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What about small retail merchants and restaurants that don't have 1yr cash reserves to weather 0 business for a month? How many businesses do you know w that type of reserve on hand? How many biz models allow for it?
Their fault. Many. We're a smaller e-commerce merchant ourselves and I know many companies who have reserves and many who don't. All profitable businesses can save for a rainy day.
Not a fair comparison. Typical restaurant profit margin is 5-10%, labor maybe 30% of sales. No one is holding 3-6x their annual profits for a rainy day; especially when the total annual profit provides a modest 5-figure income. Might work in e-comm where you need far less labor.
Good point. For some businesses it’s easier to keep everyone employed than others. I’m arguing that they should not be bailed out, not that the restaurant biz is easy. Business interruption insurance is very common in the industry. If a pipe bursts, the 5-10% biz goes bk.
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