Facebook Twitter

Little Caesars is raising the price of its legendary $5 pizza

The Hot-N-Ready pizza will cost more than $5 for the first time in 25 years.

SHARE Little Caesars is raising the price of its legendary $5 pizza
Photo of Little Caesars pizza.

A photo of Little Caesars pizza, which will now cost $5.55 amid a price surge.

PR Newswire

It was only a matter of time.

Little Caesars announced Wednesday that its famous Hot-N-Ready pizza will cost more than $5 for the first time in about 25 years.

  • The pizza — which was first introduced in 1997 — will increase by 11% to $5.55.
  • However, the new Hot-N-Ready pizza will come with 33% more pepperoni slices, according to Forbes.

Little Caesars CEO Dave Scrivano said the decision to raise the price came because of labor and supply shortages, according to the New York Post.

  • “Our franchisees were highly accepting of this proposition. They want to treat their customers like gold and make sure they get the best product possible and they love the idea of more pepperoni,” he told Forbes. “We think we’ve got something good here with delivery and our Pizza Portal and our Hot-N-Ready pizza. We’ve got a good structure to really drive overall growth.”

This decision feels eerily similar to what happened with the Dollar Tree. In November, Dollar Tree — known for selling everything for $1 — raised the prices of most of its items from $1 to $1.25, per the Deseret News.

  • “For 35 years, Dollar Tree has managed through inflationary periods to maintain the everything-for-one-dollar philosophy that distinguished Dollar Tree and made it one of the most successful retail concepts for three decades,” said the company in a statement.

Both of these price jumps could be tied to inflation, which has been hitting the country in recent months. Federal Reserve Chairman Jerome Powell said in November that inflation may last into 2022.

  • “Our baseline expectation is that supply bottlenecks and shortages will persist well into next year and elevated inflation as well,” Powell said, per Fox Business. “And that, as the pandemic subsides, supply chain bottlenecks will abate and job growth will move back up. And as that happens, inflation will decline from today’s elevated levels.”