031202 Beef Surcharge Added to Menus

York, PA (Daily Record) - Residents will want to double-check the menu price of a New York strip steak the next time they get a hankering for red meat.

Some local restaurants who serve beef have created a surcharge to help cover the climbing costs of beef.

Factors such as a low supplies of cattle brought on by drought and a block on Canadian beef from entering the country have caused meat prices to soar.

The Great American Saloon in Red Lion added a $1.99 surcharge last month to all of its steak entrees, said Athena Kocoronis, co-manager of the restaurant.

Since February, the restaurant has absorbed the slowly rising beef costs rather than transferring additional charges to customers.

Based on skyward prices, though, the restaurant’s beef suppliers advised the business to start tacking on a surcharge in July, Kocoronis said.

“We held out as long as we could,” she said. “But, when we heard the prices could stay up for two years, that was scary.”

On a given night, steak selections comprise about 25% to 30% of the Great American Saloon’s sales.

“You can’t afford not to make a profit on 30% of your menu,” Kocoronis said. “We were honest with our customers when we put that notation on the menu.”

Embers Steakhouse & Seafood in Springettsbury Township has taken a similar route to passing high beef costs on to the customers.

Starting this week, the restaurant will apply a $1.99 surcharge to all beef menu selections, said Kathy Kolakoglu, co-owner of Embers Steakhouse and Seafood.

“It’s not easy,” she said. “We want to please the customer. But we are forced to raise the prices temporarily.”

The restaurant expects to see meat prices decline by early next year.

Large restaurant chains such as Damon’s Grill in York will rely on its “favorable” beef contracts to help mitigate the situation.

Damon’s Grill does not plan to make any price adjustments to its menu to accommodate the high beef prices, said Brad Ritter, spokesman for the company.

Independent restaurants such as The Great American Saloon will continue to watch the beef market for signs of price relief.

“Our menu is large,” Kocoronis said. “If customers side against steak, they can choose something else.”

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