The era of the $1 slice—a popular option among tourists, students, and transplants—is coming to a close. 2 Bros Pizza, a favored New York restaurant chain, is increasing the price of its slices due to inflation. “Over the past few years, we had done everything in our power to keep the cheese slices at $1,” says 2 Bros co-owner, Eli Halali. The price of cheese is more than 40% of the company’s food cost Halali told the New York Post.
Inflation is the rise in the price of goods and services. It affects not only customers but businesses, too. There are two primary types or causes of inflation, demand-pull and cost-push. The first occurs when demand exceeds the economy’s ability to supply. The case this time, with 2 Bros Pizza and most U.S. businesses, is cost-push. It’s when the price of input goods and services goes up. This puts pressure on businesses offering competitive prices. They have to choose between possible negative financial performance or increasing their prices.
Store chains like Dollar Tree and Trader Joe’s prices have been on the rise since the pandemic. They needed to compensate for wage increases and higher distribution costs. Inflation climbed at a pace not seen in almost 40 years. Another factor caused by the pandemic was fewer people were dining at restaurants. Halali told the New York Times that 2 Bros was keeping the slice $1 where they could, for as long as possible. But that was during the pandemic.
Ingredients have become more expensive due to inflation for many different reasons. Drought in parts of the U.S. and Canada wreaked havoc on wheat crops and, in turn, drove up flour prices. Staff shortages at meat-processing plants were the cause of price hikes in pepperoni. The cost of shipping imported Italian tomatoes for sauce has increased. Cheese prices—40% of the company’s food cost—were once stable enough to bank on. But that has changed.
An increase in cheese prices would be the straw that broke the camel’s back, Halali told the New York Times. Well, almost two years later, in a post-Covid-19 New York City, it did. Like other $1 slice pizzerias, 2 Bros became forced with a tough decision if they want to remain in business. Referring to them as $1.50 slices will take some getting used to. Right? In the same way, seeing $1.25 on banners along edges Dollar Tree shelves isn’t sitting right with me yet. The name should be Dollar Twenty-Five Tree now. Right?
