Nevada small businesses feel inflation pain, one owner shuts down rather than raise prices

LAS VEGAS, Nev. (FOX5) -As small companies proceed to really feel the ache of inflation, one beloved restaurant in Henderson is selecting to close down reasonably than elevate the costs for purchasers.

In keeping with the Nevada Small Enterprise Affiliation, eating places throughout Nevada have began to shut amid this newest financial storm of rising prices and employee shortages.

“I‘m very proud that we managed to remain open by means of COVID-19. Now with inflation and never having the ability to discover workers, it’s been a problem for us,” mentioned Gert Kvalsund, proprietor of Saga Pastry and Sandwich off St. Rose Parkway, who has struggled with shrinking hours amid worker shortages for months.

Kvalsund mentioned the restaurant was the primary Scandinavian eatery within the Las Vegas.

“There’s some ways to go. You should buy cheaper merchandise, you possibly can have smaller parts, or you possibly can elevate the costs. I don’t need to do any of that. I believe high quality ought to at all times keep the identical,” he mentioned. “Issues had been beginning to lookup when the restrictions went away. After which the subsequent factor is simply costs skyrocketing,” Kvalsund mentioned.

“In relation to costs, there’s solely a lot that folks pays for a sandwich and a waffle,” Kvalsund mentioned.

“It’s a good storm. We’re seeing it repeatedly,” mentioned Randi Thompson of the Nevada Small Enterprise Affiliation, noting that small eating places are particularly susceptible to inflation challenges. “Meals is a 3rd of your value. labor is a 3rd of your value… so now you need to elevate your charges, otherwise you’re not going to stay in enterprise,” she mentioned.

The Nationwide Federation of Unbiased Enterprise studies that 31% of small companies are taking up debt. Group SCORE studies that greater than 54% of companies raised prices, and 23% of employees requested for raises.

Thompson mentioned the largest influence is felt amongst communities the place distinctive institutions could also be misplaced for good.

“What makes our neighborhoods distinctive is our regionally owned and operated companies. They usually’re those which are struggling essentially the most,” Thompson mentioned.

Saga will shut Sunday. Kvalsund mentioned there are hopes to reopen one other location in September with cheaper lease.

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