Inflation has slammed small businesses, but here is one who fought back!
If you are a business owner, the recent inflation has probably affected your business one way or another. Today, we share with you the experience of a bakery owner from San Francisco.
Amanda Nguyen is the owner of San Francisco-based bakery Butter&. She was experiencing the common problems of Covid-19, then inflation hit and it proved to be more difficult. Her specialties in cakes were troubling due to the significant increase in prices for ingredients. She responded by capitalizing on the theme of the pandemic for her products, but it could not keep up with the rising inflation. Many businesses are reacting to spiking inflation by raising prices for consumers, but this could entail driving away customers. When you factor in other big concerns like labor shortages and rising wages, small business owners are really struggling. These pressures are brand new for most small business owners, thanks to years of low inflation. Small businesses feel the pain of rising inflation to a much greater degree than their corporate counterparts. For Nguyen, the solution was to do what came naturally, to be creative. She opened a second business, Pastel, which delivers Butter& products and others from various area eateries to customers in the suburbs. To be more efficient, you have to combine the efforts of raising prices, growing the business to meet costs, and reevaluating the conventional ways of business.