Feeling the squeeze: P.E.I. businesses forced to make difficult decisions

It's a quiet Monday lunchtime at Fortune Bridge Diner in Souris, P.E.I.,following a busy weekend.

General manager Jolene Gallant saidit's not unusual these days. People tend to eat out more on the weekends.

Gallant said it seems like people save up so they can go out to restaurants. So they've been putting on daily specials to draw more people in.

Most ingredients cost more these days especially lettuce. And Gallant said she doesn't plan to substitute less expensive ingredients.

"I don't like to skimp on the quality of stuff, so it's just basically you make what you make and you just have to put the prices up a little bit," she said.

"And we just hope everybody understands that's just how it is."

She said she knows everyone is hurting these days, and keeps that in mind when she's pricing. But what they're charging is only one of the things the business has done.

Increasing prices, cutting back on staff

"We're looking at staff too, we don't overlap them early in the week cause one can handle the restaurant. On the weekends we'll put more on but kind of cutting back a few hours there," she said.

Gallant said cutting hours is hard for everyone, but she said the staff have been very understanding.

"I hope it doesn't keep going up. It's got to stop sometime you would hope. Just be readjusting and re-evaluating periodically," she said.

Oyin Funsho has a completely different business, but she's facing the same pressures.

She sells hair extensions and wigs through her company MJ Hair.

Funsho says her suppliers are charging more. For example, wigs that cost $70-$120last year are double that now.And she's having to pass that price along.

"I've seen someone like, 'Oh that's not the price you gave me yesterday', andI'm like, 'Sorry the rate has changed because of the inflation,'" she said.

Funsho is offering clients the option of paying in two instalments these days, something she's never done before.

She studied economics, so Funsho understands what inflation means all along the supply chain but that doesn't help.

"It's ridiculous, I pray that everything goes back to normal. Cause it's really affecting the business," she said.

"I used to provide free delivery to people in Charlottetown, but I can't do that anymore, they have to come to me. Because of the price of gas and everything."

Funsho has a part-time job as well. She hopes to be able to continue her business, because she's so passionate about it.

She said clients are buying less, but so far they are still buying.

"I think some people will still get it. They want to have it right, maybe it's their birthday, graduation, they want a new wig.I think some people will still buy. It's just not going to be like the way it was before."

People are worried about spending

In Summerside, the Chamber of Commerce saidit's seeing the effects of people cutting back on nonessentials.

Across the board, service providers, restaurants and retail are all being hurt by inflation, said the chamber's executive directorKaley O'Brien.

"The consensus is the spend in the community is just not there right now because people are worried and they're being more conservative with their money," she said.

And she saidno one is sheltered from rising costs.

"All our businesses are in this tight situation where it's do they raise the price and scare off their loyal customers or do they have to eat that inflation cost themselves? How do I reprice myself, how do I rearrange and find my footing in this economic time right now?"

O'Brien saidthey are encouraging people to spend locally when they can, to support their neighbours.