Ken Silver, the owner of a popular Philly cheesesteak restaurant in the U.S., is thinking hard about how to continue serving his customers due to the steadily rising price of meat in recent years. The price hike may be a problem, but he's not quite ready to sacrifice quality.
As livestock supply in the U.S. decreases and demand remains high, the price of beef continues to rise sharply each year. According to U.S. government statistics, in June 2025, the average price for a pound of beef (454 grams) was $6.12 — about 12% more than the previous year. For steaks, this figure reached $11.49.
This trend is putting serious pressure on many city restaurants, especially small businesses specializing in meat-based dishes. One of them is “Jim’s South St.” in Philadelphia.
“Jim’s South St.” was founded in 1976. Today, it is run by Ken Silver. He notes: “Beef prices have increased by another $1 compared to last year. When we reopened in 2024 after the fire, we were already buying meat at 50% higher prices – this is a very serious rise.”
Silver’s main problem is finding a balance between offering affordable, high-quality food to his customers and coping with financial pressure. For example, a sandwich that cost $11.49 in 2022 now sells for $13.49. Prices have gone up, but profits have gone down.
“We are currently absorbing the cost, but we hope prices will decrease after the summer barbecue season ends,” said Silver.
The economics behind sandwiches
Philly cheesesteak is a very popular dish in the United States. It consists of thinly sliced beef, melted cheese, and fried onions. Customers can also choose different toppings. Many restaurants in Philadelphia have made this sandwich a local gastronomic brand with their unique recipes.
However, the rising price of beef is making even this classic sandwich more expensive. Some restaurants are considering moving to a “market price” model — meaning the price changes daily based on market rates. This method is usually used for seafood but may now apply to beef as well.
What do customers say?
One customer, Bryan Williams, said the price hike wouldn’t stop him from ordering a sandwich: “Everything is getting more expensive nowadays. There’s nothing they can do about it. I’ll still order.”
This view reflects the mindset of many American consumers. Even as prices rise, they are not ready to give up quality service and their favorite food.
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