SYLVAN LAKE, MI — Higher fuel prices are putting fresh pressure on small businesses in Michigan, where owners say the cost of doing business is rising from the kitchen to the curb. At Ellen’s Bakery and Cafe in Sylvan Lake, owner and chef George Kalergis says expensive gasoline and diesel are affecting both the ingredients he buys and the way customers choose to order.
Statewide, gas is averaging nearly $4.50 a gallon, according to AAA, while diesel has moved above $6 a gallon. Those numbers are pushing up the cost of supplier deliveries for restaurants and other small companies that rely on regular shipments. Kalergis says the strain is showing up in day-to-day decisions, from pricing to staffing to how often customers are willing to pay for delivery.
Delivery fees and supply costs are changing how restaurants operate
For many restaurants, fuel costs do not stop at the gas pump. Diesel is a major factor in the price of transporting food, beverages and other supplies, and that means owners can feel a ripple effect long before a customer sits down to eat. Kalergis said he is paying more for ingredients as shipping costs rise, which adds another layer of pressure to a business already facing tight margins.
He also described a change in customer behavior. More people are choosing to place an order and pick it up themselves instead of paying delivery charges. That shift may help some families save money, but it also reflects how fuel prices are altering the economics of convenience for restaurants that depend on delivery apps and third-party drivers.
One bakery owner says nearby restaurant closures are a warning sign
At Ellen’s Bakery and Cafe, Kalergis said he has watched four nearby restaurants close over the past year. He did not tie each closure to fuel costs alone, but said the recent pressure on small businesses is real and visible in his community. For operators like him, each added expense can narrow the margin between staying open and shutting down.
Kalergis said he is trying to adapt by being careful with costs and responding to how customers now choose to buy food. He emphasized that the business relies on quality ingredients, but that commitment comes with higher expenses when transportation becomes more expensive. For small, family-style restaurants, those changes can quickly affect the bottom line.
Customers say rising prices are showing up in everyday orders
Customers are noticing the increase, too. One delivery-app user, Alesha, said food prices seem to rise every day when ordering meals online. Her comment reflects a wider frustration among consumers who are trying to balance convenience with a growing bill at checkout.
Regina Henderson, who recently moved to the area, said restaurants like Ellen’s offer welcome comfort food during a stressful economic stretch. Still, she recognized that owners may have little choice but to raise prices if they want to stay in business. In her view, the higher menu tabs are part of a broader squeeze that both businesses and customers are feeling.
Fuel analyst points to a regional refinery disruption
Fuel analyst Patrick DeHaan has posted that the regional surge is tied in part to a power outage at a refinery plant in Joliet, Illinois. That kind of disruption can affect supply across a wider area, adding pressure to prices already being felt at the pump in Michigan.
Even when the cause starts elsewhere, the impact can land close to home. For owners who depend on regular shipments, a refinery problem in another state can translate into higher freight costs, pricier ingredients and a more difficult month for cash flow. That is part of what makes fuel spikes especially challenging for small businesses.
Michigan families and businesses are adjusting to a costly new normal
The situation is forcing both consumers and business owners to make practical changes. Some customers are choosing pickup over delivery. Some restaurants are watching menu prices more closely. Others are trimming expenses wherever they can, hoping to remain competitive while absorbing costs that keep climbing.
For Kalergis, the goal is to keep Ellen’s Bakery and Cafe open without losing the quality that keeps customers coming back. For customers like Henderson, the challenge is deciding how much extra they can pay for convenience or a meal out. As gas and diesel remain elevated, small businesses in Michigan are being pushed to adjust in real time.
