b'NationalJuly 2020 Clothe slineVolume 61 Number 10 www.natclo.comKeep on teaching More recovery asPPP rules ease upAs the nation slowly emerges fying purposes within that cov-from a shutdown due to the coro- ered period are not eligible fornavirus, drycleaners were show- forgivenessandmustbepaidingsomerecoveryfromseeing back, but the restrictions on howbusiness off as much as 80 percent much of those funds must be spentin April. on payroll costs has changed, too.Meanwhile,anewroundof In the initial version of the pro-rules from the Small Business Ad- gram, 75 percent of the loan hadministration concerning loan for- tobespentonpayrollcoststogiveness under a revised Payroll qualify for forgiveness. CongressProtection Program provides more changed the payroll cost ruletoflexibility by reducing the amount 60 percent which makes it easierof a PPP loan that needs to go to to have a PPP loan forgiven.payroll expenses and loosened re- Theremainderoftheloanquirements for meeting the terms amount, now at 40 percent, canof loan forgiveness. be spent on other qualifying ex-Congress voted nearly unani- penses like mortgage interest, rentmously topass the revised version and utilities.of the Paycheck Protection Pro- Under the new law, businessesgram Flexibility Act of 2020 and nowhaveuntilDecember31,President Trump signed it on June 2020, to rehire workers in order5. for their salaries to count towardsClasses at the Drycleaning and Laundry Institute had to be canceled for July but that Among the provisions, the bill forgiveness.Thenewlawalsohasnt stopped DLIs education programs. Brian Johnson, director of education at DLI, extended the period in which the specifies that loan forgiveness willhas been leading a series of on-line classes covering a variety of stain removal issues.The format allows an up-close look at how he is treating the stains and the Facebook for- funds must be spent from eight to not be reduced if theres a reduc-mat lets participants ask questions. The video sessions, along with other useful informa- 24 weeks, or until December 31, tion in headcount if borrowers cantion, can be found on DLIs Facebook page. 2020, whichever is first. demonstrate that they were unableNew survey reveals what drycle funds not used for quali- to rehire employees or hire simi-Anyn g larly qualified employees for un-a in filled positions before Decembercustomers are thinking right now 31. With loan forgiveness amountsfor non-payroll expenses extendedto 24 weeks, it should be easier toMore than 350 people virtually attended a free webinar presented For example, 44 percent of the best customers chose location, while 43 meet loan forgiveness thresholds.by the Southern California Cleaners Association and the Drycleaning percent of the same group chose quick service, 35 percent chose price The new law also gives specialLaundry Institute in mid-June to listen to Jeff Schapiro, president of and 34 percent chose customer service. consideration to businesses thatCleaners Supply, deliver a program on Understanding What Your In other words, people who dryclean more often tend to look at the could not operate because of re-Customers Are Thinking Before, During and After COVID-19. business as a whole, rather than focussing on one factor. The other quired shut down, but cleaners,Without a crystal ball in his possession, Schapiro instead based his three reasons for choosing one cleaner over another, which make up for the most part, were classifiedobservations of the present and future on a recently conducted poll the bottom of the list in all four categories, included offering pickup as essential business and thusfrom Drive Research, a market research company from New York. and delivery, taking sustainable measures and offering a coupon. could remain open despite a lackWhat Im about to share with you is a very extensive research The study also compared customer expectations broken down by of business. study that was done with over 1,000 consumers, he explained. To generation group and, as it turns out, Gen Z is the most demanding de- ThefirstroundofPPPloanparticipate in this study, they had to have used a drycleaners in the last mographic of customers. Sixty-one percent polled believe garments moneywentfast,leadingCon-12 months. To ensure accuracy of the data, this was taken across the should be ready in one day or less (compared to 56 percent of Millen- gress to authorize a second roundUnited States with a cross-section of demographics. nials and 26 percent of Baby Boomers). So, taking too long to turn- of funding which, as of mid-JuneThe Dry Cleaning Consumer Pulse Report broke down people into around garments could cost you younger customers. had not run out. SBA said it stillfour main categories: best customers who come to the cleaners multiple Schapiro also noted that men and women can finally agree on one had more than $120 billion avail-times per month; those who visit once a month; those who visit every thing. While 59 percent of your best customers (with three visits or able in the program, but the appli-two to three months; and those who visit less often than every three more a month) expect their clothes to be ready in one day or less, there cation deadline was June 30. Likemonths. was not a big gender divide on speedy cleaning. In all, 49 percent of many aspects of the program, thatSurprising results followed, starting with what customers perceive men and 44 percent of women both expected garments ready in one could change.as the most critical aspect when choosing one drycleaner over another. day or less. The two gender groups remained virtually even with longer SBA reported that there haveRespondents could pick multiple answers on this question and many turnaround times, as well. Men and women who expected garments to been 4.47 million PPP loans to-others. be ready in two days was 26 percent and 28 percent, respectively; three taling more than $512 billion byWhile it was not a shock that location, location, location is still days, 15 percent men and 17 percent women; and four days, 6 percent June 12. Nearly two-thirds of thethe number-one driving force for all four demographic groups, it was men and 5 percent women. loans have have been for $50,000surprising how close behind other reasons such as quick service, price One positive takeaway from the report is that only 35 percent of or less; they accounted for 11 per-and customer service were, especially for more frequent customers. Continued on page 8 Continued on page 8Sneak Peek6 Driven to succeed 10 Planning to survive 22 Time to evolve 24 Document carefulllyLooking to the post- Volume is down and Everything is always When firing anCOVID future, may not return to last changing. The key is employee, its notDanny Bahlman years levels. James to see the changes only important torecalls the history of Peuster wants you to and adapt your have documentation,his 75-year-old consider how you will business in ways you but also to have thefamily business. be among the surivors. can benefit from them.right kind.'