Money Watchers: Price of beef on the rise
If you eat meat, wholesale prices are going up.
And those who are in the meat business don't see the prices coming down anytime soon.
"I've been preparing for this since the drought," said John Elkhay, co-owner of the Chow Fun Food Group which runs 10 Steak and Sushi in Providence.
Elkhay said he's not passing the 5 percent hike on wholesale beef to their customers.
"Because we're very loyal. We're in business and we're here for 10 years. So we're going to absorb the cost," he said.
Elkhay said the restaurant will lose about $2 a steak per plate, and he says they sell hundreds of steak every week.
Thanks to low debt, Elkhay said they are going to "ride this out and hope it gets better." But he knows it won't be anytime soon.
"Normally when beef goes up, it's very slow to come down, kind of like gas," he said.
According to the USDA, some of the reasons for beef prices going up are lousy environmental conditions for cattle, and rising costs when it comes to raising cattle.
"The higher the prices go, the harder it is to sell the merchandise," said David Surabian of The Butcher Shop.
And prices are already high.
"You do the best you can. I have a lot of competition as it is. The deli (nearby) and other stuff helps me, but just selling meat, that's tough," he said.