Editor’s note: As a bona fide “cheese whiz,” consultant Mark “The Cheese Dude” Todd shares his top tips on controlling cheese costs in the article below. But wait, there’s more! Don’t miss our upcoming webinar, “Controlling Your Cheese Costs,” featuring The Cheese Dude and veteran pizzeria owner/operators Sean Dempsey (Dempsey’s Brewery Pub and Restaurant, Watertown, S.D.) and Nicholas Harper (Peace of Pie on Hartwell, Fair Play, S.C.). The webinar will take place at 2 p.m. (ET) on Tuesday, June 30. It’s totally FREE, so click here to register today!
By Tracy Morin
Mark “The Cheese Dude” Todd, a consultant based in Monte Rio, California, has spent decades accumulating encyclopedic knowledge about cheese—and has traveled the world sharing about it. He’s also a big believer in pizza, even as sectors like fast food flounder. “Pizza is incredibly popular—probably the most universally loved food in America,” Todd says. “Even during economic downturns, people still order pizza.”
Still, Todd knows that today’s pizzeria operators need methods, including savvy cheese strategies, to maximize their profits and stay competitive. He recently sat down with PMQ to share his best tips and tricks for maximizing this key pizza ingredient to keep costs down in a cutthroat foodservice landscape.
PMQ: First of all, what factors drive cheese costs?
Mark Todd: The best way to understand where cheese prices are heading is to look at the Chicago Mercantile Exchange and the futures on milk. Broadly speaking, everything has become more expensive, especially with global instability and tariffs affecting supply chains.
What really drives dairy pricing is the economics of dairy farming. Imagine a farmer with 1,000 cows. Those cows cost a certain amount of money to maintain—feed, labor, care, facilities. The milk they produce generates income. The difference between those numbers is the farmer’s profit.
If the cost of maintaining the cows equals the income from milk, the farmer is basically giving the milk away. When that happens, farmers start selling off cows. Those cows often end up going into the beef market. The problem is that when milk prices go back up, it takes about six months to raise and prepare a cow for milk production again. You can’t just turn cows on and off like a faucet. Dairy farmers have to anticipate demand well in advance—kind of like wineries planting grapes today to harvest five years from now.
When farmers misjudge demand, that’s when the market swings wildly. Either there’s too much milk and prices drop dramatically, or there’s a shortage and prices skyrocket. It’s a constant cycle, and nobody really has complete control over it.
There are people who do arbitrage for large dairy companies and try to predict these trends, placing financial bets on where milk prices will go. But even then, the market often moves unpredictably. External factors like feed costs can force farmers to sell off cows, and internal factors like poor forecasting can create shortages or oversupply. All of that ultimately affects the cost of cheese.
PMQ: And cheese is one of the biggest expenses for pizzerias. What strategies can operators use to manage those costs?
Todd: Part-skim mozzarella—which was developed by the American dairy industry after World War II—is typically the least expensive cheese used in pizza. It contains less fat, and the dairy industry can sell that fat separately in products like butter. That makes part-skim mozzarella a relatively economical option.
You can also buy cheaper brands of mozzarella, but there’s a catch. The mozzarella market operates on extremely thin margins. If one brand is selling for even a nickel less per pound than another, it often means the quality isn’t comparable.
And if you sacrifice quality to save a few cents, you risk inconsistency in your pizza. That’s one of the fastest ways to lose customers. Switching brands to save money can be dangerous, unless you’re intentionally relaunching or changing your product.
PMQ: Is using less cheese an option to reduce costs?
Todd: Technically, yes, but it’s risky. Cheese is the second most requested additional pizza topping, after pepperoni, so skimping on cheese in a visible way will almost always disappoint customers. If customers feel like they’re getting less value, that can damage your reputation. That’s why the better approach is often blending cheeses, rather than simply reducing the amount of cheese.
PMQ: How can cheese blending help operators balance cost with quality concerns?
Todd: One simple strategy is to reduce the amount of part-skim mozzarella by about 25%, then add about 10% to 12% of a whole-milk cheese, like whole-milk mozzarella or provolone. Whole-milk cheeses melt and flow more effectively than part-skim mozzarella. Part-skim mozzarella melts, but it doesn’t spread across the pizza as well. That can leave red sauce showing through.
Adding a small amount of whole-milk cheese helps cover the pizza visually while still giving customers the cheese pull and texture they expect. You might use slightly less cheese overall and save a few pennies per pizza, but the customer experience remains strong.
PMQ: What’s a recommended formula for making a cheese blend?
Todd: When I taught cheese blending, I often recommended starting with:
- 75%: part-skim mozzarella (your backbone cheese)
- 15%: a strong melting cheese, like whole-milk mozzarella or Monterey Jack
- 10%: a high-flavor cheese, like Parmesan, blue cheese, aged Gouda or aged cheddar
Monterey Jack is a great addition, because it melts extremely well and becomes very gooey. The flavorful cheese gives the pizza a distinctive taste, even though you’re using only a small amount. Even a 10% addition can dramatically improve flavor. This approach lets you create a pizza that melts beautifully, looks great and has more depth of flavor.
PMQ: Can operators also incorporate high-end or artisan cheeses while keeping costs reasonable?
Todd: Absolutely. That’s where things can get really interesting. You can use stronger artisan cheeses—things like Gruyère, aged Gouda, Parmesan, blue cheese or even washed-rind “stinky” cheeses—in small amounts. These cheeses are expensive per pound, but because you’re only using them at 10% [of your total blend], the cost increase is minimal—and the flavor payoff can be huge.
That’s often where pizzerias create their signature pies. If you already have cheeses in your kitchen for salads—like blue cheese or shredded cheddar—try incorporating small amounts of those into your pizzas to add flavor.
PMQ: Are there any other ways to reduce cheese costs?
Todd: One idea is to emphasize vegetables more. Vegetables can provide visual coverage and flavor while reducing the reliance on cheese. But you have to be careful—some vegetables have become quite expensive themselves. The key is finding a balance that still satisfies the customer.
Another option is offering a “light cheese” pizza. Some chains do this already. You can position it as a healthier option with fewer calories. Customers can see it as a better-for-you choice rather than a cost-cutting measure.
PMQ: Have you seen any operators using “analogue” or imitation cheese as a cheaper option?
Todd: Some very low-cost operations use analogue cheese or blends of analog and real cheese. But, in my opinion, analogue cheese doesn’t make a good pizza. It melts and flows quickly, then burns almost immediately. It’s similar to using processed cheese slices—it just doesn’t deliver the same quality.
PMQ: Aside from playing with ingredients, what operational practices help control cheese costs?
Todd: Portion control is absolutely critical. Even some pizza chains still apply cheese by eye, just adding until it looks right. That approach isn’t cost-effective. Operators should have precise recipes and portion measurements for every pizza. You should know exactly how much cheese goes onto each pie.
Cooking methods also affect cheese usage. If you cook a pizza longer, more cheese moisture burns off. If you cook it less, the pizza might retain more cheese, but the crust won’t be as crisp. Find the right balance.
PMQ: Are there any pricing strategies that can help when ingredient costs rise?
Todd: Sometimes the best approach is simply to be transparent with customers. If costs increase significantly, you may need to raise prices. Being honest about that—explaining that you need to stay profitable in order to continue serving customers—can go a long way. If you can’t make money, you can’t stay in business.
PMQ: Do you have any tips for improving a menu’s profitability overall?
Todd: Menu design is incredibly important, and many independent operators don’t understand how much it matters. Here are three simple strategies to use:
1. Put your most profitable pizza first on the menu. Customers tend to order the first item they see.
2. Hide the prices within the description. If prices are listed in a column on the right side, customers compare them directly and often choose the cheapest option.
3. Don’t list a plain cheese pizza on the menu. If customers want one, they’ll ask for it. But if it’s listed, many people will default to it—and cheese pizzas often have the lowest margins.
I’ve worked with restaurants where the only change we made was redesigning the menu, and their profits increased within the first month.
PMQ: What final advice would you share with independent operators on controlling cheese costs?
Todd: Small operational changes can have a big impact. Portion control, smart cheese blending, creative menu design and transparent pricing all add up. Pizza is still one of the most economical foods to produce and one of the most beloved foods in the world. With the right strategy, independent operators can continue to thrive even in challenging markets.
Tracy Morin is PMQ’s associate editor.
