Businesses that won’t survive the Pandemic

[Monykalyn]

+1 I would add: most business conventions for the same reasons as #1 above. This is a trend that was accelerated by Covid-19. Businesses will seek to reduce spending on employee travel limiting to senior executives/critical personnel/outside sales. Most conferences for mid/low level employees will transition to online webinars.

Yes and no-there's nothing like networking face to face. You just don't get that with online. It is really nice and educational to see people face to face outside your little regional "bubble". Companies also use this as an incentive - get some education and sorta vacation too. Not to mention all the businesses that cater to the convention crowd. It's not so easy to "just get another job" when a whole sector of industry could be *poof* gone. But maybe if business is way down then more companies will still do them if there are discounts. I'm defending the conventions as we have gotten to take some great trips we probably wouldn't have otherwise. This year was supposed to be Colorado in July. So far the August one at Disney is still on...

My niece worked for Alamo Theaters with the food delivered to your seat for years, and now she hasn't worked in months

We LOVE Alamo drafthouse theaters. It would be relatively easy for them to open and keep capacity down. My "summer" daughter (DD's best friend since 7th grade-she stayed with us a summer and couple holidays when her mom moved to Florida) worked for them for a summer-she made a ton of money from tips. Our local franchise loved her so much they offered her a regional training position-problem was she was only 19 LOL-just a good quick efficient worker. This is the only place we will see movies anymore. And it ain't cheap-but I do buy lots of giftcards when they run specials.

 

[CalGalTraveler]

Yes and no-there's nothing like networking face to face. You just don't get that with online. It is really nice and educational to see people face to face outside your little regional "bubble". Companies also use this as an incentive - get some education and sorta vacation too. Not to mention all the businesses that cater to the convention crowd. It's not so easy to "just get another job" when a whole sector of industry could be *poof* gone. But maybe if business is way down then more companies will still do them if there are discounts. I'm defending the conventions as we have gotten to take some great trips we probably wouldn't have otherwise. This year was supposed to be Colorado in July. So far the August one at Disney is still on...

Agree that there is nothing like face to face. There is nothing like face to face employee training and and great customer service which large companies have also eliminated. Sadly, the problem is that large companies don't care because it's all about the bottom line. They will try to eliminate these items for their mid to lower tier employees because they can save a lot of money. With business travel at a minimum of $2500 per trip, that's a lot of savings.

 

[bbodb1]

I think you answered all your concerns in the first sentence.

I found this interesting article today:
https://www.cbssports.com/nfl/news/...-theyre-trying-to-solve-the-financial-strain/

 

[Brett]

I found this interesting article today:
https://www.cbssports.com/nfl/news/...-theyre-trying-to-solve-the-financial-strain/

I guess that's how it's going to be, players got to play ---- but with fans social distancing


"fans would enter at designated times through designated gates, sit spaced out in the stands and exit "much like a church environment." The Dolphins would be able to get about 15,000 fans in their 65,000-seat stadium. "

 

[Sugarcubesea]

Probably employees and employers have a different notion of what productivity means.

To the OP, I do not see sectors that will not survive, rather individual companies that were over-leveraged before the pandemic and do not have the resources to continue their operations. A good example is office buildings. Most leases are signed for several years so, if they survive, the companies may not reduce office space right away. How much space will be reduced in time? I do not know but say it will be 10%. Can these companies survive with 85-90% average occupancy? Probably yes and the market has already adjusted the REIT market values accordingly. I do not see them priced for bankruptcy though. Also, in time some of that loss may be offset by population growth. I also hope that core downtown areas will not be vacated instantly and permanently because they may just exacerbate the degradation of certain areas like in SFO. I am curious of what the pension funds will do. In the last 10 years many have reduced their exposure to bonds because the yields have been dropping and increased significantly their exposure to real estate. Are they going to start to sell at a big loss and exacerbate a downward trend? I doubt it but of course I have no crystal ball.

The company I work for just signed a 6 year lease that goes to 2026 and we moved into our building last November. We are locked into the lease unless we declare bankruptcy. We have decided that as we grow going forward and until the lease is up in 2026, if we run out of space in our suite we will have pole work from home.

 

[Sugarcubesea]

Agree that there is nothing like face to face. There is nothing like face to face employee training and and great customer service which large companies have also eliminated. Sadly, the problem is that large companies don't care because it's all about the bottom line. They will try to eliminate these items for their mid to lower tier employees because they can save a lot of money. With business travel at a minimum of $2500 per trip, that's a lot of savings.

We have eliminated all travel at my company for 2020 and 2021 will be just me and the President flying to a meeting in Osaka that will be held in August of 2021.

 

[DannyTS]

The company I work for just signed a 6 year lease that goes to 2026 and we moved into our building last November. We are locked into the lease unless we declare bankruptcy. We have decided that as we grow going forward and until the lease is up in 2026, if we run out of space in our suite we will have pole work from home.

I think a lot of companies were doing that already but even so the occupancy rate was very high because the economy was growing so companies needed more space not less.

 

[DannyTS]

We have eliminated all travel at my company for 2020 and 2021 will be just me and the President flying to a meeting in Osaka that will be held in August of 2021.

Wait for things to stabilize a little bit and we shall see CEOs chase again every extra $ in earnings they can get. There is nothing new that travel costs money; if cutting it was a benefit to the balance sheet they would have done it a long time ago. Yet, the corporate travel budgets had kept on going up.

 

[bbodb1]

Wait for things to stabilize a little bit and we shall see CEOs chase again every extra $ in earnings they can get. There is nothing new that travel costs money; if cutting it was a benefit to the balance sheet they would have done it a long time ago. Yet, the corporate travel budgets had kept on going up.

There was a lesson back then - and I bet it still applies even in today's business environment....
However, the irony is not lost on me that the company being hawked in this commercial is one of those who most need to learn this lesson....