For years, chicken has been a staple of affordable dining, often considered a budget-friendly option compared to beef or seafood. However, recent trends indicate that chicken is now among the priciest items on many restaurant menus, prompting questions about the factors driving these changes.
Rising Prices in the Poultry Industry
According to industry analysts, the cost of chicken has surged over the past two years. Data from the U.S. Department of Agriculture shows that wholesale prices for chicken breasts have increased by more than 70% since early 2021. This rise has been attributed to a combination of supply chain disruptions, increased feed costs, and labor shortages affecting poultry processing plants.
Impact on Restaurants and Consumers
Restaurants have responded to higher wholesale prices by adjusting their menus. Some have raised prices on chicken dishes, while others have reduced portion sizes or substituted alternative proteins. “We used to offer chicken as our most affordable entrée, but now it’s one of the most expensive,” said a restaurant owner in Chicago. “Customers are surprised when they see the price of a chicken sandwich compared to a burger.”
Factors Behind the Price Hike
- Feed Costs: The price of corn and soybeans, primary components of chicken feed, has risen significantly, increasing production expenses for poultry farmers.
- Labor Shortages: Processing plants have experienced staffing challenges, leading to reduced output and higher operational costs.
- Supply Chain Issues: Transportation delays and logistical bottlenecks have contributed to inconsistent supply and elevated prices.
Chicken Versus Other Proteins
Traditionally, chicken has been less expensive than beef or pork. However, the gap has narrowed, with some restaurants now charging more for chicken dishes than for certain cuts of beef. Menu data from several national chains reflects this trend, with grilled chicken entrées often priced higher than burgers or pork-based options.
Consumer Response
Some diners have shifted their preferences in response to the price changes. “I used to order chicken regularly, but now I look for other options,” said a customer at a New York City eatery. “It’s surprising to see chicken cost more than steak in some places.”
Outlook for Chicken Prices
Experts predict that chicken prices may remain elevated in the near term, as supply chain challenges and input costs persist. However, some industry observers anticipate that prices could stabilize if feed costs decrease and labor shortages ease.
