“Like many other retailers and grocers, we have faced new challenges since COVID-19. With more people working from home, we are no longer able to rely on these customers. I did.”
The letter notes that in addition to serving fewer customers than before, the remaining customers are “being more cautious with their spending and purchasing fewer items.” They reveal that building owners are not raising rents or other prices, instead citing “changing customer patterns” as a financial barrier to scalability.
Wilson also noted how difficult it is for the company to “cover increases in wage and benefit costs.” This is likely a reference to the City of Berkeley's recent increase in the minimum wage to $20 an hour.
Fortunately, the market's sister store in Oakland's Rockridge neighborhood will continue to operate. Wilson said in the letter that Rockridge's location has been able to withstand difficult economic challenges because of its concentrated residential location.
Of the 48 kitchen, bakery and retail employees affected by the closure, some will be transferred to the Oakland store and others will receive severance pay. The report was received on April 30th.
During its final weekend in Berkeley, Market Hall Foods will be holding a “closing day celebration,” with details to be announced soon.
