‘This will bankrupt me’: Coronavirus order could close many SLO County bars and restaurants

Update: SLO County to stop alcohol sales at bars ahead of St. Patrick’s Day

On Sunday, Gov. Gavin Newsom asked that all bars, wine bars, wineries, night clubs and brew pubs close amid the coronavirus outbreak in California, an escalation of the COVID-19 response that will substantially impact businesses in San Luis Obispo County and elsewhere across the state.

He also called for restaurants to reduce their occupancy by half to enact “deep social distancing” and a “pragmatic response to the moment.”

Although the closures are not mandatory at the moment, Newsom said he expects businesses to follow his guidance. Newsom’s request followed a similar directive from the governors of Ohio and Illinois earlier in the day.

Derek Johnson, San Luis Obispo’s city manager, said the city would consult with the county Public Health Department on Sunday about any direction on how to ensure safety measures are best carried out by local businesses, before announcing any city actions.

“We advise caution and to honor the governor’s direction on social distancing,” Johnson said.

Multiple county eateries and bars learning about the governor’s announcement on Sunday expressed concern about the business challenges they’re facing, as they plan ahead.

Closure could ‘bankrupt me,’ McCarthy’s owner says

On Sunday afternoon, as a normal-sized crowd of mostly regular customers gathered at McCarthy’s Irish Pub in San Luis Obispo, co-owner Billy Hales held up his cell phone showing an app containing ASH Management’s sales from its more than a dozen bars and restaurants countywide.

“See Rooster Creek (in Arroyo Grande)? We had a great night — that’s better than an average night,” Hales told a Tribune reporter. “People are supportive and they want to come down, but they’re being told not to come.”

ASH Management owns many of SLO’s highest profile downtown bars — including Creeky Tiki Bar & Island Grill, MoTav, Frog & Peach Pub, Bull’s Tavern, The Library and McCarthy’s Irish Pub.

Hales said that in the few hours since news of Newsom’s announcement broke, he received more than a hundred text messages from local residents and some of his more than 550 employees wondering if they’re going to have paychecks over the next month or two.

Hales said he’s been humbled by the community support, but the possibility of shuttering ASH Management’s properties — many of which do not serve food — has created an enormous amount of anxiety, and as of Sunday afternoon, he didn’t know what to tell his staff.

“Many of these people, they’re single parents,” he said.

Hales has spoken to some of his landlords, one of whom who owns three ASH Management properties and pledged to work with him however he could, but not all of the property owners are in such a position.

Hales said that he believes the nation’s reaction to coronavirus, fueled in large part by media coverage, has gone overboard. He said his businesses take precautions during flu season every year and that this year’s novel coronavirus is no different.

Federal, state and local health officials — including the Centers for Disease Control and Prevention (CDC) — have repeatedly urged residents to take the coronavirus outbreak seriously and practice social distancing to curb the spread of the illness.

Residents who choose not to heed health officials’ advice and gather in large groups in close proximity to others risk contracting the virus or unknowingly spreading it to community members, particularly those with health conditions who could become seriously ill.

Hales has advised his staff to stay home if they feel sick or exhibit symptoms, but he said the most at-risk population, the elderly and people with serious underlying medical issues, are not the customers coming out to bars and restaurants in the time of coronavirus.

He added in no uncertain terms that his businesses can’t survive a monthlong closure.

“This will bankrupt me,” Hales said.

He said he is going to do all in his power to stay open for business.

Firestone Grill will stay open

Hal Billingsley, of the family that owns Firestone Grill in San Luis Obispo, said the restaurant will continue operating but will likely focus on to-go orders.

He said that staffing already has been cut back because of a slowdown of customers, and he feels badly about the impact on his employees and other workers in the area.

Billingsley said the restaurant has been diligently cleaning and making sure nobody comes to work sick, which hasn’t happened yet.

He said tables are spaced out appropriately so people won’t come within six feet of each other; a couple, for example, can eat with adequate distance from neighboring patrons, he said.

Billingsley said the family-owned business owns its commercial building, but others that pay monthly rent in town will be harder hit.

“We’re hoping the restrictions and closures will help the recovery and make a difference,” Billingsley said. “We’re fortunate in that we’ve done this a long time and we’re fairly well-positioned to get through it, but I worry about other SLO businesses.”

How Luna Red, Novo and Kreuzberg would be affected

Jai Covey — general manager of his family’s businesses that include Luna Red, Novo, Mint + Craft, and Robin’s in Cambria — said that the coronavirus response has been challenging and that his team would meet Sunday to formulate a plan moving forward.

Their restaurants have been obsessively cleaning, including ensuring employees frequently wash hands and that knobs and door handles are cleaned. They’re offering single-use condiments as well, and not placing ketchup bottles on the table, which multiple groups of patrons could touch.

“We were considering closing before the governor’s announcement,” Covey said. “We’ll have to evaluate again. But really, it’s difficult for our employees. Most of them live paycheck to paycheck.”

Covey hopes landlords will be forgiving and offer rent reductions during an unprecedented impact on local businesses.

Like Firestone Grill, Covey said his restaurants partner with Door Dash, a food delivery service, and that could be a mechanism for maintaining service. Covey’s businesses also use the delivery services FoodJets and Cafe Runner.

“We do offer those deliveries, but they’re a small part of our overall business,” Covey said. “If it continues to be super slow, we’ll have to consider whether to stay open.”

Across the street from Novo on Higuera Street, James Whitaker, co-owner of Kreuzberg Coffee, said that he would be “discussing with my partner (their next steps for handling the situation) and making an announcement on social media.”

The Siren Morro Bay staying open for now

In Morro Bay , The Siren will remain open and continue to serve as a live music venue until mandated otherwise, according to owner Paul Boisclair.

“We’re still trying to get clarity,” Boisclair said. “And to the extent of the law, we will stay open.”

Boisclair said The Siren is respectful of the issues and the outbreak at hand, however they want to continue to serve the community for as long as possible. If it’s mandated that they close, Boisclair said they will do so.

“With the closure of basically all entertainment avenues, we’re left to our local communities to gather and talk about the issue.”

And Boisclair said he encourages the discussions surrounding all issues, including coronavirus.

Pine Street Saloon in Paso Robles may close

For the first time in 50 years, Pine Street Saloon will likely close its doors in response to the governor’s directive.

“I’m just worried about my employees,” owner Ron French said. “There’s a lot of people. This is all that they have.”

French said he has not even seen the news himself. He found out through customers just after the announcement. He said once he knows the request is official, Pine Street Saloon will close.

“As far as I know, nobody has officially told me anything. I don’t know what to do,” French said. “Being a small business, we take all the necessary precautions. ... But I’m not for this.”

Saturday night hurrah for many SLO bar patrons

Multiple workers and business owners who spoke on condition of anonymity told The Tribune that Saturday night in downtown SLO saw heavy customer bar traffic, as college students and young adults flocked to drinking establishments.

“It started out slow and then it got super busy really fast in the later night hours,” one SLO business operator said. “It was actually surprising how many people were out.”

Some speculated it might have been a kind of last weekend hurrah before young adults start hunkering down or sink into social distancing for an indefinite future, though at the time Newsom’s announcement was still a day away.

“I understand where they’re coming from because they want to have fun, and younger people aren’t showing as severe of symptoms (with coronavirus),” the business operator said. “But obviously, if they get it, they can pass it on to others.”

This story was originally published March 15, 2020 at 6:48 PM with the headline "‘This will bankrupt me’: Coronavirus order could close many SLO County bars and restaurants."