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Restaurant Owners Prefer Price Hikes to Energy Surcharges.


A steady diet of energy hikes has restaurant owners raising or preparing to raise their menu prices, an alternative to tacking on a 2 to 4 percent energy surcharge that some were considering placing on bills.

"Many restaurant operators are raising their prices or are strongly considering it. Very few people are putting on surcharges," said Jeff King Jeff King can refer to:
  • Jeff King (mushing), an American multiple winner of the Iditarod Trail Sled Dog Race.
  • Jeff King (baseball), an American major league baseball player.
  • Jeff King, an American screenwriter for the Due South television series.
, chief executive of Long Beach-based King Seafood Co., which owns the Pine Avenue Fish House, 555 restaurant in Long Beach and the Water Grill in downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or . "I think most people who run restaurants believe that it's better to do a slight price increase than to do something that might be viewed (as a gimmick) and drive away customers."

King said his firm's restaurants instituted a 3 percent price hike in April.

A poll conducted in May for the CRA See Community Reinvestment Act.  found that 34 percent of respondents definitely would, oppose surcharges, and an equal percentage would be much more likely or somewhat more likely not to dine out Verb 1. dine out - eat at a restaurant or at somebody else's home
eat out

eat - eat a meal; take a meal; "We did not eat until 10 P.M. because there were so many phone calls"; "I didn't eat yet, so I gladly accept your invitation"
 as often if surcharges were applied. The idea of turning off one-third of their customers with a surcharge could temper enthusiasm for the practice.

"I'm not a fan of surcharges," said David Stockman David Alan Stockman (born November 10 1946) is a former U.S. politician and businessman, serving as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985). , senior vice president of Lawry's restaurants, which also runs the Tam O'Shanter Tam O’Shanter

stumbling home from the tavern sees witches dancing around open coffins in the graveyard. [Br. Lit.: Burns Tam O’Shanter in Benét, 985]

See : Drunkenness
 in Los Feliz and the Five Crowns in Corona Del Mar Del Mar is the name of several places in the United States of America:
  • Del Mar, California
  • Del Mar, Texas
  • Del Mar High School, located in San Jose, California
  • Del Mar Racetrack, located in Del Mar, California
. "As a businessman, I'm reluctant to put our costs right out in front of our customers that way. It's a burden to them.

"I know that, as a consumer, I resent surcharges myself," Stockman said. "My attitude is, just put it on the bill as the price and I'll decide if the, price is right for me."

Although energy costs have risen almost 30 percent over the past year at his company's restaurants, Stockman said menu prices have not been raised this year. "But, we do reserve the right to raise them," he said.

They're also holding the price line at the family-owned Papadakis restaurant in San Pedro.

"We're just taking the (energy cost) hit ourselves," said Taso Papadakis, who helps his father, John Papadakis, run the longstanding establishment.

As for instituting a surcharge; Papadakis said absolutely not.

"The last thing customers want to be reminded of when they come to a restaurant is a utility bill," he said. "They can see that at home. They're here to relax."
COPYRIGHT 2001 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Comment:Restaurant Owners Prefer Price Hikes to Energy Surcharges.
Author:WOOLARD, JOHN
Publication:Los Angeles Business Journal
Article Type:Brief Article
Geographic Code:1U9CA
Date:Jun 25, 2001
Words:391
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