Having originated from Naples, Italy, pizza has become a worldwide delicacy, with over 30 billion pizzas being eaten yearly worldwide. With numerous varieties of pizza and more recipes being invented every day, it’s not a wonder why each day pizza becomes more known to new curious potential pizza customers.
But why is pizza so expensive? Why would a slice of pizza sell at 1 dollar, yet with the same amount of money, you can buy a decent meal and still get full? Why not make your pizza at home since you will probably end up spending less?
The fact is that there are lots of factors that go into pricing pizza. Some of them include: The type of distribution channel, the quality of ingredients, and the geographic area to be covered during the delivery process. The quantity of pizza also counts when it comes to the pricing process.
Below is a rundown of factors that justify the expensive price tag attached to pizza.
The Cost and Quality of Ingredients Used
The cost and quality of ingredients used when making the pizza play an important role when determining this dish’s cost.
Compared to the profit that will be accrued, the price at which these ingredients were bought is an important determinant of the price.
Below is a list of the ingredients used to make pizza and how they influence the delicacy price.
1. The Quality of Cheese
Cheese is a dairy product comprising proteins and fats derived from milk. A thousand different types of cheese are produced worldwide, with each having its unique flavor and consistency.
The quality of cheese used is a determining factor in the price of pizza is sold. High-quality cheese will always bring a perfect consistency to the pizza being baked. There are different types of cheese globally, with each having its price depending on its quality.
Pule is the most expensive cheese, with a pound costing around $600. This astonishingly high price is attributed to the amount of time spent producing it and its peculiar ingredients.
While ordinary cheese comes from cow or goat milk, this cheese type uses Balkan donkey milk for its production. For one kilo of pule to be produced, it requires 25 liters of Balkan donkey milk.
The most commonly used cheese for pizza baking includes
- Cheddar cheese
- Goat cheese
With all these types of cheese comes different flavors, and definitely, each has its price depending on its quality.
2. Quality of toppings
The quality of toppings used when making pizza directly impacts how the pizza will sell in the market.
With over 500 different pizzas and toppings worldwide, the ingredients and styles have adapted to the particular region and the people’s taste and preference.
Below is a list of the most famous toppings used to make pizza around the world.
- Extra cheese
- Green peppers
- Black olives
With each topping comes a specific price tag. For example, the price of a pizza made of bacon toppings will be slightly higher than that made of green pepper toppings.
3. Olive oil
Olive oil is one of the many ingredients used in making the dough of pizza. Hence it also contributes to how much the pizza will be sold.
With the price of olive oil ranging from $15 to $30, it’s reasonable for the commercial pizza sellers to sell pizza at a much higher price if they want to make a reasonable profit.
4. The Type of Pizza
There is a big difference between an expensive pizza and a cheap pizza in terms of the number of toppings.
Additionally, the type of cheese used to prepare it and how it’s baked. Expensive pizza in most cities is baked in a wood-fired oven, which gives it a smokey flavor.
However, the baking of ordinary pizza occurs in normal ovens.
Expensive pizzas also have a much thicker and spongier crust, with fancier toppings such as arugula and kalamata black olives, which you would never find in cheaper pizzas.
With cheap pizza, the sellers save on the costs of the ingredients while passing those savings to the customers.
Where you are across the world will determine how much you pay to enjoy a slice of pizza. In towns or cities where they are more pizzerias, you are likely to spend less when buying pizza compared to places where they are few pizzerias.
This is because, in these areas, they tend to be more sit-down restaurants and more upscale.
You will pay less for a medium-sized pizza in your local town than how much you will spend on pizza in a famous, five-star posh restaurant.
Eating in high-end hotels adds some glamorous lifestyle, and you often pay more dollars for the exquisite services offered.
However, in most instances, the taste of the pizza might be the same; thus, if you are tight on budget, consider average hotels and eateries.
Most pizza hubs provide free delivery services to their customers, and when they charge them, they do it at a very low cost.
It’s important to note that the pizza delivery price should cover the costs incurred during deliveries, and profits should be made still in the same pizza delivered.
This is why the price of pizza is usually high. The cost incurred during the whole process must be accounted for, and profits still are made to the business owners.
In recent years, pizza delivery has technologically improved with pizza drones instead of the usual delivery pizza guys. Pizza delivered in regards to the age of new technology tends to be more expensive.
7. Fuel Costs
It’s a known fact that whenever the price of petrol increases, it directly impacts almost all the products in an economy. It is because petroleum products are inputs in almost every manufacturing process.
Oil costs have a very direct implication for pizza pricing since the delivery vehicles being used will be consuming petrol.
The higher the oil price, the higher the price of pizza will go up, especially where the customers are more used to deliveries.
The rent of retail premises mostly determines the pricing of the business’s products. If the rental rates are high, you can expect that the pizza available there will be highly priced.
This is because the business owner is out there to make a profit and pay bills, and this can only be achieved if the price of his products covers every cost incurred during the service delivery process.
Remember that you are paying for a lot more than food and the services provided, the amount of time put to bake the pizza, and the skills of the person who made it.
With high skilled labor, specialization, and experience, you are assured that you will experience a lifetime taste of exotic pizza when you visit the pizzeria each time.
And with high-quality products comes a high price tag on the pizza you are about to munch.
How can you still enjoy eating pizza despite the high cost of buying it?
- Try baking it at home. You may do these by asking a friend who knows how to make pizza or follow a video on YouTube
- Avoid deliveries most of the time. They tend to increase the price of a pizza. Instead, try going out and ordering pizza by yourself at the pizzerias
- Try and order pizza where there are many pizzerias or in businesses that specialize in pizza alone other than restaurants that are more of sit-downs as you are likely to be charged high.
- You may try ordering a whole pie of pizza other than a slice of pizza since the latter is more expensive.
- You may order cheap pizza instead of expensive ones; however, it may not taste as great as high-quality pizza, which may be a bit costly.
Back to our question, why is pizza so expensive? Well, a company’s pricing should be made holistically as its part of a long-term value-based model.
How a business prices its products determines how successful it will become, and that’s why most pizza businesses tend to price their products at high prices without fluctuating rather than changing their prices constantly within a period.
The reason why pizza is so expensive is that the pricing process puts into considerations so many factors into play, which include:
- The costs and quality of the ingredients used depend on the type of cheese and toppings
- The cost incurred during deliveries
- The rent rates on the commercial premises
- The labor during the whole pizza making process is it skilled labor or unskilled labor, and the amount of time spent during the whole process of baking pizza
- The type of pizza ordered by you as the customer is it a cheap or an expensive pizza
- The business’s location, whether in the suburbs where pizzerias are few or in metropolitan cities where pizzerias are almost everywhere
- The price of fuel; if it’s high, it can affect the pricing of pizza
Feel free to leave a comment on this article. Don’t hesitate to ask for any clarification if you notice any ambiguity on the points we have discussed.