Nashville Businesses Grapple With Inflation and Higher Costs
In Nashville, rising prices and the challenge of delayed hiring due to inflation are significantly impacting small businesses. Max and Kayla Palmer, the proprietors of a local bagel store, Bagelshop, narrate their journey from beginning their venture amidst the pandemic pricing to grappling with almost doubled flour prices.
Tackling Inflation, Every Day
It’s a daily apprehension for small businesses like Bagelshop as they confront inflation effects, such as rocketing operation costs and the complications of attracting and retaining a dedicated team. Furthermore, the National Federation of Independent Business’s (NFIB) Small Business Optimism Index stooped below its 50-year average of 98 in April, marking a persistent fall for the past 28 months.
Top of mind for business owners are the ongoing cost pressures, and the increasing numbers of owners are forced to bump up wages to retain their employees. According to the NFIB’s latest report, inflation is the primary cause of stress for small businesses across Tennessee and beyond.
Rising Wholesale Good Prices Impact Local Businesses
The U.S. Department of Labor’s recent report indicated a steady rise in wholesale goods prices extending to April. Meanwhile, average hourly earnings in Tennessee increased only by 2.4% during the last year, which doesn’t quite meet the mark. Max Palmer stated that he and his wife have done their utmost to curb the increased cost of essential goods rather than passing onto their customers. However, the rise in product costs, including salmon, cream cheese, and butter prices, have pressured the couple to make a slight increment in certain menu items.
Adjusting to Change
A minor fraction of business owners in a recent NFIB survey mentioned planning price hikes in April 2024, lower than the percentage from the previous year. Dean Wegner, owner of Nashville-based Authentically American, has navigated inflation by stressing product quality and enhancing company efficiency. The company refrained from carrying excessive inventory and postponed several appointments.
Nashville Chamber of Commerce Vice President of Research, Bishoy Mikhail, was upbeat about the rise in Nashville’s national purchasing power, stating that it has almost doubled that of the nation, “Our income levels are rising, and Nashville’s fast-paced growth is helping counterbalance the impact of inflation,” Mikhail added, pointing out that the city is aptly meeting challenges and buoying amidst the nationwide trends.
