Cost of steaks expected to rise, but chefs get creative to stay affordable
Many restaurants have ways to keep prices stable when the cost of ingredients go up. (ABC: Ryan Sheridan)
In short:
With the cost of red meat tipped to rise, chefs are getting creative to keep steak dinners affordable.
Above-average diesel prices have been filtering through the supply chain ever since the Strait of Hormuz closed earlier this year.
What's next?
Red meat is expected to get more expensive from this month.
When asked about his favourite red meat cut, head chef Frank Correnti goes back to basics.
"It'd have to be a simple, beautiful piece of meat, red meat, rib fillet is my favourite cut, and just served simply on the grill."
Mr Correnti, who runs a steakhouse in inner-city Brisbane, said he hopes predicted rising steak costs would not impact him greatly.
But he said he was prepared if they did.
"If by chance there is a price rise in meat, we absorb the price rise as much as possible,"he said.
Instead of increasing the cost of his signature dishes, Mr Correnti said he focused on correct portion sizes.
"A lot of the fluctuations in cost on plate may come down to a simple portioning error with our staff," he said.
"It could be the sauce that goes with it, could be the chips that go on the plate or the salad that goes on the plate."
Chefs use different techniques to manage the cost of restaurant steaks, Mr Correnti says. (Supplied: Frank Correnti)
Sometimes, he searches for alternative ingredients.
"We ensure that everything is weighted and measured, [or] I may go to market and see what else is available of the same quality."
This year's Rare Medium report found Mr Correnti was not alone, with restaurants across Australia making menu changes driven by the economy.
Steaks to become more expensive
Almost every part of the red meat supply chain — farmers, feedlots, freight trucks and meatworks — relies on inputs directly impacted by the Iran war.
Episode 3 analyst Matt Dalgleish said these costs would likely filter through to restaurants and supermarket shelves, but said that process took weeks.
"From wholesale to retail, [increased costs] can take three to six months to flow through, so next month [June] or so, we should see some impacts."
Mr Dalgleish said he expected red meat prices to rise by 20 to 50 cents per kilogram in the city, and up to $1 per kilogram in regional locations.
It can take weeks for increased costs to reach restaurants and supermarkets. (ABC News: Bec Whetham )
"Metro areas that have good distribution networks [have] processing centres close enough to where the people are, so the transport's not as far," he said.
"Anything that's highly perishable, like dairy, like meat, like fresh produce, anything that relies on fertiliser to get the yields, they're all going to be ones that are more targeted."
Mr Dalgleish said the entire supply chain was "under pressure" with little room for farmers or suppliers to absorb costs.
He said freight costs were up 15 to 40 per cent due to fuel levies and fertiliser had almost doubled in price in some cases since the war began.
Chefs 'pay more attention' to new meats
While restaurants tend to obtain their ingredients direct from wholesalers, they are not immune to shocks further up the supply chain.
Mr Correnti said he worked directly with meatworks to obtain full carcasses, which gave him greater control over quality and portion size.
"Apart from getting meat portioned in, ready to go, I also do a lot of portioning in-house," he said.
"It gives me a cheaper portion-cut price … but also, I have the ability to use any trimmings for alternate meals."
Mr Correnti says he never swaps out his steaks, but will find alternative salads or vegetables. (Supplied: Frank Correnti)
Burger patties and bolognese can be made with the trimmings, Mr Correnti said.
"All of my sausages that we serve on the menu are made in-house from all our trimmings of our Wagyu rib fillets and rumps and so forth."
This year, a Meat and Livestock Australia (MLA) report found restaurants were increasingly turning to "signature dishes" and "all-of-carcass cuts" to manage the rising cost of red meats.
The report, which compiled chef interviews from the industry last year, aimed to see how chefs responded to changes in Australia's economy.
A roasted femur bone with marrow and roasted garlic puree, served at the Norman Hotel in Brisbane. (Supplied: Frank Correnti)
MLA brand content manager Mary-Jane Morse said the report showed chefs took different approaches to manage rising costs.
"Chefs are so creative, and we're really seeing such a diversification of the cuisines and the cultures that are using our products," Ms Morse said.
She said some chefs were "paying more attention" to the entire carcass, rather than just the 8 per cent of an animal that made up the most common cuts.
"We're seeing cuts like lamb neck, beef shin, tongue and intercostals, skirt steaks [and] all those things that have been considered secondary."
She said the MLA report found 60 per cent of diners would also return to a restaurant for a single delicious, stand-out item.
A "laser focus" on signature dishes also increased demand for "huge volumes" of Australian protein despite economic crunches, Ms Morse said.
"Overall, there's more curiosity about what can be done and what can be eaten," she said.
"And by the same token, consumers and diners care about the story and the sustainability."