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“You Just Have to Be Creative:” Local Small Businesses on Dealing With Supply Chain Issues

Lee acknowledges that “today’s market, with supply and labor shortages, the constant price increases, and so many unknowns, makes it a frustrating time to be a homebuilder…and probably more so a homebuyer.” She added, “let’s not lose sight of the American dream–it might take a little longer today but owning a home is still very much worth it.”

The food and beverage industry has also suffered heavily from supply chain disruptions. Tammy Hall, owner of Main Street Cafe in Downtown Madison, cited cost increases and lack of consistency as the two main issues faced by her business. 

Hall stated that “like most long-term restaurants, we like consistency. Our customers appreciate this factor as well.  The products that are key to that consistency are just unavailable at times.  These are products that have never been a challenge to secure.  And obviously because they are hard to get, the cost of those same products has consistently risen over the last 7 months since returning to normal service after COVID.”

Hall used the example of chicken to illustrate the hardships faced by not only her restaurant, but others like hers: while a forty-pound case of random-weight chicken cost $40 a year ago, “now it’s a bargain if I can get it at $80.” 

Although her ingredient costs increased across the board, Hall hoped to ride it out without significant price increases on the menu. As of January 2022, however, Hall said she will have to increase prices “just to stabilize our food costs, unfortunately assuming these costs are here to stay.”

Hall has adapted by ordering larger quantities than needed once they become available or by substituting similar options. “It’s very stressful trying to order everything we need to supply our hard menus.  I’ve added new vendors in an attempt to bounce product availability between them. One week I can get red snapper from US Foods, the next week I’ll use Sysco, and the next may be Inland. It’s crazy!” 

20211215 131440Each Sunday, Hall assesses her restaurant’s needs for the week, beginning the process of finding suppliers and determining when goods will become available. She said that the food reps are also stressed out, sometimes unable to find the simplest of goods such as cracker crumbs. “I mean, how can cracker crumbs be so hard to come by?”

Hall’s advice to other restaurant owners and small businesses: “just keep swimming. Do the best you can by your employees and customers. Be grateful that business is good and that you are fortunate enough to have to work to find products because business is good. Find your positives!”

As the owner of a manufacturing brewery/winery/distillery as well as a restaurant, Straight to Ale owner Dan Perry has experienced supply chain disruptions on multiple levels. Perry reports that he has seen freight charges on equipment ordered from overseas increase by 4x at the same time the delivery times have slowed to a crawl. 

Straight to Ale is in the process of adding a new location and has been waiting on an electrical panel for over six months. “I could go on and on with examples (cardboard pricing, label pricing, bottle pricing), but I’m sure that everyone is seeing these same things at different levels.”

Supply chain disruptions have also impacted beer canning for Straight to Ale: “Our lead times on empty cans have tripled while the pricing has gone up 50% and the minimum purchase levels have doubled.

The restaurant side of the business, Ale’s Kitchen, is experiencing the same issues as Main Street Cafe, with prices increasing for all of the ingredients and shortages of necessary supplies. The restaurant has adapted by modifying its menus and using available food items to be able to continue to serve its customers. Perry expressed hope that things will eventually return to normal.

Although strains on the global supply chain are expected to ease by the second half of 2022, the use of creativity, flexibility, and patience will continue to pay off for small businesses as they adapt the lessons learned over the past couple of years to a changing economic environment. 

Perry’s advice to other small businesses is “to tighten everything up, get out ahead on ordering, be flexible, and hang on. I have faith that things will eventually get better, but the ride is going to be long and rough until we get to that point. Our customers are tremendously understanding and are continuing to support us through all of this, and we are certainly grateful for that.”