Augusta, Georgia – Katrina Golden, 56, founder and CEO of Lil Mama's Sweets and Treats, is sharing her experience as a small business owner navigating the challenges of rising costs and economic uncertainty. Golden, who retired from the federal government in August 2019 to pursue her passion for baking, details how tariffs have significantly impacted her business.

From Kitchen to Coffee Shop

Golden’s journey began with baking for friends and family, fueled by encouragement to turn her hobby into a business. Starting in her kitchen, Lil Mama's Sweets and Treats now operates a space at the Veterans Affairs Medical Center in downtown Augusta and sells products online. In 2024, the bakery expanded with a food truck and secured a contract to run the coffee shop at the VA hospital.

Sales Dip and Rising Expenses

Beginning in March 2025, Golden noticed a decline in sales. She attributes this to a combination of economic factors and consumer uncertainty, particularly in Augusta, a military town. “People were starting to pull back on buying things like coffee,” Golden explained. Adding to the challenge, expenses increased, largely due to the impact of tariffs.

The Impact of Tariffs on Ingredients

Golden explained that tariffs affected the cost of essential baking ingredients. “We buy a lot of butter, sugar, flour, eggs, milk – all of your grocery staples,” she said. Even when tariffs were removed, she continued to pay inflated prices. Her local coffee roaster also faced increased costs due to tariffs on coffee beans. Even her egg supplier had to raise prices due to increased feed costs.

Disposable Costs and Supply Chain Issues

The bakery also relies on disposable items like forks and cups sourced from overseas suppliers. Golden believes tariffs were directly responsible for the increase in these costs, stating, “There was no other reason, really.” The fluctuating tariff policies created instability, making it difficult to plan for events, hiring, and overall business strategy.

Staffing and Operational Adjustments

To cope with the financial strain, Golden has had to reduce employee hours at the bakery and personally take on more of the baking workload. While she maintains a staff of three, she’s limited in her ability to expand. The contract at the VA hospital restricts her ability to raise prices, impacting profitability despite competitive pricing compared to larger chains like Starbucks and Dunkin'.

Looking Ahead

Golden raised prices on her website to offset increased costs and ensure the bakery’s survival. She is hopeful that the economy will stabilize, allowing her to hire additional staff and potentially increase sales. Lil Mama's Sweets and Treats is also planning to scale into retail, aiming to be on store shelves by late 2026 or early 2027. Despite the challenges, Golden remains passionate about baking and serving her community.

“It’s a wild ride to be a small-business owner in today’s US economy,” Golden said. “I wouldn’t trade it, though. Baking is a passion for me, and seeing the general public enjoy what I make keeps me going.”