Beef prices have hit an all-time high with choice-grade beef priced at more than $2.11 per pound.
Many factors have contributed to the rise of beef prices over the last several years; the rising costs of both cattle feed and fuel in 2008 caused many farmers to cut the size of their herds, and in the following two years, the economic recession lowered demand while food prices remained flat. As the nation’s economy began to recover in 2011, major droughts raised the price of corn and soybeans, and farmers were forced to scale back the size of their herds. Today, American farmers have the smallest collective cattle herd since 1952 and prices are continuing to rise despite the recovering demand for choice-grade beef.
The complete cycle from cow pregnancy to calf birth to slaughter takes nearly three years, so a quick recovery of beef supply is largely unfeasible. Unfortunately for restaurateurs and consumers, this means that high beef prices are here to stay. In order to combat these costs, Synergy Restaurant Consultants offers a few tips:
Culinary Innovation – Design new dishes that utilize less expensive cuts of beef.
Strategic Marketing – Promote non-beef options like pork and chicken that offer customers a better value.
Supplier Relationships – Keeping close relationships with suppliers will help you lock in the best possible prices.
Vegetarian Options – ‘Better for You’ and meatless options are hot right now: leverage this trend to steer customers towards veggie items and away from beef.
Lean Operations – Since your restaurant will be faced with higher beef costs, it is essential to cut back in other areas. A lean operation and savings in areas like waste and packaging can contribute significantly to your overall bottom line and profitability.
Synergy Restaurant Consultants has significant experience in culinary development and menu innovation. We can help develop non-beef menu options with big flavor and visual appeal, yet balanced food costs and profit contributions. Our menu development work at LYFE Kitchen exemplifies the true meaning of thinking innovatively in order to provide a wide array of protein and options to meet customer expectations of quality, taste, and nutrition. Additionally, our Operations Assessment evaluates current operations and provides recommendations on how to improve efficiency and maximize profitability. To find out more ways to battle high beef prices, please contact Synergy Restaurant Consultants.