Texas BBQ Restaurants Struggle as Beef Prices Soar
Beef prices are rising so fast some famed Texas BBQ joints are closing: ‘Everybody’s at risk these days’
The Independent
Image: The Independent
Rising beef prices are forcing some of Texas's renowned BBQ restaurants to close or face imminent closure. The average retail price for beef reached a record $9.64 per pound in April, contributing to a crisis in the BBQ industry as owners struggle to maintain profitability amidst inflation and high operating costs.
- 01The average price for beef hit a record $9.64 per pound in April, a 13% increase from the previous year.
- 02Several BBQ restaurants, including Kirby’s BBQ and Brett’s BBQ Shop, have announced closures due to unsustainable beef prices.
- 03Owners are raising prices, with brisket now costing $38 per pound, impacting customer affordability.
- 04Four companies control over 85% of the U.S. beef processing market, leading to accusations of price manipulation.
- 05State and federal regulators are investigating the largest meatpacking firms for potentially unfair practices.
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Beef prices have surged dramatically, reaching an average retail price of $9.64 per pound in April, a 13% increase from the previous year, prompting some of Texas's most famous BBQ restaurants to close or face closure. Restaurant owners, including Russell Roegels and Shawn Jones, describe being in 'survival mode' as they grapple with inflated costs and dwindling profit margins. With brisket as a staple, rising prices have forced some to increase menu prices significantly; brisket at Kirby’s BBQ now costs $38 per pound. The situation is exacerbated by a historically low U.S. cattle herd and high operating costs stemming from the pandemic. Industry experts and owners blame a handful of meatpacking corporations that dominate the market, controlling over 85% of beef processing. Investigations into these companies are underway, as Texas Attorney General Ken Paxton vows to hold them accountable if they are found to manipulate prices. Amidst these challenges, the Trump administration is reportedly divided on how to address the crisis.
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The rising beef prices are leading to closures of BBQ restaurants across Texas, affecting local economies and consumers.
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