Flour Prices Costing Local Businesses Big

Greg Almaguer, Co-Owner of Gatti's Pizza
Greg Almaguer, Co-Owner of Gatti's Pizza

Ethanol production is causing costs on many common goods to soar.

More farmers nationally are switching from wheat to corn because they can get more money for it to be turned into Ethanol. That means we are now in a wheat shortage... Meaning the cost of flour is going high.

Greg Almaguer, Co-Owner of Gatti's Pizza, says, "So it has almost doubled. We are talking about in a year and, well I guess a year and a half. We definitely see it. We use bags of 25 lbs and its gone from $6.48 a bag to like almost 10 dollars."

That high price change has hit the restaurant hard since flour is a stable ingredient in pizza. Almaguer says they will have to raise prices if it continues because they can no longer absorb the cost.

"Our concept has always been based on being affordable for the entire family. You know two adults and two kids. They have to come in and purchase their buffets and go to the game room and play some games. We try to make it affordable for the average American family." Almaguer says.

Some families who might have to take on the extra cost say they expect it.

Kelley Pope, "I think if you are going to make time and money to come out to eat then it will just happen."

Flour is just the latest cost increase the restaurant has taken on. As we told you several months ago, the price of cheese has doubled.

Plus... With minimum wage increase, lots of his workers are being paid more. And finally, of course, high gas prices. The cost of delivery is also adding to the mounting increase.