California restaurant owner says tariffs, inflation leave him “barely breaking even”

Inglewood’s Iconic Italian Restaurant, Sunday Gravy, Faces Financial Struggles Amidst Tariffs and Inflation

Inglewood, California — Sol Bashirian, the owner of Sunday Gravy, a beloved Italian restaurant in Inglewood, California, is feeling the pinch of increased costs due to tariffs and inflation. The restaurant, which has been a staple in the community for decades, is now struggling to break even.

“It’s just the reality of where the food industry is at,” Bashirian explained in an interview with CBS News. He highlighted the significant increase in expenses for imported ingredients, leading to thousands of dollars in additional monthly costs.

Sunday Gravy, a family-run establishment, has experienced a 30% increase in sales compared to the previous year. However, the financial strain is threatening the legacy that Bashirian’s father built nearly 50 years ago.

R.J. Hottovy, a financial analyst at Placer.ai, noted that restaurants catering to lower- and middle-income consumers are facing financial challenges, mirroring the struggles of their clientele. Rising costs across various aspects of the business, including food, rent, and inflation, are putting pressure on these establishments.

According to a recent report by Toast, a cloud-based management company, 48% of surveyed restaurants plan to raise menu prices if expenses continue to escalate. The National Restaurant Association estimates that a menu price increase of 30.3% would be necessary to maintain a slim profit margin of 5% in the current economic climate.

Implementing price hikes, however, comes with its own set of challenges. Bashirian highlighted the logistical hurdles of reprinting menus and associated costs. The fear of alienating customers with higher prices looms large for Sunday Gravy.

To offset the impact of tariffs, Sunday Gravy has introduced a 5% surcharge on bills, a move allowed under California law as long as it is clearly disclosed on menus. Despite this temporary solution, Bashirian acknowledged the fatigue consumers feel from continual price increases.

The National Restaurant Association is advocating for imported food and beverages to be exempt from tariffs, warning of potential billions in losses for the industry. Bashirian expressed hope that relief from tariffs could provide a lifeline for struggling restaurants like Sunday Gravy.