Domino's may increase Pizza Costs
Today Domino's Pizza warned that it was likely to be raising the cost of its pizzas for consumers due to higher manufacturing costs.
The increasing new found love of diary products in China has contributed to driving up the price of milk, used in making the morzarellamozzarella cheese which tops the pizzas.
In addition to rising milk costs, wheat costs have also increased dramatically due to poor weather in Europe and Australia, thus putting up the company's manufacturing costs significantly.
Although Domino's has tried to absorb much of the cost itself, it has said it will also need to pass on the increased cost to the consumer. The new cost of the average pizza is likely to be around £10 according to Domino's.
Despite the rising costs Domino's is still positive about reaching it's profit targets for the year, largely thanks to an increase in pizza demand over the Rugby World Cup.
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