Detroit small grocers worry government shutdown impact on food stamps could put them out of business
(CBS DETROIT) - For manager Dave Gasso, King Cole Foods in Detroit's Highland Park neighborhood provides more than just fair prices. It is a place that helps serve low-income families.
"We're a small store, but we have everything for what families need," Gasso says.
Gasso says the majority of the store's customers are reliant on the Supplemental Nutrition Assistance Program (SNAP), the Women, Infants and Children (WIC) program, and food stamp benefits to pay for their groceries.
"Our business is 65-70% relies on SNAP, the SNAP program," Gasso says.
But with a potential government shutdown looming, Gasso believes the community store does not stand a chance without its main customers.
"We don't sell any alcohol or tobacco. We don't care about that. We're worried about a mother with three kids being able to get enough food for her kids to feed, enough to get a good price so we can feed them with food quality products," he says.
However, Gasso says he soon could lose dozens of customers if the government shuts down, knowing food stamps will stop.
"If that happens, the majority of business will shut down. We will literally be out of business," Gasso says.
According to the Michigan Department of Health and Human Services, 1.35 million Michigan residents received SNAP benefits in 2022.
If there is any chance for small businesses like King Cole Foods to serve those residents and stay up, Gasso says it is the duty of Congress members to step up.
"We have to do anything we can to help these families," Gasso says.
As Congress continues to negotiate a budget agreement, they'll have until this Sunday at 12:01 a.m. to agree before government funding expires and a shutdown is activated.
