According to the US Department of Agriculture, steakhouses are facing soaring food costs due to beef suppliers who have been affected by drought, limited fodder availability, and other macroeconomic reasons (USDA).
While most diners are aware that a steak at Ruth's Chris Steak House will set them back a significant amount of money, as of late March, they have been paying even more.
According to FSR Magazine, the company raised their pricing by 3.4 percent a few weeks ago, and Kristy Chipman, the chain's CFO and COO, expressed rising concern about beef costs, which she predicted would rise considerably more by the summer.
Florida-based Ruth's Chris, which is famed for its high-quality slices, has had its ups and downs throughout the years.
Due to pandemic concerns in 2020, it closed 23 outlets before reopening last year with ambitious growth plans. With 151 sites, the brand is positioned for growth, with five to seven new restaurants expected to launch each year.
Ruth's Chris restaurants are now under development in Winter Park, Florida, and Woodland Hills, California. The company intends to spend $50 million on new restaurants, renovations, relocations, and technology.
According to the chain's website, Ruth's Chris beef is USDA-certified Prime and comes from cattle producers across the Midwest.
Only 2% of all beef in the United States fulfils the Prime requirements, making it a rare commodity and more expensive than other cuts.
Ruth's Chris steaks are also corn-fed and matured, which is supposed to result in higher levels of marbling and a somewhat sweeter flavour.
According to Beef Magazine, Prime cutout prices are 46.4 percent higher in 2022 than they were in 2020 in the first seven weeks.