‘Taking the hit’ to keep pie price down
Bakers across the country say the cost of ingredients used to make pies are up 65% in some cases and they’re ‘‘taking the hit’’ to keep the piedoughnut combo price down.
As prices surge across the world, Kiwi bakers are swallowing the toughest increases to keep their lunch combos affordable. While the cost of pies and doughnuts has increased as much as 10%, bakers are paying up to 65% more for the ingredients now than they did a year ago.
Andre Glen, the owner of New Plymouth’s Andre’s Pies and Patisserie, said he had never seen such a steep increase in prices – and he has been in the business for 50 years.
In the past seven months, the cost of 20kg of pastry flour had risen from $20.99 to $30.5 – a 45% increase – he said.
Bakeries were trying not to charge their customers proportionally, otherwise it would be a shock for them, Glen said.
But he has raised his pie price by 30c in the past year, with a mince and cheese pie now costing $5.50 up from $5.20 – a 5.7% increase.
‘‘We have put the price of our pies up to cover the cost of the raw materials, just to make it profitable.
‘‘Otherwise you would work for nothing and no-one wants to do that, do you?’’
At Smoko, in New Plymouth city centre, a mince and cheese pie is also $5.50. Owner
Rob Smith said his bakery was trying not to raise the price, but it had been tough.
Cheese was another product with a price that had gone through the roof, he said.
Last year, Smith managed to buy 5kg of grated cheddar for $38, but this year he had to pay a minimum of $63 – a 65.7% increase.
‘‘We are keeping the same prices and hopefully we can battle through,’’ he said.
‘‘We are taking the hit really and just biting the bullet for a bit.’’
And it’s not just pastry-related costs that are increasing, Sray Seng, partowner of New Plymouth’s Blagdon Hot Bread Bakery, said.
She has raised the price of doughnuts from $2.80 to $3, and pies from $5 to $5.50, but it’s the price of chicken, used in the chicken and chips boxes, that has shocked her. Last year she could buy seven chickens for $60, but that price was up
33% to $80.
‘‘That’s over $10 a bird and we had to increase the prices to cover the extra cost,’’ she said. ‘‘It’s really hard for everyone, even for customers.
‘‘I know they have a budget so I try to keep it as minimal as possible, just to keep them happy.’’