LOOK BACK | REAL ESTATE There are important lessons in the rich history of regional development failures, especially in downtown Cleveland. PAGE 23
CRAINSCLEVELAND.COM I May 18, 2020
COPING WITH COVID-19
PREPARING FOR REOPENING DAY Craft brewers weigh pros and cons of relaunching patios, taprooms BBY JEREMY NOBILE
The last two months have been devastating for craft brewers forced to close dining and taprooms in response to the coronavirus pandemic. The jury is out on how helpful reopening in some fashion in the coming days will be for these small businesses, whose cash flow has been reduced to a trickle in recent weeks. Ohio Gov. Mike DeWine said bars and restaurants could open outdoor seating May 15, and indoor seating will be permitted May 21 — providing businesses follow guidelines laid out by the state that will be cumbersome and expensive. Some are choosing to open, but others aren’t and won’t yet declare when they will. Most breweries have pivoted to alternative sales methods during the shutdown, such as online ordering for pickup and delivery options. Many moved kegged beer into bottles and cans to push product into grocery stores as on-premises sales tanked. According to Nielsen, for a nearly two-month period in March and April, in-store alcohol sales were up 21% from the like period last year, while online sales have more than doubled. Booze has become the fastest-growing e-commerce segment among consumer packaged goods. Despite those spikes, revenue for independent craft breweries that
“I DON’T THINK ANYONE EXPECTS TAPROOM CUSTOMERS TO RETURN TO PRE-PANDEMIC LEVELS RIGHT AWAY.” ——Justin Hemminger, spokesman for the Ohio Craft Brewers Association
earn a living off taprooms is just a fraction of what those businesses were used to making. Everyone is losing money. Ohio came into this year on track for nearly 400 craft breweries between those in operation and in planning. While it’s unclear how many breweries may not make it through this pandemic-induced economic downturn, reopening now is a play that could help struggling businesses, though not everyone intends to open their patios and taprooms yet. See BREWERIES on Page 19
Plant specialist Jim Diamond puts finishing touches outside the Great Lakes Brewing Co. patio in Ohio City. | CONTRIBUTED
TRANSPORTATION SERVICES
MANUFACTURING
Truck stop operator rethinks its plans
Foundation has big vision for new USS Cleveland
New CEO thinks TravelCenters needs to better communicate its brand BBY JAY MILLER
TravelCenters of America Inc., the Westlake company with 265 truck stops in 44 states, is reorganizing. It took the first step earlier this month when it announced that it had eliminated 130 positions at its headquarters and was creating two senior vice
president positions to help restructure how it operates. New CEO Jonathan Pertchik sees a major job ahead of him. He said he thinks the public company needs to figure out what it’s future is going to look like and to communicate better, both internally and externally, what the TravelCenters brand means.
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The core of the business for the 48-year-old company, originally Truckstops of America, is selling diesel fuel to longhaul truckers. But its travel centers — under tall signs Pertchik for TA, Petro and TA Express along major highways — also include a complement of 650 full-service and quick-serve restaurants, along with overnight parking, showers and other services for truckers, as well as convenience stores. In a few states where it is legal, the facilities offer gaming. The company also owns a number of standalone restaurants. See TRAVELCENTERS on Page 22
BBY RACHEL ABBEY MCCAFFERTY
In 2023, Cleveland is expected to host the commissioning ceremony for a new naval ship, one named for the city. This will be the first time a ship is commissioned here in Cleveland, said Mike Dovilla, a former state legislator and a commander in the U.S. Navy Reserve. That alone makes it a special occasion. But the USS Cleveland Legacy Foundation, a 501(c)3 led by Dovilla as president and executive director, has its sights set much further in the future. In 25 or 30 years, when the ship’s work is complete, the foundation wants to bring it back to Cleveland and turn it into a museum.
It’s not “terribly common” for a ship to be commissioned in the city for which it’s named, said Jim Folk, chairman of the foundaDovilla tion’s board and vice president of ballpark operations for the Cleveland Indians. While there are ships that have been turned into permanent installations, Folk thinks this project stands out because of how far in advance the plans are being laid. See USS CLEVELAND on Page 21