Businesses Respond to COVID-19: Tammy Baiz, Solution Espresso Services

Editor’s note: This interview was conducted in early April, at the beginning of the COVID-19 pandemic. As of late May, Solution Espresso Services’ revenue has started increasing as customers who closed initially have figured out how to be open and others are starting to prepare for reopening, and is at about 50% of normal levels.  

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By Hylan Joseph

Tammy Baiz is a discrete bundle of energy. She is a true individual and distinct.  She’s also a friend.  I have high regard for the work her and her team do. Her article on our blog for the woman in coffee series is still one of my favorites. I’ve worked with Tammy over the years as a vendor, customer and hustling her to work with the guild. Her operation Solution Espresso Services is highly regarded in the San Diego, CA area.    

Hylan Joseph: How have your service calls/business been affected since this pandemic began?  

Tammy Baiz: We had an 80% drop in total revenue between the 1st 2 weeks in March and the last 2 weeks in March. At this point, we are averaging only 0-2 service calls/day (formerly 10-14).

HJ: How are you communicating with your staff concerning the loss of work?  

TB: We have been very honest with everyone regarding the realities of cash flow. We do not operate with very much of a cash reserve. However, we also shared with them our plans for applying for loans and financing. We provided the necessary paperwork for them to file for partial unemployment so that they could work part-time for us or elsewhere, and not get penalized by the unemployment office. If they claim full unemployment and we end up providing some hours, the state can ask for some or all the unemployment benefits back. We would hate to cause them more grief by providing part-time hours after they filed for unemployment and having that come back to haunt them.

HJ: Are you going to utilize any of the state and federal program offered?  

TB: We have not applied for any local grants, but are applying for disaster funding and Payroll Protection funding. Many of the local grants are provided by donations and are shared between businesses and individuals. There are so many individuals in need, that we don't want to go after those funds when there are funds specifically for small businesses coming on a federal level.

HJ: Is your organization doing anything to support your local community? If so can you provide details?  

TB: We have not participated in supporting the community at large, however, we are still supporting our customers. We respond to service requests for customers who are in business, and we are working out payment plans and temporary suspension of lease agreements, for those customers who are temporarily closed.  

HJ: How do you feel your local community has responded to this pandemic?

TB: The local community has responded very well for the most part. Except for the lapse in social distancing practices at beaches and parks, causing the city to shut down those areas completely – That stinks!

HJ: How are your employees reacting? What creative measure are you using to assist them through this time?

TB: Our employees are hanging strong. We let them know before the governor closed all bars and restaurants that if they were concerned about themselves, or family and no longer wanted to go on service calls that there would be no employment repercussions. We also told them that anxiety is normal, so our doors are open for just talking things out if they need to talk. We are staffing our office with only 2 people/day, but trying to provide everyone at least some hours, and continuing to pay health insurance benefits, to alleviate that worry. We had one longtime employee moved to North Carolina this week. A small group gathered at the office for a happy hour and the rest FaceTime’d in.  

HJ: Do you think this pandemic will alter our industry? If so, how?

TB: We knew a recession was predicted and we had started preparing for it. At the beginning of the year, a few customers had already started closing. This pandemic is going to be the end of several businesses that were already struggling. I am not sure how this will alter the industry. It depends on how long it goes on. I think those of us who do make it to the other side, will be stronger businesses.

HJ: What are your key takeaways so far? What are the crucial lessons you will walk away with for the future?  

TB: The recession of 2008 made us start planning and preparing for this one. We are a much healthier company heading into this crisis than we were in 2008. Likewise, this crisis will make us better prepared for the next big event. We will definitely keep a much larger stock of gloves, masks, and disinfectants on hand! We will probably keep our increased cleaning protocols in effect for quite some time.