His concern is backed up by research. In late September, about 32% of working days in the U.S. were spent at home — down from 42% in May, according to surveys by Stanford University. The new work-from-home economy is likely to outlast the coronavirus that spawned it, said Nicholas Bloom, a professor of economics at Stanford. The share of working days spent at home is anticipated to rise to a quarter from 5% before the pandemic, he said.
While the plight of bar and gym owners has been in the spotlight, dry cleaners say they may have it as bad or even worse. Deemed essential businesses, cleaners weren’t force to shut down during the lockdowns. Their industry is nonetheless at risk for the foreseeable future.
“Businesses that serve primarily office workers are going to be tremendously impacted even in the long run,” Bloom said. “Sandwich shops, dry cleaners.”
Even before the pandemic, the dry-cleaning industry, which employs more than 120,000, was already struggling with declining demand for professional services and the growing adoption of business-casual attire in the office, according to research firm IBISWorld. They’re the epitome of a family business, with no company owning more than 5% of the market.
To survive, many dry cleaners have begun to offer pickup and delivery, alterations or wash-and-fold services. Others diversified into commercial laundry for hospitals, or are now willing to launder comforters and curtains for consumers, said Mary Scalco, chief executive officer at Drycleaning and Laundry Institute, another trade association.
Rhonda Eysel’s Master Kleen Dry Cleaners, with pickup locations in Georgia and Alabama, cut operations of its cleaning plant from five days a week to three, to reduce utility costs. Many of her 40 or so employees have had their schedules reduced to between 23 hours and 32 hours a week, she said.
“We are helping everyone to stay employed,” Eysel said. Her grandfather started the dry cleaners in the mid-1960s, and she’s been working there for 30-plus years, since she was 15.
“It’s a tough industry to be in right now,” Eysel said. “But it’s important that we keep going. It’s a learning process for sure.”
Data from Yelp Inc., which tracks lookups of business pages and review postings, shows that consumer interest for dry cleaners has improved since April — although it remains way below pre-covid levels in almost all states. Among the few bright spots in early October was Nevada, where Las Vegas casinos have reopened. Cleaners in places where people rushed to sit out the pandemic, such as the Hamptons, also have benefited.
Richard Bayliss, owner of the three-generation business Nu-Way Cleaners & Tailors in White Plains, New York, said his business is operating at about 45% of pre-pandemic levels. Now he is counting on companies to announce return-to-work plans early next year.
Meanwhile, he has a plea for corporate executives: institute a dress code for Zoom calls.
“To be there in sweat pants and sweat shirts, I wouldn’t accept that,” Bayliss said.
This article was provided by Bloomberg News.