Pizza franchises throughout the U.S. are struggling with escalating costs of cheese. Block cheddar cheese – the benchmark for mozzarella and other cheeses – reached $2.08 a pound Thursday on the Chicago Mercantile Exchange, up 78 percent from $1.17 a pound a year ago. Industry observers attribute the price surge to strong demand and higher production prices – from the cost of milk to the cost for dairy farmers to feed their herds. Pizza Hut and Papa John’s International have raised their cheese-only pizza prices, and smaller restaurants, including Fat Jimmy’s in Louisville, Ky., have raised prices, too.
Papa John’s uses about 100 million pounds of cheese each year, and the cheese typically makes up 35 percent to 40 percent of the food cost in making a pizza.
Read the story “Pizza makers struggling with higher cheese costs” by Bruce Schreiner in the Daily Herald.Something tells me that America’s Desire for pizza will remain.
According to Pizzaware .com
- Americans eat approximately 100 acres of pizza each day, or about 350 slices per second.
- Pizza is a $30+ billion dollar per year industry. There are approximately 69,000 pizzerias in the United States. Approximately 3 billion pizzas are sold in the U.S. each year. (Source: Blumenfeld and Associates)
- Pizzerias represent 17% of all restaurants. (Source: Food Industry News.)
- Pizza accounts for more that 10% of all foodservice sales. (Source: Food Industry News.)
- 93% of Americans eat at least one pizza per month. (Source: Bolla Wines.)
- 66.66% of Americans order pizza for a casual evening with friends. (Source: Bolla Wines.)
- Each man, woman and child in America eats and average of 46 slices, (23 pounds), of pizza per year. (Source: Packaged Facts, New York.)
- Italian food ranks as the most popular ethnic food in America. (Source: National Restaurant Association.)
- According to a recent Gallop Poll, children between the ages of 3 and 11 prefer PIZZA over all other food groups for lunch and dinner.
- A study done by a U.S. Department of Agriculture statistician and home economist found that in a three-day survey period, 42% of children between the ages of 6 and 11 has eaten pizza. (Source: Smithsonian Magazine.)
- 94% of the population of the U.S. eats pizza. (Source: Parade Magazine.)
Cross Posted at: Let’s Talk Franchising
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With over 25 years of franchise, marketing, and entrepreneurial experience, and the owner of Franchise Perfection, Jim Coen, brings key skills to franchise consulting for those interested in buying a franchise business opportunity.
Jim has been a franchisee, worked for franchisors, ran a multi unit operation for a franchisee, and served as a franchise consultant matching candidates with the right franchise.
At Franchise Perfection there is no perfect franchise, but there is always a perfect match.
For over 20 years Jim worked with Super Coups. Super Coups is a MA based direct mail franchise business to business opportunity.
Prior to Super Coups Jim successfully marketed franchises in the New England area for Uniglobe Travel Northeast a travel franchise, Merry Maids a maid cleaning franchise, & Emack & Bolio an Ice Cream franchise.
Jim was the host of a popular radio show in the Boston Area called "Let's Talk Franchising" that was broadcast on AM 1060 WBIX The Boston Business Station.
Jim currently serves on the Board of Directors of the New England Franchise Association (NEFA) www.nefranchise.org
