Higher Food Prices Mean Bigger Grocery and Restaurant Bills

The USDA announced the cost of beef, chicken, and dairy products could jump 3.5% to 4% this year.

By Kandiss Crone

CREATED Jan. 3, 2013

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  • The USDA announced the cost of beef, chicken, and dairy products could jump 3.5% to 4% this year. Video by kmtv.com

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Omaha, NE - Thursday night and business is booming here at Petrow's. Plenty of steaks and hamburgers to serve to hungry customers, but the cost of beef could go up for restaurant owners like Nick Petrow. 

 
"Any time food costs go up it comes out of the profit of the restaurant," Nick Petrow said.
 
The USDA announced the cost of beef, chicken, and dairy products could jump 3.5% to 4% this year. Customers will have to dig deeper into their wallets at the grocery store and possibly some restaurants.
 
When the drought worsened in the summer, ranchers thinned their herds and feed prices went up. We were warned then, that prices would go up in 2013.
 
"Nick Petrow says he plans to absorb the rising food costs for as long as he can in order to keep his customers coming in."
 
Petrow says in 2011 a sharp increase in vegetable prices forced him to pass the cost on to customers. For now he'll watch and wait hoping a repeat doesn't happen. 
 
"A 3% to 5% raise in beef right now might be 50-cents on a prime rib dinner or 10-cents on a hamburger, that's not gonna cause us to reprint our menus but that will push that date farther, when we have to do it will come sooner than later."