Costs

Rising beef prices: what to do with your beef dishes

By · · 7 min read

Re-cost each beef dish at the price per pound on your recent invoices, then see how many points its food cost % has risen since you last costed it. Under 1 point, hold the price. From 1 to 3 points, raise it by at least the extra plate cost. Over 3 points, pair a smaller price rise with a cheaper cut or blend or a smaller portion, and steer guests to dishes that leave more per plate.

What USDA's numbers say

USDA's Economic Research Service updated its Food Price Outlook on September 25, 2026, using prices through August 2026. On beef, it reports:

  • Wholesale beef prices fell 4.1% from June to July 2026 and 3.0% from July to August, but were still 3.1% higher in August 2026 than in August 2025.
  • Grocery-store beef and veal prices were 5.9% higher in August 2026 than a year earlier.
  • Federally inspected beef production was about 2% lower than a year earlier, and USDA expects it to stay below year-earlier levels through the end of 2026.
  • USDA forecasts 2026 wholesale beef prices 8.5% above 2025 (forecast interval 3.0% to 15.0%), and grocery-store beef and veal 9.4% above (forecast interval 7.4% to 11.6%).

Both forecasts compare full-year averages. They don't say what your supplier will charge next month, and neither does this post.

The national figures also hide gaps between cuts. Each week, USDA's Agricultural Marketing Service reports what meatpackers get for boxed beef in its weekly boxed beef report, with earlier weeks on the same page:

Week toGround beef, 81% leanChoice brisketChoice strip loin
Oct 2, 2026$342.41$435.24$966.11
Oct 3, 2025$346.24$434.38$843.28
Oct 4, 2024$293.66$354.57$680.11
1-year change−1.1%+0.2%+14.6%
2-year change+16.6%+22.8%+42.1%
Packer prices in dollars per 100 pounds (weighted averages of negotiated sales), from each date's weekly report. Brisket is IMPS 120 and strip loin IMPS 180, both boneless. Changes are worked out from these prices. Freight and your distributor's costs come on top.

Over one year, ground beef and brisket barely moved at the packer and strip loin rose 14.6%. Over two, all three rose 16.6% or more. Prices also move fast: 81% lean ground beef fell 19.1% in 14 weeks, from $423.12 per 100 pounds in the week to June 26, 2026, to $342.41 in the week to October 2.

Re-cost each beef dish

Use your own invoices, not national numbers. Average the price per pound over your last four weekly invoices, so one high or low delivery doesn't set your menu price.

Plate cost of a beef dish
Plate cost = price per lb × portion in lb ÷ usable yield + rest of the plateFood cost % = plate cost ÷ menu price × 100

Portion in lb = ounces ÷ 16. Usable yield is the share of the beef you buy that ends up in the portion you weigh. Weigh burger patties raw and the yield is 100%. For example, if 10 lb of raw brisket gives 5 lb sliced, the yield is 50%, so each pound served costs twice the invoice price.

Take the portion from your recipe card, or weigh a few plates as the line serves them. Take the menu price, before tax, from your POS. Then compare the result with the dish's food cost % when you last costed it. The gap, in points, decides what you do. Never costed it? Use an old invoice from when you last set its price.

Free calculatorRe-cost a beef dish: plate cost and menu price calculator

Example: a full-service restaurant with $80,000 in monthly sales sells 400 burgers a month at $15.00, each with a 6 oz patty weighed raw and $2.10 of bun, cheese, toppings and fries. Beef was $5.60 a pound when the burger was last costed, two years ago. The last four invoices average $6.72, up 20%.

Example: the burger, re-costed
Beef: 6 oz (0.375 lb) × $6.72
$2.52
+ Bun, cheese, toppings and fries
$2.10
= Plate cost now
$4.62
Food cost now: $4.62 ÷ $15.00
30.8%
Food cost when last costed: $4.20 ÷ $15.00
28.0%
Points over2.8

When last costed, the beef was $2.10 (0.375 lb × $5.60) and the plate $4.20. Each burger now leaves $10.38 instead of $10.80: $168 a month across 400 burgers, or $2,016 a year.

Four ways to close the gap

All four start from the example: a $4.62 plate on a $15.00 menu price, a 30.8% food cost.

Raise the price

To keep your dollars per plate, add the extra cost: $15.00 + $0.42 = $15.42, a 2.8% rise. That's always the same number as the points over. At $15.50 on the menu, the burger runs 29.8% and leaves $10.88.

To get back to the old 28.0%, divide the plate cost by it: $4.62 ÷ 0.28 = $16.50. That's a 10% rise, the same as the plate cost's own rise. It's also about three times the 3.4% rise in restaurant prices (the food-away-from-home index) from August 2025 to August 2026 that USDA reports.

Trim the portion

Beef at $6.72 a pound is $0.42 an ounce. To bring the plate back to $4.20, the patty gets $2.10 of beef: $2.10 ÷ $0.42 = 5 oz, a sixth less. Guests may notice, regulars first. If the menu says 6 oz, change the menu too.

Change the cut or blend

Ask your supplier to price two or three alternatives: another blend, cut or grade. As the table shows, cuts don't move together. Cost each one in the calculator, then cook and weigh a test batch: a cheaper pound that shrinks more in cooking can cost more per ounce served. Update the menu if it names the cut or grade.

Push dishes that leave more per plate

Dollars per plate = menu price − plate cost. If a chicken sandwich leaves $11.50 (an example figure), each guest who picks it over the burger adds $1.12. Steer 40 of the 400 burger orders a month to it and you add $44.80, about a quarter of the $168 gap. It helps, but it can't close the gap alone.

Which option to pick

Decide by the points the dish's food cost % rose since it was last costed. These cut-offs are RestaurantDoctorAI's rules of thumb, not an industry standard.

  • Under 1 point: hold the price, note the new cost and check again next month.
  • 1 to 3 points: raise the price by at least the extra plate cost, rounded up to your usual price ending. A 1% to 3% rise is in line with the 3.4% rise in restaurant prices over the year to August 2026.
  • More than 3 points: split the fix. Raise the price about 3%, close the rest with a cut, blend or portion change, and push dishes that leave more per plate. If nothing closes it, sell the dish as a special at a price that works.

If your food and drink cost % for the whole restaurant is already above the top of the target range for your type of restaurant, work toward the price that restores the old %, and let the other options cover the rest. The food cost percentage guide shows how to work out that number and the targets RestaurantDoctorAI uses. Fix first the dishes with the most at stake: extra cost per plate × plates sold a month, from your POS item sales report.

The example burger is 2.8 points over: at least $0.42 more, so $15.50 on the menu.

What to watch next month

  • Price per pound. Keep a four-week average for each beef item. If it moves more than 5% from the price you costed at, either way, re-cost.
  • Each changed dish's food cost %. Work it out at that average and compare it with the figure you set this month. More than 1 point higher? Run the cut-offs again.
  • Sales mix. Compare each beef dish's weekly sales in your POS item report with the four weeks before the change, and check total covers. In the example, the $15.50 burger beats the $15.00 one if it keeps at least 382 of its 400 monthly sales ($10.38 × 400 ÷ $10.88 = 381.6). Guests who switch dishes aren't lost.

This week

  1. Before your next beef order, pull your last four weekly beef invoices and average the price per pound for each beef item.
  2. Pull last month's POS item sales report, list every beef dish and re-cost the five best sellers in the plate cost calculator. Write down each one's points over.
  3. For each dish 1 point or more over, set the change by the cut-offs above, and put a date four weeks out in your calendar to re-check its food cost and sales.

Sources

  1. Food Price Outlook - Summary Findings, USDA Economic Research Service, September 25, 2026.
  2. National Weekly Boxed Beef Cutout & Boxed Beef Cuts - Negotiated Sales (PDF) (LM_XB459), USDA Agricultural Marketing Service, October 2, 2026.

How this post was made: drafted with AI help. Every figure and rule in it was checked against the sources above on .

General information for independent restaurant owners, not financial, tax or legal advice. Figures are as each source published them on the date shown; check the source for the latest.