For decades, pizza has been a staple of American cuisine. It fed families on Friday nights, enhanced office lunches, and was served at many children’s birthday parties!
In 2023, I wrote a column called “A Slice of Queens” for the Queens Chamber of Commerce’s “This is Queensborough Magazine,” called “Pizza Wars.” Pizza Wars have been around for decades, mostly versus each other!
At that time, there was a lawsuit between:
1. Bellucci’s Pizza vs Andrew Bellucci’s Pizza, which are only six blocks away from each other on 30th Avenue in Astoria, Queens.
2. In the mid-1990s, it was Ray’s vs Original Ray’s vs Famous Ray’s.
3. Patsy’s vs Patsy Grimaldi’s, which evolved into Grimaldi’s vs Julianna’s.
On occasion, pizza wars have led to violence, especially with the alleged thefts of sauce/gravy “secret” recipe formulae over the years. The 2011 beating of Louis Lombardo, owner of “The Square” in Staten Island, and allegedly beaten for stealing the L&B Spumoni Gardens sauce recipe, comes to mind amongst other incidents.
Back in the day, pizza was inexpensive, filling, and a sure hit with kids of all ages! For many years, a regular NY-style ‘grab and go’ slice cost the same as a “New York City subway token.” Then the ‘artisanal pizza boom’ kicked in along with what I call “Pizzaflation”, starting before and during the Covid-19 era through today!
In my opinion, Pizzaflation is when the costs of key ingredients increase much faster than inflation! For example, the cost of quality flour went up almost 6.6% per year vs 3.2% inflation from 2020-2025. Inflation pummeled pizzeria owners from all sides, as cheese prices, wheat, rent, utilities, insurance, and increasing minimum wages have all surged simultaneously.
Pizzeria owners didn’t want to drastically raise prices; however, in most cases, they had to increase prices to remain profitable!! I know the average consumer cares little about the “business model plight” that pizzeria owners are currently enduring, as they are more concerned about the rising costs of their family meal.
The new Pizza Wars are now with fast food! Pizza no longer becomes the “middle ground” between eating at home and going out to dinner.
Think about the best pizzeria in your neighborhood. In Manhattan and the other 4 boroughs, a round pie or a square pie can cost anywhere from $25, $30, or even $40 at some places. Even large chains have raised their prices, and I don’t know if there are any “$1 slice spots remaining? Think about a $30 pie, plus delivery charges, service fees, suggested tip, or driver gratuity, and pricing can get out of control.
For budget-conscious families, pizza is no longer an automatic yes or trusted fallback to going out. Pizza has become a price calculation!! Instead of a staple, it has become more of a treat, and pizza sales have plummeted accordingly! Pizza sales have declined by an average of -2.9% per year from 2020-2025 as the market shrank by a total of $8 billion in sales!
Fast food chains look closely at the financial metrics and are prepared to “Price Pounce” to recapture market share from Pizzerias by advertising “value” and leading with price.
On TV over the holiday weekend, I saw:
Burger King: $4.99 Meal Deal: Double cheeseburger, small fries & Coke
Wendy’s: “Biggie Bites” $4 pick 2 of 6, $6 Biggie Bag, $8 Biggie Bundle
McDonald’s: 2 snack wrap meals for $8
Dunkin’ Donuts: Announces their $6 combo meal is now $5
Taco Bell: New Luxe Menu 10 items for $3 or less
Denny’s: $5.99 “Slammin Meals-Deals
Domino’s: Counters with $9.99 “Specialty Pies!”
If you think about it, for roughly $8-$12, a fast-food customer can walk away with a full stomach that includes a burger, fries, and a drink without waiting, tipping, or paying extra fees. A family of 4 that buys 2 pies could instead opt for a family burger or a Chinese food restaurant meal for roughly half the price! Pizza Night is now once per month instead of every Friday night for some families.
There is a “psychological shift” going on as families are viewing Pizza more as a treat than everyday food! This has meant that families are not abandoning pizza but eating it much less often.
Pizza Hut (America’s 2nd-oldest pizza chain, founded in 1958 vs Shakey’s in 1954) has taken notice and is shutting down hundreds of stores.
It’s not clear where “Pizza Wars” are going as pizzerias must balance prices vs overhead vs quality vs profits. It does look like pizza prices could come back a little to become more competitive, but at what cost?
This winter is a good time to support your favorite local pizzeria, enjoy!!!