A Kitchener business that grew during the pandemic is closing its doors.
Wooden Boat Food Company was able to stay afloat throughout the pandemic as loyal customers flocked to get a taste of the Vietnamese and French fare, but an industry-wide workers shortage paired with soaring inflation has forced owner and chef Thompson Tran to close the restaurant's doors.
This comes after Tran said business doubled when switching to a take-out style eatery.
“We were really relying on commodity prices of things like sugar, oil, dairy products, and a lot of those have shot up by double the price,” said Tran.
The added complexities of working 60 hours a week and wanting to spend more time with his family aided Tran in his decision to step away as a restauranteur.
One part of his business will stay open.
Tran will continue to make bottled Vietnamese sauces – pending the same industry challenges and inflation don't lead to an inoperable business.
“We're slowing down the manufacturing a little bit. We're going to wait for prices to go down a little bit. So, it makes more sense for us to employ more, to produce more and to ship more,” said Tran.
RISING COSTS TO BLAME
On Wednesday, Statistics Canada released its June consumer price index report, showing that the rate of inflation was not slowing as the rate hit 8.1 per cent.
The costs of making the sauces have more than doubled.
“We ship across Canada into British Columbia, and what used to be $340 is $750. More than double the regular freight price,” said Tran.
For Tran, it’s a delicate balance of keeping prices low but still making a profit.
“I think ultimately slow and steady always wins the race, and that's standing true for us,” said Tran.
Small business owners across the region say supporting your local business is just as relevant now as it was when the pandemic started.
“It's really nice that after a few years of people hiding away to get back into the routine of local shopping - so I hope to be a part of that,” said Amy Grimba, owner and operator of Milkman's Daughter.
