How Are Independent Cafes Coping With Rising Costs?

Independent cafés across the North East are facing increasing pressure as the costs to run their businesses continue to rise.

Food, energy, rent, and wage bills have meant that independent hospitality businesses are having to find new ways to manage their finances, whilst also keeping prices affordable for customers.

For many small businesses, rising costs have created a difficult balancing act: increase prices and risk losing customers, or pay the extra costs and make no profit.

Independent business owner, Kayleigh Hankinson from Olivia’s Coffee House, said: “Each year, we have to look a the menu and see what we need to increase because costs of things have gone up so much.

“Tea and Coffee used to be so cheap to buy, which is why people could sell it at a reasonable price… our costs have increased by at least 30%.”

She added: “As a self-employed person, if I have any time off for sickness, it costs me money because I have to pay for someone else to come in and cover for me when I can’t be there. I do think there should be support with those elements from the government.”

The hospitality industry has also seen changes in customer spending habits, with individuals choosing to eat out less due to the menu price increase.

Mrs Hankinson said: “Most my regular customers understand why we have had price increases, and are supportive.”

Ena Bowens, a weekly customer at Olivia’s Coffee House said: “We choose to come to the coffee shop because the coffee and food is excellent, also being of the older generation, it is a social meeting place for us, we have gained many new friends.”

However, the rising costs of eating out means customers have to make difficult choices about where, and how often they spend their money.

For many Café owners, adapting to change while maintaining the quality and character of their businesses remains at the heart of their plans for the future.

North East Chamber Of Commerce were approached for a comment and did not respond.

 

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