Americans continue spending heavily on steaks and burgers despite record beef prices, forcing restaurants and the White House to confront mounting pressure from what some economists are calling “beeflation.”
Beef Prices Hit Record Highs Across America
On Friday, speaking on CNBC’s “Power Lunch,” celebrity chef Wolfgang Puck said Americans remain deeply attached to red meat even as grocery and restaurant prices climb sharply ahead of the Memorial Day holiday.
Puck said demand for steaks remains strong across the country, noting that steakhouses rarely go out of business because red meat is still “king” among American diners.
While some supermarket beef prices remain elevated, Puck said certain premium cuts used in upscale restaurants have recently eased due to increased imports from countries including Argentina and Brazil.
He said tenderloin prices dropped roughly 25% from a year ago, while rib cuts also declined modestly.
Restaurant Industry Faces Mounting Pressure
Despite some relief in wholesale beef costs, restaurant operators are still struggling with higher labor, rent and operating expenses.
Puck said consumers are increasingly “shopping around” and closely examining menu prices as dining costs rise. He pointed to changes at his steakhouse CUT, where a roasted chicken dish replaced a pricier poultry option in an effort to appeal to cost-conscious diners.
The celebrity chef also noted that steakhouses continue expanding across major cities while fewer traditional French restaurants are opening.
Trump Administration Battles ‘Beeflation’
According to Bureau of Labor Statistics data cited in reports, the national average price for a pound of ground beef has climbed to a record $6.90.
Beef prices have risen 24% since President Donald Trump returned to office in January 2025, Quartz reported.
The Trump administration has moved to combat soaring beef prices amid growing concerns over what some economists describe as “beeflation.”
It has explored multiple strategies to contain rising beef prices, including easing import restrictions and reopening Chinese markets for U.S. beef exports.
However, cattle ranching groups have pushed back against broader import proposals, arguing the U.S. cannot simply import its way out of the supply problem.
Higher diesel prices tied to geopolitical tensions, including the Iran conflict, are also increasing transportation costs across the food supply chain.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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