Local Restaurant Owner Concerned Over Tariff Impact
As President Trump implements significant tariffs on imported goods, many businesses relying on foreign products are feeling the strain. Surinder Sroa, also known as Pal, the owner of Lotus Cuisine in San Rafael, California, voices his concern for the future of his nearly 30-year-old establishment.
The Journey of Lotus Cuisine
Sroa, who grew up in India immersed in the grocery and spice industry, opened Lotus Cuisine to fill a culinary gap he experienced in Marin County. Referring to a disappointing dining experience at another Indian restaurant, he declared to his wife, Linda, “I’m going to open a restaurant.” This vision became a reality, and over three decades, he has successfully built a brand synonymous with authentic Indian cuisine.
Current Business Landscape
Despite the restaurant’s past triumphs, the economic climate has posed challenges. In March, the business experienced a 20% decline in revenue compared to the previous year. Now, Sroa faces the additional pressure of tariffs that could potentially escalate operational costs.
Specific Impacts of Tariffs
Sroa highlighted a recent price hike in coconut oil, which jumped from $50 to $59. He expressed uncertainty about future inventory costs, especially for ingredients vital to his dishes, many of which are sourced from India and Thailand—both of which are now subject to tariffs of 26% and 36%, respectively.
“All our spices for our ingredients for our cooking has to come from that part of the world,” Sroa said. “That makes a difference in the cuisine. Otherwise, it’s not the same cuisine.”
Proactive Steps Taken
In anticipation of the tariffs, Sroa has been stockpiling inventory to mitigate potential shortages and price increases. Despite the rising costs, he plans to refrain from adjusting menu prices—at least for now.
Future Considerations
Sroa stated, “Right now we are absorbing the cost but I think if it’s going to continue and we don’t make money, then we have to pass it on to the customer.” He recognizes the inevitable reality that, if costs continue to rise, adjustments may be necessary, impacting his clientele.
Conclusion
The situation presents a complex challenge for Sroa and other restaurant owners who face increased costs while striving to maintain customer loyalty. His story reflects the broader concerns of many businesses navigating the new economic landscape shaped by tariffs.
