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BusinessMay 19, 2014

As headlines bemoan the price of beef, milk and produce, some local restaurateurs are finding the rising prices hard to stomach. Food costs fluctuate yearly, but a combination of drought, disease and rising demand in emerging markets presents restaurants with a decision: eat the loss themselves or pass the cost on to the customer...

Danny DeGuire digs into his lunch from Burrito-Ville in Cape Girardeau. (Laura Simon)
Danny DeGuire digs into his lunch from Burrito-Ville in Cape Girardeau. (Laura Simon)

As headlines bemoan the price of beef, milk and produce, some local restaurateurs are finding the rising prices hard to stomach.

Food costs fluctuate yearly, but a combination of drought, disease and rising demand in emerging markets presents restaurants with a decision: eat the loss themselves or pass the cost on to the customer.

"Everybody's seeing it," says Al Munoz, manager at El Sol Mexican Restaurant in Cape Girardeau. "The only way we can deal with the increase is by raising our food prices."

It's a reality that other businesses have had to come to grips with as well. Imo's Pizza is currently reworking its menu.

"We haven't had to raise prices in three years," says Ryan Austin, manager at Imo's Pizza in Cape Girardeau. He explains that while the increase won't be drastic, it can't be postponed any longer. The average price hike is about 3 to 5 percent, which Austin says is typical for restaurants in the area.

"It's happening across such a broad spectrum that I think people will understand," he says.

Local Mexican restaurant Burrito-Ville is also planning to re-evaluate its menu.

"It's been noticeable, but it's not been too bad for what we order," says Jeff Mungle, general manager of Burrito-Ville. "Beef has been the biggest one."

Even though costs are a bit pricier for Mungle, it hasn't seemed to deter consumers.

"We've always sold more chicken than beef, but we go through about 60 pounds of beef a day," he says.

Since Burrito-Ville gets its beef from local suppliers, it has been able to avoid too much sticker shock when stocking up on food.

It's representative of a truth that restaurateurs know well: that a good distributor can make all the difference. With the cost of tomatoes and dairy products on the rise, Austin says the purchasing power that comes with being part of a franchise has helped mitigate growing costs.

"We're pretty lucky in the sense that we've been able to lock in a good price on things like sauce and cheese," he says.

Patrick Abbott, owner of Cup 'N' Cork in Cape Girardeau, speaks highly of his distributor as well. Even though drought and a fungal infection called leaf rust have plagued Arabica coffee bean crops, he's not too worried yet.

"My coffee prices are locked in for the next 12 months," he says.

Abbott's distributor, Colby Williams, owns Parengo coffee shop in Sikeston, Missouri, and says he's more worried about shipping schedules than prices for the time being.

"We haven't seen those prices go up yet, so my prices haven't had to go up," Williams says. "But at the same time, we're readying ourselves for that since rumor has it that it will happen."

He says he anticipates the real pinch to come from milk prices.

"You go through a lot of milk running a coffee shop," he says.

But smaller businesses like Main Street Station in downtown Cape Girardeau don't have big distributors or purchasing power. What Main Street Station has is a reputation for $1 hot dogs and $2.50 quarter-pound burgers.

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"I'm trying to keep it that way," owner Ron Taylor says. "But I don't use a distributor, so when I go to Sam's (Club), I see prices go up every day."

In order to keep prices low on food, he's had to make up for it with sales on other goods like soft drinks.

Overall, local restaurants are finding ways to absorb the rising costs. It's part of the nature of the business. Many aren't entirely sure what the future holds, but most seemed to agree with Austin's assessment: "I don't anticipate them going down anytime soon," he says.

Here's a tip

Tipping is one of the more nuanced social conventions. Here's your guide to tipping with poise:

__Eating out?__

Common decency prevents one from tipping any less than 10 percent, but beyond that depends on how good the service was.

Jesus Puente, a server at El Sol Mexican Restaurant in Cape Girardeau, explains that a server is the face of the restaurant for the customer. Their job isn't just to bring your food; it's to help you enjoy the restaurant.

"I ask them what they like, what they don't like and make suggestions," he says. "That's what makes good service. You'll have some people who will stiff, but to me, a good tip is around 20 percent."

So if they spilled your soup on you when they brought it out: 10 percent. If they refilled your salsa bowl before you realized it was empty: 20 percent. If they gave you a shoulder massage as you ate: you're probably on "Candid Camera," so make sure you're generous.

__Valet brought your car back?__

A couple of dollars is customary, but if you hang out at places with valet services, chances are you're rich enough to spare a fiver.

__Getting some ink?__

Gratuities have become common practice in tattoo parlors. The standard amount is a little higher, around 25 to 30 percent or more -- he or she did just permanently illustrate your body, after all.

__Getting a haircut?__

It's important to tip the barber. Get on his or her bad side and you'll be stuck cutting your own hair or worse.

Twenty to 25 percent is good. If you get a shave with the haircut, make it at least $2 more. The man's got a razor.

__Hitting the green?__

Tipping whatever is half of the caddie fee is par for the course when golfing.

~By Tyler Graef

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