Rising tomato prices are putting pizza shops in a bind as many operators debate whether to absorb the costs or raise their menu prices.
The average tomato price in the U.S. has increased by more than 25% since January, up to $2.25 a pound, according to the U.S. Bureau of Labor Statistics. It’s up about 40% over a year ago—the biggest price increase for any food product, including coffee and beef.
“It’s certainly been hard getting them….Right now it’s [a problem with] a lot of vegetables. It’s not just tomatoes, but tomatoes are insane,” Lauren Hodson, co-owner of Lefty’s Chicago Pizzeria in San Diego, told NBC 7. “My Margherita pizza is nothing without a fresh tomato. All my salads, you know—nothing without tomatoes.”
In an interview with WHNT, Alexis Salazar, co-owner of Mozza & Rella in Huntsville, Alabama, said he’s paying $75 dollars for a 25-pound case of tomatoes—more than double what it cost him at the beginning of the year.
“Tomato prices have been a hard conversation to have, especially with our partners over here because the prices have gone up insane,” Salazar explained.
Salazar’s partner, Thomas Quijada added, “It does get hard sometimes, but we’re just pushing through and absorbing the hit for now until it’s not sustainable. We want to be known in Huntsville as the pizza shop for everyone, and we’re not interested in just profit. We’re interested in just being a part of the community.”
Several factors are playing into higher tomato prices, including deep freezes in Florida last winter and tariffs on produce from Mexico. The Trump Administration recently withdrew the U.S. from a deal that allowed duty-free imports of tomatoes from Mexico, where 70% of America’s tomato supply originates, as the Associated Press has reported. As of this month, the U.S. is charging a 17% duty on Mexican tomatoes.
Meanwhile, Robert Guenther of the Florida Tomato Exchange has said the tariff will benefit the shrinking U.S. tomato industry.
“Tariffs are undeniably a big driver of the price inflation,” Brett Massimino, a Virginia Commonwealth University business professor, told the AP. “Because the U.S. relies on Mexico for the majority of its tomato supply, any changes in trade policy can have a large impact.”
Michael LaMarca, master franchisor of the Ohio-based Master Pizza chain and a columnist for PMQ, says pizzeria owners need to tighten the controls on their business to keep labor and costs of goods under control. But, if all else fails, he believes pizzeria owners should consider biting the bullet on menu price hikes.
“There is no better time than now to do that,” he writes in an article for PMQ’s upcoming September 2026 print issue. “Even if customers don’t understand all the costs associated with running your business, they’re aware that their own everyday cost of living has gone up. There will be little explanation needed for your next menu price increase,” LaMarca writes.
“It costs what it costs to provide what you provide,” he continues. “Be confident in that truth. If the costs go up to keep the level of quality and service you provide, you need to raise your prices rather than absorb the added costs. You cannot stay in business if you are losing money.”
