Bay Area small businesses struggle with inflation as optimism slides

It is definitely not party time at Aimbrell Shanks’ Santa Clara rental company, PartyTime Machines. As at a great many Bay Area small businesses, inflation is not only driving expenses up, it is shrinking her market as consumers cut spending to cope with their own rising household costs.

“I am not optimistic,” said Shanks, who in 2015 bought PartyTime — which rents out machines that dispense popcorn, churros, ice cream, margaritas, slushees and other festive delicacies — after working there for a decade.