EL PASO, TEXAS (KFOX14\/CBS4) \u2014 Rising gas prices are rippling through the economy in El Paso, where restaurant owners say they are paying more for ingredients, deliveries, and even everyday services their businesses rely on.<\/p>\n
Gelaine Apuan, the owner and operator of Mac\u2019s restaurant in downtown El Paso, said the increases are making it harder to keep dining out affordable for customers.<\/p>\n
\u201cIt\u2019s quite challenging because I\u2019m trying to keep it so that people can still go out, and people want to go out to eat. And it\u2019s just it\u2019s disheartening to see what\u2019s going on right now with gas prices especially,\u201d Apuan said.<\/p>\n
Some of the higher costs are being driven in part by tensions overseas affecting the Strait of Hormuz, a major global shipping route. About 20 percent of the world\u2019s oil supply passes through the area, and when supply is disrupted, energy costs can rise.<\/p>\n
Kelsey Erickson Streufert with the Texas Restaurant Association said restaurants felt the impact quickly.<\/p>\n
\u201cRestaurants saw the impact of rising gas prices pretty immediately,\u201d Streufert said.<\/p>\n
Jordan Salas reports on El Paso restaurant owners feel ripple effects as rising gas prices drive up costs (Credit: KFOX14)<\/p>\n<\/p>\n
Apuan said some price increases have been significant.<\/p>\n
\u201cThe cost is probably about 25% more than where we normally are. And produce, oh my goodness. We just bought a box of limes this morning, where we normally pay $25…. it\u2019s up to 68,\u201d Apuan said.<\/p>\n
She said the higher energy costs are also showing up in services beyond food. Apuan said linen supply companies are adding energy surcharges. In a notice sent to Mac\u2019s, one company said, \u201cDue to recent geopolitical developments, our energy costs have increased approximately 20 percent,\u201d and it is adding a temporary surcharge to accounts.<\/p>\n
Industry leaders say higher fuel costs are driving up the price of getting food to restaurants, with additional fees appearing on bills.<\/p>\n
\u201cSo immediately, everything coming into a restaurant costs more. In fact, we\u2019re even seeing fuel surcharges get added to a lot of bills for restaurants,\u201d Streufert said.<\/p>\n
Apuan said the rising costs may also be affecting customer traffic.<\/p>\n
\u201cMy weekends that are normally astronomical… have been definitely decreasing,\u201d she said.<\/p>\n
Streufert said the trend is being seen nationwide as consumers adjust their spending when gas prices rise.<\/p>\n
\u201cAbout 90% of American consumers adjust their spending when they\u2019re dealing with rising gas prices. So that hits us on both sides of the equation, making those profit margins even narrower, which is a challenge for a lot of our local restaurants,\u201d Streufert said.<\/p>\n
Even with costs rising, Apuan said Mac\u2019s is not raising menu prices yet.<\/p>\n
\u201cWe have not made any changes at this time because I want people to still be able to come out, still be able to afford, still be able to bring their families out,\u201d she said.<\/p>\n
\u201cOur biggest challenge is that we don\u2019t raise prices. That is going to be our biggest challenge. But we will not skimp on lesser quality of food,\u201d Apuan said.<\/p>\n
Industry leaders said if high prices continue, customers could eventually see the increases reflected on menus.<\/p>\n
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