MELBOURNE, Fla. — With food prices soaring, the pinch is being felt by small businesses that have no choice but to charge more.


What You Need To Know

  • Food prices continue to increase and small business owners say they are still feeling the pinch

  • The latest consumer price index numbers show the food index numbers increased 0.8% in August

  • Shells of Melbourne owner Gino Rallo says he tries to keep costs at his restaurant low but has no choice but to charge more for the menu 

Tasty seafood dishes are being served up at Shells of Melbourne.

Owner Gino Rallo is right in the mix, prepping meals for hungry customers. But these days, the cost to make the food is drastically higher because of skyrocketing food supply prices.

"I took a price increase back in January, and I need to start looking at it again," Rallo said. "Because every invoice that comes in seems to be a little higher."

​That reflects the latest consumer price index numbers, showing the food index numbers increased 0.8% in August.

Rallo says he can't get clams right now due to supply chain issues, but when they do, the cost per pound is much higher.

"They used to be four or five bucks — I'm paying 11-something right now," he said. "Over double the price."

Rallo said the situation is about the same for other items.

He said his only choice is to raise prices or take the item off the menu — but he hesitates to do the former, because many of his customers are older and on a fixed income.

The restaurant has been in Melbourne for nearly 30 years and Rallo wants to keep going to serve the community, but with no end in sight to the price increases, he says he has no choice but to charge more.

"I'd like to hold them where they're at, but eventually I'll have to bring them up," he said.

Rallo said his customers understand, because they are also dealing with higher prices and inflation themselves.