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.
Corey Rosenbusch with The Fertilizer Institute joined us to discuss supply chain disruptions and what farmers should watch as global tensions impact fertilizer markets.
