Despite rising prices, restaurant chains bought more beef in 2012 than in 2011, including premium cuts, according to a study by foodservice research firm Technomic Inc.
For the 2012 “Usage of Volumetric Assessment of Beef in Foodservice,” paid for by the Beef Checkoff, which is funded by United States cattle farmers and ranchers, Technomic surveyed purchasing executives at 210 of the top 250 restaurant chains about annual systemwide purchases of beef products.
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The biggest gainer was Delmonico steak, also known as the chuck eye steak or the chuck filet, which comes tied or netted and can be used as a moderately priced center-of-the-plate steak and also in sandwiches and salads.
Though that cut was still low in overall volume, restaurant chains bought 54.5 percent more of it in 2012 than in 2011, and they spent 60.9 percent more on purchasing it.
Another value chuck cut, called country-style ribs, which aren’t technically ribs but are often treated like them, was the second biggest gainer. Restaurant purchases of that cut grew by 23.1 percent in volume and 27.2 percent in dollars.
Sales of the flat iron, or top blade, grew by 9.5 percent by volume and 12.7 percent in value, and sales of the flank or skirt steak to restaurants increased 8.3 percent by volume and 12.6 percent in value.
Ground beef sales were fairly flat in terms of volume, rising by just 0.9 percent, but chains spent 7.9 percent more on the product overall. The NCBA pointed to the burgeoning “better burger” segment as a reason for continued strength in the ground beef category.
Premium, center-of-the-plate steak cuts also saw a substantial increase in demand: Top sirloin sales rose by 7.4 percent in volume and 13.8 percent in value; tenderloin increased 6.3 percent in volume and 12.7 percent in value; and rib eye sales rose by 3.5 percent in volume and 6.3 percent in value.
So far in 2013, high-ticket steakhouses continue to do well despite the sluggish economy. Ruth’s Chris Steak House, for example, reported its 11th consecutive quarter of same-store sales increases in its latest earnings report.
In a March CNBC interview, Tilman Fertitta, CEO of Houston-based Landry’s Inc., also noted that while the company's more modestly priced concepts are hurting, its high-end steakhouse concepts, Morton's and McCormick & Schmick’s, are "still holding in there."
Contact Bret Thorn: [email protected]
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