Local News

Credit Crunch Taking Toll On Local Businesses

BOSTON (WBZ) ― At North Beacon Auto Body in Brighton, mechanic Ron MacLeod is skeptical of lawmakers in Washington, but he hopes they'll be able to right the economy that's hitting him and his customers in the wallet. "Everyone is using credit cards. There's very little cash coming through," he says.

In the last few months he's seen his expenses increase. "Everything in the automobile business is petroleum based," he says.

At the same time, he says there is less money flowing into his cash register. "People used to come in and get their cars ready for a vacation to Florida or someplace. That isn't happening now."

His concerns are typical when it comes to the plight of the small business owner in today's struggling economy.

At Herrell's Cafe in Allston, new owners took out a loan to take over the ice cream shop less than one year ago. "It's been a tough year," said owner Derek Brown.

In that time, dairy prices have gone up four times.

The cost of wheat and flour has doubled in the last year. "And every time we get a delivery, there's a surcharge for fuel."

The owners say business has dropped dramatically. "People are watching what's going on at the stock exchange and they're looking at how they can cut corners themselves to save money.

"Before they might have picked up coffee and a muffin every morning. Now it's just the coffee, hold the muffin."

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