall”

New York (CNN Business) – After 20 grueling months, business was beginning to change for Lido, an Italian restaurant in Harlem.

The 11-year-old restaurant that features a James-Beard award-winning chef survived the traumatic spring of 2020, when New York City became the center of America’s coronavirus crisis.

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Lido closed and then went on to provide alfresco dining. It navigated changing safety rules for covid-19, mask wear requirements and vaccination mandates, supply chain delays, rising inflation, labor shortages, and other challenges as it progressed. towards recovery.

“We were getting closer to 100%,” Susannah Koteen, owner of Lido and two other restaurants in New York City.

Then came a sudden surge in coronavirus cases, fueled by the highly contagious omicron variant and an increase in delta infections.

New York State reported record levels of new coronavirus infections over the weekend and officials across the country are bracing for another grim pandemic winter. In New York City, some Broadway shows have been canceled, offices have been closed, and people are struggling to change their vacation plans.

“We have taken a nosedive in the last two weeks,” Koteen said. “It is painful”.

Customers are calling to cancel reservations and parties, he said. About 10 out of 70 of its staff members tested positive for the virus, leaving the restaurant struggling to cover their shifts.

Over the weekend, Koteen considered closing Lido for January. Now, you are thinking “limping” through the winter.

“Everyone who works for me is my responsibility. I want them to have a paycheck, but I don’t want them to get sick,” he said. “This is going to be a losing streak for us.”

Deja vu

The spread of cases and collective anxiety are beginning to affect restaurants, shops, hotels and other businesses, which are desperate to recover from the pandemic and revive business during the holidays.

Some store owners describe a sense of déjà vu and are struggling to respond to the latest wave of covid-19.

In Philadelphia, Phil Korshak was forced to close his bagel shop Thursday after one of his employees tested positive and all staff were exposed.

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The store, Korshak Bagels, was closed for the weekend. Expect to reopen on Wednesday.

“I closed the three days of the week when I make the most money,” he said. “I had to generate payroll with no income for all employees.”

Korshak now has a rapid covid-19 test on hand for every employee, but is concerned that it will be forced to shut down for an extended period this winter. I couldn’t handle the shutdown any longer.

“Is there a chance they’ll shut us down for so long that I don’t hold onto staff?”

“Perfect storm”

For many companies in the service sector, holidays are the most important part of the year.

In the retail industry, stores often rack up the majority of their sales during the holiday shopping season as customers splurge on expensive gifts and items. Restaurants depend on big Christmas dinners to help them get through the harshest winter months.

“The holidays are our Black Friday,” said Sean Kennedy, executive vice president of the National Restaurant Association, an industry group.

Nicole Panettieri, owner of The Brass Owl, a clothing, accessories and gift boutique in Astoria, Queens, said the mood has changed at her store.

Ninety thousand restaurants, about 14% of all U.S. restaurants, were permanently closed during the pandemic, according to the group.

Many restaurants were already struggling with labor shortages and a sharp increase in wholesale prices, Kennedy said. Now, customer trust is falling as Covid-19 cases rise.

Fewer customers have visited restaurants in recent weeks than in November. For the week ending December 20, restaurant seating was down 11% compared to the same stretch in 2019, according to data from OpenTable.

“We are definitely seeing more cancellations, softer demand nationwide at a time when revenue is critical,” Kennedy said. “This is really the perfect storm for a low-margin business like restaurants.”

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For Nicole Panettieri, owner of The Brass Owl, a clothing, accessories and gift boutique in Astoria, Queens, stocking products was his biggest concern heading into the holidays. Now, it is the increase in covid-19 cases.

The week before Christmas is one of the “busiest days of the year.” But he canceled an in-store event scheduled for Tuesday because he didn’t want to draw too large a crowd.

The mood among shoppers has changed, he said, and he anticipates a drop in sales as people stay home. This may force it to withdraw staff and goods in 2022.

“Usually this is a very nice time to shop and it feels very bleak,” he said.