UK steak prices set to hit £30 as beef costs soar and farmers quit industry

Steakhouses across the UK are poised to ramp up menu prices because of a shrinking supply of beef, which is driving up costs.

Experts are predicting the cheapest cuts, such as rump and skirt, will cost customers at least £30 by Christmas.

This marks a significant rise from before Covid, when steaks were priced at "under £20".

Hugh Osmond, who co-founded Pizza Express, told the Telegraph: "I don’t think we’re far away before £30 is pretty much the minimum for a semi-decent steak."

Rump steak prices have been steadily rising since January, with some steakhouses increasing the cut's menu fee from £24 to £28.

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A spokesperson for Gaucho, the steakhouse, said its market data suggested more restaurants were “getting closer to the £30 mark for a 200g rump steak, which is the most inexpensive cut”.

A slump in UK beef production is behind the price surge, as more cattle farmers exited the industry.

Government data shows a 5 per cent drop in supply, equating to around 2,900 fewer tonnes of meat.

For the year as a whole, analysts expect UK beef production to fall by around 4 per cent to 896,000 tonnes.

Official figures last week revealed beef and veal inflation surged to 24.9pc last month, the biggest annual price rise among all food items in August.

As well a rising beef prices, farmers are also bracing themselves for the inheritance tax raid in April.

A record 6,365 agriculture, forestry, and fishing businesses have closed in the past year.

Regional steakhouses such as the Opera and Prime Steak and Grill have already raised their fillet steak prices rise from £32 and £32.90 respectively to £35 and £34.90.

Some restaurants will attempt to absorb the higher beef prices to avoid passing them on to customers, but others may be forced to take steaks and burgers off the menu if prices do not start to fall before 2026.

Despite this, steakhouses are still incredibly popular among restaurant-goers, with figures from The Fork showing they are the fastest-growing category for promo-led bookings, up more than 400pc on last year.