Pizza Perfect Price Inflation

My colleague Gareth B just handed me two menus for Pizza Perfect, one is likely from sometime in 2012, and the other is the current 2013 menu. He said he noticed right away – after not having eaten a pizza in a while – that pizza prices have risen significantly.

As always, actual prices as reflected on restaurant menus make for interesting reading. The menus show that Pizza Perfect pizza prices are up anywhere from 14% (Tiri original pizza), to 33% (Mastro deluxe pizza) from 2012 to 2013.

Stats SA reported that restaurant prices increased 6.1% from June 2012 to June 2013, and that overall food prices increased 7% (source).

Moreover, the selection of available pizza variations (by size and toppings) has declined 13%. In 2012 both Deluxe and Original pizzas came in both 23cm and 30cm sizes. Today, Deluxe pizzas only come in one size (30cm), while Originals still come in both 23cm and 30cm. Consumers have less choice than they did a year ago. Perhaps this is due to changing consumer preferences, perhaps it is Pizza Perfect trying to reduce operational and inventory costs, or in an attempt to boost revenue.

The bottom line is that Pizza Perfect prices are up much more than Stats SA data indicates restaurant prices are rising. Someone who enjoys Pizza Perfect pizzas and eats them regularly is experiencing much higher food price inflation than StatsSA data suggests.

PizzaPerfect2012

PizzaPerfect2013

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About Chris Becker

Chris Becker is Market Strategist and Economist at ETM Analytics. Becker is Co-Founder of the Mises Institute South Africa. Visit his personal blog chrislbecker.com. Follow him on twitter @chrislbecker.
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