High Beef Prices Will Impact Food Cost

The drought from 2012 and the major storm damage in both 2012 and 2013 is causing record high beef prices. Current prices are close to levels during the mad cow disease outbreak. As contracts wind down for major chains, decisions will need to be made whether to go long at higher prices or just play the commodity markets using short term future contracts. I just returned from the National Restaurant Show in Chicago. Chicago has plenty of upscale steak houses and most of these restaurants charge enough to offset some of the food cost increase. Value based menus will be impacted as ground beef prices are well above recent years.