Cure Coffeehouse, like many businesses, has faced significant challenges due to the COVID-19 pandemic, with sales down by at least 50%. Despite this, the coffeehouse has adapted to the ‘new normal’, reopening their indoor seating areas and implementing protective measures for staff and customers. The business has also innovated with the introduction of an online ordering system, meal kits, and take-home alcohol kits, demonstrating resilience and adaptability in the face of adversity. While the pandemic has disrupted plans for expansion and a coffee catering service, co-owner Chris Shelton remains hopeful about the future. This story reflects the struggles and potential paths to startup success during these unprecedented times.
Introduction
As the former Executive Director of StartWheel, we’d expect nothing less.
Impact of COVID-19 on Cure Coffeehouse
From INSIDE BUSINESS By TREVOR METCALFE
Like so many restaurants and retail shops during the coronavirus pandemic, Cure Coffeehouse is hurting.
In recent months, sales have been down at least 50% compared to normal, according to co-owner Chris Shelton. The costs of continuing to do business — like providing protective equipment for staff and more frequent cleaning measures — have crippled the store’s operating margin.
Adapting to the New Normal
Still, both the Norfolk and Smithfield locations reopened their indoor seating areas the week of June 8, as the coffeeshops began to comply with Gov. Ralph Northam’s second phase of reopening guidelines.
For Shelton, Cure’s survival is a testament to his staff and his customers.
“We wouldn’t be entrepreneurs, we wouldn’t be in business if we didn’t generally have an optimistic outlook on things,” Shelton said.
When Northam issued a stay-at-home order for Virginia in March, Shelton canceled a long-planned vacation and called a meeting with all his managers. They needed to figure out how to protect their employees and customers during that period of uncertainty.
The changes to the business were dramatic, Norfolk general manager Isabella Wallis said. In addition to masks and gloves for employees, the restaurant pivoted to an online ordering system — something the business had implemented before the pandemic — and call-in orders.
“I don’t think anybody has experienced something quite like this,” Wallis said.
The store also started offering meal kits and, thanks to relaxed liquor laws, take-home beer, wine and mimosa kits.
Challenges and Future Plans
Due to reduced demand, the store still had to cut employee hours, Wallis said. However, the business was able to retain most of its 20 employees. Two who had planned to leave before the pandemic did so. Managers advised the rest to apply for partial unemployment benefits to supplant their lost hours.
A loan from the Small Business Administration’s Paycheck Protection Program has helped the business retain employees, Shelton said. The biggest challenge now is navigating the loan program’s confusing qualifications for forgiveness, which have already been changed once by federal agencies.
“Independent restaurants can’t be saddled with thousands of dollars in debt,” Shelton said.
Shelton is also taking stock of future business ventures affected by the pandemic. Cure launched a mobile coffee catering business in late 2019, but the pandemic wiped out all the weddings and events that had booked the service. Shelton hopes to restart the venture after phase three of reopening. He also tabled negotiations for a third physical location due to the pandemic.
Conclusion
Despite all the changes, Wallis said she was fired up about reopening the inside of the store to customers and impressed by Cure’s ability to quickly switch up its business model.
“I’m really proud of everybody that works here,” she said.
Trevor Metcalfe, 757-222-5345, trevor.metcalfe@insidebiz.com
Question & Answer
How has the COVID-19 pandemic affected Cure Coffeehouse?
The COVID-19 pandemic has caused Cure Coffeehouse’s sales to decrease by at least 50% compared to normal.
What measures did Cure Coffeehouse take to adapt to the ‘new normal’?
Cure Coffeehouse reopened their indoor seating areas, implemented protective measures for staff and customers, introduced an online ordering system, meal kits, and take-home alcohol kits.
How did Cure Coffeehouse manage employee hours during the pandemic?
Due to reduced demand, the store had to cut employee hours, but most employees were retained. Some employees were advised to apply for partial unemployment benefits to supplement their lost hours.
