I have some very important questions for any business owners here.

[shockey80]

I have never owned a business so I do not know the answers to these questions.

If you are allowed to reopen a business at 25% to 50% capacity, is that financially feasible?

Can you turn a profit at that level of capacity?

If you reopen at that capacity are you still eligible for government support or are you on your own at that point?

[Snake Plissken]

1. It beats remaining closed ... assuming customers even show up to give you that 25% or 50%

It might not be profitable, or even a situation where you're breaking even, but you'll be losing less money than having the business sit idle waiting for it to reopen.

[The Velveteen Ocelot]

2. I have wondered the same thing.

For example, if you own a restaurant and you are told you can re-open it but only at 25% capacity, will you still be able to turn a profit? You will have to pay fewer employees and buy less food, but you still have fixed costs like utilities (maybe a little less if you are cooking less), rent and debt. You will spend less money but if you have only 25% of the customers you used to have, maybe you will only break even, so why stay in business? I'm sure it depends on the business, but it's a good question.

[sop]

5. Normally many businesses operate on such a slim profit margin, it wouldn't be profitable to reopen

with only 50% of their previous customers. And, depending on their fixed operating expenses, it could even cost them more than remaining closed.

[marlakay]

7. Thats what I am thinking

I am wondering if they are opening so people don’t qualify for unemployment.

[dalton99a]

3. Not for long, but it really depends on fixed costs

and the size of your own bank account

[Hoyt]

4. There's an old business axiom: If you can cover your variable costs and contribute some to overhead,

it's worth it is SHORT-RUN. So, if you can pay your workers, cost of materials like food if a restaurant, electricity, wear-and-tear on equipment, etc., and a bit more, it might be worth it.

One might also want to keep your establishment in people's minds as a PR move.

But, you have to consider your employees' and customers' health too, and long-term prognosis. It's really tough to make it at 25-50% capacity for most businesses, unless the business owner was making a lot of money before.

[The Velveteen Ocelot]

6. The short answer seems to be no.

https://www.dmagazine.com/food-drink/2020/04/texas-governor-restaurants-25-percent-capacity-covid19-risk/?ref=mpw

[crickets]

8. Didn't think so. Thanks for the link. nt