May 13, 2008 8:41 AM
- Text
A Hole In Donut Maker's Bottom Line
This story appeared on The Early Show.
Well, we managed to get our first speeding ticket last night, on the way to Cambridge, Ohio, 493 miles from our starting point, in Manhattan.
In Cambridge, we stopped by the legendary Kennedy's Bakery. It's been here since 1925. Anyone in southeast Ohio, if you ask them where they get their doughnuts, they'll tell you they come to Kennedy's. The owners are Bob and his sister, Patty Kennedy.
This place has been in the family for generations. But they've had some trouble lately. This is one of the most financially-trying times they've actually seen here at Kennedy's, because of high fuel prices.
They've pushed flour prices through the roof, from 20 cents a pound to 60 cents.
And they're paying a fuel surcharge on every delivery they get in, whether it's flour, sugar, whatever.
I asked if that's forced Kennedy's to raise its prices, and Bob said, "We're trying to keep them as low as we can. But it's going to come to a point where we're going to have to move them some more, just with the prices that are going up."
That's something we're hearing so many times out here. The cost of fuel is raising their bottom line. There's no way they can really make up the difference.
We're going to take some devil dogs for the road, because we hear they're famous!
We last fueled up in Pennsylvania, after 283 miles of driving. We bought $42.56 worth of gas, at $3.71 per gallon.
Well, we managed to get our first speeding ticket last night, on the way to Cambridge, Ohio, 493 miles from our starting point, in Manhattan.
In Cambridge, we stopped by the legendary Kennedy's Bakery. It's been here since 1925. Anyone in southeast Ohio, if you ask them where they get their doughnuts, they'll tell you they come to Kennedy's. The owners are Bob and his sister, Patty Kennedy.
This place has been in the family for generations. But they've had some trouble lately. This is one of the most financially-trying times they've actually seen here at Kennedy's, because of high fuel prices.
They've pushed flour prices through the roof, from 20 cents a pound to 60 cents.
And they're paying a fuel surcharge on every delivery they get in, whether it's flour, sugar, whatever.
I asked if that's forced Kennedy's to raise its prices, and Bob said, "We're trying to keep them as low as we can. But it's going to come to a point where we're going to have to move them some more, just with the prices that are going up."
That's something we're hearing so many times out here. The cost of fuel is raising their bottom line. There's no way they can really make up the difference.
We're going to take some devil dogs for the road, because we hear they're famous!
We last fueled up in Pennsylvania, after 283 miles of driving. We bought $42.56 worth of gas, at $3.71 per gallon.
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Nancy Cordes Nancy Cordes is CBS News' congressional correspondent.
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