DENTON
April 2020
Business
CHRONICLE PAGE 14A
www.dentonbusinesschronicle.com
One month later Denton’s downtown businesses adapt to survive COVID-19
By Ryan Higgs | Staff Writer rhiggs@denton.com
One month ago, officials identified Denton County’s first COVID-19 case, with more than 500 positive test results and counting since; meanwhile, Denton’s economy has been tested under the weight of the pandemic as small businesses adapt to survive. As county mandates were rolled out to limit the virus’s spread and nonessential businesses and restaurant dining areas were closed, many of Denton’s downtown storefronts experienced significant effects. For Matt Fisher, owner of West Oak Coffee Bar, the onset of the pandemic resulted in an immediate slowdown at his coffee shop on the Square. Fisher also owns West Oak Coffee in Decatur and Kimzey’s Coffee in Argyle; between the three storefronts, he said overall sales are down about 60% from normal — leading to hourly cutbacks and layoffs. He said that of the 53 people employed at the three locations, 12 have been laid off in response to the pandemic. “A lot of information was changing very quickly, and we realized that the best avenue forward for our folks that were not going to be able to get the hours would be to lay them off,” Fisher said. “We filled out a mass unemployment deal with the Texas Workforce Commission, and that streamlined our folks into the pipeline so they could start receiving unemployment.” With more than 760,000 people filing for unemployment in Texas in the past four weeks, analysts are expecting more than 1 million Texans will be unemployed in the coming weeks, The Texas Tribune reported. Meanwhile, 15,177 Denton County residents filed for unemployment in the last two weeks of March, according to the Texas Workforce Commission. Fisher, who opened his Denton coffee shop about five years ago, said the pandemic has offered an opportunity to examine his operations in a different light. Although additional layoffs are not anticipated, and employees are hoping to be rehired at a slower rate, he said his coffee shops will look different — from the food menu down to the drinks — when normalcy returns. “We are working on quite a few plans to revisit our food menu, our drink menu and everything,” Fisher said. “We want people to have the same expectation of quality and uniqueness, but at the same time, we are going to have to look at the world different — the world we are going to enter is going to be a different place after this.” With the manufacturing and hospitality industries contracting and food and retail sectors of the economy hemorrhaging, the city of Denton is expecting a loss of upward of $4 million to $5 million in sales tax in 2020. With unemployment anticipated to be as high as 25%, Michael Carroll, director of the Economics Research Group at the University of North Texas, said
Photos by Jeff Woo/DRC
Barista Mattea Edmondson makes a coffee order for a customer at West Oak Coffee Bar on April 8. The coffee bar is operating on a strict to-go basis and has reduced the total number of staff at the downtown location. the likelihood of a recession is all but guaranteed. Not long ago, Denton was rated as the fourth most recession-resistant city in the U.S., but Carroll Michael said the pandemic has Carrol had an unprecedented and far-reaching effect on the economy. He said that while silver linings exist, the impacts will be widespread. “Because Denton is a diverse economy with different industry, this downturn is going to affect all sectors of the economy, not just a few,” Carroll said. “One thing that we do have that’s good is the two universities that are in Denton, which tend to be more stable than other industries; but for the most part, it’s going to be felt throughout retail, lodging and food services.” For downtown Denton, which generates about 3% of the total sales tax revenue for the city and where more than $132 million has been reinvested, Carroll said there’s been a significant change to the landscape. However, much of that change, he said, depends on the extent of the outbreak. John Cartwright, president of the Denton Main Street Association, a nonprofit focused on the preservation
Matt Fisher, owner of West Oak Coffee Bar, sees changes ahead for his three coffee shops after the coronavirus pandemic. “We want people to have the same expectation of quality and uniqueness,” he said, “but at the same time, we are going to have to look at the world different — the world we are going to enter is going to be a different place after this.” and revitalization of downtown, said there is not a light switch that will return life to business as usual. He said difficult decisions on operations and employee staffing were made at both of his restaurants, Cartwright’s Ranch
By Ryan Higgs | Staff Writer rhiggs@denton.com
With the state mandating the closure of nonessential businesses and limiting restaurants to take-out and delivery to limit the spread of COVID-19 through at least April 30, many businesses have transitioned online, restricted hours or temporarily closed. Milpa Kitchen & Cantina, a Mexican eatery and cantina that specializes in a comfortable fiesta setting, has temporarily closed. The restaurant, at 820 S. Interstate
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House and Cartwright’s Cafe. As restrictions on commerce and mobility went into effect, he said the best decision for his restaurants was to furlough employees until further notice, allowing them to apply for unemploy-
35E, Suite 101, hopes to reopen in the coming weeks. By state mandate, bars such as East Side, Oak Street Drafthouse, Miss Angeline’s and Harvest House are closed. Mad World Records, a new and used record store on the Square, is temporarily closed through April 30, but is working on a way to sell music to customers online. Recycled Books, on the downtown Square, is offering online sales with local delivery within Denton city limits. The minimum order for purchase is $10, plus $5 for
ment. Since then, his business operations have mainly focused on catering. “The first week was easy to do, because it was all done in catering pans, DOWNTOWN | CONTINUED ON PAGE 16A
delivery; however, delivery is free on orders over $25. In contrast, some businesses have newly opened. The Cookie Crave, a vegan and allergen-free cookie shop, opened this past month at 519 S. Locust St., and is open for take-out or delivery options only. The shop is open 10 a.m.-7 p.m. Monday-Thursday and 11 a.m.9 p.m. on Friday and Saturday. RYAN HIGGS can be reached at 940-5666889 and via Twitter at @ryanahiggs.