A Philadelphia cheesesteak institution is facing financial strain due to soaring beef costs, which may lead to menu price hikes for its iconic sandwich. Ken Silver, president of Jim’s South St., a beloved spot known for its $13.49 cheesesteaks, expressed concerns about raising prices, fearing it would alienate loyal customers.
Silver attributed the rising costs to reduced cattle supplies and increased production expenses, including drought conditions, higher grain prices, and rising interest rates. The average price of ground beef has jumped 36% since 2020, reaching $6.12 per pound in May, while steak prices have risen by 15%. These increases are expected to continue, with some forecasts suggesting elevated beef prices into 2026.
Despite the challenges, Silver remains committed to maintaining quality and affordability for his customers. He has been absorbing the price increase so far but may adopt a market-based pricing strategy, adjusting costs based on current ingredient expenses. With a loyal customer base at risk of “sticker shock,” Silver must balance financial sustainability with customer expectations in an increasingly volatile food market.
Source: https://nypost.com/2025/07/25/business/iconic-philly-cheesesteak-shop-may-raise-prices-as-beef-costs-surge-sticker-shock