Monday, April 18, 2011

Rising gas prices force business' hand

By Craig Learn and Taylor Steinberg
Bengal News Reporters

 As gas prices rise in the United States, West Side businesses may be forced to take action.
 According to buffalogasprices.com the national average price for a gallon of gas in the second week of March in the United States is $3.53, and the average for a gallon of gas in Buffalo is $3.70. There are several businesses on the West Side that have already been affected by the increase in fuel prices.
Vincent Guercio says gas prices prompted a hike in lettuce costs
 One of those businesses is Guercio & Sons Inc. located on Grant Street.
Guercio’s is a supermarket that sells classic Italian foods and other grocery needs. At the same time the store is a wholesale store that caters to various Buffalo businesses.
 Its wholesale products are rising in price because its fuel prices have risen 50 percent according to Vincent Guercio, manager of the store. This has not made Guercio raise his prices in the grocery store itself, but it could very soon.
 One example of a product that has risen in price is lettuce.
 “Take for instance roman lettuce, roman hearts used to be, around this time of year, maybe $26, this year market price is $52,” Guercio said. “It’s because of gas.”
“Right now we are not implementing any delivery charges as of yet,” he said. “But we are looking at the options of delivery fees, possibly reducing routes or possibly laying people off, driver wise.”
 Guercio also said his store might consider consolidating how many deliveries they do in one trip. For example, the store might pack as many deliveries into one truck as it can to save money. Right now Guercio’s delivers as far out as East Aurora and Angola.
 Rising prices are even affecting smaller businesses like New To You, a thrift store which sells used clothing and appliances at reasonable prices for West Side residents.
 The store provides free pick up to those who donate, and free delivery for residents that do not have a vehicle.
 The biggest cost for the store comes from pick-ups of donations according to Kim DeFlyer, executive Director for New To You.
 Right now the store is only making deliveries three days a week because of the gas prices said DeFlyer.
 The store does not want to raise its prices.
 “Boy I hope not,” she said, when asked, “If anything we would like to lower it, put things on promotion so we can give things to them cheaper, especially if its something we have an over abundance.”

 DeFlyer explains what her business will do if gas prices continue to rise.


 Sweetness 7 Café on the corner of Grant Street and Lafayette Avenue is another business affected by the rise in prices. It uses Guercio & Sons Inc. for many items.
 Owner Prish Moran said no matter what she will not switch to a different distributor because she loves Guercio’s.
  It is not the rising costs of food that puts the big hit on Moran’s business, but rather the gas bill.
 “Most directly is my heating bill, my gas bill, I use my gas for heating and for cooking,” she said.
 Moran has two cafés, one on Grant Street the other on Parkside Avenue. She said she has double ovens on the Grant Street store and one huge oven at Parkside Avenue and those are what are driving up her gas bill.
 Moran said prices have gone up on everything, even the basics.
 “All the staples, milk, butter, eggs, flower, everything has gone up and I don’t mean a nickel or a dime, like $20 a case for butter, that’s huge for a restaurant,” she said.
 Her vender prices have gone up as well, but there are ways around that.
“All of the delivery charges have gone up for all of my venders because their gas prices have gone up,” she said. ”But the only thing I’ve done is made half the amount of trips so we just order more at one time now.”
 Moran said she has seen a decrease in business since the gas prices rose on her Parkside location but an increase in business on the Grant Street location because the majority of customers walk or bike to the restaurant.
 The thought of raising prices in Moran’s stores does not cross her mind.
 “It has not, in all honesty it has not,” she said. “I haven’t even thought about it, I really haven’t. I feel strongly about the reality of how much will someone really spend for cup of coffee.”
Edited by Ariel Hofher and Corey O'Leary