Survey finds most Mass. small business owners pessimistic about staying open amid turbulent economy

Kresge’s, J.W. Woolworth and, most especially, Grover-Cronin: these were the retail giants that drew shoppers to Moody Street in previous decades.

They are long gone.

Moody Street’s main attraction today — its many restaurants. And Tempo, which opened 20 years ago, is one of the most enduring. But it hasn’t been easy, said the husband and wife team who own the restaurant, Nathan Sigel and Erin Barnicle.

“We tried something crazy on the end of a street that everyone thought would be impossible to succeed and twenty years later we’re still here to talk about it,” Barnicle said. “And I love what I do... He loves what he does.”

Still, it hasn’t been easy.

“Even in economic downturns, we’ve been able to do okay because people don’t see it as a total splurge to come here,” said Sigel. “We’ve been here a long time and worked very, very hard. But it is borderline impossible to make money at the moment. With rent, the cost of food... the cost of everything, every utility... there’s almost nothing left.”

Sigel and Barnicle plan to keep going — the same can’t be said for the majority of small businesses responding to a survey by the Retailers Association of Massachusetts (RAM). It found 51% of members who responded said they are more likely to close in the next five years than to remain open.

“What we’re finding is that these small businesses have really flat sales and in some cases, lower sales than what they had pre-Covid,” said Jon Hurst, RAM president. “Yet, their expenses are far higher than what they were back then.”

In fact, the RAM survey found 91% of respondents reporting an increase in expenses — with rent, health insurance and energy expenditures having the biggest impact on profits.

“Sooner or later, that catches up with the small business owner,” Hurst said. “They try to get by, another month, but what we’re finding is a lot of these small businesses are closing.”

Hurst said some of that is due to generational change — that is, business owners who have no family members — or none interested — to keep the enterprises going. Some, however, are businesses which have slipped into debt — making them unattractive to entrepreneurs.

Tariffs — or the threat of tariffs — isn’t helping either, Hurst said.

“It’s the last straw on the camel’s back,” he said. “You’re already dealing with flat to lower sales, you’re dealing with high costs not covered by your sales. And the uncertainty on tariffs is a real issue as these small businesses look to buy their inventory for the all-important fall and holiday season. What will be available and at what cost is a real concern.”

Tempo’s been dealing with the rising cost of food for a couple of years now, but so far, they’ve experienced no effect from tariffs. But it wouldn’t take much. Restaurants, in general, have profit margins under 10 percent.

Despite the possibility of tougher times ahead, Barnicle sees the glass half-full.

“I think no matter what you want to try to do, you should do it,” she said. “And I think that everything comes from where your passion lies. If you’re willing to invest your own heart and soul into doing any business, it’s worth trying.”

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