Ken Silver, president of Jim's South St. in Philadelphia, faces rising beef prices that could affect cheesesteak prices. U.S. beef prices have risen steadily over 20 years due to tight supply. The current price from his supplier is $1 more per pound than last year, following a 50% increase after reopening in 2024 post-fire. The price of a cheesesteak rose to $13.49 from $11.49 in 2022. Silver's strategy involves absorbing costs and hoping for price reductions after summer.
U.S. beef prices have been steadily rising over the past 20 years because the supply of cattle remains tight while beef remains popular.
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.
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.
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.
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