(WXYZ) — Rising fuel costs are forcing small business owners and their customers to adapt, with some restaurants already closing their doors.
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Gas prices in Michigan are averaging nearly $4.50 per gallon, above the national average of $4.33, according to AAA. Diesel fuel has climbed above $6 per gallon, driving up the cost of supplier shipments for restaurants and other small businesses that depend on deliveries.
At Ellen's Bakery and Cafe in Sylvan Lake, owner and chef George Kalergis said higher fuel costs are hitting his business from multiple directions — raising the price he pays for ingredients and pushing customers to change how they order.
"We use honest goodness great ingredients," Kalergis said.
Kalergis said he has watched four nearby restaurants close in the past year. To keep his own business afloat, he is taking steps to manage rising costs, including adapting to a shift in customer behavior as more people opt to pick up their own orders rather than pay delivery fees.
"Easier for a customer to call in the order and pick up themselves. Understand the delivery fee is a convenience but…" Kalergis said.
Customers ordering through popular delivery apps say they are feeling the pressure too.
"How often are you noticing the increase in prices when you order food? Every day," customer Alesha said.
Regina Henderson, a customer who recently moved to the area, said she welcomes the comfort food at family-owned restaurants like Ellen's as a break from the economic stress of tariffs and rising fuel costs. But she acknowledged that businesses are struggling too.
"When the owner of a restaurant says, ' If we don't increase some of our prices, we'll go out of business, what do you think?"
"As horrible as that is, I don't see no other way to do it," Henderson said.
Henderson said she believes the longer-term solution lies in resolving international conflicts she says are driving economic stress at home.
"If we can get that going to end, that would be a start," Henderson said.
Fuel analyst Patrick DeHaan has also posted to social media about a regional surge in prices tied to a power outage at a refinery plant in Joliet, Illinois.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
