Any announcements related to the closing of a business, no matter how innocuous, can be met with negative reactions from the public. That’s why it’s important to frame the announcement as best as you can to control the ensuing narrative.
Recently, a restaurant announced that it was closing, and now it is receiving negative comments.
Why are people upset? An analysis of the comments reveals that one possible reason is the amount of financial aid the restaurant collected over a relatively short period of time. The restaurant received $179,100 in the first PPP, $241,863 in the second PPP, $60,221 in its first GoFundMe campaign and $49,311 in its second GoFundMe, totaling $530,495, plus a $150,000 Economic Injury Disaster Loan.
Another potential reason is that the two owners posted a photo of themselves in an airplane, leading people to conclude that they were going on vacation. Lastly, one other possible reason for the public’s ire is that the owners said, “To all media outlets–we are not interested in doing any interviews or stories.”
You can see the anger in people’s reactions:
- Facebook comment: “You guys fleeced people out of two GoFundMes, still are closing up shop anyways, and now you’re headed on vacation. Yikes.”
- Facebook comment: “You may want to reconsider your no media stance. If there’s any truth to these comments re: your recent GoFundMe campaigns, the community is owed an explanation.”
- Reddit comment: “It’s already irritating that customers are expected to effectively pay employee wages through tipping and now places like (this) expect them to also cover operating costs through GoFundMe campaigns? It’s ridiculous. You’re clearly not running a sustainable business and as soon as your current grift runs out of steam you’ll be in the same spot that you’re in now.”
So what should business owners do when they want to announce a closing? First, provide a short explanation for the closure, since speculation will be inevitable. While no one expects a privately held business to provide access to its financial records, touching upon the subject is better than not mentioning it at all.
In the case of the restaurant, its owners needed to carefully acknowledge the funding it has received. Here’s an example statement combining both points: “We appreciate all the financial assistance we have received over the years, as it kept us afloat in a difficult time. Unfortunately, with ever-increasing food costs, labor costs and rent, we were unable to sustain the restaurant.”
Next, humanizing the brand can be helpful, but be smart about what kind of photo, if any, to publish with your announcement. The restaurant owners posted a photo of themselves in an airplane, which can easily be misinterpreted. Why not use a photo in front of the restaurant?
Don’t forget to acknowledge your employees, since they will be out of a job. Thanking them is not enough. You also should mention publicly how you will help (and tell your employees directly before you make the external announcement). For example, “We are so grateful for our staff and will help them in whatever way we can for job placement.”
One final point is that stating up front that you will not respond to the media is inviting people to think that you’re hiding something. If you don’t want to do media interviews, you can decline them if they come up. However, it would be better to develop a set of talking points and respond to media requests so that you can continue to shape the narrative.