Restaurateurs Use Different Strategies To Absorb Increased Costs

Robert Gerstenecker, chef at Park 75 at the Four Seasons Atlanta, said restaurants have tried to absorb most of the increased costs caused by fuel prices through various methods.

For instance, his tony Midtown restaurant, which has seen costs rise 10 percent to 15 percent this year, cut expenses by making its own bacon, salami, pickles, jams, chutney and spices. They’re also growing their own vegetables.

He is encouraging diners to work out special deals for eating in large groups or to carpool to events like Hotel Restaurant Week, which began Saturday.

“It’s so fragile right now,” he said of making ends meet without big menu price increases. “We hope it will get better, but there are so many chances for that stagnation to come back.”

Phil Wilkins, owner of the Atlanta franchise of Smashburger, said he expects consumers to become more cost-conscious as gas prices creep up. That, however, won’t stop them from eating out.

“They will be more cautious during the weekdays but treat themselves on the weekend,” he said.

At Big Pie in the Sky Pizzeria in Kennesaw, owner Dirk Tendick said prices on several goods — especially flour and cheese — have increased 50 percent since the restaurant opened in 2007. And because all of the supplies for the establishment — known for its 30-inch pizzas — are delivered by truck, gas prices have been a big contributor to the spike in prices.

But the eatery has held off on passing those costs to customers, hoping that repeat business and good word of mouth will bring enough volume to compensate for rising expenses.

“We have not increased our prices because trying to extract the most money possible from our customers on every visit is not in line with our philosophy,” Tendick said.