Barbecue Concepts Are Bearing The Brunt Of High Brisket Prices

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Mike Daquino remembers when brisket was considered a discarded piece of meat.

“Thirty years ago, the cut wasn’t thought of as premium,” said Daquino, managing partner of multi-unit Brother Jimmy’s and the concept’s “Master of Q.” “Now it’s up to $5.54 a pound, when it was at $3.34 in February 2020. The price increase has been so rapid, the market hasn’t adjusted and there’s a disconnect on the part of consumers. We can’t increase menu prices that much because customers would revolt.”

Kevin Good, VP of industry relations for Denver-based CattleFax, a leader in beef industry research and analysis, agrees that brisket has become a more valuable cut over the years as demand has increased.

“There’s more utilization of the cut driven by barbecue restaurants,” he said, “plus supply has been tighter in the third quarter of 2021.” A pound of brisket cost $4.40 in the first week of October, up 80% over the past year, according to CattleFax. 

Good attributes much of the increase to “panic buying” as restaurants reopened and ramped up post-pandemic. But labor has a big impact too, said Good, as packing facilities are not able to harvest beef up to capacity yet. Higher gas prices and wage rates are also contributing. 

Then there’s the Chipotle effect. In September, the fast-casual added smoked brisket to the menu of its more than 2,700 locations nationwide, cutting into the supply for the run of the LTO.

“There will be some price relief going forward as the industry experiences more consistent production,” said Good, “but supplies will continue to be tighter for the next three to four years as this is the time in the cycle when ranchers are liquidating cattle herds.”

Photo courtesy of Dickey's

Stretching profit margins thin

Daquino, who specs pricier black angus brisket, gets a yield of 45 pounds of meat after butchering the whole cuts. “During the pit-smoking process, I lose another 15 pounds. Then we have to factor in the cost of the rubs [$1.55 per pound], the hickory wood for smoking [$1.58 per pound] and labor,” said Daquino. Shrinkage and extra costs add up to an expensive item.

Brother Jimmy’s raised menu prices about 5% to 7%, but that doesn’t cover the increased costs. Sandwiches start at $13 while a plate of brisket goes for $16.50 at the chain’s fast-casual outpost in Orlando. Other Brother Jimmy’s locations are full-service models, where cocktails, beer and wine can offset higher food costs.

To make brisket less of a loss leader in Orlando, Daquino wants to position it as a “delicacy,” limiting sales and consumption.

“Franklin Barbecue in Austin knows what they can sell, smokes that amount and often runs out of brisket. Customers have to get there early if they want it,” he said. “We can look at brisket the same way, serving it just as it comes out of the smoker and when it’s gone, it’s gone.” Since Brother Jimmy’s is also well-known for its Carolina-style barbecue, once the brisket sells out, the staff can steer diners towards ribs and pulled pork.

Photo courtesy of Brother Jimmy's

Daquino cuts down on brisket waste by marinating the scraps and drier pieces in barbecue sauce and recycling them as pulled brisket in a sandwich he calls a “Sloppy Jimmy.” Those bits and pieces also find a home in queso and nachos.

Marketing meat to maximize spend

Burnt ends, which have become a sought-after item, are a craveable way to manage waste and optimize brisket profits. At Dickey’s Barbecue Pit, a brisket burnt ends plate with two sides is $17.50, a dollar more than a chopped or sliced brisket plate. Dickey’s also sells the smoked and sauced burnt ends in its Barbecue at Home meal kits.

With more than 600 domestic and international locations, Dickey’s is the largest single purchaser of brisket, said CEO Laura Rea Dickey. That gives the chain some clout to lock in supply and price. But even at that volume, Dickey’s is paying more for brisket this year.

“We commit to a certain amount in our orders at least three months in advance,” said Dickey. “Pricing has been averaging from $2.50 to $4 per pound for the last six months. The average for 2019 was $2.82, for 2020 was $2.63 and for 2021 $3.19.  This year we have paid between $2.37 and $4.43 per pound for brisket.” She has also noticed that trim prices are elevated due to the labor shortage, she said.

Photo courtesy of Dickey's

In addition to burnt ends, Dickey’s serves chopped and sliced brisket in sandwiches and plates. The sandwiches go for about $14.50 and the plates, $16.50. But when wholesale prices escalate, the chain tries to steer customers to other menu items through its marketing.

“We do have eight other barbecue meats and we certainly feature the protein with the most stable and favorable market conditions at any given time in our marketing,” said Dickey.

Limited-time offers are a key price management strategy. “Pulled pork prices are good,” said Dickey, “so we just finished featuring our Kings Hawaiian Pulled Pork Sandwich with Dr. Pepper Barbecue sauce. And we are now featuring our famous St. Louis-style pork ribs with our limited-time Dr. Pepper Barbecue sauce, along with our complete holiday meals.”

As for the Chipotle effect, “it’s a short-term impact, as they entered the market [in September], but will likely have no long-term effect, as they are only likely trying to replace a portion of their chicken usage with this brisket LTO,” said Dickey.

Taking the LTO route

Dallas-based Cotton Patch Cafe began developing brisket items for its fall menu before prices started rising in the last few months.

“This is the first time we put brisket on the menu, but we’ve been planning this for some time,” said Mazen Albatarseh, CEO of the 50-unit casual-dining chain. “Many of our locations are in Texas, and brisket, barbecue and Texas just go together. We weren’t going to change our plans because of short-term price increases.”

Every year, Cotton Patch introduces three seasonal menus filled with new limited-time offers. The three brisket items launched in September, one of which—Chicken Fried Brisket—reflect the chain’s Texas roots.

Photo courtesy of Cotton Patch Cafe

The dish, a take on chicken fried steak, was invented in-house, said Albatarseh, and is listed on the Southern Signatures section of the menu. It features hand-breaded smoked brisket that’s fried and topped with scratch-made cream gravy and Dr. Pepper barbecue sauce. A full meal is $16 and “the response has been phenomenal,” he said. “It has a real ‘wow’ factor and offers quality and quantity at a value price.”

New to the Tex-Mex menu section are brisket tacos ($12 for three) and a brisket quesadilla ($12), both also getting a good response from customers, said Albatarseh. And Cotton Patch’s latest queso variation is topped with shredded, smoked brisket ($8).  

Brisket quesadilla photo courtesy of Cotton Patch Cafe

Albatarseh admits commodity prices are high in every category. “But," he noted, "they’re still in the parameters of what we can handle. We are built on Texas hospitality and providing value and transparency are very important to our customers."

Although Albatarseh is eager to see commodity prices moderate, Cotton Patch hasn’t raised menu prices or changed portion sizes. But with transparency the goal, the restaurants have placed cards on every table alerting customers to a temporary surcharge. “We want them to feel like we’re in this together,” he said.

food costs LTOs marketing menu trends Pat plans and executes menu, food and drink stories for Restaurant Business and hosts the weekly Menu Talk podcast. She provides in-depth coverage of chefs, trends and menu innovation. View All Articles by This Author