Inflation is at a 40-year-high, and companies around the country are facing challenging conditions as they work to keep their businesses alive.
Philly’s in Summerville, South Carolina, is a small mom-and-pop restaurant that has felt the economic pressure.
Recently, the eatery was forced to close its doors due to inflation issues and labor shortages.
The restaurant’s co-owner Cherie Castellucci joined “Fox & Friends First” on Tuesday morning to discuss why the eatery had to close.
“It was a combination of things, between worker shortages and higher food costs,” she said.
“It was just impossible to continue to make a profit. It’s a mom-and-pop business — and it just doesn’t work anymore,” she said.
Approximately 99.9% of U.S. businesses are considered small businesses, meaning they have fewer than 500 employees, according to the Small Business Administration (SBA).
The 32-year-old Philly cheesesteak eatery was known for making their sandwiches just as they do in Philadelphia — with hand-trimmed beef and freshly baked rolls.
The business was run on this motto: “The public appreciates quality.”
A Kabbage survey found that 75% of small business reported that inflation has dipped into profit margins.
Castellucci believes the Biden administration could have done more to help small businesses survive this very tough time economically.
“If a mom-and-pop business can’t make it anymore, what can people hope for? It’s sad to see,” she said.
Castellucci said the reaction from loyal Philly’s customers has been overwhelming.
“There’s been such love and generosity and there’s just no words. I’m humbled,” she said.
As for what’s next — Castellucci said she’s not totally sure, as the decision to close the restaurant was made at the last minute.
“Haven’t figured that out yet … We’ve talked about a food truck, so maybe we’ll do a Philly’s food truck,” she said.
Summerville, South Carolina, is located near the Charleston area.
