operating costs
the money a business spends to run day to day
Example: The café’s operating costs went up because electricity and ingredients became more expensive.
Intermediate listeningRising operating costsDuration 00:02:10
English Listening Practice (Intermediate) - Interview on Rising Operating Costs
In this interview, journalist Maya Chen visits Harbor Street in Brighton to speak with Luis Ortega, the owner of Seabird Café. They talk about how costs have changed since last year, including electricity bills, ingredient prices, and wages. Luis shares specific numbers, like his monthly power bill rising from $620 to $910, and he explains why he made a small menu price increase in January. You will also hear about a new supplier from Riverside Market, a delivery schedule change to Tuesdays and Fridays, and a decision to shorten opening hours from 7:00 a.m. to 3:00 p.m. Listen for the reasons behind these choices and what Luis plans next.
Topic focus: A journalist visits a neighborhood café to interview the owner about higher expenses and how the business is responding.
Audio
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Questions
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Transcript
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Maya
This is Maya Chen from Brighton Radio. I’m on Harbor Street with Luis Ortega,
.962 Luis: owner of Seabird Café. Luis, what’s happening with your operating
.140 Luis: costs?
.903 Luis: They’re rising fast. Our electricity bill used to be about six hundred twenty
.260 Luis: dollars a month. In February it was nine hundred ten.
.241 Maya: That’s a big jump. Is it only energy?
.945 Luis: No. Ingredients are up too. Coffee beans increased about eighteen percent since
.699 Luis: last summer, and dairy is higher almost every week.
.747 Maya: How does that affect your pricing strategy?
.848 Luis: We raised menu prices in January, but only by fifty cents on most drinks. I
.512 Luis: don’t want to shock regular customers.
.907 Maya: Some people think small businesses can just “cut waste.” Is that
.666 Maya: realistic?
.515 Luis: We already watch waste. The bigger issue is overhead expenses like rent,
.930 Luis: insurance, and utilities. Those don’t disappear.
.853 Maya: What about staffing?
.618 Luis: Labor costs are higher because we increased hourly pay from $15 to $16.50.
.891 Luis: It was the right thing, but it adds pressure.
.070 Maya: So what changes have you made besides the price increase?
.925 Luis: We looked for a new supplier. Now we buy some produce from Riverside Market, which
.445 Luis: is closer, so delivery fees are lower.
.566 Maya: Did you change your delivery schedule?
.888 Luis: Yes, to Tuesdays and Fridays only. Fewer deliveries means fewer charges, but we
.089 Luis: have to plan carefully.
.622 Maya: I noticed your hours on the door.
.712 Luis: We adjusted them. We used to open 7:00 a.m. to 5:00 p.m. Now it’s 7:00 a.m. to
.126 Luis: 3:00 p.m. Afternoon sales were slow, and staffing then was costly.
.697 Maya: I see... Are customers reacting badly?
.412 Luis: Most understand, especially when I explain. A few complain, but they still
.405 Luis: come on weekends.
.335 Maya: Hm... What’s your next step?
.750 Luis: I’m tracking every expense weekly and comparing months. If costs keep rising,
.855 Luis: we may add one higher-margin sandwich, not raise everything again.
.366 Maya: Thanks, Luis. That was clear and very specific.
Vocabulary
Key terms from this listening practice with meanings and examples.
electricity bill
the amount of money paid for electric power used
Example: Luis said the electricity bill increased from $620 to $910.
ingredients
the foods or materials used to make a product
Example: When ingredients cost more, the café earns less profit on each item.
pricing strategy
a plan for how much to charge customers
Example: Their pricing strategy included a small increase of fifty cents on most drinks.
overhead expenses
regular business costs not directly tied to one product, like rent and insurance
Example: Even when sales are slow, overhead expenses still have to be paid.
labor costs
money spent on paying employees
Example: Labor costs rose after the hourly wage increased to $16.50.
supplier
a company or person that provides goods to a business
Example: The café found a new supplier to reduce delivery fees.
delivery schedule
the planned days and times when goods are delivered
Example: Changing the delivery schedule to Tuesdays and Fridays helped lower charges.
Learning tips
Apply these focused strategies to get more value from the audio and questions.
- Listen for numbers and compare them (for example, past cost versus current cost).
- Notice cause-and-effect phrases like “because,” “so,” and “which is why” to follow the reasoning.
- When you hear a new business term, use the surrounding sentence to guess its meaning before checking a definition.
Post-listening questions
Use these reflection prompts to summarize what you heard and practice speaking or writing.
- 1
What operating costs are rising in your area, and how do they affect local businesses?
- 2
If you were Luis, would you raise prices more or change the menu? Why?
- 3
How do you feel when a small business explains its price increases to customers?
- 4
What are some ways a business can reduce waste without lowering quality?