Certain expenses are fixed and don’t vary whether your business is open or closed; rent is usually a good example. Certain expenses are highly dependent on the number of customers: if you have only a few, e.g., then you will be going through a lot fewer supplies in the restroom. A large percentage of a business’s expenses, however, represent a cliff: your expenses rise steeply when you first open, and then only gradually increase with further customers. The specific mix of expenses will vary based on your type of business, but consider for example a restaurant.
If it’s open for business, then the lights are on, the climate control is set to comfortable temperatures, and the coolers are running, and the amount of electricity these use will increase only slightly as the numbers of customers increase. If they are closed, however, the lights are probably off, the freezers may be emptied and unplugged, and the climate control is set to the minimal level needed in their locale (e.g., to keep the pipes from freezing). Opening to serve even a few customers causes the electric bill to shoot up, then level out.
Similarly, you’ll need more staff as you have more customers, but there will be a minimum staffing level you need to be open at all. Your food suppliers usually have minimum order quantities: if with a full house you use two boxes of spinach a week, with 25% of your customers you can cut back to one box, but you probably can’t cut back to half boxes or every-other-week delivery so you end up throwing away the excess. Serving just a few people makes your variable expenses per customer a lot higher; will the increased revenue from those few customers be enough to offset the increased costs of being open?
Maybe, but maybe not. It quite literally may not be worth it to be open for just a few customers. This is the same logic that leads some restaurants and bars to close early on really slow nights.
[quote=“Heffalump_and_Roo, post:48, topic:852471”]
For every one of you, SayTwo, how many are going to be like slash2k?
Why?
I’m not elderly quite yet, but I’m old enough to be at increased risk if I came down with covid, and I am around a lot of people who are older or in worse health than I am, so I have be cautious for their sakes as well as my own. Do you think there are so few of us in that situation?