Soaring gas prices create domino effect for local businesses

Soaring gas prices create domino effect for local businesses
Published: Apr. 21, 2023 at 5:15 PM MST|Updated: Apr. 21, 2023 at 5:16 PM MST
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TUCSON, Ariz. (13 News) - The price of gas is affecting more than just drivers. Local businesses are feeling the crunch as prices continue to rise.

From delivery costs to paying employees, local business owners are trying to stay afloat while the price for fuel climbs.

Businesses are trying the storm and still keep prices affordable for their customers, but high gas prices create a domino effect on how businesses operate.

“As a mobile business owner, it has been extremely challenging to keep the business going and be profitable. The concern is, as the gas prices increase, the profit margin decreases,” explained Eris Movahedi, owner and CEO of Espressoul.

As a newer, small business, Espressoul, a mobile coffee truck is doing all it can to save on gas.

″I would say limiting travel, tire maintenance, overall trying to book events that seem to be worth it, maybe more foot traffic, and setting a minimum,” she said.

Filling up their truck along with the generators generally costs them around $100 to $150. That gas may only last them a day or so depending on the distance they need to travel for business. Despite the rise in costs for them, they don’t want that to fall on their customers.

″I’ve really tried my best not to raise my prices because I don’t think it’s fair to the customers,” she said. “That’s the last thing I want to do. I just want to focus on enjoying Espressoul and not thinking, ‘oh my goodness, I’m going to break my bank getting a coffee from her.’”

Other local businesses like Beyond Bread have also gone through lots of challenges over the last couple of years, but the latest challenge is keeping up with gas prices.

“The gas prices are definitely having a big impact in many areas. Just everything from hiring employees, we’re looking at and looking for people who are close by,” said Matthew Boling, district manager. “We pay surcharges now on everything, all of the deliveries. The food has to get here one way or another and the transportation of that is gas.”

Due to the increases in gas, Beyond Bread has had to increase some of its costs. They’re also trying to pay their employees more.

“For the staff or for employees to have a good, living wage we have to go higher than minimum wage. People are just trying to make ends meet,” he explained.

With summer right around the corner, gas prices are expected to continue to rise, but businesses are trying to stay positive and hope for the best.