Gas prices taking bite on many jobs

Most people recognize how rising gas prices have made buying fuel for their cars a painful experience, but many aren’t recognizing some other wide spread effects the record breaking costs of gas and fuel are having on the entire community.

According to the U.S. Department of Energy, the average retail price of gasoline in the United States in March of 1999 was $1.05 per gallon. The price has been rising ever since, with prices currently reaching about $3.75 per gallon and these rising gasoline prices are affecting both individual consumers and businesses.

Gasoline plays a significant part in the pizza retail and delivery business.

Santa Rosa Press Gazette asked some local pizza restaurants how they were being affected by rising gas costs and what, if any, changes they are making to deal with the crisis.

At Domino’s Pizza, manager David Gardner says the rising cost of gas has hurt the business in several ways. One of the most obvious ways involves the delivery drivers who have to buy gas for their vehicles.

“We charge a sliding delivery fee that goes up as the price of gas increases and depending on the distance traveled for a delivery. This fee is given to the drivers to pay for their gas expenses,” says Gardner.

However, delivery driver Kathy Hough says it isn’t enough. “We do get a sliding fee, and yes it does go up when gas goes up, but it doesn’t come close to covering what it costs in gas to deliver the pizzas,” says Hough.

These delivery drivers have to rely on tips more and more to cover the cost they are incurring while doing delivery work.

Sky high gas prices are also affecting food prices, which have been steadily rising, and the pizza restaurants buy a lot of food supplies.
In addition, the price of cardboard is rising because of transportation costs, and delivery businesses like these rely on cardboard for boxes.
According to Gardner, the rising cost of gasoline is going to have some impact on pricing. “Rising gas prices have affected not only our delivery costs; but it has also affected just about all our costs: cheese, flour, boxes, and soda. Even our cornmeal has gone up.”

Gardner says the customer is going to notice the increased costs eventually. “I don’t think we will see an increase in the basic menu items in price. Mostly the coupon or sale prices are going to go up. We may have to start charging a larger delivery fee, I don’t know. Everything just costs so much more now,” says Gardner.

Papa Johns shift manager Sherry Bell says management has been speaking with their corporate offices about the increase in fuel prices and the need to raise the amount delivery drivers are given for each delivery. “Right now the drivers get a flat delivery fee to help out with the gas cost, but it isn’t nearly enough,” says Bell. “We still haven’t heard if they are going to give us an increase.”

Bell says she really can’t speak about menu items being increased in price because she isn’t involved in the process, but she says she feels prices will eventually have to go up to compensate for the increasing costs of operating a business.

As gas prices inch closer to $4 a gallon, many people will feel the effects of increasing costs to businesses. People from all walks of life, consumers as well as retailers, are all feeling the negative effects of ever increasing fuel costs.

Because hurricane season is right around the corner, many are extremely concerned about the price of fuel for generators. There are many who require generators during a power outage to provide life saving oxygen and other crucial medical treatments.

See future editions of Santa Rosa’s Press Gazette for more on the rising costs of fuel and how some will cope with the need for gas during hurricane season.