Inglewood, California – The owner of Sunday Gravy, a long-standing Italian restaurant in Inglewood, California, says his family-run business is struggling financially due to rising tariffs and inflation. Despite decades of operation and a recent boost in sales, owner Sol Bashirian says the restaurant is now “barely breaking even.”
Family Legacy Under Pressure
Sunday Gravy has been a staple in Inglewood, just south of Los Angeles, for nearly 50 years. Bashirian shared how his father invested all his savings to purchase the restaurant decades ago, creating a lasting family legacy.
“My dad put an offer together, and grabbed all his savings and bought this place. And here we are now, almost 50 years later,” Bashirian said to CBS News.
While sales have risen about 30% since last year, the increased cost of imported ingredients is cutting into profits, leaving the family business in a precarious position.
“It’s just the reality of where the food industry is at,” Bashirian explained, noting he spends thousands more each month due to tariffs on imported goods.
Industry-Wide Struggles
Financial experts say Bashirian’s challenges are not unique. R.J. Hottovy, a financial analyst with Placer.ai, notes that restaurants serving lower- and middle-income consumers are especially affected by rising prices.
“That group is facing cost pressures on a number of fronts, not just food, but other things like rent and inflation,” Hottovy said.
A recent report from Toast, a cloud-based restaurant management company, shows that 48% of restaurants surveyed plan to raise menu prices if costs continue to climb. Meanwhile, the National Restaurant Association says menu prices would need to increase by 30.3% just to maintain a thin 5% profit margin under current conditions.
Bashirian also explained the challenges of adjusting menus:
“It sounds easy, but there is a process behind it. It’s reprinting a menu, and the printing costs associated with that.”
Customers Feeling the Price Impact
The restaurant has implemented a 5% surcharge on bills to offset tariffs, a practice allowed under California law if clearly displayed on menus. However, Bashirian worries that higher prices could drive away customers, especially when it comes to simple dishes like pasta.
“It’s pasta, and pasta is not supposed to be crazy expensive,” he said.
Hottovy echoed the concern, noting that many consumers are experiencing price fatigue:
“I think consumers have been paying higher prices for many years. And there is a breaking point for a lot of these consumers.”
Calls for Tariff Relief
The National Restaurant Association has urged the government to exempt imported food and beverages from tariffs, warning that ongoing hikes could cost the industry billions.
Bashirian expressed hope that such relief could help his family business survive and thrive:
“It would allow us to at least have an attempt at a fighting chance, and flourishing and continuing on.”
What do you think about the impact of tariffs and inflation on local restaurants? Share your thoughts and experiences in the comments below.
