Small Businesses Grapple with Soaring Fuel Costs

From coffee imports to tote bag production, US small companies face supply chain challenges and margin pressures

Apr. 14, 2026 at 9:51am

Got story updates? Submit your updates here. ›

A photorealistic studio still life featuring a stack of coffee bean sacks, a miniature shipping container model, and a fuel gauge, symbolizing the supply chain and cost challenges facing small businesses due to rising fuel prices.As global fuel prices surge, small businesses grapple with the ripple effects on their supply chains and profit margins.Madison Today

Rising fuel prices are squeezing American small businesses in various ways beyond just higher gas costs at the pump. Companies like Wonderstate Coffee and Bogg are seeing increased import, freight, and supply chain costs that are straining their profitability. While some businesses like Heartwood Tree Company have adapted by minimizing fuel consumption, many small firms are struggling to pass along the higher costs to customers without losing sales.

Why it matters

The ripple effects of the US-Israel conflict with Iran, which has sent global fuel prices skyrocketing, are being felt acutely by small businesses that operate on thin margins. These companies are facing difficult decisions about whether to absorb the higher costs or raise prices, both of which could impact their bottom lines and customer relationships.

The details

Wonderstate Coffee, a Wisconsin-based roaster, has seen its import costs rise 5-8% due to soaring fuel prices, along with increased freight costs and supply chain disruptions for beans sourced from Ethiopia. Bag maker Bogg has resorted to buying materials six months in advance to try to mitigate supply chain risks, an unusual move for the business. Meanwhile, some companies like Heartwood Tree Service have insulated themselves by minimizing fuel consumption through tactics like scheduling jobs close together.

  • In the last quarter, Wonderstate Coffee raised prices as coffee bean costs rose.
  • Less than 3 months later, Wonderstate's import costs spiked due to the US-Israel conflict with Iran.

The players

Wonderstate Coffee

A Wisconsin-based coffee roaster that is grappling with higher import, freight, and supply chain costs due to soaring fuel prices.

Bogg

A tote bag maker that is buying materials 6 months in advance to try to mitigate supply chain risks from rising fuel costs.

Heartwood Tree Company

A Madison, Wisconsin-based arborist that has insulated itself from the worst effects of high fuel prices by minimizing driving and fuel consumption.

Richard Trent

The executive director of Main Street Alliance, an advocacy organization representing about 30,000 small business owners across the US.

Caleb Nicholes

The co-owner of Wonderstate Coffee.

Got photos? Submit your photos here. ›

What they’re saying

“Our shipments leaving from Ethiopia need extra insurance now because of the war. Shipping vessels have been hit in previous years.”

— Caleb Nicholes, Co-owner, Wonderstate Coffee

“It's delivery costs, supplier costs; it's their employees getting to work, and it's all going up at the same time.”

— Richard Trent, Executive Director, Main Street Alliance

What’s next

Wonderstate Coffee and other small businesses will continue to monitor fuel prices and supply chain disruptions in the coming months to determine if further price increases for their products will be necessary.

The takeaway

The ripple effects of global geopolitical conflicts are being felt acutely by small businesses that operate on thin margins, forcing them to make difficult decisions about absorbing higher costs or passing them on to customers. While some companies have adapted by minimizing fuel consumption, the broader small business community is struggling to maintain profitability amid the perfect storm of rising prices across transportation, supplies, and labor.