The end of an era is here. Little Caesars has raised the price of its famous $5 Hot-N-Ready pizza for the first time in the chain’s history. CEO Dave Scrivano said the 55-cent price increase will help cover increasing labor and product costs.
The classic pepperoni Hot-N-Ready pizza will now cost $5.55 plus tax, Little Caesars announced Monday. The increased price does include changes to the pizza, though, as it will include 33% more pepperoni slices alongside the familiar fresh ingredients. This was advertised as a permanent change.
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Although the increase might come as a shock to customers outside markets where the Hot-N-Ready already costs over $5, Scrivano told Forbes the company is sure customers will still flock to Little Caesars for pizza. They are also hoping the added toppings bring in even more customers. The company already saw its base expand during the coronavirus pandemic. In 2021, the company saw record sales.
“There are all kinds of pressures on businesses these days, but we still want to deliver the best product at the best value to our customers,” Scrivano said. “They have told us they want more pepperoni. While other companies are decreasing their portions and increasing their prices, we decided to make our pizza even better. It still remains the lowest price in the business, but we’re adding more to it.”
Scrivano is sure that the company will continue to grow no matter what the pandemic-related circumstances are. After all, families had been ordering pizza as a last-minute meal solution for years before the pandemic. The value of pizza “will never go away,” he told Forbes. “It’s a low-price way to have a great, full meal. We have high confidence we’ll continue to grow our revenues regardless of what happens.”
Little Caesars was founded in 1959 and is the third-largest pizza chain in the U.S. by sales. In 2001, the company launched its Hot-N-Ready pizza, offering ready-made pizzas for carryout. Hot-N-Ready pizza has been available nationwide since 2004.
Little Caesars is not the only company to announce a shocking price increase. In November, Dollar Tree said most of the items at its stores will have to cost $1.25 instead of $1 by the end of the first quarter of 2022. “We experienced a strong finish to the quarter, as shoppers are increasingly focused on value in this inflationary environment,” Dollar Tree CEO and President Michael Witynski said in a statement. “Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide.”
