- Silver Report Uncut
Many Independent restaurant chains are likely to close permanently due to the dramatic decline in foot traffic. In this V-shape or Super-V, many actual small businesses are too small to even be considered in the decision-making process. Large well-capitalized chains are able to endure and some have even been thriving from the changes in consumer behavior. McDonald’s just had it’s best month ever as more and more consumers avoid dining out or busy stores so drive-throughs take the cake. It’s likely there will be no respite from this dilemma since the majority of jobs are derived from small businesses so those paychecks not going out puts a crimp in the whole system and with less consumption by those who spend the most the recovery that is necessary for these companies to continue operating cannot occur.
San Francisco tax revenues have plunged and they are faring far worse than even other California cities. An interesting development is one thing that has helped support most economies is online shopping and for most California cities they saw spikes in excess of 10% for online shopping spending however San Francisco only displayed a 1% increase in online spending during a time when everyone was in their homes. As tax revenue continues to crater it’s likely the city and state will begin to look at new ways of raising money like exciting new taxes for those that can’t afford to escape San Francisco.