CLEVELAND HEIGHTS, Ohio — Small businesses up and down Coventry Road are feeling the effects of inflation, now up 7.9% from a year ago.
"In a restaurant, you almost have to have your menu on an Etch A Sketch," Tommy Fello joked. "You lift it up and write it down again, because you can't keep up with it fast enough."
Fello's namesake, Tommy's Restaurant, is an institution that's survived 50 years. But this inflation is no joke.
"It's very difficult to be able to keep up," Fello said. "Small businesses are run on percentages. When you're working on percentages, man, your bottom line is affected very quickly."
Food and energy costs are pushing prices to their highest in more than 40 years, since January 1982. Gas, groceries, and housing were the biggest contributors to the Consumer Price Index.
On his books, Fello says labor is more expensive, along with nearly every ingredient. Proteins have spiked the steepest, along with paper products, like the compostable carryout containers they use.
"Pre-COVID it was $38 and something," Fello told 3News. "I just paid $98 a case.
"Certain people that don't know how a restaurant works see it and say, 'Why are we paying so much?' But then once they walk into a grocery store and find out how much they are paying for a pound of ground beef, a little bell goes off in their head — or hopefully it will — saying, 'No wonder it's going up!'"
Now Fello's been warned by suppliers of delivery surcharges for rising diesel fuel prices.
"That's just getting it in the door, being able to find it, and supply and demand always dictates," he said. "You know [if] there's a little bit of stuff, you're paying top dollar for it."
At Phoenix Coffee Co., manager Sean Miller says rising costs are also forcing their hand, but they've seen grace thanks to loyal customers.
"We raised our prices, and we actually printed out a paper that explained in detail what is going on and why, and I think that our customers really appreciated that transparency," he explained. "One of the great things about working for this company is the loyalty from the customers. They want to see us thrive.
"It’s been easier than expected. People have been really understanding."
Nearby Avalon Exchange is known for its affordability. Saybronn Terrance says they've noticed an uptick in people coming in not just to shop for the boutique's name brands, but to sell their own items.
"Second-hand goods are our heart and soul," Terrance added. "Anybody is coming in and just selling their stuff, saying, 'Hey, I'm just trying to get some food,' or, 'Hey, I'm just trying to get some gas money.' Everything has gone up. The price of everything has gone up tremendously."
Here in Coventry, they're feeling the solidarity of the community they serve, for everyone is feeling the pinch.
"We're really part of the community," Terrance said, "and we heavily reflect on that with our prices."
"I think what's really important to a small business is for local support," Fello agreed. "I can't tell you how important it is, and really it reciprocates with rewarding people in the neighborhood, because those tax dollars stay right here in the neighborhood."
Customer loyalty is how these small businesses will keep the lights on, as paychecks are not keeping up with those prices. Inflation-adjusted earnings dropped 0.8% in February, contributing to a 2.6% decline over the past year.
On Thursday, gas prices jumped up again, too. Ohio is now sitting at an average of $4.09 a gallon for regular fuel.