Record fuel prices are pumping up other costs
Delivery and product are fees going up in response fuel costs
By SCOTT NILES Courier staff writer
“We actually lowered our menu prices because we know consumers are trying to watch their budget. It seems like everyone is trying to gouge the consumer,” said Ottumwa Domino’s Pizza Owner Stuart Bjerke. “We only raised the delivery charge by a quarter since last fall.”
He said it was a necessity to do so to help reimburse the delivery drivers for the gas they put in their cars.
“All of them drive their own cars, so it’s a benefit for them,” Bjerke said.
“I’m pretty sure it’s because we didn’t raise menu prices at all and we only raised delivery by a quarter. I’m sure that factors into it,” Bjerke said. “I’m sure if we would raise menu prices or the delivery costs more, then it would affect the drivers, too.”
He believes a few people would think the increase counts in the price and a few wouldn’t want to spend that much money with the tip.
“I don’t want to really raise our delivery costs again if I can get by without doing it,” he said.
“But, gas prices have just eaten quite a bit of our profits now. Right now we are trying to take the brunt of it,” Bjerke said. “But if gas prices keep going up, we are definitely going to have to look at raising prices.”
He said as gas prices go up, their raw material costs go up.
“We pay 35 percent more than we did four years ago,” he said. “It started about last year just before summer hit and has been gradually increasing since.”
Bjerke said his decision on whether to raise menu and/or delivery prices again would depend on how bad of a hit he is willing to take on the profit end.
“When it starts to significantly impact profits, then maybe, not that it hasn’t, but I just don’t think everyone can keep gouging the consumers,” he said.
Scott Niles can be reached at (641) 683-5360 or via e-mail at sjniles@mchsi.com.