Nickey Miller, left, and Josie Rudderham, co-owners of Cake and Loaf in Hamilton, Ont., pose outside of their Dundurn Street South storefront location, Monday, October 5, 2020. THE CANADIAN PRESS/Tara Walton

Nickey Miller, left, and Josie Rudderham, co-owners of Cake and Loaf in Hamilton, Ont., pose outside of their Dundurn Street South storefront location, Monday, October 5, 2020. THE CANADIAN PRESS/Tara Walton

For small businesses that survive COVID, recovery is expected to be difficult

CFIB wants the government to help small business owners recover by suspending evictions

Having 12 cases of mini eggs on hand sounds like the makings of a grandiose Easter hunt or the ultimate way to soothe a sweet tooth, but for Josie Rudderham, the confections have put her in quite the crunch.

“We have joked about pouring them into a bathtub and doing a photo shoot because there is enough to do that, but really they are part of the cycle of investing in ingredients to make a lot of sales that didn’t happen,” said Rudderham, the co-owner of Cake and Loaf in Hamilton, Ont.

She spent the first months of the COVID-19 pandemic closing one of her two bakeries, taking on debt, laying off workers during the busy Easter season and offering curbside pickup, but the boxes remain. Worse still, she believes her business won’t fully recover for another decade.

The projections are quite similar for most of the country’s 1.14 million small businesses still lamenting empty dining rooms, stores and cash registers, and fretting about how they can rebound from the pandemic’s economic impacts.

The Canadian Federation of Independent Business says a survey of its 110,000 members shows only 26 per cent of small businesses are reporting normal sales volumes, leaving the remainder at risk of insolvency.

Those that do survive aren’t likely to emerge from the pandemic unscathed. The CFIB estimated in June, before Canadian COVID-19 infections began rising again, that small businesses will incur $117 billion in debt that could take more than a year to pay off.

“The majority of them have said that they are losing money every day that they are openand I guess the question is how much longer can that happen,” said CFIB president Dan Kelly.

Reversing the trend will take a return of sales at a time when many businesses can’t get COVID-friendly insurance, patio season is coming to an end, offices are showing no signs of reopening and Ontario and Quebec are plunging into second waves.

READ MORE: B.C. parties battle over tax promises to recover from COVID-19

CFIB wants the government to help small business owners recover by suspending evictions and property seizures for shuttered businesses and providing immediate financial support to cover ongoing costs like rent and taxes.

Sheila Block, a senior economist with the Canadian Centre for Policy Alternatives, also believes public coffers have a role to play in the rebound, but warned government relief isn’t a cure-all.

“The only thing that will ensure that small businesses can come back to life is the public health situation and that is going to take some time,” she said.

While the wait continues for a COVID-19 vaccine, Kendall Barber is keen on getting Poppy Barley, the Edmonton-based footwear company she co-owns with her sister, back on its feet.

When COVID-19 struck, the pair temporarily shut down their two Alberta stores, laid off some workers and put plans for pop-ups across the country on hold.

“All of our factories closed, so we had no ability to get products, and even developing our fall collection was hard because tanneries and facilities were closed and located in countries that are much harder hit by COVID-19 than we have been here in Canada,” said Kendall.

Poppy Barley reverted to its roots in e-commerce. Fans of the brand made purchases online, but not enough to make up for what was lost from closures.

Recovery, said Barber, will now rely on meeting the customer where they are.

For Poppy Barley, that means slowly bringing back pop-ups in 2021 and shifting to meet new consumer needs with fewer high heels, footwear made from ultra soft materials that don’t need breaking in and a plant-based collection.

For many small businesses, which have grappled with layoffs, rent problems and mounting bills, recovery will also mean leaning on customers.

“The simple answer is shop, buy their food, spend your money with them,” said Barber.

“On the darkest days getting a great email from someone saying, ‘Keep going. I love what you’re doing’ has also been really meaningful.”

Changing business models will also be a big piece of recovering, said Rudderham.

“I don’t know that I want to get back to the way things used to be, to be perfectly honest,” she said. “I’m not sure that was actually healthy for anyone.”

Before the pandemic, her business took pre-orders and opened six days a week for walk-in purchases, requiring bakers to speculate on what and how much to make each day.

Busy seasons or large orders would sometimes mean overnight shifts to have product ready by morning.

Rudderham envisions a switch where the business could focus primarily on pre-orders and curbside pickup, giving workers steady hours and eliminating the need to employ counter staff to await drop-in customers.

The economics, she said, would allow the business to focus on larger orders and supplying other retailers like a nearby co-op, instead of hoping for people to walk in for a coffee or muffin.

Rudderham isn’t sure how many of those ideas will be implemented, but insists deep thought is key to any recovery.

“This is a chance for everybody to reassess what is really important about the way we live our lives and how we run our businesses because the normal that existed before the pandemic is not a normal that was working for everyone.”

Tara Deschamps, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Coronaviruseconomy

Just Posted

CVSE officer checking out all the trucks before the convoy, which started at Riverlodge Recreational Centre in Kitimat BC and finished at the George Little Park in Terrace BC. (Jacob Lubberts photo)
VIDEO: Kitimat truck drivers rally together in honour of 215 bodies discovered at Kamloops Residential School

The convoy started at Riverlodge Recreational Centre and finished at the George Little Park

Coast Mountains School District No. 82 acting superintendent of schools, Janet Meyer, talks about policies and procedures relating to the death of Diversity Morgan, a LGBTQ+ student. (Black Press file)
School District 82 to revisit policy after transgender student’s death

Diversity’ death has created a deeper resolve for CMSD 82 to continue doing the work they started

FILE – Perry Bellegarde, National Chief of the Assembly of First Nations, takes part in an event on Parliament Hill in Ottawa on Tuesday, July 7, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Indigenous Peoples Day must be a ‘call to action’, says Assembly of First Nations chief

Discovery of children at Kamloops residential school site must lead to change, Perry Bellegarde says

Outside the Kitimat RCMP police station, Diversity Morgan’s family and Kitimat RCMP come together for a pride flag-raising ceremony. (Jacob Lubberts photo)
With heavy hearts, the Kitimat RCMP hosted a pride flag ceremony to highlight the RCMP’s commitment to inclusion and diversification, as well as honouring the passing of 15-year-old transgender student, Diversity Morgan, from Kitimat.
Speeches were given by Staff Sergeant Graham Morgan, Mayor Phil Germuth, Haisla Nation Chief Councillor Crystal Smith, and Diversity’s father, Mike Wilson.
“We are gathered here for the pride flag ceremony, but in my mind, we’re gathered here in solidarity for anyone who’s ever experienced prejudice or discrimination. […] Today we celebrate what makes us all unique individuals,” Mayor Phil Germuth said in his speech at the pride flag ceremony.
Struggling to get the words out, Crystal Smith, Haisla Nation’s chief councillor, emphasized her condolences to Diversity’s family in her speech sharing her similar experiences as well as acknowledging the need for education around these subjects.
Diversity’s father, Mike Wilson, said he wished that everyone was there under different circumstances but was grateful to see the turnout and the support from the community.
In honour of Diversity, the Kitimat RCMP also lowered their Canadian flag to half-mast, to bring awareness for people who are experiencing discrimination and are in need of additional support.
The Kitimat RCMP also stated that they will be lowering their Canadian flag around this time every year as a visual representation of LGBTQ+.
Kitimat Save-On-Foods also donated water and snacks for the ceremony.
Kitimat RCMP host pride flag ceremony in memory of Diversity Morgan

“We’re gathered here in solidarity for anyone who’s ever experienced prejudice or discrimination”

(Haisla First Nation logo)
Haisla Nation host walk for strength and series of virtual sessions for Indigenous History Month

The purpose of the walk is to bring Haisla Nation members together and show their collective support

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
VIDEO: Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

Chilliwack secondary school’s principal is apologizing after a quote equating graduation with the end of slavery in the U.S. was included in the 2020-2021 yearbook. (Screenshot from submitted SnapChat)
B.C. student’s yearbook quote equates grad to end of slavery; principal cites editing error

Black former student ‘disgusted’ as CSS principal apologizes for what is called an editing error

Skeena MLA Ellis Ross. (Photo by Peter Versteege)
BC Liberal leadership candidate condemns ‘senseless violence’ of Okanagan church fires

Skeena MLA Ellis Ross says reconciliation isn’t about revenge for past tragedies

A coroner’s inquest will be taking place at the Capitol Theatre in Port Alberni for the next week. (ELENA RARDON / ALBERNI VALLEY NEWS)
Teen B.C. mom who died following police custody recalled as ‘friend to many’

Police sent Jocelyn George to hospital after intoxication had gone ‘beyond the realm’ of normal detox

FILE - In this Nov. 29, 2020, file photo, Las Vegas Raiders defensive end Carl Nassib leaves the field after an NFL football game against the Atlanta Falcons in Atlanta. Nassib on Monday, June 21, 2021, became the first active NFL player to come out as gay. Nassib announced the news on Instagram, saying he was not doing it for the attention but because “I just think that representation and visibility are so important.” (AP Photo/John Bazemore, File)
Nassib becomes first active NFL player to come out as gay

More than a dozen NFL players have come out as gay after their careers were over

Penticton Indian Band Chief Greg Gabriel speaks to the Sacred Hearts Catholic Church burning down early Monday morning, June 21, 2021. (Monique Tamminga Western News)
Penticton band chief condemns suspicious burning of 2 Catholic churches

Both Catholic church fires are deemed suspicious, says RCMP

COVID-19 daily cases reported to B.C. public health, seven-day moving average to June 17, 2021. (B.C. Centre for Disease Control)
B.C.’s COVID-19 infections drop to 90 on Sunday, 45 Monday

Pandemic spread dwindles as 77% of adults receive vaccine

By protesting uninvited in First Nations’ territories, conservationists are acting in a neocolonial or paternalistic manner, says Huu-ay-aht Chief Robert Dennis. Photo by Heather Thomson
A closer look: do Vancouver Island First Nations support the war in the woods?

First Nations/environmentalist old growth alliance uneasy, if it exists at all

Bernadette Jordan addresses the media following a swearing in ceremony at Rideau Hall in Ottawa on January 14, 2019. Jordan says the government will provide $2 million to allow First Nations to continue to strengthen the marine safety system across Canada. THE CANADIAN PRESS/Adrian Wyld
First Nations receive federal funds to purchase marine rescue boats

Quatsino, Heiltsuk, and Kitasoo First Nation’s among eight across Canada to receive funding

Most Read