Sonoma business leaders hopeful for rapid economic recovery

Sonoma moved into the less-restrictive orange tier on April 7, after three weeks in the red tier within California’s Blueprint for a Safer Economy. The change has allowed Sonoma Valley restaurants, wineries, movie theaters and churches to increase capacity to 50 percent and for retail stores to resume "normal“ operations.

In broader good news for the local economy, California Gov. Gavin Newsom also announced this week that the state will lift most coronavirus restrictions on businesses and workplaces on June 15.

“We can confidently say by June 15 that we can start to open up as business as usual, subject to ongoing mask-wearing and ongoing vigilance,” Newsom said at an April 7 press conference.

Local restaurant and retail shop owners have expressed delight at the seeming resurgence of Sonoma’s downtown in recent weeks but local officials note that it is unlikely that all businesses will recover at the same rate.

Tourists are back

The return of tourists to Sonoma’s downtown has been notable ‒ parking spots are filling up, stores are reporting brisk sales and locals say it is almost impossible to get a dinner reservation downtown on a Friday or Saturday night.

Workers at tech companies in San Francisco, Sacramento and Silicon Valley did well during the pandemic, said Sonoma Mayor Logan Harvey, and Sonoma benefits from its close proximity to those areas that continued to prosper.

“We’re a short drive away and we offer a vibrant downtown with lots of outdoor seating and, as people in the Bay Area have felt more comfortable getting out, they are heading to Sonoma,” said Harvey.

With many Californians not yet comfortable flying domestically or planning overseas trips, Sonoma has become a mecca for day-trippers, said Harvey.

“We are in a unique position to bounce back,” said Harvey. “Our local community was super supportive through COVID ‒ and PPP loans and stimulus checks helped ‒ and now visitors are back, and their return is crucial to our local economy.”

Pent-up demand

“I was so worried that we were going to see decimation of the Plaza,” Harvey said. “But we have a uniquely intriguing offering here in Sonoma with the combination of a vibrant downtown and beautiful outdoor spaces.”

Chamber CEO Mark Bodenhamer describes the timing of Sonoma County’s move to orange tier – just as tourism season heats up ‒ as “really fortunate.”

And he agreed with Harvey that the experience of visiting Sonoma seems to be exactly what people are seeking.

“It’s fun, festive and authentic with plenty of outdoor experiences,” he said. “We’re very well-positioned to take advantage of pent up demand.”

High local vaccination rates are also a contributing factor, noted both Harvey and Bodenhamer.

In Sonoma County, half of all residents 16 years and older have now received at least one dose of vaccine while 30 percent have been fully vaccinated.

“Customers come in, talking about their vaccine and saying that they haven’t bought anything in over a year and are so excited to be out shopping again,” said Plaza store owner Erica Heald (Perle and Myriad) about the pent-up demand.

But…

Bodenhamer noted, however, that one major limitation for economic recovery will be the challenge of staffing back up ‒ fast.

Mary’s Pizza Shack CEO Vince Albano agrees.

“The challenge for us has been getting our crew members to return,” he said. “Especially those who have young children because school still isn’t full-time.”

Another challenge, Bodenhamer said, is that local businesses have taken on massive amounts of debt to stay afloat.

Dozens of local restaurants, including Mary’s Pizza Shack, have invested heavily in expanding its outdoor dining offering by expanding patios and adding parklets.

“I don’t think many restaurants are operating at a profit yet,” said Albano. “But we’re optimistic.”

Heald told the Index-Tribune that sales have bounced back but she still has a ways to go to make up for what was lost being closed.

“I’m still a little unsure what the future will bring,” she said.

Delicious Dish owner Lauren Cotner also fears that the future prognosis isn’t entirely sunny.

“I worry about the restaurant industry here and its sustainability,” she said. “We live in an expensive area that is hard to find labor, living wage has increased, our cost of doing business has increased due to COVID, so our profit margins are super slim.”

Cotner shudders thinking back about the past year.

“Were it not for the PPPs (Payroll Protection Loans), grants and the Microsoft giveback program we participated in, we would be permanently closed,” she said.

Bodenhamer said amid the celebration of reopening, it is an important time to pause and recognize two important trends from the past year – community support and the creativity of local businesses.

“Without the community digging deep to shop local, the damage could have been far worse,” he said.

As for retail stores, Virgina Hayes, owner of G’s General Store on the Plaza, said that weekends have been “crazy-busy lately ” with both tourists and locals coming in.

“The restaurants have done such a great job with their parklets and it has made it really inviting for people to visit and spend quality time at the Plaza,” she said. “I think we’re in for a very busy summer.”

Cotner said that she can tell from the foot traffic on the Plaza “that people are feeling more comfortable playing tourist and heading out. Especially as the weather changes.”

But she pointed out that businesses that are not walking distance to downtown face a greater challenge in rebounding.

“We're in a funky little spot over here and we have to think of creative ways to get folks to look over this way,” she said about her eatery on Arnold Drive. To that end, Cotner has introduced special events ‒ like movie nights to lure people in from both Sonoma and out of town.

But she agreed that the prognosis for Sonoma’s complete recovery is good.

“Who doesn't want to come up here in the beautiful weather and enjoy Sonoma?” she asked.

Harvey and Bodenhamer said that while some business owners are reporting having some of their best weekends in a year or two, they are both sensitive to the fact that not everyone is feeling the rebound.

“It will take years for some businesses to truly recover in full,” said Bodenhamer. “While tourism is seeing a surge, resident-serving businesses – gyms, dry cleaners and professional services companies for example ‒ will have a slower rebound.”

One store owner on the Plaza agreed that her business was now thriving, but was hesitant to speak about it publicly. “So many people in our community aren’t bouncing right back that I’m kind of uncomfortable talking about my good fortune,” she told the Index-Tribune. “Let’s all just be thankful.”

Contact Lorna at lorna.sheridan@sonomanews.com.