Only 12 weeks ago when the coronavirus was getting a ripple of news in faraway China, Gadsden’s Back Forty Beer Co. was projecting 15 percent growth for 2020.
But within the last week, the dominoes started falling. Now owner Jason Wilson is looking at a loss of about 65 percent of his revenue due to the social distancing measures in place for containing the virus. At the same time, the brewery’s taproom and kitchen are seeing all-time highs in takeout orders and to-go beer sales from community support.
“People are doing everything they can,” Wilson said. “But there’s no playbook for this.”
That’s a single story in Gadsden’s downtown business district, illustrating how the merchants of one city in Alabama are adapting to what they call a catastrophic slowdown in foot traffic and demand. But it’s also a narrative playing out in cities big and small in Alabama, the South and around the nation.
Gadsden is a city of more than 35,000 in Etowah County. Normally shoppers are drawn to the city’s six-block Broad Street business district, with its tree-lined sidewalks, decorative lights and piped in classic rock. And they come to the shops there, which range from boutiques to furniture to beauty products to locally-owned restaurants. The area has a 90 percent business occupancy rate, according to Downtown Gadsden Inc., a non-profit that serves the merchants.
But last week the coronavirus pandemic, and the measures in place to stem it, brought individual problems to each store, and forced their owners to be resourceful to stay in business. Etowah County didn’t even get its first reported case of COVID-19 until yesterday, when officials said three residents had tested positive.
King’s Olive Oil sells olive oil and vinegar, pasta, syrup, tea and cooking products. Its last day of regular business was March 19. Owner Tena King said she had to close for her family and workers’ protection, but the shop continues to fill orders through its website and make deliveries.
For the moment, there’s enough product and enough demand, as customers buy the products for their health benefits. People working and sheltering at home means more people are cooking, creating more demand. But the olive oil and vinegar comes from Italy, and the olives and jams come from Spain - two nations at the epicenter of the European outbreak. The bottles are made in China, where the virus was first reported. And much of those products are shipped from warehouses in California, which is under a strict quarantine.
“Right now, we don’t know what effect it will have,” King said. “We’re playing it by ear.”
Down the street is the Alabama Gift Co., a shop that sells gifts and food from in-state companies, along with home decor. It has stayed open for curbside service, owner Kathy Milam said, and customers have stepped up to order.
“I could tell so many stories, but I’d start crying,” Milam said. “People have called to ask for things when I know they could have done without them. They’ve been ordering gift bags for people that they can drop off, people who can’t get out, just to let them know they’re checking up on them.”
But the lack of foot traffic is noticeable. No one coming in means no impulse buys, and no one at surrounding shops and restaurants means customers have to be intentional in shopping.
Harp & Clover is an Irish-themed pub and eatery on Court Street, just off Broad. Owner Andy Harp said he’s seen about a 60 percent dropoff in business since the restrictions started. Last week, the restaurant employed 22 people. Now four come in to fill and deliver orders to the curb.
Harp’s business partner Brett Jenkins said the shift to takeout necessitated a shift in strategy. Harp & Clover now offers “take and bake” pans that can feed eight to 10 people at home. Like other businesses, they promoted the new menu items through social media. Lasagna, chicken poppyseed casserole, chicken tetrazzini and beef tips are among the choices.
“We started thinking about what could make a bigger impact,” Jenkins said. “People have been coming in, picking up meals, and they’ve also been tipping more than normal to help out the staff. That’s been really humbling.”
But Harp and Jenkins had planned to open an upscale Italian restaurant just a few blocks away at the end of the month. They say they still intend to, as they’ve already invested too much money to walk away.
“Right now, we’re just trying to keep our heads above water,” Harp said. “The uncertainty is what’s alarming. We’re doing everything we can to keep our employees happy - splitting tips, offering free meals to them. The question right now is how long this will last.”
Kay Moore, who has been the director of Downtown Gadsden Inc. for 12 years, says the coronavirus measures are the biggest challenge she’s seen in that time. For the past week, she has used the organization’s Facebook page and a downtown dining page to film short videos promoting individual stores and their specials. And shoppers have surged into the gap to show their support. One restaurant saw 80 percent of their normal business on Tuesday as part of the Great American Takeout event promoted by the Chamber of Commerce Association of Alabama, she said.
Some merchants were encouraged by provisions in the $2 trillion stimulus package moving through Congress, which would reportedly allocate about $350 billion to guarantee loans for small businesses, though they want to know how quickly that money will be available. How long a line will they have to wait in? some asked.
Long before the coronavirus measures, the merchants of Downtown Gadsden already had a close relationship. The members met once a month to exchange ideas, pick each other’s brains, and share concerns. When the restrictions hit, they didn’t have to forge relationships with each other in the midst of the chaos.
“We have a good family, and I think it’s even stronger than it has been,” Moore said.
Wilson, at Back Forty Beer Co., is also a Gadsden City Council member. So he could in some measure see what was coming before it arrived. He received regular updates about hospital needs, shortages, city services. Then he got word that his wholesalers wouldn’t need draft beer with the closing of restaurants.
Typically, this should be a season when sales climb - March Madness, NBA games, the coming of baseball. “Almost 40 percent of our revenue was turned off overnight,” he said. Then distributors began limiting their deliveries, with the imposition of restrictions in certain states.
“We’re still selling product through our big-box retailers, but even that is limited,” Wilson said. “We have hundreds of stores that we can’t get product to.”
Some employees are on temporary furlough. Others have had their salaries cut. Some of the kitchen staff has been laid off, Wilson said.
“Beer is a commodity,” he said. “You’re looking at a penny profit margin. And no brewery in the world can survive with a 65 percent cut in revenue. Everybody is making a sacrifice."
For the present, Back Forty, like Gadsden’s other businesses and thousands around the U.S., will try to wait out the pandemic measures and stay afloat with cunning and craftiness. Wilson said the support shown by customers has been inspiring, and offers some hope.
When Back Forty began more than a decade ago, one promotional tool was a bumper sticker reading, “Support Your Local Brewery.” Later this week, they hope to have a new one - “Save Your Local Brewery.”
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March 26, 2020 at 07:08PM
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‘Everybody is making a sacrifice’: How one Alabama main street is coping - AL.com
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