This story was corrected on July 23, 2008, from its print version.
Record-high fuel prices have Tim Abrahams, the owner of a Silver Spring landscaping company, spending $2,500 to $3,000 a month to power his lawnmowers. That’s nearly five times more than he spent four years ago and it’s forcing him to make tough decisions to stay in business.
This summer, Abrahams had to lay off three of his 12 employees at Abrahams Lawn Service Inc., on 8810 Monard Drive, and switch to more fuel-efficient push mowers instead of the large, engine-driven commercial mowers he has used in the past.
‘‘Our business revolves around gasoline and oil,” Abrahams said.
Gas prices have soared in the past year. In August 2007, the average gas price in Maryland was about $2.74, according to AAA’s daily fuel gauge report. Now the state average is nearing $4.20.
Abrahams, who also decided to limit service to customers within two or three miles of his business, said his cost-saving measures haven’t hurt business too much because his customers understand. But he said he doesn’t know how much longer that will last.
Even businesses that do not depend directly on fuel are affected by the high gasoline prices and forced to make sacrifices.
Restaurants are some of the first businesses to suffer in tight economic times because customers have to decide whether to spend money on gas or a dinner out, said Nikos Marmaras, the general manager of The Golden Flame Restaurant at 8630 Fenton St.
‘‘People are pinching their pennies,” he said, which in turn causes him to cut expenses.
Marmaras said he hasn’t had to lay off employees yet, but he did cut their hours to 25 and 30 hours a week.
Mark Hanson, the general manager of Eggspectation at 923 Ellsworth Drive, said he also shortened some of his employees’ shifts.
After labor, Hanson and Marmaras said their second-highest expense is food, which is higher because it costs more to ship products.
Hanson said he now has to pay fuel surcharges on each delivery. They can range from $3 to $25, he said.
‘‘When you get hit with that every day of every week, it adds up quickly,” he said.
Filippo Leo, the owner of Marchone’s Italian Deli at 11224 Triangle Lane in Wheaton, said he’s losing daytime lunch customers who either can’t afford to eat out or only drive when it’s necessary.
But unlike Abrahams, who has had to raise his prices for lawn services, restaurant owners say small establishments should avoid raising prices.
‘‘You can’t just raise prices because people will stop coming,” Hanson said. ‘‘The consumers are taking hits just like we are, and when everybody’s taking a hit, it doesn’t lead to good things.”
But Marmaras, Hanson and Leo say they haven’t ruled out price increases as a last resort.
Other owners say cost increases are inevitably passed on to the customer.
Charles Atwell, the owner of Innovative Business Interiors Inc. at 8211 Mayor Lane, said every purchase he makes for his business has gone up because of fuel prices. He’s tried to reduce how much new office equipment he buys, but said most of the increase is passed along to the customer through higher prices.
‘‘There’s not a whole lot you can do,” he said.
Some owners have transferred their cost-cutting mentality to help their employees. Marmaras said he initiated a carpool about two months ago to help his employees save on gas money.
Riderwood, a retirement community located at 3140 Gracefield Road in Silver Spring, has also begun a carpool program for workers.
Crystal Hickey, Riderwood’s human resource manager and initiator of the carpool idea, said she decided to take action when she heard some of the hourly workers were just breaking even between gas costs and a day’s work.
She offered everyone who carpooled consistently for six weeks a $50 gas card.
Every morning, Riderwood employee Jason Boyle of Towson drives to Chris Cotterman’s house in Baltimore, who in turn drives to Leire Moulier’s house in Columbia. The three Riderwood TV station managers have said their fuel bills have been cut in half.
They said when they started sharing rides, they realized it wasn’t that difficult.
‘‘You just get stuck in a routine,” Boyle said.