US beef prices have risen 20% in the past year, leaving restaurants walking a tightrope.
December is the biggest month for steakhouses, as companies and families splash out on expensive dinners. But beef farmers have been hit by years of drought and by rising costs of fertilizer and equipment, so the country’s cattle inventory is at its lowest level in 75 years: More than 150,000 ranches, 17% of the total, have closed since 2017.
The resulting supply crunch has hit steakhouses, which must decide how much of the costs to pass on to customers. “Enough to cover at least some of their expenses, but not so much that consumers stop walking through their doors,” The New York Times reported.
