Let's talk Beef Prices

January 7, 2026

• by

The Smokehouse

Why Beef Prices Are Still High, What’s Ahead, and How 2fifty BBQ Is Navigating the Crunch

If you’ve noticed higher prices at the grocery store or heard other restaurants talking about beef costs, you’re not imagining it. Beef prices in 2025 are running near record highs, and the effects are being felt from national markets all the way to neighborhood BBQ joints like ours.

What’s Driving the High Beef Prices

Beef prices are elevated for several interlocking reasons, backed by USDA forecasts and market data. According to the USDA’s Food Price Outlook, beef and veal prices are on pace to rise around 11.6 percent through 2025, well above average food price trends. Tight supplies, steady demand, and livestock trends are core drivers. (https://ers.usda.gov/)

A major reason behind that tight supply is the long‑term nature of the cattle cycle. It takes years to grow a cow from calf to market weight, so when herds shrink, it can be a while before production rebounds. This cyclical contraction, combined with historically low cattle inventories, keeps pressure on prices.

At the same time, demand for quality beef has remained strong. Folks are still gathering, still celebrating, still craving that unmistakable flavor of slow-smoked brisket or a fire-kissed rib. Even as prices rise, that continued love for beef has made the market even tighter.

Source: Ceva Animal Health.Article: “Fewer dairy farms and higher milk prices,” March 2023.


On top of that, climatic and economic pressures have added stress to producers. Drought in key grazing regions has forced some producers to reduce herds, and processing capacity constraints have stretched bottlenecks through the supply chain. These factors mean there isn’t a quick fix for lifting prices.

In the broader consumer market, the cost of ground beef has climbed steadily. Recent data shows prices for ground beef nearing $7 per pound in late 2025, up significantly year‑over‑year.

Data source: U.S. Bureau of Labor Statistics (BLS), via FRED.Visualization by 2fifty Texas BBQ.


How This Impacts Restaurants and Small BBQ Shops

It’s not just grocery shoppers feeling the pinch. Restaurants and small BBQ operations are dealing with these cost pressures in real time. Many are weighing difficult choices between raising menu prices or absorbing costs to protect customer loyalty. Some have seen beef cost increases of 40 percent or more over recent years.

Across the country, chefs and restaurateurs are talking about rising beef prices forcing adjustments in portioning, menus, and even sourcing. Some are adding alternative proteins or rethinking menu engineering to protect margins without compromising quality.

Data source: Fortune. Photo Patrick T. Fallon / AFP.“Beef prices are up as much as 12% in the past year”, Chris Morris.

How 2fifty BBQ Is Responding

At 2fifty BBQ, we’ve been feeling these pressures alongside you, and we want to be transparent about how we’re navigating this landscape while staying true to our craft.

• In Washington, DC, we’ve held our prices steady for almost two years now. That decision wasn’t easy, but we made it because we value your trust and support.

• At our original home in Riverdale Park, MD, where our beef ribs are a longtime staple, we haven’t increased their price in four years.

• We offer daily and rotating specials, combos, and sandwiches priced between $8 and $20, to keep things flexible for different appetites and budgets.

Those decisions come with real cost to us as a business, but they reflect our commitment to our community. We know many of you are feeling the pinch at the grocery store and in your own households. Keeping our BBQ accessible and dependable means everything to us.


Looking Ahead

While the cattle market and broader supply chain are complex, most mainstream forecasts suggest that beef price volatility may continue into 2026 before easing. Herd expansion takes time, and until supply and demand find a new balance, these pressures are likely to stick around. (ers.usda.gov)

That doesn’t mean we’re planning price increases lightly. We’ll continue to monitor conditions, make thoughtful decisions, and always be candid with you about what’s happening behind the scenes.

Thank You

To everyone who has supported us through rising costs, thank you. Your loyalty allows us to keep smoking brisket low and slow, holding space for friends and families to gather around bold flavors. We know inflation and food prices are squeezing budgets everywhere. It matters to us too. We’re here because of you, and we’ll keep working so that your next plate of smoke‑ringed beef feels worth every bite.

Stop by soon. Bring friends. Eat good food. We’re grateful you’re here with us.

The 2fifty BBQ Team

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