Business journal cover story (DO NOT USE; FOR THE BIZ JOURNAL)
The pandemic, to be sure, has exacted heavy tolls across the globe – in lives and livelihoods lost, in lives and livelihoods compromised. COVID-19 also has precipitated rampant inflation, supply-chain challenges, oil-price hikes and soaring consumer prices. And early stages of Russia’s invasion of Ukraine were exacerbating ills of the global economy.
Numerous businesses have shuttered permanently during the two-year-long crisis, with the hospitality industry hit especially hard. Hundreds of restaurants have closed; hotels aren’t expected to rebound for at least another year; operations of theme parks, movie theaters and travel have been restricted.
Manufacturers have had to deal with a lack of materials, including a severe lumber shortage more than a year ago, which limited construction of new homes. “No matter what we’re doing, we have supply issues and rampant price increases that are impacting us,” Alex Paris, president and CEO of Alex E. Paris Contracting Co., told the Observer-Reporter last May.
A shortage of supplies can lead to work delays, increased costs and other issues for operators throughout a chain.
Business owners, in many instances, have had to scramble to survive. They’ve had their resourcefulness tested, and they’ve responded with altered hours, delivery, curbside and pickup options, outdoor dining and teaming with complementary businesses on initiatives that benefit all sides.
Owners’ plans don’t always succeed, but a sampling of regional businesses show that they can succeed – to the gratification, and perhaps surprise, of those who put them in place.
“We’ve found that the whiskey business, in particular, is recession-proof and pandemic-proof. We’ve really not had down periods the last couple of years,” said Jim Hough, who shares ownership of Liberty Pole Spirits in downtown Washington with his wife, Ellen, and their sons, Rob and Kevin.
The Houghs did have to shut down their popular cocktail room when the pandemic barged into Pennsylvania in March 2020. Gov. Tom Wolf issued a mandate at that time to close all “non-essential businesses,” which included restaurants and tasting rooms. Distilleries, however, were allowed to remain open and produce whiskey.
“The state stores were shut down for a short time, but we were able to sell bottles to customers,” Jim Hough said. “Pretty much every Pennsylvania distiller did. We sold through all of our inventory. A lot of people who bought from us have continued to buy from us and became loyal customers.”
Hough added that “bottle sales got us through the loss of revenue from the cocktail business. Our cocktail business is now back to pre-pandemic levels.”
Perseverance has enabled the family to plan construction of three buildings, including a production facility, on a site near Hollywood Casino at the Meadows. At press time, the Houghs were awaiting permit approvals from North Strabane Township.
Liberty Pole and Red Pump Spirits, three blocks away in Washington, should be toasted for the spirit they displayed early in the pandemic. Both produced hand sanitizer when it was in short supply and donated it to health-care facilities and emergency services workers.
COVID-19 has certainly wrought havoc with Al Collins, owner and award-winning chef Al an’ Rubens Bar & Grill in Washington. His son and father died of the disease a day apart in October.
“I don’t know how people can criticize our restaurant for being strict when I caught it too,” said Collins, who later endured a mild case.
He has, indeed, run a tight ship, closing Al an’ Rubens five days before Wolf issued his shutdown mandate in March 2020. “We were the first one to shut down,” Collins said. “We had a line of people at the door and I said, ‘no. What if someone becomes sick.”
He also has had some staffing shortages, but has benefited from changing restaurant hours last summer (11:30 a.m. to 5 p.m.) and ramping up the takeout business. His catering operation, Collins added, has tripled.
“We’re doing great as a lunch to early-dinner restaurant,” he said, despite a small staff. “We were doing takeout only for awhile, and takeout now is massive. We’re getting wedding receptions, and our delivery and events are doing well. We’re doing great.”
And talk about resourcefulness . . . consider the metamorphosis one Washington County restaurant made three months into the pandemic, after the ban on indoor dining expired. In June 2020, Palazzo 1837 Ristorante transitioned from a successful upscale Italian location to Pig and Fire House of Barbeque, an instant hit whose popularity continues to simmer.
“We’re even busier now,” said Susanne Sager, co-owner of the North Strabane Township restaurant with her husband, Matt. During the indoor shutdown, the Sagers shifted gears to takeout barbecue for a month and got a resounding response. So they made the nearly incomprehensible change, which has worked famously.
“That month really helped us refine the menu before opening to dine-in,” Susanne said. “The change was bittersweet for us, but we’re having a lot of fun with barbecue. Even though it’s considered casual food, we try to maintain excellent service and we have the same chef.”
In the meantime, Pig and Fire continues to evolve. “Things change, from restaurant food costs to labor coats to restrictions. You have to adapt and adjust, and it’s every day,” said Sager, whose facility will add expanded outdoor seating in April.
Supply-chain issues have had a profound effect on auto sales. Although the problem has been abating, numerous dealerships have had difficulty getting cars and trucks – new and used. Dealership lots, on occasion, have been half-filled, and often when a shipment arrives, the vehicles are already under contract to buyers. Would-be buyers have to wait.
A severe shortage of semiconductor chips also has been a conundrum. The chips help to improve an engine’s efficiency and reduce emissions, but have not been readily available.
In the meantime, economic woes continue across the nation and abroad. Analysts in the United States are hoping that the Federal Reserve’s plan to increase interest rates in March will check the high rate of inflation at home, and an economic recovery will kick in. How the Russia-Ukraine crisis plays out could be a factor, however.
One positive – a major positive – is the pandemic, at last, appears to be easing. If that continues, recovery could be ahead.