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Gas prices eating into restaurants' bottom line.

Article Excerpt
George Georges, a partner and general operations manager of Max Restaurant and Lounge in Downtown's Gaslamp Quarter, raised his menu prices six months ago to reflect increased overhead, including higher meat, produce and dairy prices.

Though he wouldn't say how much, Georges isn't alone, according to the San Diego Food & Beverage Association. Increases in food, fuel and higher employee costs have forced many restaurateurs across the county to raise menu prices from 10 percent to 15 percent, on average, within the past year.

Georges said the prices he pays for wholesale goods and services have climbed sharply within the last six weeks or so, since vendors are passing along cost increases they've endured because of a spike in gas prices.

The Automobile Club of Southern California reported that regular gasoline was going for a record average of $2.46 a gallon in San Diego on Oct. 20--up from $2.11 a month ago.

But...