How has the Phased Reopening Affected Staten Island Businesses?
Last month, Staten Island entered the last phase of reopening. Assuming guidelines are followed, more and more businesses are able to operate. What comes next?
In July, the Staten Island Chamber of Commerce surveyed its members to better understand the challenges Staten Island businesses face following New York’s phased reopening plan. Through this survey, we sought to understand our respondents’ opening statuses, profitability, and staffing, as well as the obstacles they have and will continue to face.
Businesses that participated in the survey came from dramatically diverse sectors, including foodservice, non-profit, real estate, arts & entertainment, retail, professional services, health and wellness, indoor recreation, marine transportation, interior design, workforce services, and education. Furthermore, the age of the surveyed businesses is varied, with the largest group of respondents (36.5%) indicating that they have been in business more than 30 years and the second largest group (19%) for five years or less.
Unsurprisingly, we learned that the phased reopening plan has had a dramatic effect on Staten Island business. Although more than a third of respondents were able to remain open due to “essential” designations, 21% of the businesses surveyed were not able to open until Phase 3 (July 6) and 12% opened at Phase 4 (July 20).
Of those surveyed, only 6% indicated that their business has fully returned to normal. 40% indicated that they are open or have reopened, but with reduced hours. On the other end of the spectrum, 21% indicated that they have not yet hit the established criteria for reopening. Fortunately, none of the businesses surveyed stated that they have permanently closed.
When asked to compare revenue from Spring and Summer of 2020 to the same period last year, 82% stated that revenue had decreased, with 65% indicating a “significant” decrease. On average, businesses surveyed demonstrated an average of a 57% change in income over last year.
Despite being able to reopen, there is still a laundry list of obstacles businesses face in order to operate every day. Respondents ranked operating under reduced capacity as their biggest challenge, with paying rent, mortgage, and employees in a close second. Other concerns are ensuring customers wear masks in store, receiving and understanding new guidelines, access to capital, and procuring PPE. Many businesses also expressed concerns of a “prolonged culture shock,” in which the pandemic creates an environment of fear for years to come.
Finally, staffing continues to be a major problem for many businesses. On average, the surveyed businesses lost 31% of their workforce, with a fifth losing 50% or more. Employers continue to share that they do not have the capital to pay and/or retain staff. On the other hand, businesses that can hire staff have expressed that many employees are not yet convinced that returning to work is safe.
Looking toward the future, the majority of respondents (65%) foresee their business struggling or breaking even as we enter the fall. 22% indicated that they foresee their business doing moderately well, and 8% stated that they foresee their business thriving. Only 2% of respondents believe they will permanently close.
As we continue to operate in our "new normal," please continue to communicate with the Chamber. We're here to help and will continue to update you on new loan & grant information, marketing opportunities, and more. Plus, if you're looking to rehire employees, we encourage you to utilize our Job Board, which is currently FREE for all members.
Thank you to everyone who participated in this survey. Surveys like this help us advocate on behalf of your business, so please continue to keep us informed on your status. We are your voice - and we will continue represent you.