Small North Texas Businesses Facing Price Increases And Missing Product Due To Supply Chain Issues
DALLAS (CBSDFW.COM) - If worker shortages weren't already enough of a struggle for small businesses, now cracks in the supply chain industry are causing concern about getting product.
From restaurants to boutiques, business owners in Dallas' Bishop Arts District say they're finding necessities out of stock or stuck in transit, which on the back end are driving up prices.
"It's a mess, and there's no quick fix," said Brenton Phillips, Co-Founder of the Tribal All day Café. "Prices have definitely increased, and they seem to still be increasing."
Despite trying not to, he's had to slightly increase menu prices to compensate.
And he's not alone.
According to the USDA Consumer Price Index, the cost for restaurant purchases went up almost 5% from August of 2020 to August of 2021.
To put that in perspective, a $10 meal, would now cost you $10.50.
And though that may not seem significant, experts say think of it being added to all of your purchases.
"Unfortunately, I think costs are going to go up. We are going to be facing some inflation," said Dave Malenfant, a TCU supply chain expert.
He says it's a ripple effect of issues that stemmed before the pandemic, but has worsened because of it. And unfortunately, he says it's hitting all types of businesses.
Katy Sensenig Schilthuis is the Owner of Mosaic Makers Collective in Bishop Arts.
Her store sells locally made goods.
So far she says she hasn't had price increases just yet, but those who make her goods, have.
"For example, we have makers who print from paper and use plastic sleeves to hold their cards, and those are missing," Schilthuis said. "We have shipping from China that never made it, and they can't find the plastic we need anymore."
In the short term, business that rely on the holiday season are trying their best to order ahead and be prepared.
But unfortunately, experts say the current state of the supply chain backlog could stick around until spring of 2022.
"I am not optimistic, that It will get corrected before Christmas, or before the holiday season," Malenfant said.
