Inflation, job market hurting small businessesIn the best of times, restaurant owners operate on thin margins. Now, rising costs are making it even harder for independent eateries to survive. Jenna Petersiel, owner of Chilmark Tavern on the island of Martha's Vineyard in Massachusetts, spoke with CBS MoneyWatch about how she keeps her business afloat. This interview has been edited for length and clarity.
We never charge enough here. Chilmark is a dry town so we are BYOB, and most restaurants make all of their profit off of alcohol and are lucky if they break even on food. We have to make money off of food to cover all the costs. I find myself stuck in this spot where it's like,"How high can we go until it's simply not ok anymore?"
We had to close even though we had purchased food — had perishable food —but there was nothing we could do. We saved what we could and had to throw away a bunch of stuff, which feels awful. We lost the two weeks before Fourth of July which are usually tremendous weeks for us. Right now, what is important to me is making sure our kitchen staff is paid well and is appreciated. Sometimes that actually takes precedence over making sure the restaurant is profitable, because it's hard watching people work 16 hours a day in a hot 110 degree kitchen and not make enough money. I don't want to be that kind of boss — to push people to their edge.
Martha’s Vineyard. Checked their menu. $28 hamburger. And $11 French Fries. Kid Chix fingers and fries $15. No liquor license. Sounds like a tough business model.
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