Regional business hit by covid19 slowdown

KERRY PETERS

Weeks after the first cases of covid19 were confirmed across the Caribbean, a number of local businesses with regional interests are already being impacted.

The companies hardest hit appear to be those in sectors that rely on discretionary spending such as the MovieTowne cinema chain, which will close its operations in Trinidad and Guyana from tomorrow.

Said MovieTowne founder Derek Chin: “Obviously people are very scared and are following directives to stay indoors and so on, so our business is affected.”

Chin said the Guyana operation was doubly harmed by the coronavirus and current political impasse in that country.

Deborah Costelloe, CEO at Lifetime Solutions, a roofing company with projects in Cuba, Dominica and Antigua, said business had fallen off by as much as 40 percent as a result of the covid19 outbreak.

“All the job sites are closed right now and we don’t have the heart not to pay salaries.” Costelloe said. “In fact, we have a payroll of about $570,000 a month and we are working at less than 50 percent productivity right now.”

At least one local conglomerate is seeing mixed results.

Hadco Group Co CEO Joseph Hadad said some product categories on the retail side of his business, like rice and canned foods, were selling extremely well.

But the company’s other divisions weren’t as lucky.

“We are in six islands including Guyana, Dominica, St Vincent, and Barbados and right now anything around construction, like lighting and electrical, is taking a hit,” Hadad said.

Hadad added that he expected major disruption in Hadco’s food and beverage business with restaurants closing. He expected demand to drop significantly and wasn’t sure how much curb-side or takeaway innovations would make up for lost business.

Prestige Holdings, a leader in food service with major franchises like Subway, KFC and TGI Friday in Trinidad, is also seeing a slowdown.

Its lone TGI Friday outlet in Jamaica is facing the same challenge as its restaurants in TT.

CEO Simon Hardy said the management team was considering how the company might innovate around food delivery following the severe decline in dine-in patrons.

For Albrosco Ltd, another major exporter, it’s still too early to assess the impact of Covid19 on the business.

“Conditions are trying,” said CEO Andrew Aleong, “but our exports are holding because we have customers across the region who have been with us for many years so nothing has changed for now.”