PHILADELPHIA (KYW Newsradio) — It may cost you more to buy a cheesesteak in Philadelphia because of a rapid increase in the price of beef.
Beef prices are at record highs, according to data from the U.S. Bureau of Labor Statistics. 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.
Ken Silver, president of Jim’s South St. in Philadelphia, said he might have to raise prices for his popular sandwiches to offset the rising cost of beef or even declare a market price, which is commonly associated with seafood.
“We’re usually somewhere around 3000 to 5000 pounds depending on the season and what’s going on in the city," he said. "At some point, we have to raise our prices permanently or put like they did with eggs at Waffle House, a market addition.”
U.S. beef prices have been steadily rising over the past 20 years because the supply of cattle remains tight while beef remains popular.
Silver said the price of beef from his supplier now is about $1 more per pound than it was a year ago. And that is on top of a roughly 50% increase when he reopened in 2024 after a fire — “crazy,” as he put it.
“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 restaurant was forced to close for nearly two years due to the fire.
“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.
Frank Olivieri, owner of Pat’s King of Steaks in South Philadelphia, said customers should soon expect to pay more than the current $17 for a sandwich at the iconic location on Passyunk Avenue.
"There’s only so much you can do. I can’t cut labor costs because people need jobs," he said. "So the only way you can do it is, unfortunately, you have to pass it along.”
Despite the rising prices, customers like Bryan Williams, a regular at Jim's, 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.”