The rising cost of beef is putting pressure on Philadelphia’s iconic cheesesteak industry, with one prominent restaurateur expressing concern over the impact on his business and customers.
Ken Silver, president of Jim’s South St., notes that the price of beef from his supplier has climbed by approximately $1 per pound compared to a year ago. This recent hike follows a “crazy” roughly 50 per cent increase when his establishment reopened in 2024 after a fire.
US beef prices have been steadily rising for the past two decades, a trend attributed to a tight supply of cattle coupled with sustained consumer popularity for the meat.
“Our strategy right now is just absorbing the price and hoping that we see a reduction after the summer months are over, the grilling season and all the rest,” Silver said Wednesday.
He said a cheesesteak sandwich at Jim’s South St. costs $13.49, up from $11.49 in 2022, when the popular eatery was forced to close for nearly two years because of a fire.
Cheesesteaks typically are made with thinly sliced beef, cheese and onions, though other toppings are possible, too.
For consumers, the average price of a pound of ground beef rose to $6.12 in June, up nearly 12% from a year ago, according to U.S. government data. The average price of all uncooked beef steaks rose 8% to $11.49 per pound.
“We’ve taken a hit, profitability-wise, just to maintain what our customers would expect to get when they come to us: a reasonably priced cheesesteak of the best quality they can find,” Silver said.
If supply costs don’t ease, Silver said he might have to raise menu prices or declare a market price, which fluctuates and is commonly associated with seafood.
“I really hate to do that,” said Silver, whose father started the business in 1976.
A customer, Bryan Williams, suggested a price hike wouldn’t discourage him from placing an order.
“That’s just how things are going lately,” he said. “There’s really nothing that they can do about it.”
