In the past few months we have been writing about COVID–besibbe the food shortage many times, and one of the most consistent connections between those stories is that manufacturers scale up production. Now, that same problem affects one of America’s most beloved and only existing foods: pepperoni.
According to Bloomberg, pepperoni is becoming increasingly difficult to buy. This is because 1) in the face of economic collapse and even hotter infections order people more pizzas; 2) wholesale prices stand, and; 3) The production of pepperoni is declining, due to both labor shortages and companies that decide that making pepperoni is simply not worth the effort. As reported by Bloomberg, “Barry Friends, a partner at food service consultant Pentallect, said the labor-intensive process and low profit margins have caused some producers to say ‘push it ‘ if they streamline operations in the middle of the coronavirus. ”
Adding tax to injury, the rising cost of pepperoni also has the potential to harm mother-and-pop pizzerias much more than larger chains. While smaller pizzerias buy their ingredients from wholesalers as needed, chains such as Domino’s, Papa John’s, Pizza Hut, and Little Caesars buy ingredients in such incredible volumes that their prices are negotiated in advance, and goods are purchased with standing langterm contracts. This means that these chains (at least for now) are essential for pepperoni price increases, and that is absolutely not the case for smaller companies, which report increased prices across the US
Bloomberg’s report is not about what price increases and production marks mean for pepperoni sold through groceries, nor does it indicate whether these shortages are limited to U.S. supplies or also occur in factories that make pepperoni overseas. What it does report is however that smaller pizzerias increase the prices or be forced to eat the loss so that their customers are not directly affected. So, if you look at the price of pepperoni pizza go up independently owned by pizzeria, try not to be too grumpy because it likely was not what the pizzeria wanted to do.
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