Ken Silver knows beef because he knows Philly cheesesteak. He hopes that a summer spike in how much he pays for his restaurant’s main product doesn’t cause heartburn for him or his customers.
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.
“I really hate to do that,” said Silver, whose father started the business in 1976.
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 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% 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.
“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.
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.”