High gas prices pinching profits at restaurants

HAMEL, Minn. (FOX 9) - The recent spike in gas prices isn't just causing pain at the pump; they're putting a pinch on profits at one local business. 

More than 5,000 miles away from Naples, Italy, Pasquale Di Maio has brought the authentic taste of his hometown to Hamel, Minnesota, at his restaurant and catering business, Vesuvio's. 

The business is about 80 percent catering and 20 percent takeout, but the recent spike in gas prices has been pinching profits at every level. 

First, there's the cost of his employees driving to and from catering events. 

The recent spike in gas prices isn't just causing pain at the pump, they're putting a pinch on profits at local businesses as well. 

"In a week, they are spending $50 on gas in a small vehicle," Di Maio told FOX 9. 

Recently, his employees have cut down the number of vehicles they take – from three to two – to save money. 

Then, there's the cost of food. 

"Our fresh buffalo mozzarella is three-times more right now," said Di Maio. 

The price of everything from cheese to meat was already up, and the cost of getting it to the restaurant has now skyrocketed, too. 

"Today, I just received my food from my distributor, and I said, 'Oh my gosh!' Almost 40 percent more [expensive] overall," said Di Maio. 

According to Gas Buddy, the national average for a gallon of gas topped $4.20 on Tuesday. 

Di Maio says that the sudden spike is forcing him to raise menu prices for the first time in four years. 

"I think this is the only way to break even," said Di Maio.