The price of pizzas looks set to rise after Domino’s Pizza warned of “unprecedented” increases in the cost of cheese and flour ingredients.
The cost of dairy and wheat products has soared in recent months because of strong demand in China and extreme weather in Europe and Australia.
Domino’s has absorbed some of the costs but warned that franchise store owners may choose to “adjust local pricing”.
The company’s shares ended 9.9% lower at 216p on the London Stock Exchange.
More dough needed
Domino’s said that it would look to limit any price rises, making sure they were kept to “a minimal amount”.
The company said it expects customers will only have to pay 40p or 50p more for a pizza that now costs £10.
“Some people may be thinking the price of pizza is going to go up to £50,” a company spokesman said.
“That is not the case. It is a minimal amount.”
Core ingredients such as mozzarella have soared in price this year due to surging Chinese demand for dairy produce.
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