How inflation has squeezed family-run businesses & gig workers

Over the last several months small business owners and working class people have struggled to stay afloat as prices for all kinds of goods and services rise.

The increase in prices — that sense you get that your dollar doesn’t stretch as far — is known as inflation.

Data from the U.S Bureau of Labor Statistics show that the price of most goods and services has increased 6.5% in the last year.

This increase has affected both consumers and business owners.

Aron Celnik owns Grandi Italiani, a small, family-run Italian restaurant. They have two locations and have struggled to keep the second location running due to the rising prices in the country.  

Celnik did raise his prices a while back however, but it hasn’t been enough to keep up. Celnik also said  the recent rise in gas prices has hurt business. Many people have decided to stay home and cook rather than spend money on going out to eat.

“Even though we’re a cafeteria style operation,” he says, “it’s going to cost 30-40 dollars to feed a family and some people are probably saying, ‘Okay, honey, do we take the kids out to eat tonight or do we fill up the gas tank?’ So that’s my biggest problem right now.” 

Inflation is just the latest trial that the owners of the restaurant Grandi Italiani have faced. Celnik considered closing in 2019. But after posting an ad on Facebook, Celnik says he received a flood of support both from customers and former workers. 

“The response was just mind-boggling,” says Celnik, “I had some former employees from another restaurant come in to help me out and it was just like gangbusters over here and so that told me ‘Okay, people really want us to stay here.’ ” 

In the years since — including through the pandemic — Celnik says he has not made a profit, but he continues to run his restaurant because of the passion he has for his business. He also says his employees depend on their income from his restaurant to provide for their families.

To make more of an income, Celnik says he charges an extra 20-percent when customers decide to use food delivery services like Uber Eats and Doordash. 

Government figures show gasoline prices have inflated 48% over the last year. A gallon of gas costs around $1.60  more than it did at this time last year, according to the Auto Club of Southern California.

Inflation has hurt many workers who drive for a living, like drivers for food delivery apps like UberEats and Doordash.  

Connor Grant is one of the many drivers who recently decided to quit driving for Doordash after gas prices rose too high. Grant was also inclined to leave Doordash because he had to worry about keeping up with the maintenance on his car; he says it got to be too much. 

“As far as everything maintenance wise, you’d go through tires, brake pads, all of that a lot quicker; oil changes every month or two and I did have to get a few repairs on my car just because, you know, with my job I’d easily be driving over 100 miles a day,” says Grant.

Compared to this time last year, gas prices have increased by around $1.60 per gallon, according to AAA.. Grant also says that had these changes been in place when he was working for the company, he might have considered staying. Grant quit doordash in February of this year due to gas expenses.

UberEats created a plan for their workers so that they can receive money for gas instead of paying most of it out of pocket. UberEats Driver Luis Muñoz says the company charges customers an additional 45 cents per delivery; this money goes directly to the delivery drivers to help cover the cost of their gas. 

Muñoz says inflation is affecting his earnings in other ways.

“I am seeing less on my tips,” Muñoz says. Referring to the amount of dollars in his tips, he says, “I used to get tens, fifteens, twenties, but now I am seeing more fives and tens.”

Grant meticulously tracked his expenses working for Doordash, using an Excel spreadsheet to help him manage his money. He calculated that 35-percent of his DoorDash income went into his vehicle. Grant, like Muñoz, says he had seen a decrease in the amount of the tips he received. 

Before quitting, Grant says he had to get a second job as an Amazon driver just to make ends meet. He also says he had to pick and choose what orders to take and determine whether or not the money was worth it. 

Though he ended up leaving the food delivery business, Grant says he regrets not working more during the rush of Doordash and has learned to seize opportunities.

“Never take anything for granted,” Grant said. “You know, when I was doing Doordash and it was really profitable and gas was really cheap you know you feel like it’s gonna last forever.”

This story was produced by Francisco Campos, Ruby Cordova & Jonathan Greenstein.