Gas prices are surging amid the war in Iran, with average gas prices reaching $4.45 a gallon around the country. That’s an increase of about 41% in the last year, according to the AAA.
In Texas, the average price for a gallon of gas has risen from $2.55 in February to $3.79 at the end of April.
Revenue Management Solutions, a restaurant consulting firm, finds that $4.00 a gallon is a tipping point as consumers will gradually decrease their restaurant visits until prices fall.
In rural areas of Texas where vehicles are relied on as the main form of transportation to and around the city, gas prices are leading Texans to reconsider trips to their favorite restaurants, which might be affecting local businesses.
In Levelland, many local restaurants report that the rising gas prices are leading to a decrease in purchases and round ups by consumers, and an increase in supply shipment costs.
One local restaurant manager says, “I’d like to believe gas prices are affecting people’s dining out habits. They travel to a restaurant and feel the gas prices. We’ll be affected by it if they keep rising for sure.”
The manager of the Levelland Kentucky Fried Chicken says that “purchases have lowered in the last two and a half weeks, and that there has been a significant decline in change roundups by customers.' She believes that there is a strong correlation between the gas prices and the decrease in people’s dining out habits.
She also says that “there has been a considerable increase in shipping costs for the chains cooking supplies, which is putting a strain on business.”
(See “Rising gas prices” continued on page 3) Other local restaurant managers are more skeptical about the correlation, however, one stated that there were “many factors to consider” besides rising gas prices that might be affecting consumer habits. However, this manager did admit that gas prices are influencing the restaurants’ supply shipping costs.
Another local manager says that “there is no real correlation, people’s driving habits are simply affected depending on what it is they need”.
Whether or not there is truly a direct decrease in dining out by Levelland residents due to the rising gas prices is debatable, but gas prices are still putting an undeniable strain on many residents and businesses, and there is a general desire that they should lower soon.