Beef Prices Squeeze Restaurants on Quality and Costs, but Consumer Demand Remains Strong

High beef prices are squeezing South Texas restaurants, but Texas Farm Bureau says consumer demand remains strong despite record costs.

Jenni_Harris_10_19_17_USA_GA_White_Oak_Pasture_012.jpg

Photo by Marji Guyler-Alaniz/FarmHER, Inc.

McALLEN, Texas (RFD NEWS) — Rising beef prices are taking a toll on restaurants across South Texas, forcing owners to spend more time shopping for product and make difficult decisions just to maintain portion sizes and quality.

Stephen Marino, an Italian restaurant owner in McAllen, says beef is a necessity for nearly every operation — even as costs continue to climb.

“We still have to get it no matter what,” Marino said. “We still have to pay for it — and you try and get with your purveyors, and try and get the best price — there’s twice as much more shopping going on, which is harder for me. But the price of beef top rounds, it’s like, doubled and tripled in [price] sometimes.”

When asked how much more he’s paying now compared to last year, Marino put it simply: “It’s like $2.20 more now.”

Beyond higher prices, Marino says product consistency has become another challenge. He notes that the pre-made burger patties he once relied on no longer meet expectations.

“The burgers I was buying pre-made are just not, they’re not there anymore,” he said. “So you cook them, and it shrinks down to a smaller size — like they left something out — and I call my purveyors and ask them about it. No, it’s the same patty. Well, they’re not on this thing, cooking it. It’s not the same patty. So I gotta make my own patties now to compensate for a half-pound patty, what I’m known for.”

According to the Texas Farm Bureau (TXFB) Spokesperson Gary Joiner, Marino’s experience reflects a broader trend across the food service industry.

“Restaurant owners are paying a lot for ground beef right now. In fact, in the month of January, it was reported as the highest prices U.S. consumers had paid for beef. An average pound of ground beef was $6.74,” said Joiner. “So it doesn’t surprise me that restaurant owners are doing all they can to find less expensive product out there if they can find it.”

Marino says his restaurant’s signature meatballs have also been affected, with beef costs cutting directly into his bottom line. Maintaining portion size is non-negotiable, he says, because customers notice immediately.

“They know, people, when they come and eat. They know the portions. They know the sizes,” Mariano said. “Every restaurant they go to, they know what’s to be expected. You try and change something on it — you’ll know very quick.”

Despite record-high prices, Texas Farm Bureau says there is a bright spot: consumers are still buying beef.

“Even though the price of beef continues to increase at record levels right now, American consumers continue to purchase beef,” Joiner said. “There is a great demand for the product. They seem to be fairly resilient — they’re willing to pay more for the beef product that they’re interested in — and that includes at restaurants, at points of purchase. Americans want their U.S. beef, and they’re willing to pay more for it at a time in which the cattle herd is so small.”

Experts say they will continue watching the cattle herd closely to see whether supplies begin to recover in the months ahead.

Frank McCaffrey reporting for RFD NEWS.

Related Stories
Dry conditions remain a concern as Texas farmers prepare for another planting season.
SBA Administrator Kelly Loeffler breaks down the Grocery Guarantee Program, its goals for expanding farmer access to capital, and its potential impact on food production and prices.
Strong Easter demand supports protein and crop markets.
Longview FFA gives students practical experience from meat processing to floral design in their unique curriculum.
Son of a South Dakota Rancher, Kolt Mendenhall is turning his lifelong passion for riding into a collegiate career, committing to Southeastern Oklahoma State University next fall, bringing years of ranch experience to the collegiate arena.
At the White House’s “Celebration of Agriculture,” the Trump Administration announced a slate of policies to support farmers and ranchers, including biofuel mandates, SBA loan programs, and new labeling policies to boost domestic markets for ag products.

RFD NEWS Correspondent Frank McCaffrey covers news from Texas, in the US-Mexico border region. He has provided in-depth coverage of immigration, the 2021 Texas freeze, the arrival of the New World screwworm, and Mexico’s water debt owed under a 1944 treaty.

LATEST STORIES BY THIS AUTHOR:

Cattle producers face mounting pressure as U.S.-Mexico trade talks resume, but expanding drought, rising input costs, and policy work to improve the long-term industry outlook.
More Farms File for Bankruptcy As Strong Farm Loan Demand Boosts Bank Earnings
Charly Cummings with Superior Livestock Auctions provides a real-time look at cattle market activity, demand trends, and what lies ahead for upcoming livestock auctions in Texas.
Real Ag Radio’s Shaun Haney talks about astronaut Jeremy Hansen’s historic moment in space with NASA’s Artemis II mission, and Hansen’s connection to agriculture as the son of a Canadian farmer.
North Carolina Farmer Trey Braswell joined us to discuss the White House Easter Egg Roll, his company’s continued involvement, and efforts to expand access to eggs nationwide.
Rancher and Americans for Prosperity Director Tyler Lindholm breaks down the Wyoming Food Freedom Act, clarifies licensing questions, and discusses the future of local agriculture in the state.
Rural Lifestyle & Entertainment Shows
Expert gearheads Kevin Byrd and Willie B have a wealth of technical knowledge and a passion to share it each week on Two Guys Garage.
As a how-to show dedicated exclusively to trucks, 4x4s and SUVs, Truck U finds monster-truck expert Matt Steele and master mechanic Bruno Massel tackling hands-on projects from DIY maintenance on pickups and SUVs, to serious off-road performance upgrades on Jeeps and ATVs.