Whether they're eating out near home or on vacation, diners everywhere have been seeing
the effects of the COVID-19 pandemic on the restaurant industry. And just because the
country is getting vaccinated and moving on from lockdown doesn't mean those problems
have been solved.
Food shortages, supply chain snags, and labor shortages brought on by the pandemic are all
combining to make a difficult situation for both diners and restaurant proprietors. It's
a state of affairs that could cause some of your favorite foods to go up in price.
In June 2021, Business Insider published an article speculating that the prices of meals
like chicken wings and pizza could go up in the near-future, reportedly as a result of
both rising food costs, and rising wages for employees. In other words, the extra costs
of doing business may get passed along to you.
Speaking to the owner of Manville, New Jersey-based Manville Pizza, Business Insider determined
that rising costs for favorite foods may be inevitable. Anthony D'Aniello, the restaurant's
owner, said that he expects everything he needs to run his business will get more expensive
soon — even staple ingredients like flour.
The other half of the equation involves labor shortages at restaurants. With many people
laid off from their jobs in 2020 as a result of COVID shutdowns and restrictions, many
businesses have yet to fully staff back up as lockdowns have started coming to an end.
To help lure people back to these jobs, some businesses have decided to raise wages for
their workers.
The Phoenix Business Journal shined a spotlight on a Phoenix-based restaurant chain called
Barro's Pizza, which is reportedly having trouble staffing up its nearly four-dozen
locations.
Speaking to the outlet, pizza pie proprietor Mike Barro said,
"Things would operate a lot more smoothly if we could hire 400 or 500 new people today.
It’s a huge predicament we are in.”
The same labor shortage that is affecting the pizza industry represents one of the many
problems facing the American economy. In addition to sparking discussions around workplace safety,
COVID-19 called attention to increasing wage disparity. As of April 2021, employers report
9.3 million job vacancies nationwide.
"I only open certain days now because I don't have enough staff."
Experts predict the labor shortage won't end until at least September, when most federal
unemployment bonuses will have expired by. Many are uninterested in returning to low-paying
work, meaning underpaid positions will likely take even more time to fill.
"If someone's raising their hand and saying a labor shortage, my answer is, 'Are you paying
them a fair wage? Are you giving them employee healthcare and benefits?"
Schools reopening for in-person learning could also play a part in ending the labor shortage,
as some parents have had to put off rejoining the workforce until they are able to find
reliable childcare.
"We have specific employees that have told us that 'I just don't have anyone else to
watch my child during the day.'"
The hope is that things stabilize before the problems start affecting pizza prices — and
your wallet.
Another Arizona-based restaurant chain, Fired Pie, also suffered setbacks due to the pandemic.
The co-owner of that establishment, Fred Morgan, agreed that costs are rising everywhere he
looks -- and that he predicts those rising costs will eventually lead to raised prices
for customers.
That said, all hope isn't lost, at least for this one particular chain. As Morgan told
the Phoenix Business Journal,
“[Vendors] are saying some of this will level off. But they’re saying at least 60
more days before we get any relief.”
If pizza prices do have to go up, most diners will probably extend more sympathy to their
local pizza joints than they would to successful, nationwide chains — like the recent anger
people directed towards price increases at Chipotle.
After all, most mom and pop pizza restaurants operate on tight budgets with razor-thin margins
-- and unlike big restaurant chains like Chipotle, they don't have a CEO that makes eight figures
a year.
Many smaller pizza places have resisted raising their prices despite consistent pressure to
do so. In August 2020, Bloomberg reported many small pizza shops were having to contend
with a massive COVID-related hike in pepperoni prices. But larger chains were reportedly
unaffected by that price hike due to pre-existing contracts they had in place with suppliers.
A similar report by Oklahoma City's News 9 covered how mozzarella, too, suffered from
disruptions in the supply chain, resulting in more burdensome costs for pizza places.
In both reports, small business owners expressed their desire to keep prices the same despite
the increase in operating costs.
It seems, though, that many pizza purveyors have finally reached their breaking point.
If you love pizza and are unwilling to give up your favorite joints, get ready for steeper
prices as the United States continues to feel the pandemic's effect on the economy.
After a very long year, nothing sounds better than a fresh pizza straight out of the oven,
but unfortunately, this classic dinnertime staple has the potential to turn into more
of a luxury than a regular treat.
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