While inflation may be slowing down from month to month, compared to pre-pandemic prices, consumers are still feeling the pressure on their bank accounts. 

“Since the pandemic started, there’s been inflation of more than 30%, which has caused consumers to seek more affordable options,” said Rachel McCrone, director, customer marketing, bakery/deli, Rich Products, Buffalo, NY. “Fortunately, pizza is still one of the most affordable family meals, so we’re really thinking about how we capitalize on that at retail.” 

Inflation is impacting unit sales of certain food categories in the retail channel, and foodservice numbers lag behind retail as consumers stick to at-home eating in the effort to save money. However, other common coping strategies for inflation aren’t coming to fruition. FMI’s US Grocery Shopper Trends: Finding Value report showed that consumers are still buying organic and fresh products and only 32% of shoppers are buying fewer items. They’re also very interested in quick meal options. FMI’s report found that 32% of shoppers spend fewer than 30 minutes preparing meals at home, a number that has grown by 18% since 2020. Seventy-five percent spend less than an hour. This need for convenience and search for value keeps pizza in a sweet spot of growth when other categories, such as meat and dairy, are struggling with higher prices. 

As Kelsey Olsen, food and drink analyst, Mintel, noted in her latest report on pizza, price isn’t the only variable when it comes to calculating value. Consumers also look to convenience, satiation and customization, all of which pizza excels at providing. Mintel also found that pizza is the ultimate “backup meal,” the go-to choice 65% of consumers make when they didn’t plan for something else. And 2 out of 3 consumers eat store-bought pizza simply for its convenience.

 “As one of those meals that is relatively cheap that you can feed a whole family with, inflation is high and money is tighter, pizza goes a lot further,” said Chris Miller, director of operations, Baker’s Quality, Waukesha, Wis.

The majority of Baker’s Quality’s customers are foodservice operators who rely on the baking company to supply them with high-quality crusts that taste like they’re made in house. Miller has seen a push for lower costs as restaurant operators grapple with higher operating costs themselves. However, they don’t want to compromise on quality. 

“We’re doing what we can to alleviate pressure on our customers by being more efficient and providing the same quality,” he said. “Our main ammunition is being able to invest in things that will give us larger throughput that won’t sacrifice anything else.”

The company is investing in automation and equipment, straightening production lines all in an effort to eek out any efficiencies or reduce their own input costs. This allows Baker’s Quality to pass on the savings to their customers. 

Despite the need for lower prices, consumers and restaurants aren’t willing to scale back on quality, and they’ve turned their attention beyond the toppings to the crust. 

This article is an excerpt from the August 2024 issue of Baking & Snack. To read the entire feature on Pizza, click here.