by Bradley Parsons
Staff Writer
Downtown steakhouses are feeling the effects of the recent mad cow scare on their bottom line, but not in the way you might expect.
Several managers of the high–end restaurants said the recent discovery of a single case of Bovine Spongiform Encephalopathy, otherwise known as mad cow disease, had not put a dent in their holiday patronage or their sales. In fact, they said the media uproar has actually driven down the beef market somewhat, providing small relief from record high prices in 2003.
“The prices sure have come down a little bit,” said Ruth’s Chris general manager Chad Cancelosi.
Cancelosi said two months ago that steep beef prices driven by drought conditions, barriers to Canadian imports and surging demand were some of the highest he had seen. At the time, he said the restaurant was spending its own profits to keep prices low for customers. Now, Cancelosi said he was enjoying the respite, although he said he expected prices to surge once the scare dies down.
Beef prices fell by 5 to 10 cents a pound at a series of statewide auctions held Jan. 6. Although prices dipped from record highs of about a dollar per pound before the mad cow discovery, some ranchers feared prices could have dropped to 30 or 40 cents per pound.
The lower prices were a mixed blessing, said Cancelosi. If they persist he said he feared they might drive some ranchers out of business, which he said would increase prices dramatically.
The key to shoring up prices, according to Cancelosi and the United States Department of Agriculture, is to convince foreign markets that the U.S. supply is safe.
Japan banned imports of U.S. beef shortly after the Dec. 23, mad cow announcement. Japan spent $3.2 billion on U.S. beef last year. Earlier this week, Reuters reported that the beef industry was working out a plan with Japanese officials to certify the safety of U.S. shipments and the U.S.D.A. announced a plan to keep potentially dangerous tissue out of beef shipments.
Better inspection procedures and increased consumer confidence could be a beneficial byproduct of the mad cow scare, said Brad Walton, kitchen manager at the Chart House restaurant, which specializes in steak and seafood.
Not that Walton’s customers have been shy about ordering steak. He said he’s ordered and served more steak than he had in past holiday seasons. He said the everyday coverage of the first domestic mad cow case hadn’t kept customers out of his seats either.
“No, we’ve been busier,” said Walton. “We’re probably about 15 to 20 percent busier than we were last year.”
Ruth’s Chris saw a 10 percent surge in business from last December. Although the timing of the scare seemingly couldn’t have been worse. Cancelosi said he usually has “an overwhelming increase” in sales during December and he’s seen no effects among his customers.
“It doesn’t seem to effect my customers at all,” he said. “We rely on the reputation Ruth’s Chris has built over 38 years of selling steak.”