With the annual Woodward Dream Cruise now canceled because of COVID-19 concerns — on an official basis, anyway — many local businesses are taking yet another hit.
The automotive event, which the Detroit Metro Convention & Visitors Bureau estimated had a $240 million economic impact on metro Detroit's economy in 2017, could have offered a much-needed boost for the businesses along Woodward Avenue in Oakland County that are still working to recover from the economic impact of the pandemic shutdown.
Officials at producer Woodward Dream Cruise Inc. told Crain's they anticipate a $53 million loss to the metro Detroit economy this year because of the cancellation.
Still, no one will be surprised if cruising and gathering along the famous M-1 strip from Ferndale to Pontiac goes on, which drives hope for some.
"I'll believe Dream Cruise is canceled when I see no cars on Woodward Avenue," said Kelly Cobb, owner of the iconic Hunter House Hamburgers in Birmingham.
The official event, which for 25 years has taken place on the third Saturday in August, also spawns a host of other activities including car shows and musical performances throughout that week, drawing an estimated 1.3 million people with money to spend. And plenty of businesses and municipalities get a boost from renting parking to classic car owners and enthusiasts and spaces for hosting parties. Not this year.
For the past decade, Hunter House Hamburgers has hosted a party for the public in its parking lot on Woodward just north of Maple Road, replete with bands, large tents for customer seating and food trucks to serve its signature sliders, Cobb said.
"We (normally) have thousands and thousands of customers pass through our lot," he said.
Cobb said he does not expect the normal amount of business during Dream Cruise week, but Hunter House is still preparing for some excitement.
"We'll probably do some limited setup of our normal event," Cobb said. "We do expect people to come out, for sure."
Other bars and restaurants such as Vinsetta Garage on Woodward in Berkley don't organize specific events during Dream Cruise weekend, but still see a sizable bump in business during that time.
"We've always taken a different approach, where we ran Dream Cruise as business as usual," said Curt Catallo, owner of Vinsetta Garage. "That whole week is just bustling."
Even if cruising still takes place without official endorsement, Catallo said it likely won't provide businesses with the financial steam it normally does because of state-mandated pandemic-related restrictions
"Because we'll still be restricted to 50 percent capacity, I don't think it will have a positive impact on revenue," he said.
Other restaurateurs are even more cautious. Dean Bach, owner of Dino's Lounge in Ferndale, has kept his restaurant and bar near the busy intersection of Woodward and Nine Mile Road closed since the start of the pandemic and said he was not planning to reopen for Dream Cruise, regardless of the cancellation announcement, because of concerns about overcrowding and being able to enforce social distancing rules.
"One of the biggest things we get at Woodward is people using bathrooms. … We would have to hire security to police doors, and all you will do is open yourself up to hostility and people will get angry," Bach said. "I am not going to subject my staff and their safety to it. This could be harmful."
Bach also worries about the implications of needing to shut down again if there were a surge in new COVID-19 cases following a busy weekend like Dream Cruise. It could mean the end for his business.
Dino's and Bach's other Ferndale bar, M-Brew, have been on and off the market for sale the last couple of years.
Tom Jones, business manager at the National Shrine of the Little Flower Basilica in Royal Oak, said the church could see a $50,000 loss because the city is not issuing permits for Dream Cruise-related activities. Shrine normally rents out three parking lots on Woodward Avenue and 12 Mile Road to automotive vendors.
Shrine also hosts an annual fundraiser for the parish's schools and general maintenance of the church, and the absence of that event this year will be another $30,000-$40,000 loss, Jacob added.
Similarly, A.J. Desmond & Sons funeral home won't be able to rent its ample parking lot and spaces along a popular stretch of the Dream Cruise route — between 13 Mile and 14 Mile roads — but it will be able to keep its Royal Oak location open this year. Usually, it closes down for a few days and redirects clients to its two other locations in Troy, said Kathy Desmond Barr, vice president of A.J. Desmond & Sons Funeral Directors.
Cities along the cruise route could see some losses as well. In 2018, each of the nine participating communities got a $5,000 cash grant because the organization had a surplus of funds that year, according to a report filed by Woodward Dream Cruise Inc.
Still, the question remains about the plausibility of regulating cruising and crowds amid a health crisis, even without an official event.
"Woodward Avenue is a public highway," Royal Oak Mayor Michael Fournier said. "The city doesn't have any authority to stop people from driving on the road if people do come and have some unofficial cruise, we don't have any jurisdiction or authority to stop them."
Cruising along Woodward and the crowds of spectators looking for something to do have ramped up since the coronavirus stay-home and business shutdown orders came down in March.
"We have been dealing with cruisers in Royal Oak all summer long, and it has been a challenging time for people who live along the Woodward corridor because of loud mufflers and squealing tires," Royal Oak Police Chief Corrigan O'Donohue said. "We take a zero approach to noise violations and reckless driving and really discourage cruising."
The police department is enforcing that privately owned business lots are only for patrons, he said. Dream Cruise weekend will be no exception.
"We are strongly encouraging people not to come out. All special events have been canceled. We are really hoping this is a non-event," O'Donohue said. "We are going to have extra staffing for that weekend, (although) we are hoping to not need it." Joe Valentine, Birmingham's city manager, is of the same mindset.
"(Canceling the Dream Cruise) is to discourage people from coming so we don't have these concentrations of people gathering during the pandemic," Valentine said. "The intent is to educate the public now so they are not making reservations at restaurants or hotels or plans to come into the area because there will be no activities."
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Less than a dream: Cruise cancellation won't stop it, but there will still be a cost - Crain's Detroit Business
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