NEW YORK (CBSNewYork) – Gas prices aren’t the only things on the rise these days.
Beef prices are up about 10 percent, pushing the cost of steaks past the $50 mark at some Manhattan steakhouses, according to a report by Crain’s New York Business.
At Porter House, a cowboy ribeye goes for $57. Morton’s charges $60 for a 24-ounce porterhouse at its Fifth Avenue location.
Lisa Fickensher, senior reporter for Crain’s, said it’s all about supply and demand.
“The U.S. cattle stock has been dwindling, at the same time the demand by other countries for U.S. beef has been rising and that’s in part because the value of the dollar is making U.S. beef cheaper to buy,” Fickensher tells 1010 WINS.
Fickensher said some restaurants are trying to add other less expensive items to their menus so that consumers have choices and don’t feel trapped by the higher prices.
“Beef prices have been rising steadily for the past year and steakhouses are affected, they don’t want to raise their prices too much to scare consumers off but yet their costs are going up and they have to do something,” Fickensher said.
Greg Sherry, owner and proprietor of the Old Homestead Steakhouse in the Meatpacking District, believes costs will drop.
“I’ve been in this business for 50 years,” Sherry said. “There’s been peaks and valleys in the markets all my life. I think right now we’re probably at the top through the summer. Usually by September the prices start to fall off a bit.”
Sherry said his restaurant offers three steaks that are priced at $52 but that their portions are exorbitant.
“Our Gotham Rib Steak is a 32-ounce steak, and our prime rib is almost two pounds and our Texas T-Bone is 24 ounces,” Sherry said.
However, he says customers may feel more comfortable dishing out the money because they can expect the highest-quality at his restaurant.
“We do a lot of things differently than our competitors,” Sherry said. “Our management team is on top of our butchers 24/7. We watch every day what they’re cutting, we make sure there’s no waste, and we beat up our vendors to make sure we get the best price.”
The Department of Agriculture expects output to decline this year, further driving prices up.