Rising Beef Prices Prompt Potential Price Hikes at Iconic Philadelphia Restaurant

PHILADELPHIA (AP) — Ken Silver, the president of Jim’s South St., knows a thing or two about beef, especially when it comes to Philadelphia cheesesteaks. However, the summer spike in beef prices has him worried about the impact on his business and his loyal customers.

Challenges Facing Restaurant Owners

With the cost of beef steadily increasing, Silver finds himself contemplating a tough decision: either raise prices for his beloved cheesesteaks or implement a market price strategy, typically seen in the seafood sector. “I really hate to do that,” he admitted, recalling the establishment’s roots, which were planted by his father in 1976.

The Rising Cost of Beef

In the last two decades, U.S. beef prices have been on a continual rise due to tight cattle supplies and persistent popularity of beef. Presently, the price of beef from Silver’s supplier is about $1 more per pound than it was a year ago. This surge follows a staggering 50% increase when the restaurant reopened in 2024 after a devastating fire.

“Our strategy right now is just absorbing the price and hoping that we see a reduction after the summer months are over,” Silver noted, adding that this period typically involves increased demand due to grilling season and outdoor festivities.

The Impact on Customers

A cheesesteak sandwich at Jim’s South St. now costs $13.49, up from $11.49 just a year ago. This price surge comes after a long closure during which the establishment was not serving customers. Typically crafted from thinly sliced beef, cheese, and onions, the cheesesteak is a staple of local cuisine, but its cost may soon go up even further.

Recent data from the U.S. government indicates that the average price of a pound of ground beef rose to $6.12 in June—an increase of nearly 12% from the previous year. Meanwhile, uncooked beef steaks have also seen an 8% rise, now averaging $11.49 per pound.

Customer Reactions and Future Outlook

Despite the potential price increases, some customers remain supportive. Bryan Williams, a regular patron, stated that he wouldn’t be deterred by a price hike. “That’s just how things are going lately,” he explained. “There’s really nothing that they can do about it.”

As Jim’s South St. navigates these challenging economic waters, Ken Silver remains committed to maintaining the quality and reputation of his cheesesteaks, even if it means adjusting prices to adapt to the changing market.