Besides paying a high rent right now, taxes, Insurance and employees add Coronavirus Pandemic on top, and you have the makings of a bankruptcy.
Sad but true. Look at these businesses that opened up late last year in and around Middle Village, NY. Bakery business by Chase Bank on Metropolitan Avenue. Already closed within 6 months.
Money is going to become a factor of surviving right now so other businesses who charge $15 to $22 dollars for Lunch will become history. An example of this type of business is Burritto Blvd. on Metropolitan Avenue and 73place. Two Burritto's and a coke $22 dollars. Forget taking a family of 5 out to eat there.
Now throw in about $8-$10,000 in rent which includes also taxes, insurance and employee payroll. So to break even each week the owner must make $2,500 dollars before any profits.
This is not easy to begin with let alone with a Health Pandemic which may last for a year or so.
Already business owners asking their Landlords for a temporary discount on the rents right now.
Nail salons closing up left and right. Banks beginning to cut down their hours and before this Monday we may have Martial Law in effect. Curfews for everyone.
Only supermarkets, Drug stores, Butchers shops and Funeral Directors will thrive.
But sooner or later it will be ok again. Trouble is, nobody has patience. Or tremendous cash flow to stay open.Thank you Vice Batyramo business editor of the Business Journal.