A Devastating Domino Effect for Small Business In the US During Coronavirus Period

As you have heard of the news recently, the coronavirus (Covid-19) has some seriously devastating effects not only on human health but also on the global economy, including the US. This article talks specifically about these impacts and provides us with real-life instances of how American businesses, especially small businesses, suffer from financial loss.

The reason why I chose this article is that it shows us the whole picture of the impact of coronavirus one specific industry in the US, particularly small businesses. It is a chain reaction that causes many other businesses associated with restaurant industry collapsed. It is imperative that more resources and financial help should be given to these small businesses as they are also the victims of the coronavirus.

The article perfectly illustrates the principle of marketing, which is to direct the right amount of produced goods and services to the need of society. When the coronavirus began to evolve in the Cartersville area, Georgia, residents began to reduce their dining out behavior, which in turn decreases the revenue of restaurants. Restaurant managers then decided to close their dining in service and, at the same time, lay off the amount of staff in order to reduce the expenses. That negatively impacts other businesses that associate with the restaurant industry, including credit card processing, hydroponic farming, liquor, bank, and linen-supply. Therefore, it is imperative that many companies come up with certain ideas to increase their sales. This is what we learned in class under Chapter 3: Evaluating Opportunities in the Changing Market Environment. Specifically, it is about the external market environment, which is the first box in the Business Marketing Plan. The external market environment consists of economic environment, technological environment, political and legal environment, and the cultural and social environment. When the coronavirus hit the US, the stock market plunged as the investors were afraid of the risks. The economy was further devastated by mass cancellations and restrictions of trips and events. A lot of people were laid off and, therefore, had to tighten the budget, which means they would not go out to eat at dining-in restaurants. Taking out, however, is still an option for many. As a result, the restaurant industry had to come up with incentives to make their products more appealing to customers. For instance, the restaurant Table 20 mentioned in the article came up with a new dish that was specifically designed for taking-out option.

In the aspect of the political and legal environment, since the authority has called for the closure of bars and restaurants, restaurant managers had to come up with ways to adapt to the new regulation. Table 20 decided to close its wine and alcohol section, which generally brings a massive amount of revenue to the restaurant, in order to balance the budget. Additionally, Table 20 also deferred many services that associate with the dining-in option such as online booking and towel service. Doing all those things were not easy, because it involved an extensive research, screening, and considerations, according to the managers.


Picture taken from: https://www.nbcnews.com/business/business-news/empty-sidewalks-deserted-hotels-coronavirus-slamming-tourism-industry-n1147061


Article link: https://www.wsj.com/articles/for-small-businesses-its-a-virus-chain-reaction-11584763203?mod=hp_lead_pos7