The nation's small businesses are feeling the effects of the surge in coronavirus coupled with the onset of winter weather. More than one-third of all small businesses (38 percent) report a decline in operating revenues/sales/receipts in the past 7 days, according to the Small Business Pulse Survey fielded in the last week of November. Hurt the worst are small businesses in the accommodation and food service sector—such as restaurants. As of November 23-29, nearly two out of three (63.6 percent) reported a decline in revenue in the past 7 days.
It has been worse. Back in late April/early May, an even larger 74.6 percent of small businesses in the accommodation and food service sector reported lower revenues in the past 7 days. At the time, many states had ordered mandatory business closures as the first wave of coronavirus hit. Then things got better. Not only did the weather improve, but restaurants learned to adapt by shifting to takeout and offering outdoor dining. The percentage reporting a recent revenue decline fell to a low of 39.7 percent by the end of September.
Since then, however, a growing share of restaurants and other businesses in the accommodation and food service sector are struggling. The percentage with falling revenues is surging as cold weather and renewed fears of widespread contagion drive customers away. The 63.9 percent reporting a recent revenue decline during the week of November 23-29 is approaching the spring peak.
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