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Rising Gas Prices A Double Whammy For Restaurants

Fuel Costs Mean Less Customers, More Expensive Goods

POSTED: 7:54 am HST July 20, 2008
UPDATED: 8:10 am HST July 20, 2008

With gas at a record high in Hawaii at $4.48 for a gallon of regular on Saturday, people are driving less and eating out less and restaurants said they are feeling the pinch.

Hawaii's restaurant owners are very hard hit by rising fuel costs. While their regular customers are coming in less to save money, restaurant owners said they are facing their own sky rocketing costs.

Michael Seda said he used to go out to eat three times a week, now he said he hardly goes out at all.

"As far as going out and enjoying a good meal, I try to make a good meal at home," Seda said.

Like others, Seda is careful.

"I just find myself ordering less. I am trying it that way. You know, every little bit helps," Seda said.

With their own higher food and fuel costs, restaurants are scrambling to find ways to cope.

"Unfortunately, we cannot raise our prices because everyone is feeling the pinch," said Ed Kenney, who owns "Town" and "Downtown."

Flour costs twice as much, but restaurants can't double their pizza prices. Kenney is offering value meals.

"We have recently started pricing, offering two sizes of pasta. People don't have to come in and get the $18 pasta, they come in and share a couple of small plates with people and get the $11 pasta," Kenney said.

Other restaurants have had to cope by laying off staff.

"Now we have a skeleton crew of three, so I am working a little harder, which is good -- keeps me busy," Karen's Kitchen Manager Sandy Cezar said.

Another way some restaurants are cutting their costs is to have fewer daily specials. Karen's used to have 10 daily specials. Now there are only two or three.

Hawaii Restaurant Association's Ed Wary said restaurants now try to use less electricity. Dishwashers aren't turned on until they are full.

"We keep one of our air-conditioning units off between lunch and dinner we turn one of our AC units off," Kenney said.

Also, restaurants said they urge their suppliers to find them values.

"We are looking for the fish that comes in under $9 a pound," Cezar said.

Restaurant owners said they'll survive if they just creative enough to keep their customers coming back.

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