Iconic Philly cheesesteak shop may raise prices as beef costs surge: ‘Sticker shock’

The head of an iconic Philadelphia cheesesteak restaurant says he may be forced to raise the price of his $13.49 sandwich — a prospect that could alienate his loyal customers who could be asked to bear the burden of soaring beef prices.

“I really hate to do that,” Ken Silver, the president of Jim’s South St., a Philadelphia institution known for its cheesesteaks, told the Associated Press when asked about raising menu prices.

“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.

Silver said he is also considering a “market price” strategy whereby cheesesteaks and other menu items would be listed without a fixed cost, allowing the restaurant to adjust the price based on current ingredient costs that are subject to supply fluctuations.

Beef prices in the US have been steadily rising for years, but the pace of increase has accelerated since the pandemic, driven by a shrinking cattle supply, high production costs and persistent consumer demand.

For Silver, whose father founded the business in 1976, that has meant paying $1 more per pound for beef than he did a year ago — on top of a roughly 50% jump in prices in 2024.

Silver’s cheesesteaks currently sell for $13.49, up from $11.49 in 2022, when the business was forced to shut down for nearly two years following a fire.

The popular sandwich, typically made with thinly sliced beef, cheese and onions, remains a staple in Philadelphia’s food scene.

“Crazy,” he called it. Silver said he got hit with “sticker shock” when he reopened last year.

“The price of beef when we left was $4.68 [per pound] for our choice top round beef,” Silver told ABC News.

“And when we came back it was over $7 a pound.”

Silver said that he has been hesitant to raise prices — a decision that has eaten into his bottom line.

“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.

Nationwide, the average price of ground beef reached $6.12 per pound last month, according to US government data. That marks an increase of nearly 12% from a year earlier. The average price for all uncooked beef steaks rose 8% over the same period, hitting $11.49 per pound.

Those numbers represent record highs — and they cap off a steady climb in beef prices since the start of the decade. In 2020, the average price of ground beef was $4.63 per pound. By 2021, that figure rose to $4.88, and by 2022, it had jumped to $5.31.

Despite a modest 2.3% increase in 2023, the pace picked up again in 2024, with ground beef averaging $5.71 per pound. As of mid-2025, consumers are paying between $6.12 and $6.34 per pound — a rise of approximately 36% since 2020.

Steak prices have followed a similar, though more modest, trajectory. Estimated at around $10.25 per pound in 2020, steak rose to $10.41 in 2021 and $10.64 in 2022.

Prices plateaued in 2023, then resumed climbing to $10.90 in 2024. In 2025, the average for uncooked beef steaks sits at $11.49, reflecting a 12–15% increase over five years.

Behind the surge are several intersecting factors. The US cattle herd has declined to its smallest size since 1951, slashing beef supply and pushing prices upward.

At the same time, farmers have faced higher production costs due to drought conditions, increased grain prices and rising interest rates, which have led many to reduce their herds.

Despite the price hikes, demand for beef has remained strong, particularly during the summer grilling season, which means prices are unlikely to ease in the near future. Some forecasts suggest elevated beef prices could persist into 2026 and beyond, unless herd sizes are rebuilt.