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
Livestock producers should inspect animals daily, report any suspicious wounds immediately, and comply with local movement restrictions.
Farm Bureau economist John Newton says farm income has declined every quarter for three years.
Rising payroll expenses continue to pressure small businesses across rural America.

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:

IDA Texas’s Cooper Little discusses producer response to New World Screwworm in Texas, ongoing coordination with animal health officials, and the steps being taken to manage and protect livestock movement across the region.
The FAO report continues to serve as a key benchmark for global food market conditions, offering insight into how shifting supply and demand dynamics are impacting food systems worldwide.
Rep. Vicente Gonzalez says producers are concerned about the potential impact on cattle operations and livestock values.
Brazil Potash CEO Matt Simpson discusses global fertilizer security, the importance of domestic production, and Brazil’s push toward fertilizer independence, which could impact market competitiveness.
President Trump’s appearance in Wisconsin coincides with National Dairy Month, placing additional attention on one of the nation’s leading dairy-producing states.
Agriculture Secretary Brooke Rollins says USDA has been preparing for a New World screwworm outbreak for more than a year as officials expand sterile fly production and containment efforts in Texas.
Rural Lifestyle & Entertainment Shows
RFD+ EXCLUSIVE | This hour-long show explores the trains and locomotives that aided the growth of travel, further settlement, and the development of a variety of American industries and agricultural ventures.
Discover the untold stories of farm families across the United States as they face tough decisions, adapt in unexpected ways, and fight to secure a future — for the next generation to carry on the farm. This unscripted documentary-style TV show follows the lives of ambitious farmers from diverse backgrounds across the US, highlighting the challenges, triumphs, and unique stories of these farmers as they navigate the world of agriculture.
Analiese Gregory is taking one of the biggest risks of her life: she’s left her successful career as a restaurant chef and bought a century-old cottage at the bottom of the world, in pristine Tasmania, Australia.
Experts from the University of Nebraska Medical Center discuss health and how it impacts farmers, ranchers, and rural Americans on this special LIVE call-in show.
Strong rural traditions, religion, cowboy boots, and technology collide in “Cowboy Church” — and taking part is as easy as turning on the TV! Airing Sundays on RFD Network.