Many Utah ‘mom and pop’ businesses are on the road to pandemic recovery

SALT LAKE CITY – A year after the coronavirus outbreak shocked the economy, some local small businesses have finally started to recover.

In Utah, 2 out of 3 mom and pop businesses say their businesses have been impacted by the pandemic. Many of them struggled when major limitations limited people’s ability to live their lives as they had done under normal circumstances. Jackie Hansen, owner of the Central Park Pet Retreat in Salt Lake City, saw how this affected her day care and pet meals.

Survive the storm

“It was terrifying. I borrowed money for three pay slips in a row. I wanted to stay open, closing wasn’t an option because I knew how long it took to grow the business, ”she said. “Every time you close the doors – even in a pandemic – it takes a while for your customers to find you and I was sickly worried.”

During the worst part of the decline, the business went from dozens of animals on the pet customer list to just a few.

“I was able to keep all of my employees on the payroll that wanted to stay, but my worst day was two employees and two cats (at the facility),” she said. Things got so bad that her husband suggested they close permanently, but she was determined to keep the doors open.

“We stopped there and the money (Paycheck Protection Program) came in and slowly the business has grown and we’re doing really well now – not as well as before, but our predictions are very positive,” said Hansen. Last weekend, 78 animals were housed in the facility, including of course dogs, cats and a ferret.

Looking ahead, she believes the number of people who travel more and return to the office will continue to increase – thanks in part to a pandemic pet boom. According to the American Pet Products Association, more than 11 million U.S. households took in a new pet during the pandemic.

A sign of hope, but some clouds linger

The US Census Bureau’s most recent survey of the Small Business Pulse found that 22% of small businesses go back to normal within six months. 3 in 5 small businesses in Utah say they are already fully recovered or will be fully recovered by September.

Since the outbreak began, the beehive state has seen one of the strongest economic rebounds in the US with an unemployment rate of 3%. According to Robert Spendlove, vice president and senior economist at Zions Bank, this is the second largest in the nation after North Dakota.

Jackie Hansen, owner of the Central Park Pet Retreat, walks through an indoor exercise area at her day care and catering store in Salt Lake City on Monday, March 29, 2021. At the beginning of the pandemic, Hansen made an effort to stay open. As people travel more and get back to work, Hansen sees her business pick up, and she expects those numbers to keep growing. According to the American Pet Products Association, more than 11 million U.S. households got a new pet during the pandemic. Steve Griffin, Deseret News

At a press conference on Monday, he said the local economy is now almost as strong as it was before the COVID-19 outbreak.

“We can really feel a change in the economy now, where we are for the first time back where we were before the pandemic,” he said. “Now there are industries where jobs are still in decline – when you look at entertainment, or travel and tourism, or when some personal services are still struggling. Then you have a construction on the other side that is ready. You have areas like couriers and messengers that are up over 50%. Professional and business services are available. There are areas that are really thriving right now. “

Spendlove found that while many sectors are economically strong, there are still a number of people who are still unemployed because their preferred job continues to struggle.

“If you zoom in on local areas while energy prices are rising again – oil prices are rising back to around $ 60 a barrel – oil production is far lower than it was a year ago,” Spendlove said. “So if you look at Uinta Basin, Emery, and Carbon counties, you still have problems. If you look at Summit County, their employment is down 13% and then the Four Corners area is suffering too. So when you look at certain areas of the state, they definitely suffer. “

And while Utah still outperforms the national average economically in most states, there are still some issues that need to be addressed to ensure that all can participate in the prosperity.

“What’s particularly interesting about Utah is that our labor force participation has returned to pre-pandemic levels. So we’ve essentially come back to this low unemployment rate, ”said Spendlove. “The only problem we have left is the high number of people who are still using unemployment insurance and the specific industries that continue to have problems.”

Dogs will enjoy the outdoor exercise area at Central Park Pet Retreat in Salt Lake City on Monday, March 29, 2021. Jackie Hansen, owner of the pet daycare and catering business, struggled to stay open early in the pandemic. As people travel more and get back to work, Hansen sees her business pick up, and she expects those numbers to keep growing. According to the American Pet Products Association, more than 11 million U.S. households got a new pet during the pandemic. Steve Griffin, Deseret News