Rising Oil Prices Force a Houston Italian Ice Business to Raise Prices

Rising fuel costs hit a small business

Shortly after the U.S.-led war in Iran began in late February, Ondrey Lawson noticed a sharp jump in gas prices.

Mr. Lawson, who owns Phrostbite Italian Ice in Houston with his wife, Mia, uses a heavy-duty pickup truck to haul the business’s frozen treats around the city. A tank of regular unleaded gas that usually cost about $70 instead came to $90.

The increase quickly put pressure on the company’s finances. The Lawsons, who serve Italian ice at festivals, weddings, birthday parties and other events, said the higher energy prices were affecting more than just drivers at the pump.

Adjusting operations to save money

As fuel costs climbed, the couple changed their catering schedule and redrew delivery routes to cut back on gas use.

In some cases, they also tried to reduce labor expenses tied to events. Instead of paying employees to serve customers, they sometimes scooped cups of flavors like saddle-up strawberry and wrangler watermelon themselves.

The Lawsons said they tried to absorb as much of the added cost as possible before passing it on.

Price increases become unavoidable

Even after making operational changes, the business found that soaring gas prices continued to eat into profits.

Eventually, the Lawsons concluded they would need to raise prices. Mia Lawson said the couple resisted that step for as long as they could, but finally decided they had to move forward.

Their experience illustrates how higher energy prices linked to the war with Iran can ripple through the broader economy, affecting small businesses and consumer purchases well beyond gasoline itself.