The Questionable Gift of Gift Cards | Tragic Comedy

Scott Hardie | March 31, 2020
I've heard a lot of messages urging me to support local shops and eateries during this coronavirus shut-down by buying gift cards, so that the business gets my financial support today and I reap a benefit later, assuming that they stay in business.

Helping local businesses survive this crisis is a good thing to do, but I'm confused. There's still going to be the same net loss of income for them, right? If 100 people buy gift cards today in March to support the business, and then in say June, the restaurant re-opens, won't they still have to serve 100 customers for free? Won't that be a significant blow to their bottom line at the time? If 100 customers eating for free is not so significant of a blow that they can withstand it, how is the same dollar amount spent today significant enough to help them survive? It doesn't add up. Even if you assume that a few customers won't use their gift cards at all and others won't use them right away, it still seems like a stretch.

Am I missing something obvious?

Samir Mehta | March 31, 2020
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Scott Hardie | April 2, 2020
Yeah, I've heard of companies trying to pocket money intended for staff in the midst of all this. It's despicable but I have to assume rare.

How does buying a gift card now prevent the employees from going out into the world? Do you mean buying a gift card as an alternative to ordering takeout or delivery? I thought the alternative to buying gift cards is for the business to go under and for the staff to be laid off. I guess that means they'll be out anyway, trying to find other employment. :-(

Samir Mehta | April 2, 2020
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