Record dairy prices mean higher pizza prices

Pizza joints see less profit; Customers see 30 cents to $1 increase in product
Record dairy prices mean higher pizza prices

Record dairy prices have caused several Madison pizzerias to increase the price of a pie.

“We could see the writing on the wall and were forced to raise our prices several months ago,” Glass Nickel Franchise Director Steve Legler said of the mostly less than 5 percent increase. “Increases were minimal and just to offset the rising prices of the ingredients. We choose to continue to use the same quality ingredients that have made a name for Glass Nickel.”

Pizza Extreme operators even warned customers of an increase with a flier on their boxes. While Ian’s Pizza and Roman Candle Pizzeria managers say they are holding prices steady, if higher cheese expenses hold they may be forced to raise prices eventually.

“It caused a stress in the whole industry. Everybody’s talking about it, our suppliers, our vendors,” Roman Candle Co-Owner Brewer Stouffer said. “So what we’re trying to do is counteract that by buying products from the same prime vendor to try and bring our costs down a little bit.”

While wholesale cheese prices have dropped since their highs in November, Stouffer said the current per-block price is well above previous averages he was paying.

“Anxiously looking at this trend. I’m glad to see it’s relaxed a little bit. But it’s a real concern,” Stouffer said.

The consumer pizza price increase would likely be small, between about 30 cents and $1. However for pizza joints, the bigger hit is suddenly having much less profit.