Economic pressure causes local restaurants to struggle
ORLANDO, Fla. – In a year marked by the closures of beloved restaurants like Kappy’s Subs in Maitland, Pom Pom’s Teahouse in the Milk District, and Hamburger Mary’s in downtown Orlando, the Central Florida restaurant scene is facing unprecedented challenges.
Rising costs and a hot labor market are squeezing the lifeblood out of cherished local businesses. Among those navigating these turbulent times is the Bakery Colombian Cafe in Avalon Park, a vibrant eatery with a story as colorful as its decor.
Two years ago, Heidi Lopez and her husband George decided to bring a piece of their heritage to Avalon Park, “Every color you see here, every piece you see, it came from our heart,” said Lopez, co-owner of the Bakery Colombian Cafe.
Their vision was to create more than just a cafe; they wanted a space that reflected their values of respect, love, consistency, and tidiness. Their hard work and dedication quickly earned them a loyal following and a stellar 4.9 rating on Google.
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Rising costs
Despite their success, the Lopez family is feeling the pinch of a challenging economic landscape. The price of food has soared due to inflation, and labor costs continue to rise.
“Before COVID, during, and after, the price increased not only for the food but the payroll increases every year,” Lopez explained.
Economist Sean Snaith from the University of Central Florida sheds light on the broader economic pressures, like minimum wage hikes (now $13 per hour), facing small businesses.
“That’s one dollar per hour per employee hour worked. You start adding that up across a staff, that’s not a small amount of money anymore,” Snaith said.
Snaith emphasizes that while Florida’s economy remains robust, the micro-level impact on small businesses is significant. Higher minimum wages, escalating rents, and increasing food costs are pushing many to the brink.
“These same establishments that have been successful are facing higher minimum wage, higher rent, higher costs for the food. I think it was a culmination of all these things that made these businesses realize we can’t work in this new environment,” Snaith said.
Despite the economic hurdles, the Lopez family remains optimistic. Their faith and the unwavering support of their community keep them going.
“I’m really hopeful. I keep praying every single day. People coming every day. It’s a huge blessing for us,” Lopez shared with a smile.
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