Tariffs Are Killing Small Restaurants – Here’s the Real Cost You’ll See in Your Community

Hey Friends. My name is J.H. Chang, and together with my husband Shea Winter Roggio, I started Soko Bag, a family-owned restaurant based in Phoenixville, Pennsylvania.

 

At Soko Bag, my wife and I poured two years of our lives and our entire life savings into a dream: to share the incredible flavors of South Korean fried chicken, craft beer, and the enjoyment of sports with our local community and hometown of Phoenixville, Pennsylvania.

We wanted to create a true gathering place where, as William Butler Yeats said, “There are no strangers here, only friends you haven’t met yet.”

We didn’t come from generational wealth. We didn’t have corporate safety nets. What we had was heart, hustle, family, friends, and a simple mission: to build something real for our neighbors.

Soko Bag is a South Korean-inspired restaurant and brewery specializing in Korean fried chicken, bold seasonings and sauces, and a curated selection of craft beer, wine, and spirits.

We’re a sports bar like no other, proudly partnering with the Philadelphia Union and bringing a taste of Seoul and local sports culture together under one roof.

Today, that dream and thousands like it across the country, are under serious threat. The cause? Newly proposed tariffs that could devastate small businesses like ours.

Table of Contents

Soko Bag Phoenixville Small Restaurant Tariffs

What’s Happening With Tariffs

Recently, President Donald Trump proposed sweeping tariff increases on a wide range of imports. Every small business will be affected differently, but kindly allow us to use Soko Bag as an example of how these tariffs will affect our restaurant: a small mom & pop shop that seats under 50 guests at max capacity currently.

  • South Korea: 25% tariff increase
  • China: 125% tariff increase
  • Vietnam: 46% tariff increase
  • Canada: 25% tariff increase

For billion-dollar corporations, these increases might sting, but they’re survivable. For small, independent businesses like Soko Bag, they could be fatal.

Soko Bag Phoenixville Small Restaurant Tariffs

How Tariffs and Shipping Costs Are Impacting Our Restaurant

At Soko Bag, we import nearly everything except the chicken itself.
Some examples:

  • Frying powder, kimchi, bamboo salt, and specialty seasonings from South Korea
  • Takeout boxes, wax paper, and bags from China
  • Food-grade latex gloves from Vietnam
  • Malted barley for our craft beer, grown in Canada

These aren’t luxury items, they’re basic necessities that allow us to serve our customers safely, authentically and deliciously.

If these tariffs are fully implemented, our basic operating costs could surge by 20–30% overnight, a catastrophic blow for any restaurant.

And that’s not the only storm we’re facing. At the same time, global shipping costs are soaring. Container freight rates and the cost to transport goods overseas have doubled on many routes in recent months. A container that used to cost $4,000 to ship currently costs $8,000–$10,000 or more.

That means even before tariffs are applied, just getting our ingredients and supplies to American soil now costs dramatically more.

  • A pallet of frying powder that once cost $500 to ship now costs nearly $1,000.
  • Bulk quantities of kimchi, seasoning, and even basic to-go boxes are more expensive to ship, before even factoring in tariffs.

Tariffs and freight hikes combined create an impossible situation for small businesses. Restaurants are already operating on razor-thin margins, typically 3–10% profit if they’re lucky. Add 20–30% increases in supply costs, and those margins vanish instantly.

And it’s not just Soko Bag. If these tariffs go into effect, you will see menu prices rise across every restaurant you frequent. Not because businesses are greedy, but because survival demands it.

Soko Bag Phoenixville Small Restaurant Tariffs

Why We Can’t Simply "Buy American"

If American-made alternatives existed, we would proudly buy them.
But in many cases, they don’t.

There’s no American-made Korean frying powder.
There’s no domestic supplier of authentic bamboo salt.
And while some U.S.-based packaging companies exist, their products often cost two to three times more than imports, without the flexibility or quality we need.

We believe in supporting American industry. But forcing small businesses to choose between impossible costs or going out of business isn’t patriotism; it’s punishment.

Soko Bag Phoenixville Small Restaurant Tariffs

How We Tried to Prepare, And Why It’s Still Not Enough

When tariffs were first threatened, my wife and I made a hard decision: We spent nearly every dollar of our available cash to stock up on supplies from China and South Korea before prices exploded.

It was a smart move, but it left us vulnerable.
No cash reserves for emergencies.
No extra margin for repairs, staffing increases, or downturns.

And once those supplies are gone?
We’ll face the full force of the tariffs and soaring freight rates.

This is what small businesses across America are facing, quietly, urgently, every day.

Soko Bag Phoenixville Small Restaurant Tariffs

A Kitchen’s Call to Action

We aren’t asking for handouts. We’re asking for understanding, for fairness, and for policies rooted in real-world experience.

We’d welcome the opportunity to sit down with local representatives, or even President Trump himself, and show firsthand how these tariffs and shipping costs impact real businesses, real jobs, and real families. What do I need to do to get myself an invite to the White House or Mar-a-lago. If you’ve got any connections or suggestions, please leave your thoughts in the comments below.

In the meantime, we’ll keep doing what we’ve always done:

  • Fighting for our dream
  • Serving our community
  • Supporting our staff and customers the best we can

But we can’t fight alone. We need awareness. We need advocacy. We need support from everyone who believes small businesses are the true heart of America.

If you believe small businesses matter, now’s the time to stand with us. Because the future is hanging in the balance.

Thank you for standing with Soko Bag.

Thank you for standing with every small business fighting to survive and thrive.

Soko Bag Phoenixville Small Restaurant Tariffs

The Lifeline Small Businesses Need: Strategic Investment or Acquisition

The reality is, one of the best paths forward for a small business like Soko Bag is finding the right strategic partner; a larger corporation or private investor who sees the value of what we’ve built and wants to help us weather the storm.

We’re not looking to sell out, we’re looking to scale up, while staying true to the heart of our brand.

With deep enough pockets to absorb short-term challenges and the infrastructure to support growth, a partner could stabilize Soko Bag through the next few years of tariff uncertainty. This would help us expand smarter and faster than we could alone.

We have the brand, the product, the loyalty, and customer satisfaction (over 1k reviews on GMB – Google My Business with a rating of 4.9). To the right partner, Soko Bag is a movement in the making, and we want to hear from you!

Soko Bag Phoenixville Small Restaurant Tariffs

Check out our brand new Soko Bag menu! We’re sure you will find plenty of Korean food options that’ll satisfy any hunger craving! Check out our home page to learn more!

Founder at Soko Bag
A passionate food enthusiast with a special love for Korean cuisine. Born and raised in South Korea and now residing in the USA with her husband Shea and son Skye.
J.H. Chang

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