Larry Hines quest to find the green olives he enjoyed at a restaurant years ago recently led him to Mt. Carmel Gourmet Food, a shop in the Arthur Avenue Retail Market.
The paralegal from Pelham Bay Park told the man behind the counter, Michael Navarra, that the olives he wanted were from Italy.
Theyre all from Italy, Navarra said.
In fact, Navarra said, 90 percent of Mt. Carmels business comes from the sale of Italian imports. The coffee beans, espresso, Parmesan cheese, pasta, vinegar, olive oil, and tiramisu and amaretto treats are all imported.
Recent financial turmoil and social unrest in Italy have some importers and shop owners in the Bronxs Little Italy preparing for price increases on Italian goods. Still, they remain hopeful that customers wont turn away.
Italy is one of the countries in the eurozone that has been forced to take on austerity measures – tax increases, fuel price increases and government spending and pension cuts – to prevent financial collapse. The moves sparked waves of strikes, including a truck drivers strike against higher fuel prices that delayed transportation of goods.
The euros rise in the last decade had already increased import prices, which are passed on to customers. The euro had decreased against the dollar in recent months – a good sign for importers – but recently hit a two-month high. One euro is now equal to roughly $1.30.
People complain, but because of whats going on, we have to make ends meet, Navarra said.
Cerini Coffee and Gifts owner Johnny Cerini said he is bracing for another price increase of roughly 20 percent in the coming months. Cerini imports big-ticket items such as pasta grinders, coffee grinders and espresso machines in addition to food and packaged coffee grounds.
It usually turns into a person buying one instead of two, Cerini said. Theyll cut back, just like on everything else in the economy.
Cerini said he isnt sure what hell do if customers arent willing to pay higher prices. Gil Teitel, who owns Teitel Brothers grocery store, said he might import his tomatoes from other countries if customers cant stomach price hikes.
Belmont Business Improvement District Chairman Frank Franz said that roughly 85 percent of the thousands who visit the neighborhood every week come from more than five miles away. Franz said higher prices could mean people will make fewer trips.
But shop owners fears are overblown, said Laura Gonzalez, a professor of finance and business economics at Fordham University. Gonzalez said Italian companies will likely reduce profit margins and offer discounts if demand decreases.
Franz said he believes that the businesses will weather the storm.
Am I worried that Little Italy is going to disappear? No, Franz said. Am I concerned that it could affect the profitability of our community? Sure. But I dont think anyone is going to go out of business because of it.
Hines eventually found the olives he wanted at Teitel Brothers.
He said he likes to go to Little Italy whenever a craving hits, and higher prices wont change that.
Im price sensitive, but Im willing to pay a premium for the absolute best olive, Hines said. You got to treat yourself once in awhile.
Goods