26 CommentsBwog correspondent Jon Hill reports some awful Koronet-related news: prices have increased 25 cents, up from the $3/slice price, which lasted about a year. Hill researched some old data and used Microsoft Excel in order to illustrate for you, the concerned citizenry, the historical precedent for this price increase.
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26 Comments
@concerned alum $1.10 in 1988
@so when are the geniuses at Koronet’s gonna buy a credit card machine?
@why? why would they buy one? they’re getting plenty of business now and i doubt they’d gain enough additional business to make up for the processing fees they’d incur. more realistically, bon french should take cards, they’d benefit probably
@DHI I don’t think it’s even about the fees, but about the time. Late at night when they have constant customers they just have to move people through as quickly as they can and straight cash is the way to go, no matter what some bullshit visa check card commercial says.
Fuck a check card.
@This is disgusting.
@Hey You should have included a benchmark such as the core CPI index in the graph. That way, readers could have compared the rise in Koronet prices to the rise in the overall price level for the U.S. economoy. From those data points, we could get a better understanding of how much / how little Koronet pizza has actually risen on a comparative basis.
@Throw the rules out Drunk people are not rational! Or else I wouldn’t risk jail time to pee on the sidewalk.
@nah it’s just that it’s worth it at the time.
i find that i regret just about equal things drunk and sober. when i’m sober i regret NOT pissing on the sidewalk
@meh I spoke to a couple of pizzeria owners here. Apparently, the rise in fuel is the biggest effect. The wheat increase was only a blip (drought in Australia), and most distributors believe it to be temporary. The oil prices (both petrol and vegetable) are having a larger effect. The petrol, obviously, because ALL ingredients have increased in prices due to higher transport costs. The vegetable oil have an effect because almost all things cooked at the pizzerias use veg oil. This latter cost probably has less effect on K-nets since it doesn’t serve other cooked items (like Famigs or Che Bella).
Also, as mentioned above, inflation has a constant effect (which is increasing probably greater than 3% these days). However, core inflation (non fuel and food goods) should be considered instead of total inflation since we are already considering the food and fuel inflation as an individual cause.
I would rank the causes for K-net’s price increase as:
1)fuel costs (petrol oil)
2)cheese costs
3)core inflation
4)wheat costs
@meh on second thought, I would switch items 2 and 3. core inflation effect > cheese costs. Either way, the $0.25 increase twice in 2 years is >>>> 3%
@... i bet if you amortized their price increases over 25 years, they’d start to approach 3%/yr
@...how? I thought you only amortized intangibles such as logos and goodwill? I agree that a price increase *could* be seen as an intangible, but how would you amortize it over a period of time?
@hi bwog consider looking at wheat prices and inflation, these are no doubt stronger drivers of koronets price growth than cheese, and probably stronger than gasoline.
and after a delightful summer of ibanking, i’d have to say that graph would you get you fired in about 30 seconds from even a no-name middle market shop…it’s straight-up embarassing
@Uhh After a delightful summer on the buy-side, I think you’re a huge tool.
Also, why does everyone assume Koronet raises prices solely in response to an increase in input costs? Rising COGS may be affecting their margins, but the increase might not be due to internal pressures. As a previous poster pointed out, our consumption is pretty inelastic when we’re drunk. Koronet may simply be realizing that they have more pricing power than they had thought.
Several neighboring businesses have raised prices within the neighborhood, making pizza an even more attractive substitute. They could just be reacting to the extra $1 in the cost of a sandwich at West Side or the extra $0.50 for a salad at Milano, even if cheese and wheat aren’t really impacting their bottom line all that much.
@somewhat interesting to note that the koronets increases seem to occur with large changes in cheese price. although not surprising.
@yes so cheese prices have been flat since 1999. way to choose the one data set that includes data going against your hypothesis! the simple fact is that america has inflation, so the price of just about everything will go up at approximately 3% a year, until we get a fed board with a different guiding philosophy. there’s nothing interesting to analyze here at all.
@zing logic can be a buzzkill
@... careful with the word “value”, it implies that there’s been some adjustment for inflation. from the looks of the graphs, it doesn’t look like there’s been any adjustment.
@zoidberg bwog, go the extra economic distance and give us the raw data/source as well! we’re (re: i’m) hungry for more of your analyzing goodness.
@That font reminds me of “You Don’t Know Jack”
@I'm Sorry but Koronet’s pizza deserves at least a Matlab graph, not this pussy Excel concoction.
@tbh i’m usually so drunk when i eat koronets that they could raise the price to ten bucks a slice and i wouldn’t notice
@random Woah…woah…wait a minute! Do people actually go to Koronets when they are sober?
@tba it starts innocently enough. first, you never go. then you just go when you’re drunk. but soon enough you’re going all the time, just for something to do, even when you’re not hungry.
@Hmm Caps lock: cruise control for awesome.
On a side note, I heard on NPR that restaurant prices are lagging behind the surge of food items. Some expert said wait 3 or 4 months to see the major jump come into the restaurants.
@WHAT THE FUCK WHAT THE FUCK. HOW COULD THEY DO THIS TO US. I WAS HAPPY WHEN I RETURNED LAST WEEK THAT KORONET’S HAD NOT RAISED PRICES. DAMN THAT QUARTER