Coronavirus shutdown in Pa. forces small businesses to adapt – and wonder if they can survive

Small business dealing with coronavirus

Owners Pam and Geof Smith take an order from David Gilmer of Dauphin. St. Thomas Roasters Coffee House in Linglestown has adapted to the coronavirus COVID-19 pandemic by serving via a window on the front porch of the establishment, March 16, 2020. Dan Gleiter | dgleiter@pennlive.com

The general manager at McGrath’s Pub in downtown Harrisburg recently called a friend working with a homeless shelter to pose a question: Is it possible to donate thousands of dollars worth of fresh food?

It’s not that Adam Sturges had a surplus of grub. It’s that his restaurant — like many others throughout Pennsylvania — will soon be without customers.

Gov. Tom Wolf ordered a shutdown of non-essential businesses Monday as a measure to combat the spread of coronavirus, following the lead of other governors across the country. Wolf said he had no plans to enforce the measures through steps such as calling out the National Guard, but said people should abide by the shutdown to both protect themselves and others.

That has left Sturges, who runs McGrath’s and owns a nearby speakeasy, to face concerns much more pressing than the need to unload extra food he ordered weeks earlier in anticipation of a St. Patrick’s Day rush.

Like other members of his industry, Sturges now wonders whether his businesses can remain afloat if they close for an extended period of time.

“The bills aren’t going to stop coming in just because our doors aren’t open,” Sturges said. “Unfortunately, it would probably only take a couple of weeks to bankrupt a small business with no income coming in.”

Experts said Monday that small businesses are expected to absorb an especially large blow as health officials and government leaders take measures to promote social distancing in the face of a pandemic.

Some businesses can transition to a takeout-only model or find other ways to adapt while consumers are prohibited from gathering in public spaces. For others, like bars and nightclubs and sit-down restaurants, the path forward is more hazy.

Gene Barr, the President and CEO of the Pennsylvania Chamber of Business and Industry, said his organization will be aggressive in thinking of ways to navigate small businesses through the impending challenges.

“We’re going to need to be inventive,” Barr said. “We’re all going through uncharted territory here.”

CORONAVIRUS CASES IN PA.

Hover your mouse or tap a county to see the exact number of cases per county. Municipalities, when known, are indicated by a blue pin. Tapping the pin will tell you what we know about the case.


Sturges said he’s met with his bank to try to extend lines of credit in hopes of mitigating the financial ramifications of a shutdown. Robin Burtner, the director of the Small Business Development Center at Shippensburg University, said local and state agencies are working on plans to offer disaster loans to small businesses, but details have not been finalized.

The Pa. chamber of business and industry will aim to help owners connect with the appropriate resources as soon as possible, Barr said.

Still, as a small business owner and operator, Sturges isn’t expecting to rely on a bailout.

“I’m not sure and my bankers aren’t sure how that’s going to work,” he said. “My fear with federal relief is it might be too little too late.”

That’s why companies that can make adjustments to stay open are forging ahead.

It wasn’t business as usual for St. Thomas Roasters on Monday morning, but there was still business.

The family-owned coffee shop in Harrisburg closed its doors to patrons and opened a takeout window. Geoff Smith, who co-owns the restaurant with his wife, said he spent the morning handing out to-go coffees and filling online orders.

“It’s a matter of making the best of things,” Smith said.

Smith and his wife and co-owner, Pam, worked at the shop Monday and told nearly all of their 18 employees to stay home until further notice. While Smith said he expects revenue to decrease in coming weeks, he was hopeful that his coffee shop’s connection to the community would keep sales from spiraling.

Michelle Haring, the co-owner of Cupboard Maker Books in Enola, worked the counter of her store Monday morning. She said she planned to keep her doors open as long as possible, pointing out that the size of her store allowed customers to browse while remaining at least six feet apart.

Haring said if she needed to close her store, she would continue selling books online and could deliver books to customers who called and drove into the store’s parking lot.

The more significant worry for Haring and Smith relates to their employees. Haring said Cupboard Maker Books has seven or eight part-time workers.

“I know my employee’s situations and everybody will be OK for two weeks, if we have to close for two weeks,” Haring said. “At the two-week point, it’s going to get scary.”

Sturges said he’s considering making care packages for his employees at McGrath’s and his speakeasy, “because I’m not exactly sure what all of them are going to do if we’re shutdown for a couple weeks.”

The Shippensburg Small Business Development Center has recommended that most businesses begin limiting their hours and potentially cutting payrolling, Burtner said. That could lead to layoffs.

“Reducing payroll makes the most sense,” Burtner said. “I know that’s tough, but the payroll will kill you if you don’t make enough sales.”

Barr said he’ll do all he can to promote avenues for relief for small business owners. He’s recommending the state delay the April deadline for businesses to file their quarterly taxes, which would afford extra time for owners to identify financial solutions.

Many local residents have shown a willingness to support small businesses in their community, Burtner said. She and Haring suggested thoughtful shoppers could buy gift cards to restaurants or other establishments with the intention of using them at a later date. And Burtner said it’s paramount for businesses to communicate effectively with customers via social media over the next few weeks.

Sturges said he wouldn’t encourage anyone to buy gift cards because he thinks it’s important for customers to take care of their families and neighbors first. They can contribute to rebuilding the economy once businesses reopen, he said.

Different owners are adopting different approaches this week as they brace for the possibility of weeks or months of business restrictions and declining sales. The common threads are uncertainty and hope.

Haring sold a $4.24 book to a customer Monday morning, made change out of a $10 bill and thought about what the future could hold if she’d have to halt those types of transactions for several weeks.

“Nobody knows what’s going to happen,” she said. “I’m just keeping my fingers crossed.”

Text PennLive to 717-745-7532 to sign up to have breaking news and essential updates about the coronavirus delivered right to your mobile device. Data and messaging rates may apply.

If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.