GRAND RAPIDS, Mich. — Craft Beer Cellar in Grand Rapids is the latest victim to the economic downfall of 2020 and the pandemic.
It is currently selling off its inventory, preparing to close for good.
"It’s really hard to say no to this place and let it go," said Brian Beaucher, the owner. "We gotta do what we gotta do to survive though. If we’re not making money at the end of the day, what do you do?"
The craft and draft beer store has been in downtown for three and a half years. Beaucher said it was "a celebration of what the city is, great beer." He actually thought the business could survive the pandemic at first, but the months went by.
The last straw came around Fourth of July, when an executive order shut down bars that made 70 percent or more of their sales in alcohol. Craft Beer Cellar makes half its income with its draft beer sales, and the retail is alcohol as well.
"That second shutdown hit us harder than the first time around," said Beaucher. "Because now restaurants and breweries are open, but we’re not open."
Craft Beer Cellar is not alone in facing challenges in 2020. Of its 29,000 members, Michigan's Small Business Association found one in seven have either already closed or do not think they will survive 2020. Also, nearly 90 percent of members expect sales to decline.
The reason for closure, or fear of it, comes from a number of reasons. For one, many businesses are still not able to operate under executive order. Others are trying to figure out how to make ends meet operating limited capacity.
"And in frankly, those capacity restrictions, while people understand why they're there, they make it difficult to run a sustainable business," said Brian Calley, the president of the association. "If you're limited to 25 percent, like a fitness facility, or 50 percent, such as a restaurant, it's hard to cash flow the business and pay employees and operate in a way that is sustainable over the long term."
Calley said some industries, like hair salons, have found a way to make business work with new COVID-19 restrictions. However, other industries are also facing a changing customer landscape. For example, retail stores are seeing their customers turn to online shopping. That's in part for convenience, but also because there is less foot traffic in urban areas.
"Some of these business models that that existed in the past, they may never come back," said Calley. "And so the displacement of small businesses and small business owners are something that we're really quite concerned about."
Another major reason some small businesses are facing challenges, Calley said, is because federal relief programs are ending. That's things like the paycheck protection program, the Restart grants, and more.
"I think it was one of the reasons why we didn't see, or feel as much of, the economic consequences of the shutdowns in the spring, because the federal response both in unemployment and paycheck Protection Program," said Calley. "But as we look into long term, many of those resources have now run out."
Calley said he hopes Washington could find more ways to help those businesses either required to be closed or run on limited capacity.
However, there is another side to this struggle, and that's the community support for their local businesses. Beaucher said customers have really stepped up for the store, but unfortunately, that can only go so far. He suggests helping favorite local businesses in any way someone can.
"It’s hard, because you can reach out to the community and say, 'support us,' and 'help us survive this,'" said Beaucher. "But what makes us more important to save than our neighbor bar or restaurant? Is there enough money to go around for all of them?"
Craft Beer Cellar will remain open until their inventory is gone. Beaucher estimates that to be a week or two. Until then, items in the store are 15% off, and drafts are 50% off.
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