How Oil and Gas Prices Affect a Restaurant Bill

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 ExpensiveLong 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…