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 Purdue student team joins us to discuss how they developed Soy-Seal, their innovative soybean-based adhesive tape, and its potential ag impact.
New farm payment rules allow LLC members to have separate limits, but some local FSA offices are still applying outdated policies, creating confusion for producers.
John Mays with Central Life Sciences joins us to discuss the importance of pest management ahead of wheat storage and how protecting grain quality can support stronger marketing opportunities.
University of Arkansas researchers are working to help farmers reduce grain waste and get more value out of their crops.
ASFMRA’s Luke Worrell joined us to discuss farmland market trends, insights from the Illinois Land Values Conference, changing buyer and seller demographics, and the latest outlook on planting progress.
Vermicompost business helps boost soil health from the ground up.

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:

Starting Monday, April 29, the USDA will require free avian flu (HPAI H5N1) testing on all dairy cattle before interstate travel. Positive cases must be directly reported to the USDA for tracing.
Since the Tennessee Main Street program’s inception in 2010, 78 rural commercial districts have been improved. These 12 new additions bring that total number up to 90.
Become a follower of ag influencer Mary Pat Sass. This entrepreneur and FarmHER does it all while raising kids and crafting delicious harvest meals that inspire other farm mamas to get in the kitchen.
FarmHER raises a glass to those behind the vines at Hope Family Wines: Vineyard Director Stasi Seay and Assistant Winemaker Samantha Taylor.
A family settlement agreement is one method to resolve financial conflicts among family members over assets—if executed properly, that is.
Experience the buzz at Wild Harvest Honey on this episode of FarmHER featuring Amber Rutledge, one of the few Honey Connoisseurs in the United States.
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.
Opry Live is the premier weekly broadcast and livestream of the Grand Ole Opry, featuring country music superstars, legends, and rising talent performing on stage in Nashville.
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.