We are all watching what is happening with gas prices every day. The price of gas and oil can change almost hourly and, unfortunately, this affects more than just how much we pay at the pump. The ripple effect on almost every industry is becoming apparent, but how it affects restaurants is multifaceted. You probably understand this already, but I want to help everyone, especially new owners, understand how oil and gas prices will increase the cost of food, utilities and eventually how much customers will spend at restaurants and even how often they may go out. Fuel Makes Food More Expensive Long before food gets to your restaurant table, gas and oil costs begin to drive up its price. Manufacturing costs fluctuate with fuel, whether producers lease or purchase equipment. The cost of irrigation will go up as the overall price of utilities goes up. When it’s time to transport their products, distributors will be paying more for fuel, which will have a trickle-down effect from the farm to the restaurant to your plate. Produce, dairy and meat are immediately impacted by the rise in fuel costs due to transportation costs. Other items that we don’t usually consider in fuel pricing are bacon, which is smoked and takes energy to produce, and even coffee because the beans must be roasted. Changes in Farm-to-Table A hundred and fifty years ago, a farmer transported food five to perhaps 50 miles to customers by horse-drawn wagon over poor roads.…
