Third of Central Coast businesses lost over 75% revenue during COVID-19 shutdowns, survey shows
A recent survey of more than 900 businesses conducted by a coalition of Central Coast Chamber of Commerce organizations showed that nearly 38% of businesses reported decreases in revenue of more than 75% since mid-March.
The survey of businesses, which took place May 11 through May 17, covered a wide range of topics, including general feelings about the economy, financial impacts and reopening businesses as restrictions lift during the coronavirus pandemic.
About 30% of businesses surveyed described conditions as poor, while about 16% stated that the economic climate has been “catastrophic.”
Nearly 17% of businesses cited current conditions for their companies as “good” and 35% defined them as “fair” in the survey.
San Luis Obispo County’s shelter-at-home order went into effect March 18. About two months later, on May 20, San Luis Obispo County met the criteria needed to move forward through Stage 2 of the state’s reopening plan.
Stage 2 allows dine-in and in-store shopping services, with certain safety measures in effect such as limited indoor capacity for restaurants.
About 63% of respondents in the chamber survey stated they were “unsure if the economy will be impacted for six to 12 months or longer, and will stagnate or show slow growth thereafter.”
And 19% said that COVID-19 will have a lasting impact on the local economy, causing it to regress or fall into a lengthy recession.
More than 17% of those surveyed cited optimism the economy will rebound within two to three months and “grow just as strong or stronger than before COVID-19.”
“These facts are sobering but we must continue to have confidence that we, as a region, will survey after the COVID crisis is over,” said Glenn Morris, vice chair of the Coalition of Central Coast Chambers. “It might look different, but hard work, sacrifice and innovation is in the DNA of our business community.”
Cash flow a top concern for SLO County businesses
The business respondents by community consisted of San Luis Obispo (22%), Paso Robles (20%), Atascadero (9%), Santa Maria (9%), Grover Beach (7%) and Morro Bay (6%), with several other local communities from Solvang to San Miguel rounding out the tally.
Nearly 44% of businesses surveyed cited cash flow as a top concern, while about 15% noted protecting their employees and customers from COVID-19 was their biggest challenge.
When asked about being able to pay rent or mortgage, 23% reported inability to make those payments in full.
As a pathway forward, nearly 37% of businesses reported establishing alternative ways to sell and deliver products and 23% have changed the products and services they offer.
“I am always amazed at the fortitude of our entrepreneurial business community and the survey responses confirmed it once again,” Jim Dantona, chair of the Coalition of Central Coast Chambers, said in a statement. “Even in the face of tremendous losses, business owners see a path through and are working to adapt their operations and offerings, keep people employed and keep people safe.”
During the survey period, more than 34% of respondents closed temporarily and 37% said that at least one employee had been furloughed or laid off.
About 48% of businesses employed between one and five workers, while 18% had between six and 10 staffers. Of those who answered, nearly 6% were companies of between 51 and 100 workers and nearly 7% have 101 employees or more.
The chambers expressed a willingness to help businesses work through their challenges, along with the guidance of other economic partners.
This story was originally published May 26, 2020 at 12:46 PM.
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