For U.S. small restaurants, coronavirus impact is swift and brutal

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For U.S. small restaurants, coronavirus impact is swift and brutal
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On St. Patrick's Day last year, Amy and Chris Hillyard marked the 30th anni...

WASHINGTON/SAN FRANCISCO - On St. Patrick’s Day last year, Amy and Chris Hillyard marked the 30th anniversary of Farley’s, their pair of cafes in San Francisco and Oakland, California, with live bagpipes and noisy crowds.

“We were running at the top of our game as a business and it’s just devastating to have to turn off the engine,” Amy said. Restaurants are notoriously high-risk businesses, typically running on pretax margins of 3 to 6%, which makes them extremely vulnerable in a downturn. For the Hillyards, switching to takeout or delivery was not a viable option, given the cafe is surrounded by now-empty office buildings. By Monday, sales were down 70% from normal, as local businesses sent workers home even before the lockdown started.

There as elsewhere the hope is that the rise of online food ordering over recent years will soften the blow.

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