The true price of a pizza – Letter from Chris Beverley in today’s Yorkshire Post
The true price of a pizza
The surprisingly frank call by Domino’s Pizza chief executive Lance Batchelor for immigration laws to be loosened further to help the firm to fill thousands of jobs caused quite a stir recently.
These comments demonstrate the fundamental economic principle of supply and demand. In a nutshell, this states that when the supply of something is increased (in this case, labour), its price decreases.
What chief executives call ‘labour costs’, the rest of us know as ‘wages’, and nothing helps to keep wages down better than an ever-expanding supply of labour, ideally from poorer countries.
As consumers we all have a choice where we spend our money. Perhaps it is time to reward those companies which recruit local staff and pay them a reasonable wage and stay away from those which do not.