Supply chain disruptions, a labor shortage and inflation pose challenges for restaurants, a Goldman Sachs survey of small business owners found.
New data from Goldman Sachs' 10,000 Small Business Voices finds food, restaurant and hospitality owners feeling an outsized impact from the Covid pandemic's continued effects on operations.
Ruby Bugarin owns two restaurants in California and is being hit by rising supply chain struggles and inflation.Restaurants around the county were looking ahead to the economy's reopening over the last few months, as Covid vaccines became more widespread and pent-up consumer demand was palpable. Nearly all have seen an increase in operating costs, with 93% saying inflationary pressures have risen since June, having negative effects on finances.
Ruby Bugarin, who runs Margaritas and Pepe's restaurants in the greater Los Angeles area, said both the availability of goods and higher costs have hit her businesses. Products like crab are more challenging to find, chicken and pork costs have risen more than $1 per pound, and prices of other goods have soared.
Labor challenges have also hit restaurant, food and hospitality owners like Bugarin at higher rates than seen in the broader small business community. The data show 79% of those business owners say workforce challenges have worsened since before the pandemic, compared with 64% overall. As the pandemic taxes restaurant operators, Goldman's data found nearly 40% of food and hospitality businesses say they expect to have to take out a loan or line of credit for their business this fall or winter. That compares with 29% of businesses overall.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Christmas toys shortage fears as pandemic disrupts global supplyChristmas may witness a scarcity of toys, due to crippling global supply chain struggles caused by the coronavirus pandemic.
Read more »
Bephies Beauty Supply is redefining what community in L.A. streetwear looks likePart streetwear brand, part collective of women of color redefining beauty and fashion, Bephies Beauty Supply in L.A. is Beth Birkett’s response to what she wants to see more of.
Read more »
Japan's hot exports growth cools as COVID-19 hits supply chainsJapan's exports extended double-digit gains in August, led by strong shipments of chip manufacturing equipment, although the pace of growth weakened as COVID-19 hit key Asian supply chains and slowed factory production.
Read more »
‘The Supply Chain is Completely Broken:’ NOLA Restaurants Aim to Shift Attention Down the Bayou After Hurricane IdaFacing supply chain issues, NOLA restaurants ask for attention on the hardest-hit parts of Louisiana, saying they can’t recover if their suppliers don’t recover
Read more »
Mortgage rates dip lower this week; 30-year loan at 2.86%Average long-term mortgage rates dipped lower this week as economic prospects continued muted amid a wave of new delta variant coronavirus cases.
Read more »