Reopening their doors is the first of many challenges for Michigans leisure industries – MLive.com

Posted: June 7, 2020 at 2:49 pm


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Unless something changes in the next couple weeks, businesses like Blue Lion Fitness in Ann Arbor will have been closed for more than three months by the time theyre allowed to reopen. That means three months of little to no income from clients while bills continue to pile up. And while being able to open is the focus right now, business owners say things wont magically return to normal once theyre is able to serve customers again.

Even if we sell out every single class, we are significantly down from what we were making before, said Daniel Roth, one of the owners of Blue Lion Fitness. For us to reopen at a 20% capacity we have to hit certain numbers just to keep the lights on.

Gyms, casinos, movie theaters, bowling alleys and other leisure or recreational industries have been closed since March 16 when Gov. Gretchen Whitmer first declared a state of emergency in Michigan. As they prepare to reopen at a date uncertain, owners are anticipating the next wave of challenges.

Last week, Whitmer announced some places, like indoor theaters, public pools, concert venues and sports arenas, could open starting June 10 in much of northern Michigan.

Its unclear, though, when that reopening may come for the rest of the state.

Patience is wearing thin, however, as getting the doors open is only the beginning for many business owners who must try to make up three months of missing income during an unprecedented crisis. Businesses will have to convince customers its safe to return while also facing increased costs across the board, staffing issues, limited spacing to ensure guest safety and an economic downturn.

No matter the industry or service being provided, protecting the safety and health of customers and staff is the number one issue businesses will have to address, according to experts. That means instituting social distancing guidelines, providing protective equipment for staff, reducing hours and other measures that impact the bottom line.

Justin Winslow, president and CEO of the Michigan Restaurant and Lodging Association, says businesses in his industries already know the importance of cleanliness and safety for guests because they practiced it well before the pandemic.

Bars and restaurants will be able to reopen for dine-in service starting Monday with 50% capacity restrictions in place. Regions 6 and 8 of the MI Safe Start have moved into phase 5 of the plan which allows gyms, salons and more to reopen in the Upper Peninsula and parts of northern Michigan. Salons, tattoo parlors and other personal care businesses can reopen throughout the state on June 15.

However, in this new normal of safety, business owners recognize there cant be any mistakes if they want to survive.

They know the biggest challenge they have is creating the confidence that people are safe returning to these environments, Winslow said. They know that they need to meet or exceed these new standards if they want these guests to come back.

Meeting the Standard

Being able to convince customers of their safety starts with being able to properly clean the facility throughout the day. While that sounds like a simple enough plan, the finances and logistics of doing so make it tough on a gym like Blue Lion Fitness.

That adds up really fast. We expected it, but people dont realize the prices on those things increased too. Were paying inflated prices and spending an additional $2,500 a month on cleaning supplies, Roth said.

Roth and his business partner Ryan Van Bergen say theyre not only going to experience an increase in cleaning costs, theyre going to have to pay for it while offering significantly reduced class sizes and class offerings. Because of social distancing, the gym has transformed its setup so that each person who attends a class has everything they need in one area that only they may work out in.

Its your own little fitness lane, Van Bergen said, explaining each station is at least six and a half feet apart from others.

But because of distancing, the gym will only be allowed to have seven people per class. With additional cleaning measures and time needed to ensure the facility is thoroughly cleaned between classes, Blue Lion will offer six classes a day as it reopens.

Prior to the COVID-19 outbreak, the gym could handle 30 people in a class at a time and offered 10 classes a day. They had 180 customers on an autopay system for membership pre-coronavirus, but that too will change as they adapt to the climate. Theyre now pivoting to a drop-in system where customers pay for each class.

Even if we sell out every single class we are significantly down from what we were making before, Roth said.

Blue Lion was able to secure loans offered through the government to help retain staff and pay bills, but Van Bergen says its not enough.

Trying to even get close to our numbers before COVID is going to be tough, Van Bergen said. Percentage-wise what we received in help was 30-35% of what were going to miss for the fiscal year. We got some help but at the end of the day, were not sitting pretty by any means.

That means having to adjust class schedules and asking for more money for customers with not as many services available. Roth and Van Bergen acknowledge how difficult that ask is of customers, but also say its a problem the industry will face as a whole.

Regardless of what (gym) you put in the situation, everybodys price per hour has gone up for fitness," Van Bergen said.

Customer confidence

For the restaurant and hotel industries, earning customer confidence is not just about cleanliness, its going to come from customers overcoming perceptions about being around other people in close proximity.

While restaurants must keep tables apart, require masks and social distancing, the customer must also get used to those measures. Winslow said the industries are already focused on cleanliness so thats not a concern in his mind. Especially considering reports he received from Traverse Citys first weekend of reopening last month.

The ones that have opened already, really made me pretty proud especially given how little notice they were given to open up, Winslow said.

There is concern about how quickly the public will begin to adjust to the new normals. Tourism is the second largest industry in the state, according to Winslow, who added hotels already maintain a strict level of cleaning and will certainly increase those efforts. So while maintaining cleanliness throughout the property isnt a major issue for the hotel industry, people needing hotels is concerning.

With tourism severely impacted in the Midwest through stay-at-home orders and an overall fear of spreading the virus, hotels are experiencing steep declines in occupancy. In April, hotel occupancy rates were in the single digits and arent likely to return to normal until late 2021, Winslow said. Typically, occupancy rates were in the mid-60s prior to COVID-19, he said.

Hotels are currently allowed to accept guests throughout Michigan, however their gyms, pools, spas, dining, entertainment facilities, meeting rooms or similar facilities are not available to guests.

Even with Michigan relaxing restrictions and allowing for more activities and travel in the state, theres no guarantee that people will start staying in hotels again right away as vacations and work trips may not resume right away.

The confidence is going to have to come with time, Winslow said.

Aside from spending money locally to support restaurants and taking trips inside Michigan, Winslow said one way the public can help is to be mindful that these businesses are taking the health and safety of guests seriously and you should too.

Make sure as a customer that you are considering the health and safety of others, Winslow said.

Will demand be there?

Paul Glantz is the President and CEO of Emagine Theaters and a member of the National Association for Theater Owners of Michigan. Emagine operates more than 20 theaters in four states including 10 in Michigan. As a business that requires people to be in an enclosed space with strangers, Glantz understands there may be some hesitation for people to return to the cinema.

As with other industries, his properties are well aware of implementing social distancing and ensuring people are wearing masks, etc. In fact, because Emagines theaters feature oversized reclining chairs, the seats are already more than six feet apart from arm-to-arm, Glantz said, so theres no need to reconfigure.

The bigger concern for the movie industry, Glantz said, is the availability of movies that will draw people back to the cinema. Many major movie studios have announced delays on films that were scheduled to be released this summer. That means the summer blockbusters that typically ensure busy theaters wont be there and arent expected to hit theaters until later in 2020 or next summer.

While some big-budget films like Mulan and Tenant are still scheduled for release this summer, theres no guarantee that will stick. Or that guests will want to go to the theater in such uncertain times.

To combat that issue, Glantz says his company has considered a handful of options to draw guests back. That includes possibly hosting special screenings of movies that are no longer in theaters or havent been for years. Or hosting special screenings of concerts or sporting events that can be held inside of theaters.

Glantz said not every cinema chain is taking the same approach because they all have different challenges facing them aside from simply being allowed to open.

In early June, AMC Theaters officials issued a statement warning shareholders the company may not survive the pandemic disruption. With theaters having been closed for months and a potential inability to secure funding to keep the company afloat theres a significant concern before doors can even open again. And once they do, another problem immediately arises.

Even once theatres resume operations, a single case of COVID-19 in a theatre could result in additional costs and further closures, or a second wave or recurrence of COVID-19 cases could cause another widespread suspension of operations, AMC wrote in a statement.

Doubling down

Although the three downtown Detroit casinos are not allowed to reopen, Michigan Tribal casinos across the state have already reopened. Firekeepers Casino in Battle Creek, Soaring Eagle in Mt. Pleasant and Saganing Eagles in Standish all reopened on June 1. Turtle Creek in Traverse City and other northern Michigan casinos have opened over the last few weeks.

While each property has its own standards, across the board casinos say they are monitoring the temperatures of guests as they arrive and requiring face masks to be inside. Smoking is no longer allowed in many of the casinos and self-service drink stations are closed at many casinos as well. Hand-sanitizing stations and hand-washing stations are also available depending on the casino.

Normally, casinos pack as many people as possible next to one another to maximize the number of people gaming. Thats not possible with social distancing, especially at slot machines. As a result, casinos have had to limit how many slot machines are active.

At Firekeepers, players can check the casino website for information on how many slots are available so guests can determine if theyll even be able to get on a machine if they show up. Food buffets, poker rooms, bingo rooms and other special gaming areas may also be closed depending on the casino.

We couldnt distance those places, said Kathleen George, CEO of Firekeepers Casino. But otherwise we look forward to them coming back and being healthy and safe. And just really experiencing a great place to get their Vegas on.

For table games, barriers have been installed at tables in some locations and limits are being placed on how many people can be at a table at one time.

We want everyone to feel comfortable and safe. If someones not ready today or coming (when they open), you know what? In a few weeks or a few months, when they are, well still be here and ready to serve them.

Theres no timetable for when exactly the Detroit casinos will be allowed to reopen. Detroit Mayor Mike Duggan has said he expects they will be among the last things allowed to reopen in the city, despite the economic benefit to the city the casinos bring.

MGM Grand Detroit has announced preliminary plans for what guests can expect at their various properties across the U.S. however a specific plan for the Detroit location has not been announced.

Whats next?

While the good news is that businesses are beginning to slowly reopen, the struggles are far from over. Whether youre itching to get back to the blackjack table, grabbing an after-work drink with friends or simply resuming your morning workouts things will be different.

Businesses expect long lines, but fewer options for guests as everyone adjusts to the reality that things just wont be the same for some time. The uncertainty across the board means more stress and more strain on business owners whove already spent months being unable to serve customers.

For now, Roth and Van Bergen say the main thing they can do is prepare to reopen and ensure the safety of guests while continuing to provide their service. By doing that, the hope is communities across the state will respond and shop at these businesses who need all the support they can get.

As a community, were very thankful for the people who are supporting us. Small businesses like us are only going to make it with support from the community, Van Bergen said.

PREVENTION TIPS

In addition to washing hands regularly and not touching your face, officials recommend practicing social distancing, assuming anyone may be carrying the virus.

Health officials say you should be staying at least 6 feet away from others and working from home, if possible.

Use disinfecting wipes or disinfecting spray cleaners on frequently-touched surfaces in your home (door handles, faucets, countertops) and carry hand sanitizer with you when you go into places like stores.

Michigan Gov. Gretchen Whitmer has also issued an executive order requiring people to wear face coverings over their mouth and nose while inside enclosed, public spaces.

Read all of MLives coverage on the coronavirus at mlive.com/coronavirus.

Additional information is available at Michigan.gov/Coronavirus and CDC.gov/Coronavirus.

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Reopening their doors is the first of many challenges for Michigans leisure industries - MLive.com

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June 7th, 2020 at 2:49 pm

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