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
Tariff relief and new trade agreements may temper food costs by reducing import costs.
Lawmakers and experts react to the Administration’s long-awaited announcement of “bridge” aid to stabilize farms and offset 2025 losses until expanded safety-net programs begin in 2026.
Lewie Pugh with the Owner-Operator Independent Drivers Association (OOIDA) discusses the gap in truck driver education programs and how it impacts road safety and supply chain economics.
Cattle imports from Mexico remain stalled amid the New World screwworm outbreak. At the same time, Tyson closures add pressure on Nebraska producers and markets ahead of the USDA’s upcoming Cattle on Feed Report.
USTR Jamieson Greer signals a narrower trade deal with China, adding more market uncertainty. The Farm Bureau also supports reviewing China’s missed trade commitments under the Phase One.
Water access—not acreage alone—is driving where irrigation expands or contracts.

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:

NCBA Chief Counsel Mary-Thomas Hart breaks down CAFO permits, EPA enforcement, and what cattle producers need to know as rules continue to evolve.
RFD NEWS correspondent Frank McCaffrey spoke with U.S. Congressmen Henry Cuellar (D-TX) and John Rose (R-TN), who say bipartisan cooperation will be key to getting the Farm Bill to the president’s desk.
The EPA has approved over-the-top dicamba applications for the 2026 and 2027 growing seasons, outlining new rules that impact herbicide use for U.S. crop producers.
Merck’s Gary Tiller discusses new virtual fencing technology and how fence-free livestock management could change the way ranchers manage land and cattle.
At CattleCon 2026 in Nashville, RealAg Radio’s Shaun Haney discusses profitability, consumer demand, and how the integrated U.S.–Canada beef supply chain impacts cattle producers across North America.
Texas cowboy chef and host of RFD Network’s Twisted Skillet, Sean Koehler, shares an elote-style street corn dip just in time for Super Bowl Sunday. This skillet-cooked corn dish combines open-fire cooking and bold regional flavors for a delicious twist on Mexican Street Corn.
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.
Celebrating 16 Consecutive Seasons on RFD Network! “The Penny Gilley Show,” starring “The Sweetheart of Country Music” herself, Penny Gilley.
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.