PROVIDENCE – Just when many local businesses thought the threat of external forces such as the pandemic and a possible recession were behind them, the announcement that the Washington Bridge needs to be rebuilt has them facing a new crisis threatening bottom lines.
State officials disclosed Thursday that reopening the bridge may not happen until 2026, a long period even if the state hits its mark, which many consider unlikely.
After the announcement, the Rhode Island Hospitality Association, which represents more than 800 food service, hotels, vendors and hospitality members across the state, said it is “deeply concerned” about the potential impact the tear down will have on businesses, particularly in the East Bay.
CEO and President Heather R. Singleton said the group is now taking steps designed to mitigate the damage, including meeting with state leaders to discuss financial remedies.
The association is reopening its Employee Relief Fund, established during the pandemic to provide temporary assistance to hospitality employees. And businesses in the East Bay will be eligible for a 12-month RIHA membership free of charge.
But addressing the fallout will require more than programs provided by a "
scrappy nonprofit advocacy organization,” said Singleton.
On the other hand, Singleton said government loans may not be the best option for many small businesses, many of whom have already taken out loans through the U.S. Small Business Administration program. Still others are still repaying pandemic-era loans.
“This is just taking on more debt,” she said.
For now, the industry needs to have a clearer understanding of what the bridge project will look like, so operators may plan accordingly. The confirmation the bridge is being replaced was one step in that direction.
“Business owners need to know what to expect. You can’t run a business when there is so much uncertainty out there,” said Singleton. “At least now there is an answer, instead of continuing to face the unknown.”
As far as its effect on local industry, some business leaders see parallels to the pandemic lockdowns.
“Here we go again,” said Brenda Santos, chairperson of the East Bay Chamber of Commerce.
She said many end-of-day commuters are no longer stopping for a meal or some shopping. But that isn't stopping them from clogging local streets during rush-hour to find alternative routes.
“They just want to get home,” she said. “People are rerouting themselves to avoid traffic. This can be disruptive to smaller neighborhoods. We experience that a lot in the East Bay. Let's face it, we have two main roads in and two roads out.”
In a survey of its members, the East Bay Chamber of Commerce said that 89% responded the bridge crisis has negatively impacted their business, citing problems such as delayed deliveries, decrease in customers, and cancelled event bookings. One respondent said they their commute time has doubled; a sports league organizer noted they had lost three commitments to weekly tournaments. Other cited loss of sales. Several have had large orders canceled.
Bob Bacon, owner of Gregg’s Restaurants and Taverns, which has locations in Warwick, Providence, East Providence and North Kingstown, said his East Providence restaurant's revenue dipped 50% after the initial bridge closing in December.
Things are improving, but only slightly, he said. It is still about 15% short of normal sales volume.
Now, “the demolition and replacement have certainly added a new dimension to it,” he said. “I think it's probably going to be longer than what they say. So we are just anticipating it is for the foreseeable future. It's just one more curve ball that's been thrown our way."
Aside from revenues is troubles with transportation for employees working in the East Bay, where motorists often attempt to cut through neighborhoods to avoid I-195.
“They get on the side roads, and it stops everything dead in its tracks," said Bacon. "My employees can’t get out and my customers can't get in. So, it's kind of a double-edged sword.”
Bacon said policymakers should consider helping with the fixed costs that are there whether you have customers or not, such as electricity, fuel, taxes and insurance.
“The restaurant industry works on pretty narrow margins,” he said. “If you are going to turn on your lights or fire up your air conditioning, you are going to do it no matter how many people are in the building.”
Singleton said it's too soon to gauge the scope of losses to date. The R.I. Department of Revenue releases monthly collection reports with a 90-day delay, so there has yet to be an accounting for a full month.
The January numbers “will paint a better picture,” she said, especially with the meals and beverage tax collections.
RIHA plans to meet directly with affected hospitality businesses next week to collect feedback on their specific needs “and develop the best course of action.”
"Everything is on the table,” said Singleton. “No idea is a bad idea at this point.”
Consumers worried about the solvency of their favorite bar or eatery can also play a part, she added.
“Remember that these business owners are your neighbors and friends. These are the people that sponsor your local little league team and give gift certificates to your fundraisers,” said Singleton. “They are part of your community, and we have to support them.”
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com
