Music artist Lauv livestreamed an acoustic set through online platform Zoom, with last week’s “Chipotle Together” performance served up as changing restrictions tamped down in-person gatherings across OC and the rest of the country.
It was a “much-needed distraction to people,” in what Chipotle Mexican Grill Inc. Vice President of Digital and Off-Premise Tressie Lieberman diplomatically called a “unique time” as social distancing and self-quarantines took hold last week in a bid to stem the spread of the COVID-19 virus.
Thinking on Feet
Businesses throughout Orange County are being forced to think on their feet and ramp digital efforts where they can. Updated health guidelines and precautionary measures triggered a flurry of new restrictions limiting movement, along with a slate of store and restaurant closures or modified store hours.
Heightened sanitation efforts across properties, stores and restaurants were taken by most, while companies such as Chipotle Mexican Grill Inc. (NYSE: CMG), Taco Bell Corp. and Del Taco Holdings Inc. (Nasdaq: TACO) promoted their drive-thrus, mobile ordering and free delivery options.
Malls distributed hand sanitizer and trimmed operating hours, while others such as South Coast Plaza, the Shops at Mission Viejo and Downtown Disney District closed altogether last week.
Meanwhile, automakers, such as Fountain Valley-based Hyundai Motor America Inc. and Genesis Motor America Inc., quickly rolled out consumer protection programs not seen since the Great Recession.
New Ideas
Guidance on what defines “gatherings” has changed rapidly. Earlier this month, efforts were made to limit groups of 250 or more. Then it was 50 and last week 10.
At a time where marketers have touted experiential and in-real-life events to keep brick-and-mortar relevant, how to maintain community in times of a pandemic has seen some creative workarounds.
Last week’s Chipotle Together was one example.
“With the current events taking place, Chipotle wanted to bring a little joy to its fans and bridge an online connection during this unique time,” Chipotle’s Lieberman told the Business Journal.
Anaheim-based Pacific Sunwear of California LLC, which was already in the midst of its #pacchallenge on TikTok—encouraging shoppers to post videos of themselves at a PacSun store to the social media app—changed up the rules of the filming last week, encouraging people “to stay at home with us.”
Hyundai’s 2021 Elantra and Elantra Hybrid still made their global debut with a livestream last Tuesday at an event in West Hollywood with Hyundai Motor America CEO and President and Hyundai Motor Co. Global Chief Operating Officer José Muñoz saying during the stream, “We’d hoped that many of you could be with us in person for this event, but the show must go on.”
For an updated listing on store closures and modified businesses, please check www.ocbj.com.
Lights Dim for Restaurants
Current efforts are the best businesses can do for now, some say.
“This is a worldwide epidemic. We can’t react because we don’t have certainty of what is happening,” said Wahoo’s Fish Taco co-founder Ed Lee.
Wahoo’s, with about 30 locations in Southern California, began erecting single kitchens regionally to service takeout business. Where one location might normally have eight to 10 workers, the reduced crew would be around four, Lee said.
It’s too soon, he added, to know how many jobs would have to be cut and the length of those cuts, saying that at corporate, the idea of even having Wahoo’s founding brothers helping out with delivery locally could help while less revenue is being generated.
Still, the delivery business is not expected to come close to partially offsetting the Wahoo’s dine-in business.
“No possible way,” Lee said. “Deliveries are normally about 5% of our business. To make up the loss would be insane if we could do that. That money that we’re going to make, it’s for survival mode purposes.”
Smaller, single-unit restaurant operators are being hit even harder and forced to pivot in whatever way they can.
Blinking Owl Distillery in Santa Ana shuttered its tasting room again; it was forced to shut down for 25 days starting in November. It furloughed most of its staff and began bottle sales, which co-owner Robin Christenson said were “through the roof” March 13 and 14—before new county guidelines put a halt to that.
“We just want to survive,” Christenson said.
Marché Moderne Chef Florent Marneau, in a bid to keep jobs, has switched to takeout for the first time.
“Our only goal right now with takeout is to have enough sales to hold on to our core team to keep this business afloat and pay some of our vendors,” Marneau said.
“It is very important to us to keep our restaurant family together. We are hoping what we are doing right now going into the next few weeks will give us the momentum we’ll need when we are allowed to open and resume operations again.”
Store, Mall Closures
South Coast spokesperson Debra Gunn Downing declined last week to say whether the closure of OC’s premier mall—effective until March 31—would impact the center’s financial projections for the year.
The shopping center closed last Tuesday and also confirmed an employee at one of its stores had tested positive for COVID-19, although Gunn Downing said that was not the reason for the closure.
The incident, she said, only “reinforced the need for us to take action.”
Shaheen Sadeghi, CEO of Lab Holding LLC, said last week tenants at the company’s The Lab and The Camp in Costa Mesa were allowed to make their own calls on closing—up until the guidance to avoid gatherings of 10 people or more.
Restaurants not offering delivery have since closed, in addition to Lab Holding’s SEED Peoples Market store at The Camp (see March 16 print edition of the Business Journal for more).
Sadeghi described recent events as like being “in a sci-fi movie.”
“I believe we will get through this … we are going to become stronger,” he said.
Irvine-based Tilly’s Inc. (NYSE: TLYS) and Pacific Sunwear, two of Orange County’s largest retailers, both moved quickly late Tuesday, following an Orange County health officer order, by announcing temporary store closures. Costa Mesa-based Vans and San Clemente basics brand Stance had also earlier announced closing their stores.
Tilly’s said its 239 U.S. locations would not reopen until March 27 at the earliest, with all store employees continuing to be paid.
Tilly’s this month had already decided its merchandising focus this year would be, among other things, a digital first strategy with assortments aimed at bolstering the online business and then offering a complementary mix in store.
PacSun President Alfred Chang also confirmed in an announcement to customers employees would continue to be paid and said the current plan is to reopen stores March 29, pointing customers to the retailer’s online shop, app and social media.
