A labour of love: How London mom-and-pop shops stay competitive in tough economic times

Family-owned restaurants that have been in London for decades say high ingredient and labour costs, plus competing with franchises, have made it difficult to keep their businesses afloat. 

Despite the challenges, the mom-and-pop shops say their focus on quality and building personal relationships with customers brings great value to the community that large chains can't replace. 

"Small businesses are very important to maintain a community because we're a part of a lot of family traditions and there's a lot of nostalgia associated with us ... that's a huge honour for me," said Jacqueline Arp, owner of Kipps Lane Fish and Chips. 

Arp's parents, John and Ruth, started the business in 1972 after immigrating to Canada from the Netherlands. Arp took over the store following their deaths in 2010 to continue their legacy of serving dedicated clientele. 

"This business allowed me to go to university and the neighbourhood supported us for so long. We built this restaurant together and I felt I had to keep it going," she said. 

But she admits it hasn't been easy, especially after the COVID-19 pandemic and more big box food franchises coming to the city. With customers also facing financial pressures of the cost of living, Arp said she constantly worries she'll have to shut down. 

"Although we keep our level of quality high, it's hard to compete against big chains by just pure volume and it's hard for us to bring enough people in because our costs are so high to just break even and pay our staff," she said. 

"It's a tough time right now, more than ever before. My father went through two recessions and I don't think he ever saw this kind of thing where people just don't seem to have any extra money. By the time they go to the grocery store and pay all their bills, there's not a lot left."

Abe's in Byron has been in the community since 1984 and owner Abraham Abado has also noticed that people are dining out less in an effort to save money. Although costs for all items on his menu have increased, Abado has tried to keep prices affordable for customers, he said. 

"It's been challenging and you have to always search for better prices with suppliers but things continue to climb," he said. "It's hard to keep the prices down but I do my best by doing most of the work by myself with my wife, so you cut down on labour a little bit."

Abado said he isn't concerned about potential closures because he has a loyal customer-base that believes in family-owned businesses and wants to support the local economy.  

"A lot of people still appreciate the value of our products. Obviously a lot of people go to franchises where there's fast food that's maybe a little cheaper and fast served but my customer base know that we're all about fresh food being cooked and cut on property and there's definitely a big fan base for that," he said. 

Arp has been creative in adding unique items at a lower price point to her menu and partnering with food delivery platforms like UberEats, Skip the Dishes and DoorDash to attract new customers. 

However, marketing her restaurant on social media doesn't compete with the advertising power that larger corporations have at their disposal, she said. As a result, Arp's also had to reduce hours to save on labour costs, which has been difficult for her six employees.