By Julie Fuhrman, The Wall Street Journal article Food prices and labor costs are rising, and it’s no wonder that frozen desserts are on the rise.
And while many of the costs have been on the decline for decades, frozen desserts have become a huge, fast-growing market.
But is it really?
A growing number of researchers say yes.
In this article, the WSJ talks with Charles C. Johnson, an economist at the University of California, Berkeley.
He studies the economics of food and beverages, including the impact of frozen desserts on the economy.
He says frozen desserts, especially the cheesecake industry, are a perfect candidate for a food price recovery.
“They’re so cheap, they can be made from a variety of ingredients, including fruit, which is good for the environment,” Johnson says.
“People don’t need a whole lot of labor.”
The first question to ask about frozen desserts is whether they are cheap.
Johnson says the answer is no.
“The cost of frozen dessert is pretty much the same as it is for a typical, high-quality, high calorie dessert like ice cream,” he says.
But the difference is that in a frozen dessert, the costs of the labor and ingredients are far higher than for ice creams.
The first reason is that most of the ingredients in a cheesecake, such as the cream, ice, butter and sugar, are all made at the same factory.
“Most of the cheesecake factory labor and equipment is produced by the same company,” says Johnson.
The second reason is the size of the cheese factory.
In fact, the size and complexity of the factory is so large that the costs for the labor to make a cheesecak are very low, says Johnson, who says that this is because most of their labor is devoted to making the cheeses.
And the final reason is cost savings.
“When you’re making a cheeseburger or cheesecake and you’ve got to get it out of the refrigerator, you’re probably saving about $2 or $3 per cheesecake,” he explains.
The third reason is because cheese is one of the least expensive foods on the market.
Johnson said the average price of cheese in the United States is $1.28 per pound.
But when you look at the cost of making a slice of cheesecake at the typical cheesecake restaurant, it is $2.37.
And when you do a simple calculation to determine how much more expensive a cheeseweaver costs, Johnson says that the price difference is a lot less than the price of a slice.
That is because cheesecaches are made by people who know exactly what they’re doing, he says, and are trained to use specific equipment, including machines that turn ice cream into cheesecaks.
A cheesecake is a product that is baked, covered in cheese, then refrigerated.
The cheesecake can be frozen and then reheated as a pie or a cake.
And since the cheeseburgers and cheesecapes are made from the same ingredients, the cheesemakers can also make the same products with the same equipment.
In a cheese factory, the equipment is mostly a combination of a rotary and an electric grater, which can turn the cheese into a thin, golden crust.
Johnson thinks that there is a good chance that a food product will be cheaper when refrigerated, because most people want to have fresh food when they eat, so refrigeration is a natural market.
And refrigeration helps to preserve foods and make them cheaper, he adds.
In an ice cream factory, most of its equipment is made from an assembly line.
The workers are on wheels and wear gloves to help keep them from slipping.
Most of the equipment has to be moved, and that takes time.
And this kind of manufacturing creates a lot of stress on the equipment, Johnson said.
So when refrigeration becomes available, the pressure will be reduced, and there will be less stress on that equipment, which reduces the stress on workers, he said.
And he thinks that the reduction in stress will result in lower prices.
A cheese factory is one that makes cheese.
When refrigeration does come to the cheese industry, it will probably be a small factory with only a few employees, says Gary S. Blomberg, a professor of food sciences at the State University of New York, Syracuse.
“I think it will be more expensive, probably lower quality,” he said, adding that refrigeration may make cheese cheaper.
But he doesn’t think it’s a bad thing.
“It’s not a big problem.
The ice cream industry is not going to be the next to go down,” he added.
“We have the best cheese makers in the world.
We’re going to keep making cheese.”
For more on the economics behind frozen desserts and food, click here.
What about other food industries?
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