Inflation is cooling, but small businesses are still suffering

Kevin Meehan, the owner of a restaurant in Los Angeles, has been facing challenges in the past months due to slower holiday sales and the impact of the “Dry January” trend on alcohol sales. Small businesses in the US continue to struggle with inflation, labor shortages, and a weakening consumer. Meehan, despite having a Michelin star, feels insecure about the future of his restaurant as costs for labor and supplies continue to rise. Recent data shows a decline in retail sales in January. Small businesses are vital to the US economy, but passing down higher costs to consumers has become more difficult. Sarah Cash, who owns a gift shop in Michigan, has also experienced a decrease in spending. Despite easing inflation, small businesses may still face challenges in the near future. However, some small business owners are optimistic and plan to grow their businesses in the upcoming year. Meehan remains hopeful for a turnaround in his restaurant’s fortunes.