Iconic Philly cheesesteak store might increase costs as beef prices surge: ‘Sticker shock’

The top of an iconic Philadelphia cheesesteak restaurant says he could also be compelled to lift the value of his $13.49 sandwich — a prospect that might alienate his loyal clients who could possibly be requested to bear the burden of hovering beef costs.

“I actually hate to do this,” Ken Silver, the president of Jim’s South St., a Philadelphia establishment recognized for its cheesesteaks, advised the Related Press when requested about elevating menu costs.

“Our technique proper now’s simply absorbing the value and hoping that we see a discount after the summer time months are over, the grilling season and all the remaining,” Silver mentioned.

Silver mentioned he’s additionally contemplating a “market worth” technique whereby cheesesteaks and different menu gadgets can be listed with out a mounted price, permitting the restaurant to regulate the value primarily based on present ingredient prices which can be topic to provide fluctuations.

Beef costs within the US have been steadily rising for years, however the tempo of enhance has accelerated for the reason that pandemic, pushed by a shrinking cattle provide, excessive manufacturing prices and chronic shopper demand.

For Silver, whose father based the enterprise in 1976, that has meant paying $1 extra per pound for beef than he did a yr in the past — on high of a roughly 50% leap in costs in 2024.

Silver’s cheesesteaks presently promote for $13.49, up from $11.49 in 2022, when the enterprise was compelled to close down for practically two years following a hearth.

The favored sandwich, sometimes made with thinly sliced beef, cheese and onions, stays a staple in Philadelphia’s meals scene.

“Loopy,” he known as it. Silver mentioned he obtained hit with “sticker shock” when he reopened final yr.

“The worth of beef after we left was $4.68 [per pound] for our selection high spherical beef,” Silver advised ABC Information.

“And after we got here again it was over $7 a pound.”

Silver mentioned that he has been hesitant to lift costs — a choice that has eaten into his backside line.

“We’ve taken successful, profitability-wise, simply to take care of what our clients would count on to get after they come to us: a fairly priced cheesesteak of the very best quality they will discover,” Silver mentioned.

Nationwide, the common worth of floor beef reached $6.12 per pound final month, in response to US authorities knowledge. That marks a rise of practically 12% from a yr earlier. The typical worth for all raw beef steaks rose 8% over the identical interval, hitting $11.49 per pound.

These numbers symbolize document highs — and so they cap off a gentle climb in beef costs for the reason that begin of the last decade. In 2020, the common worth of floor beef was $4.63 per pound. By 2021, that determine rose to $4.88, and by 2022, it had jumped to $5.31.

Regardless of a modest 2.3% enhance in 2023, the tempo picked up once more in 2024, with floor beef averaging $5.71 per pound. As of mid-2025, customers are paying between $6.12 and $6.34 per pound — an increase of roughly 36% since 2020.

Steak costs have adopted the same, although extra modest, trajectory. Estimated at round $10.25 per pound in 2020, steak rose to $10.41 in 2021 and $10.64 in 2022.

Costs plateaued in 2023, then resumed climbing to $10.90 in 2024. In 2025, the common for raw beef steaks sits at $11.49, reflecting a 12–15% enhance over 5 years.

Behind the surge are a number of intersecting elements. The US cattle herd has declined to its smallest dimension since 1951, slashing beef provide and pushing costs upward.

On the identical time, farmers have confronted increased manufacturing prices resulting from drought circumstances, elevated grain costs and rising rates of interest, which have led many to scale back their herds.

Regardless of the value hikes, demand for beef has remained robust, notably throughout the summer time grilling season, which suggests costs are unlikely to ease within the close to future. Some forecasts counsel elevated beef costs might persist into 2026 and past, except herd sizes are rebuilt.