February 1, 2023 marks three years since the first confirmed COVID-19 case in Massachusetts. In the past three years, the COVID-19 pandemic has had a profound impact on businesses in Massachusetts, with many forced to temporarily or permanently close their doors or significantly reduce operations due to government-mandated lockdowns and restrictions. Businesses in Massachusetts, struggled to stay afloat in the face of lockdowns and saw severe supply chain disruptions. While the risk of COVID-19 has lessened as vaccines and boosters have been made widely accessible, the virus continues to impact lives. The state’s economy was hit hard, leading to job losses, reduced consumer spending, and economic hardships for many individuals and families.
“COVID had a devastating effect on the restaurant businesses not only in Massachusetts, but throughout the US,” reflected Bob Wong, Co-Founder of MARA Massachusetts Asian Restaurant Association and owner of the Kowloon Restaurant in Saugus In a recent interview with Bob, he said, “As a result of shutdowns and other restrictions, business for many ceased to exist, or was significantly hurt. It would be easy to say the infrastructure was unprepared for what hit us, but in reality, saving lives was the most important factor in most decisions made at that time. So, closures, mask wearing, and social distancing among other things were put in place. All of which caused tremendous suffering in the beginning for most businesses.”
At the start of the pandemic, many businesses were forced to temporarily close their doors due to government-mandated lockdowns. This resulted in a sharp decline in revenue for many businesses. In some cases, these closures were permanent, leading to unemployment and economic hardship for workers and owners alike. In addition to closures, many businesses had to grapple with new, never before, operating nightmares. With borders closed and travel restrictions in place, many businesses saw supply chain disruptions as they were unable to access the resources they needed in order to run. At the same time, consumer spending fell as people became more cautious with their finances.
Wong offered a unique perspective as a leader of MARA. “Resiliency really depended upon a number of factors. What business you were in, such as food and alcohol sales versus hair salons, travel, and other services, were all affected to different degrees. In addition, the location of the (restaurant) operation mattered. Downtown locations had no one to serve, while being in locations easily accessible to consumers thrived. So it was an uneven playing field for businesses in many cases. Many businesses thrived, while many went out of business.”
Restaurants in Massachusetts faced and navigated around a range of challenges as they sought to reopen following the COVID-19 pandemic. Many businesses experienced significant financial losses due to the pandemic and faced challenges to secure funding to cover reopening costs, pay employees, and continue operations. In addition, health and safety regulations posed additional difficulties. Businesses needed to comply with a range of regulations including capacity limits, social distancing requirements, and mandatory use of masks. All these special demands were costly for restaurants which require a high degree of customer interaction. Other troubles like unprecedented inflation forced them to kick up their prices and competition from so new online businesses made it difficult for them to bring back their old customers and generate enough revenue to stay afloat. They were not prepared for this different game!
Another big problem facing all restaurants then and now was the lack of workers. Employees were unable or unwilling to return to work due to coved fears, real health problems, and childcare needs because of extended school closings. It was impossible to fully staff their operations. As Wong explained, “Staffing has been the most pressing problem, due to many factors. Many people dropped out of the workforce during the pandemic and have never came back. People who were on the fringe of retiring decided to do so early. Another factor has been a change in people’s attitude towards work after coming out of a period of inactivity.”
Despite these difficult challenges, some businesses have been able to pivot and adapt to the new reality created by pandemic. For example, myriad of restaurants have shifted to offering takeout and delivery services, some have embraced e-commerce and online transactions. In some cases, these changes have even helped businesses to grow and expand with new innovations and creative problem-solving responses. Wong is grateful for how things have been changing for the better. “For us, three years since the beginning of the pandemic, business has been strong. I know other businesses, not only restaurants, who have grown stronger because they adapted to what the (pandemic) customer wanted.”
In response to the pandemic, government and other organizations created new programs and services to support businesses. Massachusetts in particular took steps to help businesses reopen and recover from the impact of the COVID-19 pandemic. From providing financial assistance to developing a phased reopening plan with health and safety guidelines, the state worked to help them thrive again. Wong explained, “Our employees survived for the most part since they were given stimulus checks by the government to assist in getting them through the downturn in work and hours. The government has been our most important ally. Their policies and how they partnered with business determined who survived, “ Some of the government measures included:
Financial and Technical Assistance: The state provided financial assistance to businesses in the form of loans, grants, and tax relief. This included programs such as the Small Business Recovery Loan Fund, the Massachusetts Growth Capital Corporation, and the COVID-19 Small Business Grant Fund, the Paycheck Protection Program, the CARES Act, and Economic Injury Disaster Loans and Emergency Grants. The state has also provided technical assistance to businesses to help them navigate the reopening process such as webinars, training programs, and online guides.
Phased Reopening Plan: The state implemented a phased reopening plan in three steps, which allowed certain businesses to reopen with restrictions in place to reduce the spread of the virus. The phased reopening plan was developed in consultation with public health experts and business leaders, and took into account the latest data on COVID-19 transmission.
Health and Safety Guidelines: The state developed comprehensive health and safety guidelines for businesses to follow as they reopened. These guidelines covered topics such as capacity limits, social distancing requirements, and mandatory use of masks. Regulations were also reviewed in some cases to make it easier for businesses to operate. This included changes to zoning laws, liquor licensing requirements, and permit processes.
The reopening process was not easy for many restaurants… Some businesses are still struggling to make ends meet, many facing new costs related to implementing safety measures and complying with health and safety regulations. It is clear that the long-term damage of the pandemic on Massachusetts’ restaurant businesses will continue to be felt for a long time. There are ways that individuals and communities can help Massachusetts restaurants….. From supporting local businesses directly, to advocating for government support and participating in community initiatives
As Wong reflects on the future, and on what we hope will soon be a fully actualized post-COVID world, he offers that, “a case study should be made of how we reacted and the measures we took, so that we do not repeat the same mistakes again, as well as know what did work well. As we work towards a ‘new normal’ we need to work towards being prepared for any hardships that come our way, and adapting to be more fluid in how we do things differently or the same.”
