From closing to pausing, Maritime business owners make tough inflation decisions

A new year is beginning with tough decisions for business owners around the region.

Saint John Bakery owner Stuart Howe says his four retail locations will take an “operational pause” as staff try to sort out operations.

“Labour shortages, [a] doubling or tripling of the cost of ingredients and the high costs of everything around us all has hit our small business very, very hard,” says Howe, in a social media post.

Last week, the owner of two restaurants in downtown Halifax cited the economy in announcing the immediate closure of those locations.

The Canadian Federation of Independent Business (CFIB) says business owners are cutting costs wherever possible, but can’t cut any further within certain categories.

“Especially with fuel, wages and insurance,” says Duncan Robertson, a policy advisory with the CFIB. “These are three top costs we’re seeing inflation really play a key role in with small businesses. It’s something we’re hoping government will take into account.”

John Wishart, the executive director of the Chamber of Commerce for Greater Moncton, says the hospitality sector is due for growth later this year if operators can hold on.

“It’s the next three to four months that I think are key in terms of cash flow,” says Wishart. “There’s also great pressure on a lot of small independents to raise wages for their staff, and that comes at a difficult time when there isn’t a lot of money left in the till."

The Bank of Canada is expected to announce its eighth consecutive interest rate increase this Wednesday. 

“Maybe this will be the last increase in rates,” says Wishart. “But if you’re a small independent getting through week to week, you can’t wait for months or half a year. You need some relief as soon as possible.”