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
The annual event blends livestock shows, youth competitions, and family-friendly attractions in the heart of Austin
The Biden Administration launched the Increasing Land, Capital, and Market Access (ILCMA) program in 2023 to help underserved farmers facing barriers to land ownership.
Justin Tupper with the U.S. Cattlemen’s Association joins us to discuss the USDA’s voluntary labeling updates, industry priorities, and the outlook for U.S. cattle producers.
Dr. Gold encouraged farmers and ranchers to prioritize eye safety in their daily routines, offering his expertise to help reduce risks on this week’s Rural Health Matters.
Recent USDA reports show a steady feedlot supply despite growing consumer demand for beef, ahead of typical seasonal summer trends.
Dave Duquette, founder of Western Justice, joined us to discuss wolf management, rancher concerns, efforts to return control to the states, and his upcoming documentary, “Wolves: True Conflict.”

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:

USDA’s Quarterly Grain Stocks report shows increased supplies across all major commodities, with corn, soybeans, and wheat stocks all rising compared to a year ago. Lewis Williamson with HTS Commodities discusses producer and market sentiment ahead of the key report.
Acre shifts reflect margins, costs, and market opportunities.
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.
Cattle farmer Scott Porter, Kentucky Farm Bureau’s 2025 Farmer of the Year, discusses his commitment to mentorship and the importance of strengthening the future of agriculture.
The USDA’s upcoming reports will drop on Tuesday afternoon, giving the trade real results on acreage shifts, drought concerns, and ongoing trade tensions, adding uncertainty for U.S. farmers.
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.
Rural Lifestyle & Entertainment Shows
Twisted Skillet brings a straightforward, hands-on approach to kitchen television, rooted in food and fire. Hosted by Texas chef Sean Koehler, the series explores open-fire outdoor cooking techniques, regional ingredients, and the people who raise, prepare, and inspire the food found across America.
Brought to you by Gus Arrendale & Springer Mountain Farms, join dynamic bluegrass duo Dailey & Vincent as they welcome scores of fabulous bluegrass, country, and gospel music acts as special guests. Loads of laughs, your favorite guests galore, and lots of good times are guaranteed. Don’t miss all the fun!
Join popular polka performer Mollie Busta as she hosts the weekly “Mollie B Polka Party” on RFD Network! The one-hour program features the nation’s top polka bands and a wide variety of ethnic styles, recorded on location at music festivals across the country.
FarmHER + RanchHER on RFD-TV is working to change how people perceive a farmer by sharing the stories of the women who live and lead in agriculture.
Celebrating 16 Consecutive Seasons on RFD Network! “The Penny Gilley Show,” starring “The Sweetheart of Country Music” herself, Penny Gilley.