Home » Economy » The Covid surcharge: Companies confront the unforgiving economics of coronavirus
The Covid surcharge: Companies confront the unforgiving economics of coronavirus
Economy amid coronavirus needs to ‘get going’: EY Global CEO
EY Global chairman and CEO Carmine Di Sibio discusses stimulus for businesses of all sizes and getting employees back to work.
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Companies from major retailers and package carriers to local restaurants and hair salons are awakening to a new economic reality in the age of the new coronavirus: Being open for business is almost as hard as being closed.
Facing higher costs to keep workers and customers safe and an indefinite period of suppressed demand, businesses are navigating an ever-narrower path to profitability. To make the math work, some businesses are cutting services and jobs. Others are raising prices, including imposing coronavirus-related fees aimed at getting customers to share some of the expenses.
For large companies, the price — and perils — of operating in a pandemic are already coming into focus.
DOES BUSINESS INSURANCE COVER CORONAVIRUS-RELATED LOSSES?
Walmart Inc., Target Corp. and Home Depot Inc. this week said they absorbed more than $2 billion combined in added expenses for wages, bonuses and other benefits for workers during the early months of the pandemic. McDonald's Corp. laid out conditions for franchisees to reopen their dining rooms that include cleaning bathrooms every half-hour and digital kiosks after every order. Ford Motor Co. this week opened its American assembly plants for the first time in two months, and promptly had to idle factories in Michigan and Illinois after employees tested positive for Covid-19.