Restaurants are working to keep burgers and sirloins affordable after beef prices hit an all-time high last week and inflation is on the horizon.The price of beef jumped to more than $2.11 per pound for choice-grade beef, breaking a record that had stood since 2003.
The inflation is expected to continue and if restaurants don’t want to raise menu prices, other changes will need to be made, according to Nation’s Restaurant News.
“It’s not that anything particularly notable has happened in the past month or the past week,” said Richard Volpe, a research economist for the food economics division of the USDA. “We are in a long-term sustained inflation for beef and veal prices.”
John Barone, commodities analyst at Market Vision Inc. said the inflation of beef prices is likely to continue through 2016 or possibly 2017.
Until the rise in inflation subsides, restaurants will be forced to engineer and market menus with less beef, cheaper cuts and be more vigilant in making the best deals with suppliers, according to NRN.