In New York's Harlem, small businesses reel from coronavirus toll on Black communities
Record ID:
1562347
In New York's Harlem, small businesses reel from coronavirus toll on Black communities
- Title: In New York's Harlem, small businesses reel from coronavirus toll on Black communities
- Date: 14th July 2020
- Summary: NEW YORK, NEW YORK, UNITED STATES (JULY 7, 2020) (REUTERS) PEOPLE ORDERING FOOD AND WAITING TO ORDER AT SYLVIA'S RESTAURANT MAN ORDERING FOOD STAFF PREPARING FOOD FOR TAKEOUT CASHIER TAKING ORDER MAN ORDERING FOOD SYLVIA'S RESTAURANT, VICE-PRESIDENT OF COMMUNICATIONS, SYLVIA'S GRANDDAUGHTER, TREN'NESS WOODS-BLACK, HOLDING DOOR TO RESTAURANT (SOUNDBITE) (English) SYLVIA'S RESTAURANT, VICE-PRESIDENT OF COMMUNICATIONS, SYLVIA'S GRANDDAUGHTER, TREN'NESS WOODS-BLACK, SAYING: "So for us, the hardest thing as a family was that, prior to COVID, we had 117 employees, which is quite a lot for a small business, for a restaurant. So the hardest thing for my family was to have to lay off our staff. For over 40 years, we were the largest minority employer in Harlem. And to know that we had to lay off the majority of our staff because we just couldn't afford to pay them was heartbreaking." VARIOUS OF SYLVIA'S RESTAURANT EXTERIOR VARIOUS OF WOODS-BLACK TALKING TO STAFF, WHO ARE ALSO HER FAMILY MEMBERS - YOUNGER SISTER (LEFT) AND COUSIN (RIGHT) (SOUNDBITE) (English) SYLVIA'S RESTAURANT, VICE-PRESIDENT OF COMMUNICATIONS, SYLVIA'S GRANDDAUGHTER, TREN'NESS WOODS-BLACK, SAYING: "And what I'm noticing is that out of the majority of the businesses that applied for loans in the community, 90 percent of them were not funded. And I mean, those weeks of not being able to have any income were just devastating. And as a result, several businesses have closed and unfortunately, most of those businesses have permanently closed." VARIOUS OF SYLVIA'S LOYAL CUSTOMER, MR. LAWRENCE WRIGHT, WHO IMPATIENTLY WAITED FOR THE RESTAURANT TO OPEN AT 11 AM (SOUNDBITE) (English) SYLVIA'S CUSTOMER, MR. LAWRENCE WRIGHT, WHO IMPATIENTLY WAITED FOR THE RESTAURANT TO OPEN AT 11 AM, SAYING: "You can see it. They cook soul food. You hardly have any soul food restaurants." VARIOUS OF WOODS-BLACK (SOUNDBITE) (English) SYLVIA'S RESTAURANT, VICE-PRESIDENT OF COMMUNICATIONS, SYLVIA'S GRANDDAUGHTER, TREN'NESS WOODS-BLACK, SAYING: "We just don't have the same levels of access as our counterparts to capital and funding. And it's been an issue prior to the pandemic. So, if you want to... you add a global pandemic on that, on top of a class of people that were already oppressed and already having issues accessing capital, then where does that leave you when you were already at the bottom? Now you're really at the bottom." VARIOUS OF SYLVIA'S RESTAURANT INTERIOR (SOUNDBITE) (English) SYLVIA'S RESTAURANT, VICE-PRESIDENT OF COMMUNICATIONS, SYLVIA'S GRANDDAUGHTER, TREN'NESS WOODS-BLACK, SAYING: "So, now you have a business, where you don't have cash on hand. But now you're told that you need cash on hand, while you're not making any cash because now you need to order takeout containers, cutlery, shopping bags, implement a partner, a delivery partner, that is going to take 30 percent, you know, of your business with the delivery and completely change around your menu. All of these things take money and access to capital, which most simply do not have." VARIOUS OF SYLVIA'S RESTAURANT EXTERIOR WOODS-BLACK'S FATHER, OWNER OF SYLVIA'S RESTAURANT, TAKING OUT MENU TABLE VARIOUS OF SYLVIA'S RESTAURANT ENTRY DOOR WITH COVID-RELATED WARNING SIGNS
- Embargoed: 28th July 2020 15:04
- Keywords: Black business COVID-19 Harlem Sylvia's business coronavirus disease pandemic reopening restaurant
- Location: NEW YORK, NEW YORK, UNITED STATES
- City: NEW YORK, NEW YORK, UNITED STATES
- Country: USA
- Topics: Health/Medicine
- Reuters ID: LVA001CMS8DVR
- Aspect Ratio: 16:9
- Story Text: Sylvia's, a soul food restaurant on Malcolm X Boulevard in Harlem, New York, saw a welcome bump in donations and revenue from new customers in early June following calls to "buy Black" after the death of George Floyd.
But the increase didn't help the 58-year-old landmark restaurant turn a profit. The coronavirus pandemic has limited its operations, forcing the Harlem staple to lay off most of its staff and slash revenues.
Owner Tren'ness Woods-Black welcomed the publicity but said she is more concerned about her core clientele, a devoted group of mostly Black patrons who used to dine at the restaurant every day.
While the restaurant industry is expected to take two to three years to return to pre-COVID-19 revenue levels, Woods-Black said it would take even longer for spending among Black Americans to bounce back.
Woods-Black is one of many Black business owners in New York who fear that the disproportionate economic impact of the coronavirus pandemic on their communities might be long-lasting. Many are worried the number of black business owners in the city will shrink even further. Though Black Americans make up 22% of New York City residents, they account for only 2.1% of business owners, according to city data.
Harlem Skin and Laser Clinic and nail salon Junie Bee Nails are just a few of the local Black-owned businesses in the neighborhood that have decided to shutter their locations permanently.
Black buying power grew to $1.3 trillion in 2018 up from $320 billion in 1990, according to the latest data by consumer research firm Nielsen. But spending power and consumption are expected to decline, as Black Americans bear the brunt of the crisis due to a longstanding wealth gap and lower access to financing, education, healthcare, and homeownership.
In Harlem, where 56% percent of the population is Black, lines for food pantries have wrapped around blocks.
Other cities with large black populations have been disproportionately hit. Detroit, which was nearly 80% Black as of the last census data, had an unemployment rate of 23% in May compared to the national average of 13%. New Orleans, with a Black population of 60%, had an unemployment rate of 16% in May.
A few blocks away from Sylvia's, Mark and Katrina Parris are planning to pivot their lifestyle store NiLu to be more online.
The economic hit to the neighborhood is already visible. Seeing an increased need, Sylvia's converted its restaurant into a food pantry on Sundays, when other pantries were closed.
Concern among Black business owners in Harlem often stems from past experiences.
Karl Franz Williams, the owner of cocktail bar 67 Orange Street on Frederick Douglass Blvd., had to close his first venture during the 2008 financial crisis.
During the pandemic, Williams secured a loan for his business through the Paycheck Protection Program. But he is concerned about what will happen after the programs run out.
Just 6% of Black business owners surveyed this year by the Association for Enterprise Opportunity said their primary source of credit came from banks, versus 23% for all businesses. When approved, the median loan amount for Black business owners was less than half of the loan amounts extended to white peers, according to the survey.
Connie Evans, AEO's president and chief executive, said availability of capital to Black-owned businesses has improved since 2008, but she urged lenders to do more.
Many U.S. financial companies in have pledged funds in support of the Black community amid protests that erupted since Floyd died on May 25 after a Minneapolis police officer kneeled on his neck for more than eight minutes. Bank of America Corp recently pledged $1 billion to address racial and economic inequality.
Still, some Black business owners voiced skepticism that support for the community would be sustained.
Tiffany Bowen, owner of Harlem Hookah on Malcolm X Blvd., who secured a PPP loan in the second round of funding to settle rent and salaries when her business closed, said she "heard these stories before," but the numbers were still poor for Black businesses.
(Production: Aleksandra Michalska) - Copyright Holder: REUTERS
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