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Richmond restaurants struggling to stay open

Illustration: Sarah Grillo/Axios Across Richmond, many restaurants are raising prices, and some are adding fees to try to weather the latest challenge to an industry badly battered by COVID-19.At the same time, some owners say they're cutting their salaries and taking a loss on menu items to try to minimize the consumer hit. Why it matters: Some restaurants won't survive the rest of the year, owners warn — and will follow the rash of recent restaurant closings, like , and — if conditions don't improve. What's happening: Nationwide, the two biggest costs for restaurant operators — food and labor — are up by 21% and 18% respectively, according to a mid-summer survey of restaurant owners by the . Meanwhile, 62% of operators say total sales are still down from pre-pandemic numbers, per the survey. "We're working harder than ever for less return," Steven Gooch, owner of and restaurants, tells Axios. What they're saying: "Sometimes you feel like Rocky Balboa. You've just come out of getting the s--t kicked out of you, and you still have more rounds to go," Brian Moore, who owns , tells Axios. Zoom in: In addition to labor and food costs going up, Gooch tells Axios that his linen bill recently doubled and his utility bill is up 30%.Gooch said he's "laser focused" on cost now, eliminating things like takeout at one restaurant where the numbers didn't work. David Bender, who owns , said delivery fees and surcharges for fuel got so high that he cut off some services and now makes a weekly trip to Restaurant Depot to pick up product directly. He also just raised prices across his menu by about $1 per entree. "I can't charge what I would need to cover the real cost; no one would pay $18 for a burger," he said. Threat level: Raising menu prices too drastically — by even 10-13% — would likely trigger a tipping point that turns the consumer away, a ."It's human nature to get conservative about spending when prices go up," Moore said. Moore raised prices at Chez Max by a few dollars or less per item and is focusing more on customer experience, taking fewer reservations to ensure every table gets full attention and wants to come back."I might lose a little money in the short-term, but hopefully we'll get through all this," he said. Get more local stories in your inbox with .Subscribe Support local journalism by becoming a member.

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