Businesses are feeling the pressures of the rising cost-of-living

Date published: 17 December 2022

Local business owners have shared how they’re coping in the cost-of-living crisis as we head into the winter months.

The rise of the cost of living has put a squeeze on consumer spending and many small businesses in the area are noticing the differences.

Kimberly Wood, owner of Petit Bistro, said: “I bought this business in April and since then, food has gone up in price massively. I’ve had to change all my prices once already because of inflation.

“Even when I go to another café or a restaurant, I sometimes have a bit of a moan about the prices, but now that I have my own place, I understand why they’re doing it – It’s hard. We’ve got to do it to survive.

“We’re on a fixed electricity bill at the moment but that still doesn’t mean you’re not going to get a big bill at the end of it. I’m using near enough triple to what I was in April, and they’ve told me they’re going to put the price up. I’m probably going to get a huge bill at the end of this year.”

Mohammad, owner of Rochdale discount store, said: “The main thing is electricity. Even at home we used to pay £43 but now it’s gone up to £285. It’s the same in the shop as well… What we pay now has more than tripled.

“The shelves look empty, we don’t get as much stock now. Before I would sell something for a pound but now that’s changed to £1.50 or £2 and customers have started complaining.

“I’ve noticed that less customers are coming into the shop because the prices are higher now. When they see the differences in cost, they put the items back down.”

Kavi Mahood, employee at House of Vapez Rochdale, said: “We’ve recently opened so we’re actually gaining a lot of customers, but the prices have definitely changed a lot, they’re on the rise. Wholesalers are charging us more now.

“In the e-cig business especially, a lot of the customers are very picky and they’ll complain if the prices get too high and they’ll go elsewhere like Home Bargains. But right now, we’re still fairly priced and we’re doing well.”

The continuous increase is being driven by a variety of factors which include inflation, supply chains and energy.

While inflation is measured by the Consumer Price Index, smaller businesses are seeing rapid inflation in the cost of materials and business services. Higher consumer shopping basket prices put pressures on wages too, as employees seek higher salaries to meet the increased cost of living.

The cost of transportation and shipping, including importing and exporting food goods, has increased across the board. Fuel prices have soared, with diesel increasing 79% from December 2021 to July 2022.

Non-domestic electricity costs increased by 29% between Q1 of 2021 and Q1 of 2022, and non-domestic gas prices rose 71% over the same period, according to the governments Quarterly Energy Prices data. This impacts high energy businesses such as manufacturing, warehousing, hospitality, and refrigeration businesses.

In August, Greater Manchester launched an information hub that helps with issues ranging from food and energy bills, managing household finances, mental health and wellbeing, and much more.

For more information on this, visit the Rochdale council site here: www.rochdale.gov.uk/cost-living