Between higher demand, supply chain issues, and through-the-roof prices, inflation has been making every aspect of life more expensive. And the cherry on top? The price of your ice cream sundae costs more too.
Like everything else these days, the price of dairy has gone up. According to the USDA, “The all-milk price in May 2022 was $27.30 per hundredweight (cwt), $0.20 higher than April and $8.20 higher than May 2021.” This increase is being shouldered by local ice cream shops and their customers.
Harry Pass, owner of Kell’s Kreme, says that inflation is a major struggle. “The pandemic was one problem we ran into, but this year was worse with the price increases.” He said that the price of goods is 30 to 50 percent higher. “I’ve done my best to limit price increases, and as a result it has really hurt our bottom line. But I’m still determined to keep it affordable, even though it’s a challenge…. I’m just absorbing the cost.”
Soc’s Ice Cream in Saugus is also feeling the pressure of inflation. Sharon Cacciola, co-owner of Soc’s said that “[they] are trying to keep pace” with the rising costs. Because she purchases ice cream from her son and not a large distributor, she sees a 30 percent dairy cost increase directly.
In addition, Cacciola said a coin shortage is forcing her to round prices up to the nearest dollar. She said that she does not want to round the prices, but is not able to get enough coins to cover her five registers. She also said that the minimum wage increase has been eating into her bottom line.
“The little things all add up,” Cacciola said. She said that she recognizes that customers do not want to pay upwards of $10 for ice cream, but that price increases are a necessary evil. She described trying to manage inflation as “a fine balance…. “We have to pass [costs] to customers, but we can’t charge six, seven dollars when they want it for five.”
For Pass, the future of local ice cream shops is bleak. “I think you’re going to see a lot of ice cream places and small businesses not be able to make it because these costs are a real problem right now.”
Cacciola said, “We keep scooping.”
Emma Fringuelli can be reached at [email protected].
