Akron’s Local Business Community In Limbo Amid COVID-19 Shutdown
The COVID-19 lockdown order put the small-business community in the Greater Akron area under duress, particularly the food-service industry and the music industry. According to the Bureau of Labor Statistics, employment in the leisure and hospitality industry fell by around 495,000 nationally since lockdown measures were initiated statewide.
In Akron, a number of restaurants resorted to carry-out and delivery orders, however, those that relied on the music industry suffered a major blow in revenue due to all live shows and tours being cancelled or rescheduled for a later date.
Jenn Kidd, manager at Musica, a local music venue in Downtown Akron, expressed remorse regarding a number of local musicians also losing their day jobs in the service industry due to the shutdown.
The restaurants that could not afford to stay open were hopeful about receiving state and federal funding. Mike Nasvadi, owner of Macho Nacho, a restaurant situated right next to Musica in Downtown Akron was unsure of the distant future, however, he was hoping to stay afloat with switching the restaurant to food-truck service.
Despite Gov. DeWine’s newly appointed order allowing food-trucks to service rest-stops across 86 counties, Nasvadi was certain that without some sort of funding, the industry would not be able to survive. Nasvadi was fortunate to receive a rent-deferral for Macho Nacho for the next three months. However, Nasvadi would still require financial aid in order to re-open his business.
Nasvadi was able to file for unemployment as an owner-operator but with no influx of revenue, the wait for a response regarding approval on loans available through the Small Business Administration and the uncertainty behind the timeline of the lockdown had left Nasvadi in a difficult position.
Nasvadi, like most small-business owners in the community applied for the Economic Injury Disaster Loan and the Paycheck Protection Program. While, this would allow for partial coverage of Macho Nacho’s utility bills, Nasvadi said, “I don’t know what the game-plan is in coming back because I don’t know what the timeline is.”
Unlike Nasvadi, Kidd is less worried about overhead coverage for Musica due to the venue being nonoperational and more concerned about her employees losing their livelihood. “I can go back but it’s not going to be the same if they’re (staff) are not there,” Kidd said, “I just want to make sure that people are healthy, and eating, and that they have lights on at their house. That is my main concern.”
Kidd initiated an online drop-ship store selling Musica merchandise as well as a virtual tip-jar for her staff to receive 100% of all proceeds. Nasvadi on the other hand was able to lay off his staff, earlier in the shutdown so that they could receive unemployment until their return.
Mario Nemr owns Mr. Zub’s Deli, a restaurant, and bar, in Highland Square as well as Matinee, a bar and music venue also in Highland Square. Nemr was able to switch Mr. Zub’s Deli to carryout orders and delivery orders through DoorDash, while Matinee shut down.
Nemr lost out on anticipated profits when the Matinee had to cancel a popular metal concert scheduled for March 13th due to the bands dropping out amid health concerns, as well as, their St. Patrick’s Day activities due to the statewide shutdown.
Nemr said that despite their ability to provide carry-out and delivery in a safe and precautious manner, he was uncertain of whether his businesses could reopen due to high rent.
Nemr, like most of the local business-owners in the area was in dire need of rent-abatement as well as financial aid through the Small Business Administration and the resources provided through the Downtown Akron Partnership.
Downtown Akron Partnership, a non-profit organization working in collaboration with the Greater Akron Chamber of Commerce made efforts at promoting the local business community with special signage for “carry-out pick-up zones,” through their “Support Local” program. However, Nemr was steadfast that the community would require further financial assistance for the next few years.
