(WACO, Texas) — The average price for a gallon of diesel in Waco is reaching local highs at $6 — and local restaurant owners say the ripple effects could soon hit customers' wallets and menus.
Kyle Citrano, a local restaurant owner, said rising diesel prices create a trickle-down effect throughout the supply chain, from cattle ranches to distribution centers to the dining table.
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"Typically, when you have higher diesel prices, a lot of your distribution companies will charge fuel surcharges, that's just part of the game. And unfortunately, we just can't adjust our menu prices on there. You'll feel the surcharge 1st and then you'll feel the cost of the goods getting more expensive over time," Citrano said.
Citrano said the cost of beef and produce is compounded by transportation expenses at every step of the supply chain.
"The cattle moving from there to the processor, from the processor to your delivery houses or whatnot, from there to the distribution centers, and then finally to us and our restaurants. It's had four different trucks drop it off. Same thing with produce. There's a lot, there's a lot that goes into that supply chain, and every one of them is affected by that higher diesel price," Citrano said.
Citrano said customers are already feeling the squeeze from higher diesel and grocery costs, which is cutting into their disposable income.
"And then the customer, I mean, the customer is dealing with those higher diesel prices. They're feeling they're feeling the squeeze, whether they have a diesel truck, they're feeling it at the grocery store. They're feeling it in restaurants, so their disposable income ends up being less. And so that affects how much they're coming into my restaurant," Citrano said.
Citrano said his priority remains serving customers well, but warned that sustained high costs will eventually force menu price increases.
"At the end of the day, that's what we want to be able to have is be profitable, and make sure that we can do the best for our customers. But if those costs stay high and they go over longer time, That going to raise the cost of food for customers," Citrano said.
Experts say diesel prices are at an all-time high, with no relief in sight.
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