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Pasadena Restaurateurs Reel from Impacts of High Gas Prices

Published on Friday, March 10, 2023 | 5:34 am
 

Natural gas prices, which fuels stoves, hit a historic high in recent weeks, hitting some industries hard including restaurants, which were already staggering from the double whammy of the pandemic and high inflation. 

Gale Kohl, owner at Gale’s Restaurant, located at 452 S. Fair Oaks Avenue,  said she was shocked upon seeing how much she was getting charged since January. 

“Since the beginning of the year, our gas bill has more than doubled.  The gas bill is the most evident but all utilities have risen. Obviously, we did not budget for this and the money comes out of any profit we might have made,” said Kohl. “Everyone is feeling the prices rise and we are not seeing the same kind of spending that we did last year.”

Unlike some restaurants who could adjust cooking methods or shifted to electric stoves to reduce their natural gas consumption, Gale’s Restaurant can’t change the way they prepare and cook their dishes.

“In my situation, we can’t really adjust our cooking methods. Our building is almost 100 years old…. we don’t have the resources or the space.” 

Jot Condie, President and CEO of California Restaurant Association, said the high prices of natural gas threaten the survival of some restaurants. 

“The spike in natural gas prices is wiping out an already slim profit for most restaurants. With exponential increases in labor and food costs, the doubling — even quadrupling — of gas bills threaten the survival of these small businesses.” 

Despite recent challenges, Kohl recognized that her staff is adjusting to the situation and guests are making an effort to support the staff and the restaurant. But if the prices of natural gas continue to soar, she believes there will come a day that they could lose their patrons because many people will not be able to afford to eat out.

Kohl urged the government to establish a threshold of the prices to help small businesses get through the current situation. 

“This is a difficult time for all. Between the rise in commodities, rent and utilities, it can only mean higher pricing.”

“California needs to establish thresholds of what the pricing should be. Letting an outside business decide is a mistake.”

For now, Kohl said she will try to manage her business and maintain a profit, while still being able to contribute back to the community.

“If that changes, I would have to analyze the situation,” she concluded. 

Restaurants could start getting some relief amid the high prices of natural gas. In a recent hearing, Southern California Gas Company (SoCalGas) company representative told a Pasadena City Council Committee that customers will see lower March bills as the wholesale market prices for natural gas have dropped.

“The market prices for natural gas have come down. In January, they are 80 percent higher than they are now in March,” Helen Romero Shaw, public affairs manager with SoCalGas and liaison to the City of Pasadena said at the Legislative Policy Committee Tuesday. “Your constituents, our customers, should see the drop in the gas bills this month, depending on their billing cycle.”

Despite the good news, she advised customers to limit the use of non-essential natural gas appliances such as pool heaters and fireplaces  to reduce their energy bills.

“They can lower their thermostat 3-5 degrees, wash clothes in cold water, reduce the temperature on the water heater to a setting of 120 degrees,” Shaw said. “A lot of customers overlook this and there are some savings.”

Shaw said SoCalGas continues to inform and offer several ways to help income qualified customers pay their bills through various programs.

For more information about these programs, visit: https://www.socalgas.com/save-money-and-energy/assistance-programs.

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