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Gas prices hurt food delivery businesses
Local food delivery businesses are trying multiple ways of cutting costs to avoid major price increases to offset climbing fuel costs. "I think every business is faced with that," said Brad Krodel, operations manager for Five-Star Food Service's Kinston office. "We're going to try to cut costs in as many ways as we can, and as a last resort raise prices." Most of the Chattanooga, Tenn.-based company's businesses is drawn from stocking vending machines. The delivery trucks based in Kinston travel to locations up to two hours from Kinston, and drivers currently spend at least $100 to fill their tanks. Krodel said the company has tried to keep snack and drink price increases at a minimum, and worked to cut costs by consolidating routes and encouraging conservative driving to save fuel. "It is proven that you can you save fuel and increase your miles per gallon if you drive more conservatively," he said. Amber Houston, manager of Kinston's Peach House restaurant, said it used to cost $25-30 to fill up the decade-old Ford Escort used for deliveries. Today, employees will not spend more than $30 to fill up the tank, meaning they are getting less and less gas for their money as the per-gallon price hovers around $4. Houston said the restaurant has also become stricter about the price of orders. Customers must order at least $50 worth of food for a delivery. "You hate to turn them down," she said of customers who order less. Houston noted that the amount of orders has increased at the same time fuel costs are climbing, but the restaurant has not yet raised food prices or added a delivery surcharge. "Not yet as of now, but who knows?" she said. Since they drive their own vehicles, those who deliver pizzas for Papa John's of Kinston bear much of the gas price burden. Kimbly Joyner, 26, of Jackson Heights, pays $50 to fill the tank of her 1996 Ford Escort. She said her fellow drivers who own larger vehicles must pay even more. Drivers also cover maintenance costs. On a busy day, Joyner said she will travel about 100 miles making deliveries. Drivers depend on tips and a reimbursement of $1.40 per delivery to cover the cost of gas, she said. "Overall it's a big toll as far as us personally ... it makes it kind of hard if we don't get good tips," Joyner said. The store's general manager, Karen Burd, said she had not yet heard if Papa John's plans to raise food prices or its delivery surcharge. Burd said high costs make it difficult to hire new drivers, though. "It's harder to convince them they're going to make money having to drive their own vehicle," she said
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