Gas Prices Cost Restaurants

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Increasing prices at the pump are going to have an even bigger impact on our wallets because costs are having a trickle-down effect on other area businesses.

Every store depends on products delivered to its doorstep. Since it costs more to truck those products in, we'll ultimately pay more for them. About a year ago a gallon of diesel cost about two dollars per gallon. Now it's more than three dollars.

While we moan and groan about paying $3.15 for a gallon of gas, we might want to start keeping a closer watch on the cost of pizza and sandwiches. Food distributors are raising the prices of all items they deliver to restaurants to make up for the rising cost of diesel.

"It's not one general item going up, everything is distributed into our warehouses on semis or trucks, and basically it really doesn't matter what we're getting. Diesel fuel is what's causing the increase," said Robert Capponi, Hawkeye Food Service District Sales Manager.

Many restaurants such as Villa Di Roma in Rockford are losing profits because they can't raise prices on their menus every time costs go up at the gas pump.

"We actually went up a dollar; that was all we went up because we don't want to lose business. But if gas prices keep skyrocketing we're going to be in trouble," said Melinda Dugan, the manager.

Ever since gas prices starting costing families an extra $1,500 per year, Villa Di Roma has lost a lot of its customer base.

"A lot of people are staying home because they have families to take care of and they don't have money to be going out to eat," said Dugan.

As fuel costs continue to rise, many people are cutting back their extra expenses. That's causing big losses for the restaurant business.