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Massachusetts brewery forced to cut jobs due to CO2 shortage: 'Huge threat to our business'

Fri, 29 Jul 2022 15:12:01 GMT

Auto fuel is not the only gas in short supply.

A popular craft brewery and small-business success story in Massachusetts is cutting jobs after learning that a CO2 shortage is causing its vendor to scale back on deliveries.

"Our CO2 supply has been cut for the foreseeable future, possibly more than a year until we get more," Night Shift Brewing of Everett, just outside downtown Boston, announced on Wednesday via Facebook.

"This is a huge threat to our business," the company also said.

6 BREWERIES ACROSS AMERICA THAT OFFER GREAT BREWS AND STUNNING VIEWS, TOO

Carbon dioxide is essential to the production of beer and many other foods and beverages.

Twelve employees were told they could lose their jobs in October, the Facebook post stated, as the fallout from COVID-19 restrictions continues to devastate sectors of the economy.

"Since COVID hit, we’ve been dealing with various supply-chain shortages and all kinds of issues," Night Shift Brewing co-founder Michael Oxton told FOX Business in a phone interview on Friday.

"This is the straw that broke the camel’s back. It has put us in a tough spot. It’s awful."

MICHIGAN STORE OWNER SAYS BABY FORMULA SHORTAGE GETTING WORSE: ‘NONEXISTENT RIGHT NOW’

As many as a dozen other breweries in Massachusetts are also facing shortages of CO2, he said.

"It’s looking like a long hot summer ahead for the U.S. carbon dioxide (CO2) market, with some areas [across America] witnessing a tightening in supply," Gasworld, which reports on the global industrial gas sector, announced on July 4.

Night Shift was founded in 2012.

It has been lauded as one of the nation's most successful craft breweries.

It was the third-largest brewery in Massachusetts in 2020, behind only industry giant Samuel Adams and regional craft-beer titan Harpoon Brewery, according to the Boston Business Journal.

"It was an awful, terrible conversation to have with a really wonderful group of people, many of whom have been with us since the beginning," the company's social media post stated of the looming job losses.

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Production will continue with an assist from other local breweries, while Night Shift's brewery taproom will remain open and business as usual, Oxton said.

The brewery, he said, has also battled shortages of malt and the aluminum used in its popular colorful beer cans over the past two years.

Night Shift employees number 110 people year-round — and up to 150 people during the busy summer season.

Three ways small businesses can drive our economic recovery

Thu, 28 Jul 2022 15:00:35 GMT

A lot can change in 40 years. In 1981, America was making the transition from rotary phones to the newer, high-tech "push-button" phone. The Oldsmobile Cutlass was the best-selling car that year. And NASA sent the first reusable spacecraft into orbit from the Kennedy Space Center in Florida with a crew of veteran astronauts. 2022 is a different story. The vast majority of our nation’s population has a smartphone – most of which function as little computers and can be used in place of your credit cards. Americans are being launched into space for a few minutes just for fun. And there are cars on our roads that can drive themselves. But despite how far we’ve come, there is one thing the 1981 version of America has in common with the one we live in now: record high inflation levels.

American small businesses play an outsized role in our economy, employing just under half of all workers across the country, and creating roughly two-thirds of the net new jobs since 1995. But over the past two years we have seen Democrats at every level of government enact draconian economic closures throughout the pandemic, tragically resulting in one-out-of-three small businesses across the country shutting their doors for good. The loss of these small businesses will have profound, long-term effects on employment, local tax revenues, and lost opportunities to create innovative new goods and services, with ramifications that Democrats in Congress and the White House haven’t even begun to understand.

For the small businesses that were able to survive the pandemic, the future of the "Biden Economy" looks similarly bleak. According to recent data from the Job Creators Network, the number one concern for these entrepreneurs are higher prices, with 72 percent of them believing that the Biden Administration has failed to combat inflation. While some blame President Biden’s abdication of responsibility and inaction, it is critical to understand that his reckless spending in the form of the American Rescue Plan is responsible for catapulting the U.S. inflation rate ahead of other developed nations.

MINIMUM WAGE INCREASE COULD HURT SMALL BUSINESSES, SAYS RESTAURANT OWNER

It is extraordinarily frustrating to watch this administration’s failure to acknowledge the problem these "spend first, ask questions later" policies have created. The second quarter GDP numbers show our nation’s economy has shrunk for the second quarter in a row – quite literally the definition of a recession – but this administration continues to live in denial. President Biden and Treasury Secretary Yellen have both refuted the possibility of a recession despite the numbers showing that’s where we’re unfortunately headed.

Democrats in the White House have told us that inflation was a high class problem, and not to believe what our pocketbooks were so plainly telling us about the issues within the economy. But inflation just reached at a 40-year high and gas prices have been setting records for the last year. Americans are having to pay an average of $10,000 more on used cars and 33 percent more for a carton of eggs. President Biden told us a year ago that inflation was just "temporary," but at 9.1 percent, it’s projected to cost the average American household an extra $6,000 this year. That’s unacceptable, and this administration standing by hoping these rates will go down on their own is not a strategy.

House Republicans have an actual plan. As the top Republican on the House Small Business Committee and member of the House GOP Jobs & Economy Task Force, I will ensure that the small business recovery is a cornerstone for the recovery of the broader economy.

First, we must protect small businesses from tax increases that kill jobs and drive-up prices. To do this, Congress should double down on the vital small business provisions included in the Tax Cuts and Jobs Act, which led to the strongest economy in our nation’s history prior to the onset of COVID-19.

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Second, not only does Congress need to cut red tape and reduce burdensome regulations, but it should be done in a way that makes it easier for smaller businesses to navigate. The smaller a company is, the more difficult and expensive it is to comply with the complex web of local, state, and federal rules. By tailoring regulations to be less burdensome for smaller companies, we can keep them competitive. To do this properly, Congress will need to elevate the voices of small business owners and operators when federal agencies go through a rulemaking process, so D.C. bureaucrats can no longer crush someone’s life’s work with the stroke of a pen.

Finally, policymakers need to incentivize the development of a larger skilled workforce. Recent data shows that 97 percent of small businesses face labor shortages as they try to fill open jobs. To address this, Congress needs to support career and technical education, target federal funds to close the skills gap between employers and the workforce, and support the gig economy so freelance workers have greater flexibility and independence.

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This formula to help small businesses recover isn’t complex – but it is effective. At the end of the day, it’s just about making it a little bit easier for companies on Main Street to make payroll, pay for materials, and keep their doors open for business. Republicans on the Jobs & Economy Task Force are ready to take the commonsense steps to address these issues and create a real economic recovery for small businesses in America. Small businesses are drivers of our economy. If we give them the tools to thrive, they have the power to right the ship for the American economy as a whole.

Republican Blaine Luetkemeyer represents Missouri’s 3rd District in the U.S. House of Representatives. He is the Ranking Member of the House Small Business Committee and also serves on the House Financial Services Committee as Ranking Member of the Subcommittee on Consumer Protection and Financial Institutions.

Warren Buffet-owned mortgage company discriminated against Black and Latino homebuyers

Wed, 27 Jul 2022 19:39:18 GMT

A Pennsylvania mortgage company owned by billionaire businessman Warren Buffett's Berkshire Hathaway discriminated against potential Black and Latino homebuyers in Philadelphia, New Jersey and Delaware, the Department of Justice said Wednesday, in what is being called the second-largest redlining settlement in history.

Trident Mortgage Co., a division of Berkshire's HomeServices of America, deliberately avoided writing mortgages in minority-majority neighborhoods in West Philadelphia like Malcolm X Park; Camden, New Jersey; and in Wilmington, Delaware, the DOJ and the Consumer Financial Protection Bureau said in their settlement with Trident. As part of the agreement with the DOJ and the CFPB, Trident will have to set aside $20 million to make loans in underserved neighborhoods.

"Trident’s unlawful redlining activity denied communities of color equal access to residential mortgages, stripped them of the opportunity to build wealth, and devalued properties in their neighborhoods," said Kristen Clarke, an assistant Attorney General of the Justice Department’s Civil Rights Division, in a prepared statement.

Redlining is a term used to describe when banks deliberately avoid making loans to non-white communities. Banks and the U.S. government used to draw on maps in red marker those neighborhoods that were deemed undesirable to make home loans — hence the term "redlining." The neighborhoods were almost always areas where racial minorities lived, and even included other historically discriminated-against communities such as Jewish neighborhoods.

The practice effectively cut off entire communities from the primary pathway for wealth generation in the U.S.: homeownership. To this day, Black and Latino households are far less likely to own their home compared to their white counterparts.

WARREN ACCUSES BLOOMBERG OF LYING OVER 'REDLINING' HOUSING PRACTICE

The redlining activity DOJ alleged happened between 2015 and 2019 — Trident stopped writing mortgages in 2020. Along with avoiding making mortgages in minority neighborhoods, the employees of Trident made racist comments about making loans to Black homebuyers, calling certain neighborhoods "ghettos." One manager of Trident was photographed posing in front of the Confederate Flag. The marketing materials used by Trident involved exclusively white individuals, and nearly all of the company's staff were white.

Josh Shapiro, Pennsylvania's attorney general who is running for governor, called the behavior by Trident "systematic racism, pure and simple."

Philadelphia has a long history of racism toward Black homebuyers. The Philadelphia City Council released a report Wednesday that found that 95% of all of Philly's home appraisers were white and a racial gap remains between how homes owned by Black homeowners are valued versus homes owned by white owners.

BLOOMBERG, IN 2008, SAID ENDING 'REDLINING' HELPED TRIGGER FINANCIAL CRISIS

Trident also agreed to hire mortgage loan officers in impacted neighborhoods as well as pay a monetary fine of $4 million. Since Trident no longer operates a lending business, a separate company will be contracted to provide the $20 million in loan subsidies, the DOJ said.

The Trident settlement also involves the first redlining case against a nonbank mortgage lender. Since the Great Recession, roughly half of all mortgages in the country are underwritten by companies that immediately sell off the mortgage to investors. These nonbank lenders include firms like Quicken Loans, Rocket Mortgage and Loan Depot, among many others.

"Credit discrimination is illegal regardless of whether the lawbreaking company is a traditional bank or a nonbank lender," said Rohit Chopra, director of the Consumer Financial Protection Bureau.

CHICAGO PROPERTY LAW DOES NOT END REDLINING IMPACT, ACCORDING TO REPORTS

In a statement, HomeServices of America said they "strongly disagree" with the DOJ and CFPB's findings in the settlement, noting that Trident did not have to admit to wrongdoing as part of the case. Buffett himself did not immediately respond to a request for comment, but historically has deferred any comment to Berkshire's subsidiary companies.

Farmers cash in on 'agritourism' amid summer camping season

Fri, 01 Jul 2022 21:20:12 GMT

At a Christmas tree farm in the heart of Ohio’s Cuyahoga Valley, the start of summer is busier than one might expect.

Among the trees, there are dozens of tents and eager campers ready to stay the night. It’s an unusual camping experience Heritage Farms owners George and Carol Haramis have offered for almost a decade.

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"It never occurred to them you could camp on a Christmas tree farm," George Haramis told Fox Business. "This has been a family farm for 175 years, and each generation had done something different. … This [camping] is one small part of what we’re doing to keep things going."

The Haramis’ campground is part of the nation’s growing "agritourism" economy that links agricultural production to travel by attracting visitors to farms for entertainment.

It’s a nearly $1 billion industry, according to the latest U.S. Census of Agriculture.

"At the farm, you have nice access both to modern amenities, restaurants, and, you know, shopping. But out here you might as well be in the wild wilderness … it’s every bit of a national park environment," George Haramis said.

SELF-PROPELLED AIRSTREAM ESTREAM IS THE FUTURE OF TRAVEL TRAILERS

Haramis said he maintains about 15 camp sites, including a handful of rainproof shelters, from April to October. In June, camper Stephanie Hoover said she was happy to find Heritage Farms in the middle of a cross-country road trip.

"The problem with a lot of state parks is it tends to get crowded," Hoowver said. "We always try for other areas where it allows us to just separate ourselves from our city life that we experience every day."

Industry insiders say agritourism has become increasingly popular amid the pandemic. Hipcamp, a camping platform similar to AirBNB, reports that demand for camping on private land has grown 470% since 2019.

Sameer Dohadwala, Hipcamp’s global head of operations, said the concept benefits both campers and hosts in ways traditional camping cannot.

"The primary benefit for the hosts is economic opportunity. In the last year, we’ve put more than $31 million into hosts' pockets just in the U.S." Dohadwala said. "Besides the money, this is an opportunity for many of our hosts to share their land and connect with people."

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Dohadwala anticipates more people will opt to explore the outdoors through agritourism in 2021, as traditional campsites at national and state parks continue to see large crowds and reservations.

Montana tourist towns on edge after flooding damages Yellowstone National Park

Tue, 21 Jun 2022 00:42:10 GMT

Tourist towns that rely on Yellowstone National Park are on edge a week after historic flooding may have permanently damaged part of the park. Most of the damage is in the north, but Yellowstone’s south loop will reopen to the public Wednesday.

In Red Lodge, Montana the community is working on clean-up efforts and waiting to see how new limits on visitors will affect business.

Thousands of people must pass through the town of Red Lodge’s main street of restaurants and shops to get to Beartooth Pass, a scenic drive that takes you to Yellowstone. That pass is now closed for repairs after massive flooding. Residents say this is the quietest they’ve ever seen this town, something businesses are sweating about.

"Red Lodge is a tourism community it relies almost 100% on tourism," Gena Burghoff, one of the owners of Prerogative Kitchen, said.

The restaurant sits on the main street of restaurants and shops that welcome tourist on their way to Beartooth Pass. The town of about 2,100 people relies heavily on summer travel.

"These streets are packed on the weekends, especially this time of year," Burghoff said.

But the streets are mostly empty the weekend after the flooding, something Burghoff blames on the closing of Yellowstone National Park.

"Everyone is taking a 50-75% hit right now and this is our only time to make money in the summer," Burghoff said. "Coming out of COVID, we just got our feet back on the ground and now this. Like we were ready to catch up, and it’s just really frustrating right now."

One of her employees escaped his basement apartment with only his cell phone and pajamas. He had to smash a window to get out, and the flooding totaled his car too.

"We have six homeless employees, three lost everything, and a couple others lost 50% of the things," Burghoff said.

Yellowstone will start letting in visitors this week on a limited basis, while trying to balance preserving the park, keeping the local economies running and tourism demands.

Elk River Outfitters offers horseback riding at the base of the Beartooth Mountains. Owner Brad Edwards says he’s never seen flood damage the town this bad before.

"I think if people will keep their heads, things will be fine, but we are already seeing a lot of bookings canceled," Edwards said.

Edwards says they usually take 25-30 people out riding a day in the summer. They barely saw that many people all last week. Edward’s says his family members puts it best, they’ve experienced it all.

"First the pandemic, then last year all the heat and drought. This year flooding. He goes, 'I’m starting to think you have the 40 horses of the apocalypse’," Edwards said.

He said stock up hay in the summer to feed the horses in the winter, but many of their hay is stored in Billings and across Montana are all underwater. Losing the hay to flooding will be a big financial hit, since it costs three times more for hay now than it did a year ago.

Businesses urge tourist to still come and visit, but to be patient since many workers are displaced and have lost everything.

Mississippi restaurant owner on real cost of inflation: Never seen anything like this before

Fri, 20 May 2022 14:20:48 GMT

A Mississippi restaurant owner said on Friday that soaring inflation makes it "hard to be in our business" right now as restaurateurs are dealing with a "perfect storm."

Jeff Good, who co-founded three restaurants in Jackson, Mississippi, noted that he’s forced to charge $27 for chicken wings, while the real cost is $34.

"We’re turning a profit, we’re just not turning the profit that we would based on the math of how restaurants price their items," Good told "Fox & Friends First" on Friday. "It is expensive."

He noted that a lot of items are on a "continual rise," but "luckily sometimes something falls" and he gets a little break.

"But right now we kind of have the perfect storm of demand, of scarcity, the Ukrainian war, Avian flu, supply chain, it is hard to be in our business," he added.

INFLATION SOARS 8.3% IN APRIL, HOVERING NEAR 40-YEAR HIGH

Around 18 months ago, a 40-pound box of chicken wings cost Good about $85, but now, the price could reach as high as about $150, the Orange County Register reported.

Good also reportedly said that expenses for cooking oil and flour have nearly doubled in the past five months and noted that he's paying more for labor as well.

The outlet reported that the company that maintains its air conditioners has tacked on a $40 fuel charge per visit. To deal with all the price hikes, Good reportedly said he has been forced to raise menu prices.

Good, who has been in the restaurant industry for 30 years, told "Fox & Friends First" on Friday that he has never seen anything like this before.

He noted that he has experienced "seasonal issues" in the past.

"You might have a drought that would cause problems with romaine lettuce or field greens coming out of Salinas Valley in California. You might see something with the orange crop in Florida," Good explained.

"But to have something that is universal and global like this is really unheard of."

He then said that because of the current situation, "we are doing everything we can to be decisive in our decisions, very frugal, but also we are just very thankful that our customers really understand this."

"I think since everyone goes to the grocery store and everyone goes and buys gas, they can see that everything is expensive," Good continued.

Earlier this month it was revealed that inflation cooled on an annual basis for the first time in months in April, but rose more than expected as supply chain constraints, the Russian war in Ukraine and strong consumer demand continued to keep consumer prices running near a four-decade high.

The Labor Department said earlier this month that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 8.3% in April from a year ago, below the 8.5% year-over-year surge recorded in March. Prices jumped 0.3% in the one-month period from March.

Those figures were both higher than the 8.1% headline figure and 0.2% monthly gain forecast by Refinitiv economists.

The slight slowdown in inflation last month came as energy prices declined 2.7%, driven by a 6.1% drop in gasoline (which had climbed a stunning 18.3% the prior month as a result of the Russia-Ukraine war).

Still, price increases were widespread: Food prices have jumped 1% over the month, marking the 17th consecutive monthly increase for that index. The largest monthly increases were in dairy (2.5%, the sharply monthly increase since 2007), meats, poultry, fish and eggs (1.4%) and cereal and bakery products (1.1%).

On Friday, the national average for a gallon of gas was $4.59, a slight increase from the day before and a new record high.

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Thursday’s record was 16 cents higher than the week before, nearly 50 cents higher than the month before and $1.55 more compared to the same time last year.

Tighter supply and increased demand have pushed gas prices higher, according to AAA.

"As restaurants have to make adjustments to their prices," Good said. "I think the consumer is actually quite kind and we appreciate that cause we’re just trying to do what we can do."

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Inflation key issue impacting small business: Former SBA Administrator

Thu, 19 May 2022 14:32:45 GMT

Former Small Business Administration head Linda McMahon argued on Thursday that small businesses are "'impacted most by inflation," which sits near 40-year highs.

Speaking with "Mornings with Maria" on Thursday she detailed how small business owners "are really being hurt" by the price hikes, noting that "inflation makes their cost of goods higher."

"They try to pass those costs onto consumers, but consumers can only absorb so much," she continued, pointing out that even if consumer wages increased, "inflation is eating away at that and they are really in a negative position."

The Labor Department revealed earlier this month that average hourly earnings rose by 5.5% year-over-year in March, down slightly from 5.6% the month before. The data comes amid surging inflation, which sits near 40-year highs.

Inflation cooled on an annual basis for the first time in months in April, but rose more than expected as supply chain constraints, the Russian war in Ukraine and strong consumer demand continued to keep consumer prices running near a four-decade high.

INFLATION SOARS 8.3% IN APRIL, HOVERING NEAR 40-YEAR HIGH

Those figures were both higher than the 8.1% headline figure and 0.2% monthly gain forecast by Refinitiv economists.

"When you look at the cost of gas, the cost of groceries, the small businesses are really being hurt by all of these," McMahon noted.

On Thursday, the national average for a gallon of gas was $4.58, an increase from the day before and a new record high.

McMahon also pointed out that" there are still 11 million job openings that remain unfulfilled with small businesses."

She explained that small business owners "are having a really difficult time hiring workers," even though the majority have raised wages to retain workers.

"And 61% have said that they are looking for more people to come in and they can’t find them," she added. "So it’s really a tough situation for small businesses."

The National Federation of Independent Business (NFIB), a small business advocacy organization, detailed inflation’s impact on small businesses last week, after the latest inflation data was released.

NFIB Vice President of Federal Government Relations Kevin Kuhlman said in a statement that "small business optimism is now at its lowest level since April 2020, while most Main Street employers report that inflation is substantially impacting their business."

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NFIB’s recent monthly survey revealed that nearly a third of small businesses reported inflation as their single most important business challenge. The survey also revealed that owners expecting better business conditions in the next six months dropped to the lowest level on record, according to NFIB.

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FOX Business’ Megan Henney contributed to this report.

NYC restaurant 'getting killed' by inflation, crime spikes

Thu, 12 May 2022 15:26:08 GMT

Bobby Van's Steakhouse owner Joseph Smith said that soaring inflation and a rise in crime in New York City have caused him to lose about a million dollars in business on a monthly basis between his eight restaurants.

"You take all that together and we are getting killed," Smith told Fox News Digital, stressing that crime and inflation has been "absolutely devastating" for business.

"Everything has gone up from gas to my employees’ rents," he said, noting that his workers have been asking for raises to account for the higher costs.

Smith said that he has been raising wages by $2 to $3 an hour depending on the position, but that the move further impacts his bottom line.

"You can’t really say no when you know they have three children and their rent is going up, their gas is going up, to buy food is going up," Smith said, noting that he also gives his employees chicken, rice and beans every Friday to help them out with the inflationary pressure.

Smith also noted that he has been "forced" to raise menu prices 10 to 20% depending on the item as his labor and input costs have soared.

INFLATION SOARS 8.3% IN APRIL, HOVERING NEAR 40-YEAR HIGH

"We are taking a second look now again, and we might have to make another move, which is the feeling of most restaurateurs," Smith said. "We don’t want to do it because there is only so much you can charge for a meal [and] there is only so much you can charge for a drink."

Smith noted that he had to raise meat prices by 15% because "it went up 30% from my purveyor."

"I couldn’t pass the 30% on to the customer, otherwise I’d have no customers," he continued, noting that he is "having to eat a lot of that cost – 15 % of it."

Smith provided the insight into his businesses shortly after it was revealed that inflation cooled on an annual basis for the first time in months in April, but rose more than expected as supply chain constraints, the Russian war in Ukraine and strong consumer demand continued to keep consumer prices running near a 40-year-high.

The Labor Department said Wednesday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 8.3% in April from a year ago, below the 8.5% year-over-year surge recorded in March. Prices jumped 0.3% in the one-month period from March.

Those figures were both higher than the 8.1% headline figure and 0.2% monthly gain forecast by Refinitiv economists.

Food prices have jumped 1% over the month, marking the 17th consecutive monthly increase for that index. The largest monthly increases were in dairy (2.5%, the sharply monthly increase since 2007), meats, poultry, fish and eggs (1.4%) and cereal and bakery products (1.1%).

"Dairy products have been through the roof. Beef prices are going through the roof," Smith stressed.

"There is only so much I can absorb and there is only so much I can put my prices up before I start to get out of hand," he added, pointing out the complexity of the situation.

Smith noted that inflation has been a big issue given people haven’t been going out as much as a way to conserve cash as the cost of necessities has been soaring. He stressed that crime in New York City has been another deterrent.

Overall crime in the city continues to surge, according to the most recent data from the New York City Police Department.

Major crimes were up 41.3% overall year-to-date compared to the same time last year, fueled by jumps in robberies, burglaries, felony assaults and thefts, according to the latest crime statistics through May 8.

Authorities said last month that many repeat offenders are fueling the uptick in violence.

"It's clear what we are confronting: A perception among criminals that there are no consequences, even for serious crime," NYPD Commissioner Keechant Sewell said during a news conference in April.

Smith slammed New York’s bail reform law, which has come under heavy criticism from law enforcement and victims' advocates, as it allows criminal suspects to be released back onto the streets while they await their court cases. Under the law, courts are prohibited from setting any monetary bail or keeping defendants in custody before trial in almost every type of misdemeanor case, and for a long list of felonies, as well.

Smith noted that "everybody is standing by" and letting the shootings and robberies in the city happen, while the police "can do nothing" given if they catch those responsible, "they release them the next day."

"So people are leaving the city by 7 o'clock, especially the younger people, especially the women," Smith said, noting that his customers "talk about it openly at the bar."

He said that he hasn’t shut down any of his eight restaurants yet, but fears he might have no choice given all the hardships. He said that every week he has been assessing the situation.

"It’s a disaster," Smith stressed.

"And also there is a myth going around that everybody is back to work," he added. "Everyone is not back to work. You have 40% of the workforce back coming into the city."

He noted that all his businesses are steakhouses with different clientele, but his location on 54th Street in Manhattan is directly impacted by the current workforce dynamic.

"54th Street would have the CEOs, the presidents and stuff from the companies, and they’re in Florida or in the Hamptons," he noted.

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"Those are my customers, and I am not getting them anymore. I am getting them once a week," Smith added.

He noted that he doesn’t expect his restaurants will reach pre-pandemic levels until December when more tourists are expected to visit New York City and when more employees will hopefully return to offices.

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Fox News Louis Casiano and FOX Business’ Megan Henney contributed to this report.

Small business sentiment subsides as inflation worries mount, NFIB survey shows

Tue, 10 May 2022 10:00:55 GMT

Small businesses confidence hovered near a two-year low in April, with the most owners since 1981 reporting that sky-high inflation was their single most important problem, a survey showed on Tuesday.

The National Federation of Independent Businesses, a Tennessee-based association of small business owners, said its Small Business Optimism Index held steady at 93.2 last month, the fourth straight month of readings below the 48-year average of 98. It marks the first time this year the index has not declined.

BANK OF AMERICA ANALYSTS SLASH S&P 500 PROJECTIONS AS 'SPECTER OF RECESSION' LOOMS

Still, the outlook remains dark for many small businesses, with the percentage of owners expecting better business conditions over the next six months falling to the lowest level recorded in the 48-year-old survey.

The biggest problem, according to the survey, is inflation: 32% of small business owners reported that rising prices are their single most important problem in operating their business, the highest reading since 1980.

"Small business owners are struggling to deal with inflation pressures," NFIB chief economist Bill Dunkelberg said. "The labor supply is not responding strongly to small businesses’ high wage offers and the impact of inflation has significantly disrupted business operations."

Businesses also struggled to onboard new employees, with nearly half of owners – 47% – reporting that they could not fill open jobs. The Labor Department reported last week that there were 11.5 million open jobs at the end of March, the highest on record. The number of available jobs has topped 10 million for eight consecutive months; before the pandemic began in February 2020, the highest on record was 7.7 million.

Of the small businesses trying to hire new workers, a stunning 93% reported that few or no qualified individuals applied for the position they were trying to fill.

American consumers are grappling with the hottest inflation in a generation, with the consumer price index climbing 8.5% in April from a year ago, according to a Labor Department report released last month, marking the fastest increase since December 1981. The CPI – which measures a bevy of goods, ranging from gasoline and health care to groceries and rents – jumped 1.2% in the one-month period from March.

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Rising inflation is eating away at strong wage gains that American workers have seen in recent months: Real average hourly earnings decreased 0.8% in March from the previous month, as the 1.2% inflation increase eroded the 0.4% total wage gain, according to the Labor Department. On an annual basis, real earnings fell 2.7% in March.

The inflation spike has been bad news for President Biden, who has seen his approval rating plunge as consumer prices rose. The White House has blamed the price spike on supply chain bottlenecks and other pandemic-induced disruptions in the economy, while Republicans have pinned it on the president's massive spending agenda.

Entrepreneur has 'epiphany,’ turns $200 into $1M in 5 years

Wed, 04 May 2022 16:54:50 GMT

What started as a $200 small business investment from a kitchen table turned into $1 million in five years.

In 2017, entrepreneur Kristina Powell created a portable sports bra phone pocket called the Koala Clip to hold essentials while going for a run

"It was honestly on a long run that I was fumbling with the contraption I was using to carry my phone," Powell told "Varney & Co." Wednesday.

INFLATION A TOP CONCERN FOR SMALL BUSINESS OWNERS: BANK OF AMERICA REPORT

"I had this epiphany that I have this perfect space on my back that is about the size of a phone."

The Koala Clip sells for approximately $30, depending on the model purchased.

Powell attributes her success to a "frequent problem" for active women not having the ability to use pockets and fit essentials comfortably in exercise apparel.

"This keeps your stuff out of the way, but convenient, so you can grab it," she explained. "It's not going to move or cause annoyance when you're on your run or workout… walking your dog."

Powell said she had no prior experience in manufacturing or retail and that learned to use a sewing machine in her home to create the product.

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When Varney asked whether she had any intentions of selling out her Koala Clip business, she replied: "Not right now,"

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"I'm the sole investor in it. I don't have outside investors… my goal really is to just solve this problem that active women have," she explained.