ATLANTA — With ingredients as unique as his customers, David Wright has ramped up Eggroll Boyz from a lone food truck to five food trucks and three brick-and-mortar shops. Wright co-owns the restaurant and has around 50 employees overall. He started the business in 2019, endured a pandemic and found fast-growing success. Lately, Wright said business has been hot and cold.
"Recently, I'd say we've definitely been hitting more of a slowdown," Wright said. "We're seeing a trend to where people don't come out as much, people are saving money on the weekends, not necessarily going out and spending as much as they normally would."
It follows a trend reported by the Federal Reserve Bank of Atlanta in its latest Beige Book findings. Just like the weather, the economy across the Southeast is cooling off. The Fed said tourism, manufacturing output and retail sales have all dipped since July. As a result, business owners like Wright have had to grapple with ways to handle the economic slowdown.
"We have to cut certain staff, and it's not something that we want to do," Wright said. "But as a business, we have to make sure we're maintaining everything we can do to keep our business in business."
Kendra Bauser owns Three Peaches Gelato and Coffee in Midtown, close to Piedmont Park with the Atlanta Beltline in her backyard. Bauser named the store for her and her two daughters, but she's had trouble with hiring recently. She said the turnover has been high at her shop, and she's thought about raising prices to keep up with costly and rising inventory prices.
"It's been tough," Bauser said. "I feel like I need to change them more. I've already seen some of my competitors change their prices quite significantly, and I understand why they're doing it. In this location, I probably could raise the prices more, but I think I’d rather do it on a slower, yearly basis than just every few months I’m raising my prices.”
The Atlanta Fed said businesses will continue to battle inflation, but it should not slow down hiring too much or impact wage growth. The Atlanta Fed also said while the economy was cooling down, there are some benefits. More sellers are now offering discounts on products and services. It also noted recent interest rate cuts and the demand for homes staying flat. Wright said he would roll with the punches, hoping brighter days are ahead.
"We’ll continue to have to make difficult decisions; we’re going to have to tighten up as we go around the curve a little bit," Wright said. "But we’re preparing for growth. Even after moments like this or seasons like this, tremendous growth happens once again."