Ingredient Costs and Supply Disruptions

As ingredient and materials costs have increased 40%+ since January, it has become increasing difficult to manage, not to mention periodic shortages of basic items, like cake boxes, hazelnuts, even cream cheese. We have also seen increases in wages to keep staff on their jobs during Covid, and now these inflation-related costs make me fearful of what the future holds. With our ingredient costs running over half a million dollars a year, 40% is hundreds of thousands of dollars, while our profit margins typically are no more that 5%. Doing the math makes me scared. Hopefully the pain will alleviate soon.