How much is that steak? Record high beef prices force restaurants to rethink menus

lightbright

Master Pussy Poster
BGOL Investor
City Barbeque, a fast-casual barbecue restaurant chain founded in Columbus, Ohio, is used to selling just under 4 million pounds of brisket a year across the 11 states it serves.

After all, the "premium barbecue experience" is what City Barbeque prides itself on, said Rachel Demers, the company's senior director of supply chain — and for customers, that means brisket.

This year, though, City Barbeque is preparing for a shift in consumer preference toward other proteins like chicken or pork. Not because customers won't want beef anymore, Demers said, but because some won't be willing to pay more than $11 for a brisket sandwich.

AA1NiJ6o.img
Steaks and hamburgers are prepared on the grill at Little West Tavern in Franklinton, Ohio on Sept. 10, 2025. With the prices of beef soaring, chefs are getting creative with how they purchase, prepare and store the meat.

As of July, the U.S. Department of Agriculture reported the average retail beef price as $9.69 per pound. The same time a year ago, that price was $8.43 per pound. Six years ago in 2019, that number was $6.09.

"It definitely puts local restaurants under financial strain," Demers said. "The profit margins definitely remain tighter than ever."

While City Barbeque has tried to absorb as much of the national price surge as it can, the restaurant has had to raise the cost of certain menu items. The same brisket sandwich that's priced at $11.49 today used to cost $9.99 in April or May, Demers said.

"It's not that they complain," Demers said, when asked whether customers have vocalized frustration over beef prices increasing. "They just don't come in as often because they don't have as much expendable cash."

Why is the cost of beef so high?​

The explanation for the recent surge in beef prices is complex, but essentially chalks up to an issue of supply and demand.

On one side of the equation is the fact that farmers are facing a historically small cattle herd, said Elizabeth Harsh, executive director for the Ohio Cattlemen's Association. During last year's severe statewide drought, Harsh said many farmers had to sell off their animals, not having the necessary plants to feed them.


On the demand side of things, Harsh characterized consumers' want for beef as "as high as it's been in 40 years," so much so that she said national beef sales have actually risen 6.3% from last year despite record-high prices.

AA1NiSwq.img
Steaks and hamburgers are prepared for the grill at Little West Tavern in Franklinton, Ohio on Sept. 10, 2025. With the prices of beef soaring, chefs are getting creative with how they purchase, prepare and store the meat.

One other variable at play is that the cost to raise cattle — including expenses for fuel, equipment, land, energy, labor and more — has also risen, moving farmers to increase what they charge for beef to compensate.

Though cattle farmers may be benefiting from higher prices, she said, they're also paying more. And with all these factors at play, she added it's important to remember that farmers are "price takers, not price setters."

"They're not the villain," Harsh said. "And sometimes I think it's incorrect when we paint them that way."

How have businesses been impacted by record-high beef prices?​

City Barbeque isn't the only business facing challenges because of the beef market.

Little West Tavern, a restaurant inside The Junto hotel in downtown Columbus that serves several cuts of steak, said national beef prices haven't affected menu pricing or the quantity of beef purchased, though the restaurant has had to absorb higher costs on its signature items, according to an email statement from executive chef Don Petito.

Petito said because Little West Tavern is an independent restaurant without "the buying power" of a national chain, the current market has forced the restaurant to be more strategic about how it buys beef by finding ways to offset higher beef-related expenses, like controlling waste.

"The advantage is that we’re deeply connected to our purveyors and local farms, which gives us flexibility that big chains don’t always have," Petito said in a statement. "We can shift quickly to bring in whole animals, or collaborate directly with producers to get the best quality at a fair price."

White Castle, whose headquarters are in Columbus, said in an email statement that while beef has "slightly exceeded" the company's cost projection for the summer, it has not required a price increase.

According to the statement, the current beef market has played a role in White Castle's decision to shift its promotional focus toward other non-beef products like chicken and pork sliders.

John Barker, president and CEO of the Ohio Restaurant and Hospitality Alliance, said this strategy has become more common in light of the current beef market, with many restaurants traditionally known for beef products turning to other meats to lower their overall food cost and make additional sales.

"For example, Taco Bell is now offering chicken nuggets, which, if you thought about that 10 years ago, you'd say that doesn't make any sense, right?" Barker said. "But for them, if they're able to move their product mix a little bit from beef to chicken during this time, that can really help them."

Barker said the restaurant industry is a resilient one that's no stranger to setbacks. That said, the impacts of such expensive beef costs are "serious," more than just an everyday bump in the road.

Beyond the beef market, Barker said national food costs have generally been roughly 35% above average over the last five years.

"We haven't seen anything like that," Barker said. "That's the overall pressure, and then you layer on things like [the beef market] on top of it — that's the issue for restaurants. Their profitability is really being pressured."


When will beef prices drop?​

Barker said the Ohio Restaurant and Hospitality Alliance doesn't expect beef prices to drop until at least late 2027, because that's how long it will take for cattle farmers' herds to be restored.

"This is gonna be with us for a while," Barker said. "It's our new normal."

And for City Barbeque, that's a concerning prospect, Demers said, especially as holiday season — one of the restaurant's busiest times — draws closer.

"It's definitely not something that's quickly going away," Demers said. "It's a life cycle of a herd. The cattle cannot be fixed within six weeks; it's 18 months at the fastest that a new herd is coming through and ready to be harvested."




 
I'm buying anything but Ribeye. They are bugging in these grocery stores. If I have the time to go to the halala butcher I'll buy some steaks at 10.99 a pound but Fuck this 17-25 a pound for a steak that ain't even prime. They are bugging.
Only bullshit cuts like london broil and skirt steak have been on sale for weeks.... and the sale prices are high .... :hmm:


.
 
I got a 3 pack of inch and a half thick ribeye steaks for a little over $13 over here. People are just being fucking greedy over there.
 
cc_logo_style1_black_clear_600x.png




 
Back
Top