How much is that steak? Record high beef prices force restaurants to rethink menus

City Barbeque, a fast-casual barbecue restaurant chain founded in Columbus, Ohio, is used to selling just under 4 million pounds of brisket a year across the 11 states it serves.

After all, the "premium barbecue experience" is what City Barbeque prides itself on, said Rachel Demers, the company's senior director of supply chain — and for customers, that means brisket.

This year, though, City Barbeque is preparing for a shift in consumer preference toward other proteins like chicken or pork. Not because customers won't want beef anymore, Demers said, but because some won't be willing to pay more than $11 for a brisket sandwich.

As of July, the U.S. Department of Agriculture reported the average retail beef price as $9.69 per pound. The same time a year ago, that price was $8.43 per pound. Six years ago in 2019, that number was $6.09.

"It definitely puts local restaurants under financial strain," Demers said. "The profit margins definitely remain tighter than ever."

While City Barbeque has tried to absorb as much of the national price surge as it can, the restaurant has had to raise the cost of certain menu items. The same brisket sandwich that's priced at $11.49 today used to cost $9.99 in April or May, Demers said.

"It's not that they complain," Demers said, when asked whether customers have vocalized frustration over beef prices increasing. "They just don't come in as often because they don't have as much expendable cash."