Restaurateurs in Southern California Forced to Consider Price Hikes or Temporary Closures Due to High Gas Bills

Some owners forced to raise prices and consider temporarily closing due to spike in gas costs

Restaurants in Southern California are feeling the pinch of skyrocketing natural gas prices. With the wholesale cost of natural gas hitting record highs, many businesses that require gas cooking methods are now costing restaurateurs thousands of dollars more than their typical expenses, causing some owners to consider closing temporarily or raising prices to offset the charges.

One such restaurant is Pho 87, a Vietnamese restaurant in Chinatown. The key to their signature soup is 16 to 20 hours of simmering on the stove, but this proved catastrophic when owner Tre Dinh received his gas bill for January: over $8,000, as reported by the LA Times.  In December, the restaurant’s gas bill was roughly $800 for November usage. The bill he received in January leaped to around $2,000, but even knowing another price increase was coming didn’t prepare the restaurant owner for the bill he received in February.

Dinh is not alone; countless restaurateurs have been hit with sky-high January gas bills. The ripple effect is being felt through homes and businesses throughout Southern California Gas Co.’s 21.8 million customers. Pacific Gas & Electric is also estimating high gas bills for Central and Northern California this winter.

Businesses that require gas cooking methods – such as tabletop Korean barbecues, wok stations, and gas-powered stoves and ovens – are now costing restaurateurs thousands of dollars more than their typical expenses. Some owners are considering closing temporarily or raising prices to offset the charges.

Adding to existing concerns over inflation, supply-chain difficulties and labor costs, some feel helpless. 

Dinh is planning to take action by writing a petition while calling for aid for businesses struggling with their gas bills. In a bid to help other restaurants in Chinatown that may be struggling with high overhead costs like his own business due to these surging energy prices Dinh has changed his years-long practice of eating at his own establishment multiple times a day and patronizing other spots in the neighborhood two or three times a week; recently he’s begun eating one meal at Pho 87 and one meal at a nearby restaurant each day.

SoCalGas has stated that they do not profit from rising natural gas costs; however, this does little solace for struggling business owners like Dinh.

Fortunately for Dinh, February’s prices are set to decrease according to Southern California Gas Co., meaning that next month’s bill should be more manageable. Even so, Dinh knows he has no choice but to raise prices if he wants Pho 87 to stay open. Traditionally his family raises prices by 25 cents each year; given Pho 87’s latest gas bill though, he concedes he’ll have to raise them $1-$1.50 for entrees – an increase that may put off some customers who may not understand why it’s necessary.

Related Posts

Free Virtual Planetarium Shows Coming to SMC in July

June 30, 2025

June 30, 2025

The virtual format is in place as construction of the new SMC Planetarium and Observatory nears completion The Santa Monica...

Six-Bed Mar Vista Hilltop Home Under Construction Lists for $5.3M

June 30, 2025

June 30, 2025

The private backyard is complete with a pool, spa, fire pit, built-in BBQ, and areas for outdoor dining A stunning...

(Video) Getty Villa Reopens Six Months After Dodging Destruction of Palisades Wildfires

June 29, 2025

June 29, 2025

With the reopening also comes a new exhibit, “The Kingdom of Pylos” Getty Villa Reopens Six Months After Dodging Destruction...

Three-Bed Palisades Highlands Townhouse Hits Market for $1.7M

June 29, 2025

June 29, 2025

The Mediterranean-style property, located at 1529 Michael Lane, is part of a 71-unit community A remodeled 1,919-square-foot townhouse in the...

LAPD Updates Immigration FAQ to Clarify Enforcement Role

June 28, 2025

June 28, 2025

The document, available in English and Spanish, outlines the department’s policies and limits regarding immigration status The Los Angeles Police...

Three Santa Monica College Student Films Selected for International Film Festival

June 28, 2025

June 28, 2025

The LA Shorts International Film Festival, the city’s longest-running shorts festival, screens over 350 films annually and draws 10,000 attendees...

Washington Square Pizza Opens to the Public

June 28, 2025

June 28, 2025

New York Style Pizza “By-The-Slice” Now at the Beach By Nick Antonicello  Washington Square Pizza formally opened its doors today...

Park: “Our Water Infrastructure Must Be Emergency-Ready Every Day”

June 27, 2025

June 27, 2025

Councilwoman expressed cautious relief at the news but emphasized the need for robust infrastructure The Los Angeles Department of Water...

California Allocates $5B for Road Repairs, Transit Expansion

June 27, 2025

June 27, 2025

The funding aims to improve road safety, reduce traffic congestion, and promote cleaner transportation California is investing nearly $5 billion...

THIS SUNDAY: Palisades Symphony Presents “Best of Broadway”

June 27, 2025

June 27, 2025

The performance will feature a full orchestra playing iconic selections, from John Philip Sousa’s *El Capitan* and George Gershwin’s *The...

(Video) Welcome to the Urban Jungle — where nature meets the city and style meets soul

June 27, 2025

June 27, 2025

Whether you’re chasing that gritty city energy or carving out a green oasis in your space, we’re here to help...

Homeless Man Identified as Suspect in Recent WAYMO and Santa Monica Place Shootings

June 27, 2025

June 27, 2025

The suspect is being held at Santa Monica Jail with bail set at $1,000,000 Authorities have identified the suspect arrested...

Muscle Beach History Pop-Up Exhibit to be Presented at Pier 360 Festival

June 27, 2025

June 27, 2025

Visitors can view historical photographs, explore iconic stories, and watch a short documentary highlighting its athletic legacy The Santa Monica...

Benefit Concert to Celebrate Fire Recovery This Weekend at Pepperdine

June 26, 2025

June 26, 2025

Proceeds will benefit the Malibu Fire Relief Fund, with the concert also serving as a tribute to longtime parishioner Betty...

Westridge-Canyonback Wilderness Park Reopens

June 26, 2025

June 26, 2025

The Mountains Recreation and Conservation Authority, in collaboration with city partners, worked to restore the trail, which offers city views...