COLORADO SPRINGS – The loss of customers, events, and tourists is costing businesses in Colorado Springs more than $10 million in the wake of shutdowns brought on by the COVID–19 coronavirus, according to a survey released by the Colorado Springs Chamber and EDC.
Of the 176 respondents, 78 percent say, they’ve lost at least some business since the pandemic started forcing changes on lives in the United States. A third of businesses reported supply chain issues, 23 percent of which was because of international problems.
“What really determines how we are going to look on the other side of this, is the length of this stay-at-home and quarantine protocol and then, how much damage is done in that time span to the households and businesses,” said Tatiana Bailey, a Ph.D. economist at the University of Colorado Colorado Springs.
The impact to businesses is deep as businesses told the Chamber and EDC they’ve faced an estimated $10,158,000 economic hit between January 20, 2020 and March 23, 2020.
“We were putting advertisements on, we were sharing on our Facebook pages so that people could know that we were open and we were doing to-go orders and it just didn’t get out enough,” said Melanie Erhardt, the general manager at the Western Omelette.e “We were hoping for more and trying as much as we could to keep it afloat.”
The Western Omelette closed it’s doors the last Sunday in March facing revenues that could not even cover the cost of paying the people that worked that day.
Western Omelette joins King Chef Diner, Street Car 520 and even chains like Old Chicago of announcing, oftentimes via a note on the front door, indefinite closures, with hopes of returning when the pandemic ends.
The paychecks lost by those employees, the survey estimates, is 2,080,000 each month employees are laid off.
In the American Economy, the consumer makes up around 70 percent of GDP. It’s a consumer economy without many of its consumers.
Bailey believes each day the virus forces stay at home orders to continue, the chances of a quick and robust recovery (a V-shaped recovery) dwindles.
“They can’t go out and buy like they normally do. They can’t go out and work like they normally do.” Bailey said. ” As far as I know, maybe the Bubonic Plague and Spanish Flu were the only other instances that it was to this extent.”