Stateline grocery chain defends surcharge as necessary to stay in business

DURAND, Ill. (WIFR) – At the bottom of a Pacemaker Foods’ receipt sits a fee foreign to other stateline grocery stores.

In 2020, the family-owned grocery chain placed a 2% surcharge on any transaction in the store. Four years later, customers questioned it on social media.

“We are a small business,” explains Dan Dal Pra – Pacemaker’s owner. “We have a different buying power than someone like the Walmarts or the Woodman’s of the world.”

Dal Pra says the surcharge arrived as Illinois increased the minimum wage in 2020. These days, however, he asserts the 2% keeps the Durand and Poplar Grove chain afloat as “the Walmarts” encroach on business.

Some shoppers in Durand argue the fee isn’t fair. One who didn’t wish to be identified writes:

“Initially it may not seem like a lot of money adding 2% to an already expensive store to shop at, but considering each customer is getting charged… seems at the least, dishonest and morally wrong… It just doesn’t seem right, respectful, supportive or honoring to the community.”

The third-generation owner defends the surcharge – while some wonder if the charge can be transferred to the products, not the transaction.

“We’d have to go up a substantial amount, more than 2%, to offset… going around and printing every single price tag, all the labor, all the ink,” claims Dal Pra.

More than 200 families rely on Pacemaker for a paycheck, according to Dal Pra. Other customers in the small communities understand Pacemaker’s predicament.

“It’s just a juggling act,” mentions Brandon Miller – a lifelong Durand resident. “What are you willing as a customer to do to support a local business?”

For Miller, paying the 2% is a small price to protect his local grocery store. Still, he adds Durand is a bedroom community – locals working in Rockford, Freeport and Beloit aren’t restricted to Pacemaker.

“You have tons of other options on your way home from work to stop at; a Woodman’s or a Walmart,” contends Miller.

Durand’s mayor understands the “options” for commuters, but says all aren’t as lucky.

“For those elderly, or those who don’t leave town often or don’t have a vehicle, [Pacemaker] is still easier and a convenience,” says Mayor Sheila Hoffman.

Dal Pra is proud of his family business – stretching into its 79th year, but these days haven’t been easy for the grocery store. “We unfortunately had to close our Belvidere store because we could not afford to keep it open,” says the owner.

Durand’s mayor plans to support Pacemaker however she can. Yet, as food prices rise, and with the state’s grocery sales tax ending in 2026 (although communities can vote to keep it), the future isn’t clear for rural shoppers.

“It’s a gentle balance of ‘how do you support that’ and ‘help out your residents to make ends meet’ versus ‘how do we still maintain all the services that we provide,’” states Mayor Hoffman.

If the grocery sales tax ends in Durand, the village could lose up to $100,000 in revenue. Yet, she sees where customers could breathe relief with cheaper prices. Dal Pra anticipates better days as well.

“After the economy starts to turn around now here, I see signs of it happening already that we will be able to remove that,” says the owner.

That “removal” date could be as soon as January. Some anonymous customers worry Pacemaker may keep the fee to stay in business.

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