‘Code Red’ issued at steakhouses across America as beef prices soar – and it’s bad news for customers

Soaring beef prices in the United States have forced steakhouses across America to issue code red warnings and pass on price hikes to consumers who are already feeling the pinch.

Halls Chophouse, with fine dining restaurants in South Carolina and Tennessee, has been forced to up the price of an eight-ounce filet mignon from $57 to $61 after initially trying to absorb the costs.

That marked an increase of about seven percent.

‘Every time we do a price increase, I have butterflies in my stomach wondering how customers will take it,’ Tommy Hall, the restaurant’s president, told The New York Times.

Hall said his business found itself in a ‘code red’ situation earlier in 2025, and he felt there was no choice but to act decisively.

‘We had to raise prices or we weren’t going to be able to cover costs,’ he said.

‘I’m not so nervous about December, but I’m extremely nervous about January and February.’

Even modest chains like Outback Steakhouse and Texas Roadhouse have been pushed into raising their prices – although they have been met with more pushback from customers.

The price of boneless steak has increased by 20 percent to an average of $14.13 per pound over the last year, per the Bureau of Labor Statistics

Halls Chophouse in South Carolina and Tennessee went from offering an eight-ounce filet mignon for $57 to $61. Its president Tommy Hall issued a ‘code red’ warning this year

When Outback’s prices went up in recent years, consumers stopped turning out to eat and the chain was forced to close multiple locations.

Texas Roadhouse saw ingredient costs jump 7.9 percent year over year – but its menu hikes were kept to about 1.7 percent, according to the outlet.

In Kansas City, Jess & Jim’s Steakhouse had also bumped up prices — including a $5 raise to $43.99 for a 12-ounce prime rib-eye.

But like others, the restaurant is trying to not push costs beyond their customers’ reach.

Americans will eat an average of 58.5 pounds of beef per person this year, according to projections released by the US Department of Agriculture.

However, as the data noted, that amount will almost certainly wane next year. In 2026, the average American is set to consume 56.9 pounds in the calendar.

In the past year alone, the price of boneless steak has increased by 20 percent to an average of $14.13 per pound, according to Bureau of Labor Statistics data.

One significant factor weighing into the rising costs is a national shrinkage of cattle and calves.

Even chains like Outback Steakhouse have been forced to change their prices. However, Outback’s rising prices led to consumer dissatisfaction and the closure of some locations

Texas Roadhouse’s ingredient costs jumped 7.9 percent year over year, although its menu price hike was kept to about 1.7 percent

At the start of 2025, America’s cattle supply was at its lowest point since 1951.

This is because of what is called the cattle cycle, a pattern that happens approximately every 10 years in which the US herd grows and shrinks in response to supply, demand and profitability.

When cattle prices are high, ranchers typically hold back more females for breeding. This expands the herd, which results in more beef and lesser grocery costs.

When the herd thins out, the opposite happens.

Beef prices have also been affected by tariff disputes with Brazil, which had driven up costs for American consumers.

In October, US President Donald Trump demanded that cattle ranchers lower their beef prices, claiming they were not passing tariff benefits onto consumers.

Trump said on Truth Social: ‘The Cattle Ranchers, who I love, don’t understand that the only reason they are doing so well, for the first time in decades, is because I put Tariffs on cattle coming into the United States, including a 50 percent Tariff on Brazil.’

He added: ‘They also have to get their prices down, because the consumer is a very big factor in my thinking, also!’

Trump also claimed ranchers would be doing much worse without him in the White House.

At the start of 2025, the United States’ cattle supply was at its lowest point since 1951. The shrinkage is playing a significant role in the rising costs of beef

In October, Donald Trump demanded cattle ranchers to lower their beef prices. He said: ‘If it weren’t for me, they would be doing just as they’ve done for the past 20 years — Terrible!’

The US President noted: ‘If it weren’t for me, they would be doing just as they’ve done for the past 20 years — Terrible!’

Cattle ranchers and producers are typically conservative voters in red states like Texas, Nebraska and Kansas.

But cattle ranchers and their associations maintained the US should not turn to Brazil to lower prices.

Instead, they clamored for the US to invest in additional measures to protect the lowly domestic herd.

Trump removed tariffs on an assortment of Brazilian goods – including beef – last month.

On Monday, he also announced a $12 billion taxpayer lifeline for the battered farm belt.

The plan was touted as being ‘in response to temporary trade market disruptions and increased production costs that are still impacting farmers following four years of disastrous Biden Administration policies.’