Tire dealers advise caution on lifting COVID-19 restrictions

CUYAHOGA FALLS, Ohio — Tire and automotive service shops around the country have adjusted to a new way of business that means more safety precautions in the shop and less foot traffic as efforts to stop the spread of COVID-19 continues.

While business is down significantly, reopening the U.S. economy needs to be done with caution, "in phases," to avoid a spike in the pandemic, according to a number of independent tire dealers contacted recently by Tire Business.

"Opening up the country is not something that we can or should do across the board," Greg Mynaugh, president of United Tire & Service L.L.C., said. "(It might) make total sense in Wyoming but certainly does not in Philadelphia or the Northeast, right now."

United Tire operates 13 locations throughout Pennsylvania. Mr. Mynaugh said car count at his shops is down about half of what it was in March and April 2019.

"As we are working through this, I would say the shock of it all is less (than anticipated), and that consumers are starting to think about things they need to do," he said.

Since March, when the pandemic first hit the U.S. hard, many retail tire dealers reduced operating hours and cut employee' hours per week in an attempt to keep the business whole; while others laid off or furloughed workers.

Many businesses report they have applied for a Paycheck Protection Program (PPP) loan through the Small Business Administration to help cover payroll and keep jobs.

Tire shops have been following guidelines for a safe workplace from the Centers for Disease Control and Prevention (CDC). They have been sanitizing surfaces, wearing gloves and masks, and generally rethinking how they interact with each other and the customer, and how much direct contact can be eliminated.

Some states, like Georgia, Texas and South Carolina, have started to lift COVID-19 restrictions and allow more businesses to open up again. Others, like Idaho and Ohio, are planning to do the same in May.

"I think when we reopen, it will be a slow return to whatever the new normal is," said Scott Shubin, president of Goodguys Tires & Auto Repair, which operates nine retail locations in and around Fresno, Calif.

"For us, we are heading into the hot time of the year — temperature wise — so that should be a positive for our business as people start to drive more and their vehicles need repairs. But I have concerns that with many not working that it could affect our customers, and they are not able to spend like they would normally."

Mr. Shubin said he has seen "a bit of an uptick" in business recently. From mid-March to mid-April, business was down around 40%, he said. Since April 15, it has been down 20%.

"Our car count has certainly dropped off, but the average spend is up," Mr. Shubin said.

"We certainly didn't think anything like this would have happened, but we are making the best out of the situation," Mr. Shubin said. "Our employees have been great and understand the situation and have been supportive of the company."

In New Orleans, Paul Bernstein, president of Delta World Tire Co., said it's time to reopen the U.S. for business by reinstating restrictions in phases.

Delta World Tire operates 17 locations in southern Louisiana and Mississippi. He said business was down 45% the initial three weeks of the stay-at-home orders — Louisiana issued its order March 22 — and down 30% since.

Mr. Bernstein said his experience facing the pandemic as taught him "how easy it is for government to close businesses, restrict travel across states, etc. … And mostly, how frightening it would be if we were not classified as an essential business."

Delta World Tire did get a PPP loan, and they have received the funds, according to Mr. Bernstein.

"Extremely simple process," he said. "(It's) all about the accuracy of information requested."

Shane Robertson, president of Robertson Tire Co. with 14 locations throughout Tulsa, Okla., said the PPP loan was useful.

"We sent out documents the day before they were officially accepting them," Mr. Robertson said, adding they saw funds April 16 and used it to cover the next payroll.

"We are using some of the funds to actually pay back any employee who lost wages while we reduced hours and sales were slow."

Mr. Robertson said Tulsa has not been affected by the pandemic quite as much as other parts of the nation, and many people are starting to return to normal.

"It is crucial that we re-open the economy everywhere, except maybe New York and a couple other cities," he said. "This has been an absolute disaster, and most people here (in Tulsa) don't even know anyone personally affected by the virus itself."

Gordon Leffler, CEO of Suburban Tire Auto Care Centers, said containing the virus is paramount. Suburban Tire operates five retail locations in the suburbs west of Chicago.

"When you see 20 deaths in San Francisco and 10,657 in (New York City), it's obvious that early, aggressive measures are critical in containing the virus," Mr. Leffler said, pointing to the fact San Francisco was more aggressive in suppressing the coronavirus than other cities.

"I think the best way to reopen the economy is by following expert scientific advice. … Messaging to the general public should be to get comfy until Father's Day or even the 4th of July. Short term pain for long term gain."