Rising prices are forcing local restaurant owners to reevaluate the way they do business.
With fewer customers and increasing food and fuel prices, restaurant owners are seeking ways to prevent raising their prices.
Cheerie Carr, who co-owns Hal’s Drive In with her husband Bob Anderson, said their business started to decline in March.
Tim Cooley, owner of Cajun Bar & Grill in Concrete, and Michael and Lanay Petkar, owners of State Street Deli in Sedro-Woolley, said their businesses started to decline in October 2007.
Profits are lower at the deli than they were a year ago, Michael Petkar said.
“We’re just having to tighten our belts,” he said.
Cooley said business at his bar and grill has decreased nearly 35 percent within the last year.
People don’t have the disposable income like they used to, Cooley said. Someone who makes minimum wage has to work quite a bit to fill up a tank of gas, he said.
“It’s just the trickle-down effect,” Cooley said.
Business for restaurant owners is unpredictable these days, with some busier than others. And customers who used to come in on a regular basis are beginning to cut back.
Cooley said his business has increased slightly this summer, but not like other years. He said he has taken up a second job to supplement his restaurant business.
He said discussions with other restaurant owners showed him that he’s not alone.
“We’re all in the same boat,” Cooley said. “We’re all trying to make a living.”
In the meantime, restaurant owners are watching the prices of staple food and supplies increase and are doing what they can to save money.
In June, food costs for Cajun Bar & Grill increased by 2 percent, Cooley said.
Carr said the cost for the food truck that delivers to Hal’s Drive In increased by 12 percent, plus a fuel surcharge.
At State Street Deli, the cost for bread has increased 7 percent, beverages nearly 10 percent and paper products by 5 percent, making it four times as much as Styrofoam, the Petkars said.
“We’ve had to absorb the cost increase, but are trying our darndest to not pass it on to our customers,” Michael Petkar said.
To avoid passing prices on to customers, the three restaurant owners are scouting for food items similar in quality but cheaper in price.
The Petkars said they are spending more of their time shopping for food and supplies themselves rather than purchasing from a delivery service.
“Before we weren’t doing that kind of shopping,” Lanay Petkar said. “We didn’t have to.”
Aside from saving on food costs, restaurant owners are looking for other ways to save.
Carr said energy efficient lights and appliances have been installed at the drive-in. The business has also reduced its summer hours by closing at 8 p.m. instead of 9 p.m.
“We just stand back and take a look at the big picture and ask, ‘what can we do here?’” she said.
Despite the challenges restaurant owners are facing, they look forward to a time when the economy will make a turn for the better. In the meantime, they will make cutbacks and bide their time.
“Hopefully our business will pick up and we can continue to provide the same excellent quality of service to our customers,” Michael Petkar said.
Local restaurants feel pinch of rising prices
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