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Rising utility bill prompts staff cuts, price hikes at Hillcrest restaurant

Rising gas and electric bill prompts staff cuts, price hikes at Hillcrest restaurant
Posted at 5:04 PM, Jan 27, 2023
and last updated 2023-01-27 21:21:00-05

SAN DIEGO (KGTV) - Owners of a nearly five-decade-old Hillcrest say they’ve been forced to make some painful decisions, with their utility bill projected to more than double this month.

At El Cuervo Mexican Food in Hillcrest, there are servings of tradition, tasty food, and a not-so-appetizing reality.

“It’s highly ridiculous,” said restaurant manager Sergio Barajas.

Barajas is talking about the restaurant’s utility bill.

Fueled by the increase in natural gas prices, Barajas believes his final bill will be over $4,000 this billing cycle.

In November, it was about $1,800.

“It just very stressful,” said Barajas.

Barajas says for the restaurant, opened by his grandparents in 1976, the added costs are another gut punch.

Inflation has also had an impact. For example, a crate of 200 eggs is up from about $50 a year ago to $116 dollars.

Inflation led the restaurant to raise prices last year. The utility bill prompted another price hike last week.

“All the combination plates went up a dollar and most of the burritos,” said Barajas. “Me personally, I saw a couple. They just a saw the menu, did ‘the eyes’ and walked out.”

Barajas says the gas and electric bill also forced some painful decisions for their 9-person staff. They let a cook go and made a full-time cashier, part-time.

“Now we're all just strained with work. We have more tasks. It gets difficult at times,” said Barajas.

As the restaurant scrambles to adapt, Barajas is crossing his fingers, hoping energy rates come down.

“Hopefully. no more adjustments, because we can only raise it the prices so much,” said Barajas.

In the past month, natural gas commodity prices have plunged by 51%.

An SDG&E spokesperson declined to speculate on the impact on rates, but says historically, natural gas rates fall in February due to lower usage in our region.