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Did You See What Else Is “Rising” In Pizzerias?

Yes things are more expensive now than they were a few years ago. Yes oil prices are out of control which has caused gas prices to go up, up and up! Airlines are charging their customers for everything now. Starting with a snack, headphones (that you can keep), an exit row seat (yes that is more) and of course a surcharge to check your bags in at curbside.

Prices are going up everywhere! Did you know that a block of cheddar cheese a year ago was $1.17 per pound on the Chicago Mercantile Exchange? Do you know what it is today? Up a whopping 78% to $2.08 per pound. What exactly does that mean? Think about what types of food that use cheese. Think about what type of food has lots of cheese. For me, it’s pizza. I really like pizza. Actually I love pizza! Especially Chicago deep dish pizza.

The pizza business is a 30 billion business that might get to 31 billion with not many more customers. Why you ask? Because if cheese is going up, don’t you think that pizzerias are going to charge more for pizza? Makes sense.

In fact Pizza Hut and Papa John’s International have raised the price of their cheese-only pizzas to the same price as one-topping pizzas at company-owned stores. Papa John’s uses about 100 million pounds of cheese each year, and the cheese typically makes up 35 percent to 40 percent of the food cost in making a pizza. If 35% of the food cost is cheese and cheese costs are up 78% over the past year – logically the cost of pizza has to go up.

I put gas in my car as a necessity. I need to get around and frankly I’m too lazy to walk 12 miles to work. I jump on a plane out of convenience and because I need to be somewhere quickly–again out of necessity.

Buying pizza is a little different. Buying pizza is a choice. I love pizza, I couldn’t do without it. I think I should let Pizza Hut and others in on a little secret. Come closer…a little closer. You could raise your pizza to $35.00 a pie and I for one would still buy it! Others might say no thanks…but not me. I will continue to buy pizza and for me the rising cheese costs, which lead to higher pizza costs, might be a nice benefit – shorter lines!

  • Do you love pizza?
  • Would you pay anything for a pizza?
  • If pizza prices went up 30%, would you stop buying it?
  • What’s your favorite pizza restaurant?

I look forward to your thoughts and comments.

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