Ben Hull can get a “little anxious” when some customers come in to order.
“I’ve sort of hidden from some regulars,” he said.
“I was embarrassed that I couldn’t give them what they’d come in for every week for the past four years.”
In recent months he has had to regularly update his burger shop menu on South Australia’s Limestone Coast to reflect food supply shortages and rising costs, influenced by the pandemic and war in Ukraine.
In three years the price for a 20-litre drum of cooking oil has increased from $36.50 to $67. The 12-kilogram box of chips Mr Hull was ordering for $26.50 last year is now $42.95.
“It’s massive, that’s close to double,” Mr Hull said.
“I obviously don’t have the ability to double the price of that product in my store, because that’s just insane.”
“No-one’s going to pay that. But it sort of cuts into the potential profit massively.”
Longstanding menu items at Mount Gambier’s Natural Born Grillers like potato gems, mozzarella sticks and onion rings have been scrubbed from the list because they’re too expensive or not available.
Other menu items he will make a limited number of.
“I just sell out of a lot of stuff because I don’t want to spend that money [on ingredients]. I can’t afford to spend that money,” Mr Hull said.
The constant changes have led Mr Hull to designing and printing his menus at the local library himself.
“It doesn’t look as good … but, not horrible,” Mr Hull said.
Despite the challenges, Mr Hull said business had remained steady and he was appreciative of his supportive customer base.
Price increases crucial to business survival
The anxiety experienced by Ben Hull is a common experience for small business owners, according to Business SA chief executive Andre Kay.
“It’s always a challenge for businesses to pass on price increases, but it’s actually good business practice to do that, because the alternative is to go out the door backwards,” Mr Kay said.
He said it could be particularly tough for regional operators, who knew their customers.
“We have seen small businesses in hospitality in the likes of cafes, and fish and chip shops actually close down because they’ve been reluctant to pass those costs on,” Mr Kay said.
“They know the people that are coming in, they’re effectively their friends, and they’re reluctant because they know that consumers are also facing the same struggle around rising costs.
“But coming out of the pandemic, they need to do that. Otherwise, it won’t be viable for their business not to.”
Mr Kay said it was equally important for customers to keep supporting these businesses when they did up prices.
“If we don’t support them, they just won’t be there in the next 12 months for us to enjoy,” Mr Kay said.
“And we need to understand that they’re not price gouging.
“They’re simply passing on, probably not even all but a part of the costs increase they’ve been experiencing.”