Operating a Bar During a Pandemic

When Yao Lu launched the Union Trading Company in Shanghai six years ago, one of his greatest challenges was encouraging staff to be genuine and warm with customers, a departure from local service norms. He described the ideal as 'hospitality, personality, firm handshakes, big hugs, and strong drinks' in 2016, shortly before Union earned a spot among Asia’s 50 Best Bars. Unfortunately, this kind of personal connection has been lost due to the COVID-19 outbreak, which has effectively shut down all of China.

Now, he faces an even grMytour hurdle: sustaining a business reliant on personal connections amid the isolation caused by a viral outbreak. 'When the news hit, we quickly understood the impact it would have on our operations,' Yao recalls about the unfamiliar lung disease emerging from Wuhan, over 500 miles away. The measures taken to curb the virus led to a nationwide lockdown, affecting major cities like Shanghai, which has successfully reported under 350 cases and only three deaths. While residents have largely remained composed—advised to stay home, wear masks, and minimize contact—all businesses that might attract crowds, including Union Trading Company, were mandated to close, except for grocery stores.

The restrictions began during Chinese New Year, a time when Union typically gives its staff a week off along with an additional month’s salary bonus to celebrate with their families. They were set to return on January 30th, but due to the outbreak, the national holiday was extended until February 10th. Yao stayed in touch with his team, monitoring their locations and the severity of the virus in their hometowns as he contemplated the next steps. 'I would never reopen the bar if the staff felt uneasy or unsafe,' he emphasizes. After multiple discussions and three planned opening dates, the team ultimately decided to attempt reopening on February 9.

Despite their commitment to safety, the bar's revival was short-lived: on February 12, they were ordered to close once more, without any indication of when they might reopen. 'We thought the virus would be under control by then,' Yao reflects. As a neighborhood cocktail bar, they aimed to provide a much-needed escape and a space for friends to reunite after the holiday. 'We take pride in celebrating people’s achievements and offering refuge to those in distress,' he states, highlighting a core aspect of his hospitality role that he cherishes.

'We were overly optimistic about the situation,' he admits now, partly due to Shanghai's relatively mild impact from the outbreak and the city's excellent healthcare. He describes business conditions as 'absolutely horrid,' noting that while they anticipated a slow recovery, the reality was far worse: during the three days they were open, revenue plummeted by 90 percent.

Even as the virus threatened to devastate his small business, Yao had a built-in safeguard for the bar. 'I laid out our finances, costs, and my worst fears for the team,' he recounts. Together, they chose to use their unpaid leave to cover the first week of February when they were unable to open. Once the bar closed again, the staff agreed to shift to hourly wages instead of their regular salaries, significantly reducing the payroll. 'The whole virus situation reveals the best and worst in people,' Yao observes.

With costs reduced, Union still needed to generate income without having customers on-site. 'We figured that since people love delivery and are bored at home, why not bring the bar to them?' Online ordering and delivery systems were already well-established in China, so the infrastructure was in place: customers could place orders online, and Union would pour cocktails into sanitized glass bottles, vacuum-pack the garnishes, and have them delivered. They partnered with Laiba Beverages, a bottled craft-cocktail company, enabling them to reach customers across mainland China while donating a quarter of their profits to the Shanghai Red Cross to support those combating the outbreak.

Looking ahead, with no clear timeline for a return to normalcy, Yao and his team stay connected with their regulars while expanding their delivery options. This includes collaborations with spirit brands and leveraging their resources, as well as creating online cocktail classes to maintain their presence and generate some income. After all, if everyone is stuck at home, they might as well learn how to mix a drink.

Finding ways to keep the bar afloat is 'part throwing spaghetti at the wall, part desperation,' Yao admits. 'No amount of bar experience can prepare you for navigating a pandemic.' He focuses on cutting costs and surviving. 'In a way, we're still doing what we love, just in a different format and a safer environment, so that when the virus concerns diminish, our regulars will still have a neighborhood refuge to return to.'

He speculates that under the current circumstances, they might hold out until the end of March. With few confirmed cases in Shanghai, he remains hopeful for an official reopening soon. On that day, he has a small request: 'When this whole mess is over, come buy your bartender a drink; they definitely deserve it.'

Naomi Tomky is a writer based in Seattle.