Does anyone else see this kind of contradictory behaviour?

So, I run a consumer goods business with three locations in a capital city in the middle of Europe. Despite the economic challenges, our sales are hitting new records, even after raising prices due to increased costs and inflation. Surprisingly, it’s still fairly easy to find employees (it’s a very seasonal therefore uncertain job), although their motivation seems low.

What puzzles me is the contrast with the general economic sentiment. Many people I know are struggling with basic expenses, cutting back, and generally spending less. There is a lot of uncertainty in the air. Yet, when I look around at restaurants and events, they are bustling and everything is priced high. How does all this even fit together? Nothing adds up, and I’m completely puzzled.

Theory 1: People are perhaps using their savings to enjoy life as much as they can, despite the economic challenges.

Theory 2: Maybe I’m in an economic bubble where it seems everyone is struggling, but actually, a majority are doing well, adapting easily to inflation.

Is this normal, or is there something else at play that I don’t see?