Food for Thought

Concerns about rising food prices have some local restaurant owners watching their bottom line now more than ever.

"I got a food order in Tuesday. In it was my fish order. I paid $62 a case for 15 pounds," said Carol Rodenroth, owner of Sue N' Carol's. "That price jumped up by $5 a case from what I normally pay. I'm ordering six or seven cases."

That's not the only noticeable increase seen by Rodenroth, whose family has owned and operated the restaurant on State Line Avenue since 1974.

"Last week, lettuce was about $50 to $60 a case, and tomatoes were about $40 a case. I'm getting them elsewhere because there's no way I could pay that," Rodenroth said. "I have to call around to find the lowest price."

Experts attribute the higher food prices to severe winter weather across the country and increasing crude oil and gas prices.

Joseph Glauber, chief economist with the U.S. Department of Agriculture, spoke about the situation at a recent USDA forum in Washington, D.C. He said higher prices for crops and livestock would "again pressure food prices."

"Higher commodity and energy prices are expected to lead to a stronger increase in retail food prices in 2011," he said.

Glauber said the Consumer Price Index for food at restaurants has increased by 1.3 percent.

While food costs are expected to go up close to 4 percent across the board this year, the USDA said grocery and restaurant food prices are expected to rise higher than the overall inflation rate the next two years.

Restaurant owners said their distributors and suppliers have kept them abreast of costs.

"They have given us a heads-up about the price increases. They told us about three weeks ago about the weather problems in Mexico, Florida and California," said Julie Furlow, owner of Julie's Deli on Summerhill Road.

"Produce and dairy product prices tend to fluctuate but not to these extremes," she said.

When prices fluctuate, Furlow said she adjusts accordingly.

"This is my 15th year here. I try to do small price increases, not on every item, at least three or four times a year. I find that easier to go up slightly," Furlow said. "We increase prices about 20 to 30 cents. It's not as noticeable as a dollar increase. Right now, we aren't having to raise anything."

Furlow said her customers understand the reason for the price increases.

"They go to the grocery store; they see the gas prices going up. They know we have to go up and understand."

She said the menu markup is a necessary business practice.

"If I stayed with my prices from 15 years ago, I'd be shut down. My clients understand I have to be profitable to be here. If you have a good product and good service, that's what people are looking for. If you have these, it will all work out."

Rodenroth isn't so sure.

"I'm afraid to go up on my prices. I feel like I'm in a corner. I'm scared to go up because if I do, (customers) don't eat here. I'm out money, and I still have to pay for utilities, rent. Everything costs me money," Rodenroth said.

Rodenroth said it would be hard for her to adjust menu prices quickly and still have customers understand.

"We try to keep and maintain a price, so our customers know what to pay when they come in. I need specials to draw people here. (We have a) $6.95 lunch special-had that price for a long time and I can't think of changing it," Rodenroth said.

After a December 2007 fire at Sue N' Carol's, Rodenroth said some customers suggested a price increase.

"I had some customers say I have to or need to go up on my price because of the costs," she said. "I only went up on coffee and tea to $1. But now everything has gone up on costs-coffee, tea, sugar-so I had to raise the drink price to $1.25. I'm scared about going out of business because of escalating prices."

Maria Rodriguez of Amigo Juan's Mexican Cafe thinks the same as Rodenroth when it comes to adjusting prices.

"We're absorbing the price increases. Our menu and prices are already set, and we don't want to change them," Rodriguez said.

Rodriguez also expressed concern about the rising price of produce.

"We get our tomatoes from Mexico. We used to pay $20 a case for them. Then there was the freeze, and now we have to get tomatoes somewhere else. We had to pay $50 a case for them," she explained.

"With the cost of produce and others rising, I'm sure it's affecting everyone."

Expensive food is just one concern.

"My employees have to spend so much for gas, and if we're not busy, I'll have to send them home because I can't afford to pay them. I need my employees, and they need me. I had to cut some employees, have them miss days because of the increases, and they understand," Rodenroth said.

She said being the proprietor doesn't mean she can treat Sue N' Carol's like her personal piggy bank.

"I can't think of myself when it comes to the restaurant. My mom started this and she gets money from here. I have other family members who work here and other employees who count on me. We all get paychecks, but we're not rich."

The situation is similar for Furlow.

"Two years ago when the economy started taking a dip, if we had a full-time employee quit, we would fill the position with a part-time person. It was one way we tried to keep costs down," Furlow said. "We have 23 employees that expect a check not only now but six months from now. I have to care for my employees just like I do my customers. You have to be profitable."

Grateful for their loyal clientele, local restaurant owners say they will continue to do the only thing they can: watch the bottom line.

"It's a daily process of monitoring labor costs, food costs, rent, all the expenses. It costs a lot of money to run a business and keep it profitable," Furlow said. "If a local restaurant goes up on price, they have to stay profitable. No one wants to, but you have to because it's a part of business. We're gonna have highs and lows. If you take care of your employees and customers, have a good product, it will all work out."

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