Philly cheesesteak maker challenged by the ever-rising cost of beef
US beef prices have been steadily rising over the past 20 years because the supply of cattle remains tight while beef remains popular. '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 percent from a year ago, according to US government data. The average price of all uncooked beef steaks rose 8 percent 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.'
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