San Jose small businesses hit hard by inflation

San Jose small businesses hit hard by inflation reports how rising prices and supply constraints are compressing margins for local companies. The story focuses on entrepreneurs trying to balance higher costs with the risk of losing customers. Mike Louie, CFO of Cauldron Ice Cream in North San Jose, described sharp increases in key inputs: a case of 210 eggs rose from $60–$65 to $125 within three months, later easing to about $90. He said cost pressures also affect rent, utilities, and supplies, and that he lowered ice cream base costs from about $37 per four gallons in 2018 to around $75 by the time he took over, later reducing them through shipping changes. Louie said perishable ingredients create waste losses, and his signature nitrogen scoop now costs $9.25 versus about $7 eight years ago. Similar challenges are affecting other food entrepreneurs, including Alaiyah Holland, who adjusts menu items and brands as strawberry and other ingredient costs rise, while seeking to keep her dessert business profitable.