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rusts aren't the only thing rising at pizzerias
SOARING WHEAT, CHEESE COSTS MAKE PRICE HIKES INEVITABLE
By Jeff Karoub
ASSOCIATED PRESS
DETROIT --
First, it was cheese. And many pizza makers across the country absorbed sharply rising prices of the staple ingredient as long as they could before passing along some of the expense.
Now, they're dealing with the surging price of wheat used to make pizza crust. Players big and small in the $30 billion-plus industry are feeling the heat as they figure out how to deal with the double-barrel price spikes without sacrificing their quality, competitive edge or customer loyalty.
"Our commodity costs have probably tripled since last year on the flour," said Wes Pikula, vice president of operations for Buddy's Pizza, a 63-year-old Detroit-area chain of nine restaurants. "We're stuck with an uncertain future as well as price increases ... that are unprecedented."
The price of wheat has surged in the past month because of constraints to global supply and swelling demand from places such as China. But its volatility is as much of a concern as its price. Spring wheat for March delivery fell $1.75 Thursday to close at $18.25 a bushel on the Minneapolis Grain Exchange. It traded as high as $25 a bushel this week. Wheat historically trades at $3 to $7 a bushel.
Likewise, the price of cheese has been rising during the past year in part because of lower-than-normal cheese production and higher demand. According to the U.S. Department of Agriculture, a 40-pound block of cheddar cheese rose to more than $2 a pound during February, compared with $1.30 a pound one year ago.
http://www.kentucky.com/101/story/333850.html
SOARING WHEAT, CHEESE COSTS MAKE PRICE HIKES INEVITABLE
By Jeff Karoub
ASSOCIATED PRESS
DETROIT --
First, it was cheese. And many pizza makers across the country absorbed sharply rising prices of the staple ingredient as long as they could before passing along some of the expense.
Now, they're dealing with the surging price of wheat used to make pizza crust. Players big and small in the $30 billion-plus industry are feeling the heat as they figure out how to deal with the double-barrel price spikes without sacrificing their quality, competitive edge or customer loyalty.
"Our commodity costs have probably tripled since last year on the flour," said Wes Pikula, vice president of operations for Buddy's Pizza, a 63-year-old Detroit-area chain of nine restaurants. "We're stuck with an uncertain future as well as price increases ... that are unprecedented."
The price of wheat has surged in the past month because of constraints to global supply and swelling demand from places such as China. But its volatility is as much of a concern as its price. Spring wheat for March delivery fell $1.75 Thursday to close at $18.25 a bushel on the Minneapolis Grain Exchange. It traded as high as $25 a bushel this week. Wheat historically trades at $3 to $7 a bushel.
Likewise, the price of cheese has been rising during the past year in part because of lower-than-normal cheese production and higher demand. According to the U.S. Department of Agriculture, a 40-pound block of cheddar cheese rose to more than $2 a pound during February, compared with $1.30 a pound one year ago.
http://www.kentucky.com/101/story/333850.html