Pizza economics: How global trends shape price of slice


The Atlanta Journal-Constitution
Published on: 03/29/08

Let the economists wax eloquently about bad economic times. For a real-life lesson in economics and inflation, try a pizza. "Everything across the board is going sky-high," said John Rosa, who co-owns Rosa's Pizza in downtown Atlanta with his brother Tony. "This is the worst in 17 years as far as price increases." Small pizzerias like Rosa's are especially hard-hit. Major pizza chains often buy commodities months in advance, locking in lower prices. There are lots of culprits. Sink your teeth into these stats:

Chris Hunt/Staff
'This is the worst in 17 years as far as price increases,' said John Rosa, who co-owns Rosa's Pizza in downtown Atlanta with his brother Tony.
 
BUSINESS
Latest Headlines:
More business news
Business photo galleries

FLOUR: The Rosas paid $11 for a 50-pound bag of flour six weeks ago. Today, it's $32. "It's probably going to hit $50 by the summer," John Rosa said. A 50-pound bag makes between 53 and 59 pizzas.

Reason: As the country looks for alternative-fuel sources such as corn-based ethanol, many farmers have opted to grow corn instead of wheat. So wheat's in short supply. Also, China and India are buying more American wheat for their growing middle class, taking advantage of the weak U.S. dollar.

PRODUCE: Mushrooms, tomatoes, onions and other toppings have gone up about 10 percent across the board.

Reason: Producing the toppings — especially fresh vegetables — costs more.

NAPKINS: The Rosas paid $50 for a 6,000-count box of napkins two months ago. Today, it's $56.

Reason: Again, higher production costs.

BOXES: Two months ago, the Rosas were paying $21.50 for 200 10-inch pizza boxes. Now they cost $26.50.

Reason: Higher energy costs.

CHEESE: The Rosas typically use 400 to 500 pounds of mozzarella cheese a week — and they're paying substantially more for it.

Reason: Like everyone else, dairy farmers are having to shell out more money to feed their herds. Corn, a big staple in a cow's diet, now costs more.

DELIVERY FEE: In the past month, Rosa's has seen suppliers tack on surcharges of $5 to $8 an order.

Reason: Higher diesel fuel has forced food suppliers to increase delivery charges. Nationally, diesel fuel has risen to about $4 a gallon — up from an average of $2.58 a year ago.

Related Subjects

Inside AJC.COM

Summery sips

Summery sips

Long, hot days have inspired these six cool cocktails. Bottoms up!

Beyonce concert review

Beyonce concert review

Watch a video of fans re-enacting their favorite parts of Beyonce's Atlanta concert.

Best of Luckovich: June

Best of Luckovich: June

Vote for your favorite Mike Luckovich editorial cartoons on local new, politics, celebrities and more!

Ingenuity + yard = fun

Ingenuity + yard = fun

Boredom and lack of money are the mothers of invention when it comes to lawn games such as lawn Scrabble.

Romantic vacation tales

Romantic vacation tales

Our new travel story contest centers on your most romantic vacation tales. Tell us, lovers.

Private Quarters Splurge

Private Quarters Splurge

Husband and wife architects created a modern house that's still warm and inviting.

Kudzu Services » Find the right people for the job