9 minute read
LIFE & HOME
from LIFE & HOME
The COVID-19 Effect
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What happens when life gives you lemons?
Text by Jennifer Horner
Hot Springs’ picturesque landscape certainly evokes feelings of tranquility and security. As a tourist powerhouse, the Spa City’s landscape of lush trees, colorful gardens, sparkling lakes and natural springs beckons visitors from around the world. A charming historic Downtown and an easily accessible National Park have long established Hot Springs as a favorable destination. Swarming fans of casino gambling and Thoroughbred racing enthusiasts have cemented the success of many area businesses for generations.
Residents of our nation’s First National Reserve are resilient, having overcome flooding and fires, Prohibition, the Great Depression, wars, and Recession. However, it is the most recent disaster that has community members reeling: COVID-19. The novel Coronavirus that has plagued the globe for months has not spared the Valley of the Vapors, and residents are feeling the burn. As citizens across the nation retreated to their homes and enterprise was drastically halted, Congress passed the CARES Act in March, which provided a large percentage of the population with Economic Impact Payments, provided Unemployment Insurance and extended aid to businesses. Local business owners scampered to protect their interests with programs offered through the Small Business Administration. However, the wholly self-employed worker was excluded from lost wage benefits until May 5 when Unemployment Insurance was opened up for relief.
Hot Springs is home to a wide variety of small businesses and self-employed entrepreneurs. The effects of COVID-19 on local interests are broad and ongoing, as are the consequences of a tourist venue at the mercy of a fluid virus. Shell-shocked at the initial implications of suggested and forced closures, newly imposed guidelines and restrictions, and unknowns, the Hot Springs business community clenched its collective fists and fought back where it could.
Rocky’s Corner, a 40-year old family-owned staple on the restaurant scene, came out swinging, finding a way to keep their pizza ovens cooking. Longevity in the business helped the family keep from closing and kept employees working. Gina Diorio, her mother Nancy, and Uncle Mike Simonovich moved quickly to secure loan funds, followed strict guidelines on additional sanitation regulations, and began offering curbside pickup and delivery in lieu of on-site dining. Diorio says her immediate fear was having to let employees go, but the SBA relief secured their employment. Looking forward, she has concerns about the dine-in capacity due to distancing saying, “A lot of our business is dine-in, and we don’t have that same capacity now. I worry the virus will become worse.” Her family’s Italian-Serbian fighting spirit presses on as they plan to follow all new regulations and any forthcoming to continue to operate. Diorio says her family cannot express enough gratitude to their patrons. “Our great customers kept us going and we were able to keep all of our employees.” When asked how the community can help support Rocky’s she says, “They already have. Without them, we wouldn’t make it.”
“This patronage is not only appreciated but is the fiber of who we are and what we do.” -Joe Diorio
Will’s Cinnamon Shop masterminds William and Katie Byrd, have proven that entrepreneurial spirit often requires an on-the-fly remodel. Still months shy of its third anniversary, Will’s Cinnamon Shop was forced to close briefly. “We initially tried to do curb-side, but it became too complicated and crowded in our kitchen, and we worried about the safety of our staff,” Will says. Persevering, the owners developed a new business model: online sales shipping only. Weekly pickups began shortly after that, and now the shop is open to sit-down table service- a plan that will remain in practice moving forward. Resourcefulness also gave life to a new line of business. “We partnered with another local company, Ouachita Farms CBD, to manufacture edibles. That has helped us stay alive.” Will assures safe baking practices, and specific tools are dedicated to that line.
Looking to the future, Will plans to expand the spread of their online presence. He says, “We hope to fill in the gaps from reduced business stemming from COVID-19.”
Crystal Ridge Distillery, housed in a remodeled historic building, had just opened its doors to the public in December of 2019 and celebrated a Chamber of Commerce ribbon-cutting in March of 2020 when virus fears crashed the party. With the restaurant and bar full and the calendar booked for events, early 2020 looked promising. Being forced to close mid-March, the Bradley family’s business future looked bleak. Quickly, the growing need for another product became apparent and was a game-changer. “We were granted permits from the government to produce and sell hand sanitizer using our food-grade alcohol,” Danny says. “We were able to sell large and small quantities off of our back porch in April and May, which helped us pay our bills and stay in business.” Online sales in bulk quantities to schools, hospitals, and event venues, in addition to sales in their retail store, has helped the Distillery stay open and keep employees. Choosing not to apply in the government loan program, the business is now looking to the future and is thankful for the community support it is garnering. “We have opened our retail store and have started giving small tours. We get calls daily about our restaurant, which we have not opened back up yet.” Crystal Ridge Distillery continues to communicate with customers by listening to feedback and strengthening its bond with the community.
While restaurateurs changed operations, online marketing remained strong amidst uncertainty in the world of real estate. Though the market stalled immediately following the outbreak of and response to COVID-19, the market seems to have quickly recovered. Ronnie Allison, Jr., an established real estate professional whose firm, Allison Real Estate, launched in January 2020, shares his perspective. “Over the last 5 years, our local real estate market has been healthy. However, in 2019 a boom was brewing with increased demand, rising prices, and rapidly evaporating inventory. Then, COVID-19 darkened the forecast. Overnight, it was like someone turned out the light,” he says. The grim realities of self-employment and a dismal market projection left Allison numb. Like so many small business owners, he witnessed cash flows dissipate to a trickle. Unable to secure Unemployment Insurance, he slashed expenditures and navigated his start-up on a lean budget. He says, “Business has rebounded and the markets have opened back up. We weathered the storm and are about to turn a corner. The reality of COVID-19 forced me to re-evaluate every aspect of business, and we are stronger today because of it.”
Sandy Sutton, a 34-year veteran of self-employment and the namesake of Sandy Sutton’s Design Center, faced the COVID crisis by staying calm and keeping the faith. “At first, the very thought of not being open was more than upsetting. We had numerous projects in play, employing and involving multiple trades and people,” she says. “Most of our clients chose to continue their projects, and we were attentive to the daily health of our work-force.” Distancing, masks, sanitizer, and respecting boundaries keeps her doors open, though Sutton and her assistant Kim Edmunds rely heavily on Zoom meetings. The new protocols will stay in place as long as needed to keep clients comfortable and contractors working. She expresses gratefulness for today’s technology and her liberty to protect herself and others by working remotely as well as on-site, when necessary. Business longevity gives Sutton another valuable perspective in regard to community support. “We live in a beautiful city and state where we care about each other,” she says. “Think about the local companies supporting this community through donations and services. Let’s think about our neighbors first.”
The Pocket Community Theatre saw 2019 as the most successful of its 24-year history. The anticipation of an even more stellar 2020 season came to a screeching halt. James Kendall, President of the Board of Directors, shares collective worries around the non-essential entity’s closure. “Our biggest fear was losing the rights to the shows we had scheduled for the year. We generally have to choose, schedule, and pay for these at least a year in advance.” The theatre, which operates almost solely on donations, ticket sales, and volunteers, still has not been able to re-open. With the lingering forecast of COVID-19 dancing on the horizon, rescheduling shows into 2021 and significant lost revenue seems certain. However, amidst these unprecedented events, Kendall says the Theatre is seeing a lot of feedback from the community, expressing how important it is to them. “I believe once we are past this pandemic, we will see a resurgence in the arts community.” Lovers of live theater can rest assured that Hot Springs’ affinity for drama is not lost. “Just don’t forget about us,” Kendall asks. “We will be back and doing shows as soon as it’s safe for the audience and casts.”
With non-essential businesses reeling, those considered to be essential remained open, unsure themselves about how operations would be affected. Opening in late March, Paul and Jenny Alban of Alban Automotive were uncertain about their future. “We were nervous at first and sad for those who had to close,” says Paul. “We were grateful that we were considered essential.” Dependent on the public, the new business fortunately saw a steady base of clients needing oil changes, tires, and regular maintenance on vehicles, and they were also able to qualify for a loan. “This has taught us to be more aware of the health and safety of others, and we have taken extra precautions to sanitize and deep clean doors, counters, and bathrooms,” he shares. The couple feels very fortunate to have been able to continue to operate in spite of the virus and keep employees working. “We are very appreciative of the customers who have supported us at this time, and we look forward to the opportunity to service the community, “ Alban says.
Another business considered to be essential, therefore able to remain open during the shut-down period, is construction. CJ Horner Company, celebrating 113 years of operation in Hot Springs, has endured through American and world tragedies, medical epidemics, and social changes, but the COVID-19 pandemic is unlike any other situation the family has ever seen. “We have precautions in place at the concrete plant and at the building materials store. We ask that social distancing is respected, and we have hand sanitizer available,” says General Manager Rich Horner. “We have limited the entry into the building materials store, but customers are still welcome to come in. We do encourage our contractors to call ahead their orders.” Though building projects have not slowed, Horner says availability of certain products may be limited. He shares, “The biggest effect this has had on the industry has been the limited inventory we can access. Manufacturers around the country have shut down or had limited production, so we are seeing a longer lead time in availability for some materials.”
