How are you coping with the high cost of food?

It’s not just a problem for you and me trying to keep our fridges full and families fed as prices rise and rise and the budget stays the same. Imagine the dilemma for those trying to run a restaurant.

Several restaurant owners shared details of the challenges they face as they do business.

A year ago, Venda Ravioli owner Alan Costantino was paying $20 for 100 pounds of semolina, which is needed to make all the pasta at his Federal Hill store. Today he is paying $60 for 100 pounds. He says other ingredients such as eggs and cheese have also gone up in price dramatically. He can’t triple the price of his pasta to cover his increased costs. But, eventually, customers will start to see items like pasta go up in price, unfortunately.

Jim Harris of Pizzico talked about customer loyalty as well as the challenges.

"Our industry is very price sensitive," he said. When prices go up, restaurants have to react or they make less money and some aren’t even that profitable in the first place, he added.

"It’s a double-edge sword if we don’t make adjustments to portions and/or prices," he said.

"We are introducing a new menu that will be both price sensitive to consumers and cost sensitive to us. More pasta dishes, smaller portions for less money charged the customer. Also, assuming the idea that serving more people at cheaper prices rather than less people at higher prices is better for the bottom line, we engage in discounting and promotions aimed to save the consumer money in the hopes of serving more people," he said.

Harris added, "We try to focus on direct marketing to our current customer base via e-mail and snail mail to breed loyalty."

Carlos Slaughter, co-owner of two restaurants, d. Carlo Trattoria in Smithfield and Flare in Coventry, said "The way we have been dealing with that is to be more creative with inexpensive cuts. Example: flat iron steaks, pork shanks, osso bucco, lamb shanks. Using a little TLC with the product, passing on savings to the customer and still meeting our percentages.

"They appreciate the 5- to 6-hour cooking/preparation time that they do not have time for," he said.

Kevin Gaudreau, general manager and executive chef at Ruth’s Chris Steak House, said "all commodities are hitting all-time highs."

"It is almost impossible for restaurant owners to continually inflate their prices because of rising cost. This will directly hit your bottom line in a negative way," he said.

"Our guests expect certain quality and value. If our industry must keep raising the prices, eventually we will drive away our core clients. We need to be responsible to the guests and offer great value and service and not to continually raise prices.

The way he sees it, "Sometimes we need to ride these turbulent times out and continue to do what we do best (offer the best quality and service, never sacrifice standards). In the long run our guests will appreciate our efforts and reward us by being loyal customers."

He said that restaurant owners need to get past the short term and look for continued long-term growth if they want to succeed in present market conditions.

John Elkhay, who orchestrates the Chow Fun Food Group and upscale Providence restaurants including 10 Prime Steak and Sushi, XO Steakhouse, Citron Wine Bar and Bistro, Big Fish and the new Chinese Laundry, said he will not be raising prices to compensate for his higher costs. Rather he views these times as part of the ebb and flow of the restaurant business and compared it to playing the stock market. Prices go up and down, he said, but he’s in the restaurant business for the long run and so he can’t react to every change in the market.