The beauty salon had to raise the price. Plastic bags for cleaning and ironing clothes are not available at dry cleaners. The restaurant offers a smaller number of french fries per order.
With inflation at its highest level in 40 years, it is becoming increasingly difficult for SMEs to remain open and provide jobs to support thousands of families in the Dallas region.
These businesses are pinched in multiple ways — more expensive supplies, higher utility bills, higher salaries, and often fewer customers who have been away since the COVID-19 pandemic.
According to the 2020 Census, about 97% of all Dallas County companies are SMEs, or about 50,000 in Dallas alone.
Many remained open thanks to pandemic support programs such as paycheck protection programs and financial injury and disaster loans. The Small and Medium Business Administration distributed $ 34 billion to Dallas / Fort Worth businesses in 2020 and 2021.
However, the year-on-year inflation surge, which reached 9.1% in June, threatens the survival of SMEs.
Three companies gathered at a shopping center at the intersection of Abrams Road and the Northwest Highway in northeastern Dallas Ardia How they deal with the economic crisis.
“I’m having a hard time”
“Since the pandemic, everything has been piled up and we’re having a hard time keeping our business up,” said María García, owner of Lizy Beauty Salon. “When gas prices went up and everything else soared, things were barely starting to settle down.”
Garcia, 62, who opened a beauty salon 22 years ago, said she frequently seeks jobs before the pandemic. But now it’s harder to find a worker.
“Girls will always come for a job, but (we) were fully staffed. Now I can’t find someone I want to work for. Sign up for” Wanted Employees “for months. I asked him to do it and came to the interview, but he didn’t come back, “says Garcia.
Revenue is declining because her salon has three slots available. People still need a haircut, but they don’t want to wait long on Friday and Saturday, the busiest two days, and leave when they see a long waiting list.
To make matters worse, hair styling products are also more expensive.
As a result, Garcia had no choice but to raise the price. Typical haircuts have gone from $ 16 to $ 18. Color retouching treatments now cost $ 70, but just a few weeks ago they were $ 65.
When many workers stopped going to the office or attending formal events during the pandemic, they also stopped sending clothes for dry cleaning.
“Everything people send to dry cleaners has something to do with the event and they have been cancelled,” said Syed F. Mehndi, 62, owner of Sterling Cleaner. “After we recovered and everything went well, prices went up and it became difficult to find a product at a reasonable price.”
A temporary tattoo known to customers as Frank said a box of wire hangers he could buy for $ 42 last year would cost him $ 65 today.
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“We are just surviving”
Next to the cleaner is the sandwich, smoothie and dessert restaurant Latin Deli, which was opened in 2011 by chef owner Fernando Varela.
Restaurants are one of the most affected by inflation. The Labor Statistics Bureau reported in June that the food cost index rose 1.8% from May, and prices for butter, sugar, flour, cereals, baked goods and dairy products skyrocketed.
On top of that, hiring workers for businesses that traditionally relied on tips has become increasingly difficult, and many have stopped eating out.
“Restaurant is the worst business to own so far. We just survive. There is no profit. It feels like everything was planned for us to go out of business,” Valera said. ..
Valera said he resisted the temptation to raise prices because his customers were always aware of it. Instead, he figured out a way to save money.
“We are reducing the number of French fries with sandwiches (and) the containers used for dressing are now smaller. We have to be creative,” Valera said.
Inflation has forced Valera to miniaturize. He once owned three places in his restaurant. One is Addison, the other is Plano, and the original is in northeastern Dallas. He closed one and sold the other.
He is betting on his original place to survive inflation. Three months ago, he raised his employees’ salaries by 20%. Still, he has a hard time keeping workers.
This restaurant has several outdoor tables. Menu items are written in large white letters on floor-to-ceiling glass windows: cupcakes, crepes, omelets, fresh lemonade. The sign just below says “Recruiting”.
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