JACKSONVILLE, Fla. – Have you noticed that picking up lunch or getting that manicure has become more costly?
Inflation is impacting almost every industry, and small businesses are taking a major hit. New data shows more than half of small businesses have had to raise their prices since the beginning of the year.
Kenyonna Merrick is the owner of Gleaux Beauty Bar in Riverside.
“I don’t want to go up, but just have too,” Merrick said.
Merrick opened her waxing business in 2019 and says that it has been a roller coaster ever since.
“Everything that costs — even a cotton ball has went up,” Merrick said. “Unfortunately, that’s just where we’re at in order to be able to provide services, pay bills, you have to adjust.”
According to the National Federation of Independent Business, 61% of small businesses increased prices at the beginning of the year. That’s the highest percentage since 1974.
Raul Arias, the owner of Mambos Cuban Café, says he went as long as he could without raising prices.
“When you start seeing a pattern when many restaurants are doing the same thing — it’s not because we want to make more money, we just gotta pay bills,” Arias said.
“I actually had a meeting this morning with my chef, and a box of chicken that usually cost $30 for a case of 40 pounds of chicken is now $100,” he continued. “Mind you, I go through 10 cases a week minimum at one restaurant. So you’re looking at an extra $60 per case times 10 — $600 extra in just one week at one restaurant on chicken, $2,400 a month extra just on chicken for me.”
Economists at Goldman Sachs say they think food prices at grocery stores will go up 5% to 6% this year. That’s in addition to the 6.5% that prices already went up last year.
“We can’t just have 2019 prices and still float in business,” Arias said.
Which means these small business owners will have no choice but to pass on those costs to consumers.