Chef Larra Libo-on faced one of the most challenging days of her career recently when she prepared over 500 pieces of her renowned dumplings and other delicacies for a pop-up event. Despite her hard work and dedication, she encountered a stark reality faced by many small businesses in the city: the struggle to attract customers.

Libo-on recounted her experience, saying, “I think that’s the first time that for three hours, I had zero sales.” This disappointing outcome did not deter her spirit, as she was committed to ensuring that her prepared food did not go to waste. Instead, she decided to take her products to a basketball event in Scarborough, hoping to recoup her losses.

At the basketball event, her efforts paid off as she successfully sold a variety of items, including siomai and empanadas, along with drinks. Libo-on shared, “I made $350 in just one hour,” illustrating the importance of adaptability for small business owners in challenging circumstances.

Libo-on's experience is not isolated. According to a report from Statistics Canada released in May, only just over one in six businesses in the Accommodation and Food Services Sector anticipated an increase in sales for the upcoming three months, with inflation cited as the primary concern by more than half of the businesses surveyed.

Economist Michael Batu elaborated on the situation, stating, “Households are already selective in how they spend money.” This shift in consumer behavior means fewer people are willing to attend events or dine out, further affecting vendors like Libo-on. He emphasized that Canada currently has one of the highest food price inflation rates, putting immense pressure on small food vendors.

Many of these vendors operate on extremely narrow profit margins, making them particularly vulnerable to changes in input costs. Batu cautioned that even slight increases in costs could potentially drive these businesses out of the market.

Participating in markets or pop-up events often involves a degree of risk for vendors like Libo-on, as they face factors beyond their control, such as unpredictable weather and varying attendance at events. Nevertheless, Libo-on expressed gratitude for the support she receives, stating, “They don’t just buy food. They also help our dream to be successful in our chosen career.” This sentiment underscores the critical role that community support plays in the survival and success of small businesses in difficult economic times.