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Tres Leches Cafe owner pushing to keep dream alive amid inflation, other small business issues

tres leches cafe
Posted at 4:47 AM, Oct 10, 2022
and last updated 2022-10-10 09:21:58-04

PHOENIX — At Tres Leches Cafe, it's all about the basics - with a tasty twist.

"They need to get pan, and then their coffee," explains Jose "ET" Riveria, the owner of Tres Leches.

Tres Leches has two locations and ABC15 recently visited their cafe near 19th Avenue and Van Buren Street.

"How cool to come to a place where they bake fresh pan and you can get your coffee — your Mexican-flavored coffee? It was really big for me to keep pushing for that dream."

It's a dream that's not getting any easier to achieve thanks to issues like light rail construction near their second location, labor issues, and, of course, inflation.

"We've raised our prices three times in the last six months, which is really hard because we are trying to manage what is acceptable and what the customers are okay with."

According to the Metlife/U.S. Chamber of Commerce Small Business Index, which was just released last month, 50% of small businesses said inflation is their biggest challenge right now.

In terms of how concerned these businesses are, 54% - more than half - said they were very concerned about inflation, up from 31% at the beginning of the year.

"Our goal is to make every small biz successful," says Elmy Bermejo with the U.S. Small Business Administration. Bermejo, who helps oversee parts of the western region, including Arizona, was in town last week meeting with small business owners, including Rivera.

ABC15 asked what they're doing to help small businesses.

"Well, we are looking at the workforce," Bermejo said. "What happens is inflation is high and people are concerned people are maybe watching what their hours for their business...and so we are working with the Dept. of Labor and partnering on workforce development issues. At the same time, making sure we are in touch with these small businesses."

Resources like free or low-cost training, access to loans, and targeted outreach for underserved communities are all available through the SBA.

According to recent numbers from the SBA, roughly 169,000 Arizona small businesses received loans under the Paycheck Protection Program to the tune of nearly $12.5 billion.

Tres Leches was one of those businesses. Rivera says even though the PPP money came and went, it was a lifeline. He also qualified for a different kind of loan through the SBA.

But some worry all this borrowing may spoil the recipe for success.

"What do you say to the people on the other side who worry about things like over-regulation or too much involvement from the federal government and how do you show them programs like this are actually working?" Ciletti asked.

Bermejo replied, "That's a great point. We want to hear that. If it's not working, we need to hear that. Government at the end of the day is about people."

For Rivera, even though sales aren't what they were before the pandemic, they're coming back, little by little. Every cup of coffee, every concha, represents a dream he's refusing to let go of.

"I am still pushing for the dream and I don't want to let the pandemic take away what I've worked so hard for and what I've achieved and accomplished."

For more information on the SBA and the resources they're providing, head to their website.