Beef prices are rising in the US: restaurants intend to raise prices on meat dishes

For months, the biggest consumer issue has been eggs. Grocery stores have restricted their purchases, restaurants have marked them up, and the cost of a dozen eggs has skyrocketed. Now restaurants including McDonald's, Texas Roadhouse, and Shake Shack have another problem: the rise in the price of beef, writes Daily Mail.

Photo: Ingrid Balabanova | Dreamstime.com

In January, prices for beef and veal rose by 5,5%.

This could hit consumers' wallets hard. The 5,5% price increase will also affect the cost of the most popular dishes in restaurants.

On the subject: Egg prices in the US are already sky-high, but they're about to rise even higher

If restaurants raise prices as they project, the price of a Big Mac could rise to about $6, a sirloin steak at Texas Roadhouse could cost more than $15, and a double cheeseburger at Shake Shack could cost more than $10.

Pricing policy is influenced by several factors at once.

The U.S. cattle population is at historic lows as farmers face droughts and changing weather patterns.

Farmers warn that it takes significantly longer for cattle to gain weight compared to other protein sources such as chickens or eggs, further slowing down the beef supply chain.

In addition, the United States banned imports of Mexican cattle after the discovery of blowfly larvae.

Earlier this month, the Department of Agriculture's Animal and Plant Inspection Service launched comprehensive inspection protocols that will allow imports to resume.

Agriculture Department officials said they expect the cattle population to grow by 2027.

However, restaurants are starting to sound the alarm as they note their financial vulnerability to price increases.

"We can't lock in our beef costs, and it's the single largest portion of our food costs," Shake Shack CFO Katie Fogarty said at a recent consumer and retail conference.

The company expects beef prices to rise in the mid to high range over the next year due to declining cattle populations.

Meanwhile, executives warn that demand for beef could increase as shoppers look for alternatives to expensive eggs.

“Other restaurant chains that rely on eggs may temporarily stop using them, leading to more beef or chicken offerings as a substitute for the higher-priced product,” said Rob Lynch, the restaurant’s CEO. “When consumer demand changes, it can even impact internal pricing.”

Other beef-focused restaurant chains such as Texas Roadhouse and McDonald's have already warned of price increases in their earnings reports.

Companies could face additional price shocks from potential tariffs on cattle raised in Canada.

The Trump administration, aiming to lower food prices for Americans, plans to impose a 2 percent tariff on all imports from Canada on April 25.

This could further drive up beef prices: Canada sends about 75% of its beef exports to the United States.

Most beef sellers will likely pass on an additional 25% of the cost to consumers. Domestic beef producers may also raise prices.

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Meanwhile, these duties make it difficult for small producers to do business.

"I can't just stop," Canadian farmer Curtis Vander Heyden told Reuters.

He estimates that the new duties will add an additional $28 to the standard shipment costs.

“Our employees and their families depend on us,” the farmer said.

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