Suffolk small businesses face difficult choices amid cost of living crisis
While households are struggling with rising energy bills, smaller firms are also facing a massive increase in costs.
Last updated 4th Sep 2022
As the cost of living crisis continues Suffolk businesses are having to make changes to stay afloat.
While households are struggling with rising energy bills, smaller firms are also facing a massive increase in costs.
Unlike domestic consumers, businesses aren't protected by a cap on the price they pay for energy.
Almost 15% of small- and medium-sized firms expect they could be compelled to close or downsize as a direct result of the spiralling energy bills, according to a poll by the FSB.
The Grazing Sheep can be found at Ipswich waterfront. It is a family run business that is close to reaching its 5 year anniversary.
Owwner told us he has seen an increase in food prices, but most significantly, the cost of energy.
At the moment, Bart pays £12,000 to date, a year for electricity, but he has been told the price could go up by £9000.
He has also noticed an increase in the cost of food from suppliers, with some increasing by 35%.
Bart told us in the past year, he has seen costs rise on three different occasions.
He initially refused to put his prices up because the government implement the cap on VAT, however, because of the continued rise in cost, he has to put his prices up on the 1st of May.
He told us he has seen a decrease in the number of customers, and always worries for his sons and other people who are in more difficulty than himself, and how they are coping with the cost of living crisis.
Pastries at The Grazing Sheep
Pastries at The Grazing Sheep
In order to mitigate these costs, The Grazing Sheep has taken on different measures to reduce costs. This includes switching off the coffee machine more regularly and turning off one of their fridges.
They are also doing more drastic things. In summer, they only serve people outside and keep the indoors closed so they do not have to turn on the lights or air conditioning for the inside.
And in the winter, Bart told us they were considering closing an hour earlier as footfall decreases, in order to save money.
Bart and his sons have also been working more hours to help the business.
Although things are difficult, Bart feels lucky he has a loyal customer base and a beautiful location.
He hopes there will always be a certain degree of people who will be able to afford a coffee and cake or sandwich.
He remains optimistic they can get through this and said as long as they keep covering costs that is what they will continue to do.