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
California almond acreage tightens while pistachios shift into an off-year, shaping a mixed outlook for prices and supply in the tree nut market.
New treatments offer hope, but challenges remain for beekeepers.
Dry conditions are already showing up in pastures across the region this April.
House lawmakers push toward a Farm Bill vote as debate grows over E15, Prop 12, and input costs, with farmers seeking certainty and policy updates.
RFD News correspondent Frank McCaffrey spoke with the Texas Shrimp Association at the Port of Brownsville about the future of the USDA’s new Office of Seafood.
Food inflation is still building in 2026, with beef leading pressure while eggs and dairy offer some relief.

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:

Nationwide Agribusiness joins us in honor of National Safety Month, sharing some steps employers and workers can take to stay protected on the farm.
The Virginia Farm Bureau shows us how robotic milking technology has become a lifeline to the Commonwealth’s dairy industry, increasing production efficiency in the face of low milk prices and rising labor costs.
Keeping a close eye on Capitol Hill, farmers and ranchers wait with bated breath as President Trump’s “One Big Beautiful Bill” heads to the Senate. AFBF economist Danny Munch joins us for a closer look.
Over 94 percent of U.S. dairy farms are family-owned, carrying forward a legacy built over generations that supports three million jobs and generates more than $40 billion in wages.
What started as a childhood dream has turned into a Georgia man’s life’s work.
One skillet, five ingredients and a few minutes are all you need to get this spiced up hash on the table!
Rural Lifestyle & Entertainment Shows
Enjoy traditional country music from modern-day troubadours The Malpass Brothers. Each episode stars the brother duo of Chris & Taylor Malpass along with a featured celebrity guest– and loads of clever humor.
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!
Celebrating 16 Consecutive Seasons on RFD Network! “The Penny Gilley Show,” starring “The Sweetheart of Country Music” herself, Penny Gilley.
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.
SharkFarmer TV is the brainchild of Rob Sharkey, a 5th-generation farmer from Illinois. He shares the stories of incredible people in agriculture—both their successes and perhaps a few blunders along the way. You’ll see aerial footage of the field just as the drone crashes into a barn—and hear the story behind it all.