With the uncertainty of how high tariffs will go up, local businesses in Alhambra are putting things on hold to expect the unexpected.
Owner of new Indonesian coffee shop Uncle Fung’s, Valencia Then said that the impact of tariffs start at the supplier. As a business that specializes in Indonesian coffee, Then has already seen the prices of coffee beans go up and it doesn’t stop there. Key ingredients like Milo powder and condensed milk are being limited by her supplier to only allow two cans per customer per day. This might be a tactic to prevent businesses from hoarding supplies or the supplier from running out of inventory, but either way this means daily shopping trips for Then or looking for a new supplier.
Unfortunately, ingredients are not Uncle Fung’s only roadblock. Then was in the process of making a customized cup with a manufacturer overseas and just as they were in the final stages, the tariffs were announced. The manufacturer wouldn’t disclose the new price because they no longer wanted her business. Now Then must find a new manufacturer in another country and restart the customization process all over again.
All of this uncertainty has prevented Uncle Fung from releasing their full menu. How can you put items on a menu that you may not be able to get ingredients for?
Andrew Luthi, owner of Ohana Brewery, luckily is not using ingredients that are impacted by the tariffs but the cost of his packaging is going up. The cost of his cans and kegs will go up due to the tariffs on aluminum, as more than a half of aluminum imports come from Canada. Luthi said if the brewery cannot get cans in the future, he will switch to kegs only and serve on tap.
This is not Luthi’s first rodeo running into material shortages, he said during the pandemic, there were big shipment delays for growlers so they switched over to cans. Luthi said, “We have adapted before so we can adapt again.”
As small businesses face the uncertainty of the cost to run their operations, don’t forget to continue support them as we all adapt to changing times.
