Americans are currently facing a significant increase in beef prices, with a 16% spike in the price of steaks to $12.73 per pound and ground beef to $6.70 per pound in March 2026. This surge in prices has been attributed to a decline in the U.S. beef cattle herd, which has reached a 75-year low of 86.2 million head, down from 86.5 million a year ago.
According to data from the Federal Reserve Bank of St. Louis, ground beef averaged $3.96 per pound five years ago, and $3.75 a pound 10 years ago. The rising beef prices have not only impacted consumers but also affected the steakhouse restaurant sector. Some establishments have been forced to close their businesses or file for bankruptcy due to the increased prices.
One such example is the high-end steakhouse chain 801 Chophouse, which recently filed for Chapter 11 bankruptcy protection to restructure its debts and continue operating its restaurants. The company filed its petition in the U.S. Bankruptcy Court for the District of Kansas, listing $10 million to $50 million in assets and liabilities.
801 Chophouse operates eight locations in various cities across the country, including Denver, Des Moines Iowa, Kansas City, Mo., and others. The restaurant is known for serving aged USDA prime cuts, wet and dry-aged products, Japanese and domestic Wagyu beef, in-house pastry desserts, small-batch bourbons and scotches, and an award-winning wine list.
Despite the challenges faced by 801 Chophouse, several other large steakhouse chains have also been affected by the increase in beef prices. Bloomin’ Brands’ Outback Steakhouse recently announced the closure of 41 underperforming locations, while McCormick & Schmick’s saw a significant decline in sales, leading to the closure of several of its restaurants.
As beef prices continue to rise, it is expected that more restaurants and consumers will feel the impact. The restaurant industry will need to adapt to these changes in order to survive in this challenging economic environment.
