Per recent surveys, consumers are more careful with how and where they spend their money; a shift bringing challenges to small business-oriented places like Montgomery. (Jessica Shorten/Community Impact)
As the global economy faces continual shifts and headwinds, local business owners in the Conroe and Montgomery area are struggling to adapt to how rising costs could impact their futures.
At least 13 business owners made the difficult decision to either permanently close or move to online-only storefronts since early 2025, per prior Community Impact reporting. Of those businesses, the majority offered fast and sit-down dining experiences.
According to a survey from the Texas Restaurant Association, business owners have continued to see increases in the overall cost of goods and labor.
"While some businesses experienced modest improvements in sales and traffic during the second quarter, those gains continue to be offset by rising labor, food, insurance, occupancy and operating costs," said Emily Knight, president of the Texas Restaurant Association.
Also impacting local business owners are rising fuel costs, which have seen a 30.4% increase since August 2025, per the U.S. Energy Administration.
Growing challenges
Knight said the cost of goods is keeping overall profitability down for many small business owners even as sales and revenue have seen slight increases year-over-year.
"Our survey reinforces what we're hearing across the state: demand remains steady, but profitability—not traffic—is the defining challenge for restaurant operators in 2026," she said.
The particular impact on restaurant and dining venue owners is seen in the cost of products like beef. However, Knight said rising credit card processing fees are also impacting small business owners, who take on the cost of the fee every time a customer uses a credit card.
"Inflation is moderating, giving operators some relief on menu pricing, but we expect elevated beef prices, insurance costs, labor availability and credit card processing fees to remain significant headwinds," Knight said.
Per the TRA's quarterly member poll, the largest cost increases reported came from labor costs, with 60% of restaurant and dining venue owners seeing at least a slight increase. The poll also showed 45% of restaurant owners reporting the day-to-day operating costs "significantly" increasing.
Measuring the impact
Rising costs in the gas industry have put a particular additional strain on food truck and mobile business owners in the area.
Vick’s Texas BBQ closed in January after rising gasoline and food costs combined with unexpected medical bills made it nearly impossible for owners Greg and Shelly Vick to continue operations.
"The past two years have been extremely hard on small family businesses, especially food trucks," Greg Vick said in a statement. "The stress of running the business, rising food costs, shopping, prep and daily operations became simply too much for one person."
"The Texas restaurant industry continues to demonstrate remarkable resilience, even as operators navigate one of the most challenging business environments in recent memory," Knight said.
What they're saying
In Harris and Montgomery counties, researchers remain cautiously optimistic about the economy's recovery but remain on guard.
Daniel Potter, director of the Houston Population Research Center, asked local Houstonians in a 2025 poll how they felt about job opportunities in Houston. While 70% said they felt good, Potter said since then he’s seen an unprecedented decline in trust in the economy as 2026 unfolds.
“In 2026, the number one problem that people identify facing the Houston area is the economy, point blank,” Potter said. “That 70% number that we were talking about at the start of 2025 was under 50% by the time you got to the start of 2026.”
Potter said this was the largest single-year drop in Harris County behind only the 1982-83 oil crisis and the largest single-year decline in perception of job opportunities ever detected in Montgomery County.
Potter said the economy and buyers operate on a push-and-pull methodology.
Potter said if consumers think the economy is doing great they will act accordingly. However, Potter said consumer perception is often independent of whatever changes the economy is actually facing.
“[There is] lots of concern about the economy, lots of concerns about the jobs right now, lots of pressures being felt by people from a variety of different angles," Potter said.
What else?
As the economy continues to change, both the Montgomery and Conroe Economic Development Councils have various programs to help support the growth and stability of small businesses in their areas. Some of those programs include:
