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Southeast Texas restaurant owners forced to raise prices to stay open

A local restaurant owner was told to either raise his prices, or he would have to close in within the next two years.

CHINA, Texas — Price increases for food have been seen in grocery stores across Southeast Texas.

A lot of restaurants said they are feeling the pinch, and unfortunately that cost is being passed to customers.

Jimmy Samaha, the manager of the Diamond Diner in China, Texas, said he unfortunately had to double his prices within the last three months.

Samaha said he has talked to many vendors, organizations and restaurant owners, and they all tell him he has to raise his or be forced to close within the next 20 to 24 months.

"I keep getting emails from vendors, from restaurant organizations, and they all say the same thing,” he said. “You have to raise your prices."

This is because vendors raised the price of products from 20 percent to 30 percent.

For Samaha, the price of cooking oil and meat have gone up, forcing him to raise the prices on his menu.

Samaha never closed down during the pandemic, but as a small business owner, it has been hard staying open and keeping up with food and labor costs, he said.

Samaha’s cost across the board has gone up 10 percent, but thanks to PPP loans and a loyal staff he has been able to stay open. However, this came with a cost.

It is not just higher price tags on products that Samaha is dealing with. 

Samaha is also is having to pay his staff, and he said food and labor costs together have gone up at by a minimum of 10 percent.

"People that come in, they work for a little while, then they wanna quit," Samaha said. "They want to get the $600 or whatever they can get from unemployment. They try to get that and that has been a problem."

Samaha said he has been around to three or four different stores to try and get products at the lowest price.

"I am having to shop now like I have never had to shop,” he siad. “I cannot just go to a vendor and say give me what I got three years ago. I have to go to three or four different stores to see who has got the best price on what I am getting."

That way, he will not have to pass on as much of the burden to his customers.

Samaha said managing these issues and keeping his diner open for business starts with his loyal staff and loyal customers.

Not one person has come into the diner and complained about the higher menu prices, he said.

"I think they understand what is going on," Samaha said. "I think they understand that in order for us to keep the doors open, we have got to be able to make enough of a profit."

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