Inflation eats into small eateries' profits

Inflation may be relatively tame, but it's still a worry to restaurants, bakeries and other small businesses that aren't able to pass along higher prices to customers in a still-tight economy. "A large faceless corporation doesn't have to look at their customers and say, 'Mrs. Smith, you and your daughter are going to have to pay extra for a cupcake today,'" says Occasionally Cake president Lorne Campbell, who hasn't raised prices despite a double-digit jump in ingredient and supply costs.

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