Article

Pepperoni Shortage Forcing Pizza Shops to Cough Up More Dough

As first reported by Bloomberg, smaller pizza shops across the country are paying more for the most popular pizza topping, pepperoni, due to an issue with the supply chain.

Demand for takeout pizza has been up considerably during the pandemic, with chains including Papa John's reporting increased profits. In addition to increased demand, wholesale prices are increasing, and production is decreasing.

Both are attributed to labour shortages. The shortage and those increased costs are affecting small mom-and-pop pizza places more than the big chains like Little Caesars and Pizza Hut because they have long-term supply contacts in place that guarantee those toppings.

There's no word yet on if the availability of pepperoni at grocery stores will be affected but small pizza shops will likely have to pass increased costs on to customers in order to survive.

• Pepperoni is just one product that has been affected by the pandemic.
• Disinfecting wipes have been hard to come by and
• there's been a shortage of the soft drink Dr. Pepper.

According to Convenience Store Decisions, Americans consume 251.7 million pounds of pepperoni annually, and it is present on 36 percent of all pizzas produced nationally.

1.With regards to the above article, utilise a supply and demand analysis to examine the

increase in prices of pizzas. (15)

2. Examine the concept cross-price elasticity and justify the importance of this concept to business owners in the food industry. (15)