A series of restaurants in the US closed, causing the company to distract customers, rotting vegetables in the fields, and driving drivers of empty trucks.
Within 24 hours, the economic impact of the chain of Chinese cuisine restaurant owner Larry La’s restaurant on the outskirts of Washington DC closed down thousands of kilometers wide. According to Bloomberg , Mr. Larry La has never turned off his restaurant lights for nearly 20 years.
But recently, he had to close the restaurant. Mr. La’s Meiwah restaurant is only a few kilometers from The White House and Capitol Hill, serving Chinese cuisine. Many American politicians, like former US President Bill Blinton, have been here to eat and drink.
Mr. La fired 30 employees, negotiated to postpone rent and tried to find out if the US government’s small business support package could help his Meiwah restaurant.
The restaurant is closed, the distributor dies
Blomberg said the closing of a restaurant in Washington DC was enough to create a “domino effect,” affecting the supply chain, which is supporting thousands of workers in many parts of the United States. The fate of the Meiwah restaurant shows how the US recession is spreading.
Mr. La said the restaurant business is very complicated. There are times when this work is flashy. On Meiwah ‘s website, there is a picture he took with the popular Rolling Stones members. Former President Bill Clinton enjoyed eating beef dishes, chicken and broccoli, tofu … here.
According to Mr. La, the restaurant’s lights have never been turned off for the past 18 years. “I have been in the restaurant business for 31 years and this is the first time I have to close a business,” he lamented.
Mr. La estimated Meiwah could only endure another 2-3 months. “I have faith in this country. I believe we will survive . But we are in a very unpredictable moment, so nothing is certain, ”restaurant owner Meiwah was bewildered.
The word “epicenter” is the Meiwah restaurant, the shockwave spread very far. In March, Charlie Chan, CEO of SBC Food, received a notice of cancellation of orders from Meiwah. In the past month, the revenue of the business specializing in the distribution of items such as vegetables and rice decreased by 80%.
“Things are getting worse and worse. That ripple effect. If restaurants cannot sell, they will not buy from us anymore. After that, we did not buy from the farm and other distributors, “said businessman Chan.
Mr. Chan considers Mr. La to be a long-time friend and customer. His warehouse is located in the northeastern capital of Washington DC, often supplying raw food to dozens of Chinese restaurants in the region.
Farm lost revenue, drivers worried
We have to throw away a lot of meat and other products. We are trying to cut costs by running only 3 trucks instead of 10 as before, reducing 50 deliveries a day to 10. The staff also decreased from dozens to five, ”Chan added.
From SBC Food, shockwaves spread to Fortune Growers in Elgin (Illinois). This farm produces 1.4 million kg of broccoli per week. Last week, production dropped to 0.4 million kg as demand from restaurants was phased out despite retail chains like Walmart and Kroger buying more.
When Mark Sato – the boss of Fortune – received a call to cancel orders from SBC, he thought again and again. “The profits are very thin, so we have to maximize everything. We just loaded our truck when we received a call from SBC, so we canceled the trip, ”Mr. Sato said.
When the Covid-19 epidemic struck the US at the end of March, the number of orders fell free, Mr. Sato ordered packaging orders to be stopped for a week. In Mexico, where broccoli was grown in packaging, hundreds of workers lost their jobs, tons of broccoli were left in the field to rot.
Fortune broccoli is shipped throughout the United States thanks to truck drivers like Yosmell Lemus. He left in October and did not see his wife and three children for nearly half a year.
Lemus drives a refrigerated truck from Dallas to McAllen on the Mexican border. His car was empty during the 800 km journey, which was unimaginable on weekdays.
“Transport is parallel with the market, but you still have to pay such loans and invoices,” he despaired. Things are going bad for Lemus. His wife quit her job at the Aria Hotel in Las Vegas because of the risk of coronavirus infection.
Published by Jennifer