Columbus, Ohio – Surging beef prices are reshaping the American barbecue landscape, putting intense pressure on restaurants that rely heavily on beef and pork as their core offerings. Unlike other dining segments that can pivot toward cheaper proteins or plant-based menus, barbecue chains have little room to maneuver when meat prices spike.
Industry experts now warn that rising cattle shortages, global demand, and inflationary pressures could keep beef prices elevated for years, squeezing both family budgets and restaurant operators.
Why Barbecue Restaurants Are Hit Hardest
When food costs climb, many restaurants can lean more heavily on chicken, seafood, or pasta dishes to stabilize margins. Barbecue eateries, however, are fundamentally different.
Beef brisket, ribs, pulled pork, and ground beef are not optional menu items—they are the identity of the cuisine. That leaves operators exposed when wholesale and retail meat prices rise sharply.
According to Omaha Steaks CEO Nate Rempe, the U.S. is heading toward a prolonged period of historically high beef prices.
“We are headed for what I’m calling the $10-a-pound reality,” Rempe said, warning that by the third quarter of 2026, families could see $10 per pound for ground beef at grocery stores, with no meaningful relief expected until at least 2027.
Beef Prices Continue to Climb Globally
While ground beef has not yet reached the $10 threshold nationwide, price pressure is already evident.
The Food and Agriculture Organization (FAO) reported that its Food Price Index averaged 130.1 points in July, marking a 1.6% increase from June. More notably, the FAO’s meat price index reached an all-time high of 127.3 points, driven by strong global demand.
Beef and sheep meat prices were especially impacted as imports surged in both China and the United States. A combination of drought-related herd reductions and strong consumer demand has tightened supply chains worldwide.
Reuters reported that U.S. beef imports increased after drought conditions reduced domestic cattle herds, while China imported record volumes amid rising popularity of beef consumption.
U.S. Consumers Are Already Paying More
Data from the Bureau of Labor Statistics (BLS) shows that declining cattle inventories have translated directly into higher prices at the checkout counter.
By August 2025, U.S. ground beef prices were 13% higher than a year earlier. Steak prices surged 16.6% year-over-year, while minced beef rose 12.8% during the same period.
Some analysts believe the current price environment may only be the beginning.
Michael Irgang, president of Global Risk Management, described the situation as a “perfect storm” caused by multiple forces converging at once, including supply shortages, rising demand, climate impacts, and higher operating costs across the food industry.
Pressure Mounts on Barbecue Chains
These cost increases arrive at a difficult moment for barbecue operators, many of whom are already grappling with labor shortages, higher wages, and more cautious consumers cutting back on discretionary spending.
Taken together, these challenges contributed to the Chapter 11 bankruptcy filing of Smoke Ring, LLC, the parent company behind several Ohio-based barbecue brands.
Smoke Ring, LLC Files Chapter 11 Bankruptcy
Smoke Ring, LLC operates restaurants under the Ray Ray’s, Ray Ray’s Hog Pit, and Ray Ray’s Ohio Style names. The company filed for Chapter 11 bankruptcy protection on December 19, 2025, according to court records.
Ray Ray’s first opened in 2009, building a reputation around traditional American barbecue techniques combined with modern flavors. In recent months, however, the company quietly shuttered several locations as it attempted to consolidate operations.
Recent Ray Ray’s Closures
• Johnstown location – Closed November 12, 2025
• Marion location – Closed November 12, 2025
• Linworth food truck – Closed November 2025 as part of consolidation efforts
Despite the closures, four Ray Ray’s locations remain operational across central Ohio.
Locations Still Operating
• Clintonville (Columbus) – Dine-in and carry-out
• Franklinton – BBQ service inside Land-Grant Brewing
• Westerville – Drive-through and walk-up carry-out
• Granville – Dine-in and drive-through
The company has not disclosed whether additional closures are planned as part of the restructuring.
Bankruptcy Filing Details
The Chapter 11 filing was submitted in the United States Bankruptcy Court for the Southern District of Ohio (Columbus Division). The case lists between $1 million and $10 million in both assets and liabilities.
Smoke Ring, LLC remains a debtor in possession, meaning it continues to operate while working on a restructuring plan. Under Subchapter V rules, the company must submit a reorganization plan by March 19, 2026.
A Broader Trend in the Barbecue Industry
Ray Ray’s is not alone. The past two years have seen a wave of financial distress across the barbecue sector.
Several other barbecue-related businesses have sought bankruptcy protection, including franchise operators tied to Dickey’s Barbecue Pit, Sticky Fingers Restaurants, and smaller regional concepts. Many cited rising meat costs, debt obligations, and declining foot traffic as contributing factors.
What Comes Next for Barbecue Restaurants
Unless cattle inventories recover and global demand cools, industry observers expect beef prices to remain elevated well into 2027. For barbecue restaurants, that reality may force difficult decisions around portion sizes, menu pricing, and long-term expansion plans.
For consumers, higher prices may mean fewer barbecue outings—or higher bills when they do indulge.
Share your thoughts or experiences with rising food prices in the comments below.
