More Breaking News in the World of Grass Fed Beef

A major Fast Food restaurant chain, Carl’s Jr., has just announced that it will launch a new “All Natural Burger” which will feature an “all-natural, grass-fed, free-range beef patty” with no added hormones or antibiotics. Carl’s Jr. makes the claim that this launch will make them the first “major fast food chain” or quick service restaurant (QSR), to offer an all-natural grass-fed beef hamburger. Some in the media are calling the new burger the first “clean” burger in fast food.

The grass-fed beef burger will be available at participating Carl’s Jr. locations starting December 17, 2014. Carl’s Jr. has 1,150 locations. A “single” burger will cost $4.69 with a “double” costing $6.99. The restaurant will offer diners the opportunity to substitute the grass-fed patty on any burger on their menu for an additional charge.

The grass-fed beef is currently being sourced from Australia, likely from Cargill. According to a spokesperson from Carl’s Jr., the beef is being sourced from Australia because there is not enough domestic supply available. With a QSR like Carl’s Jr., price point is a major factor, so it is likely there is not enough domestic supply available within an appropriate price range for the restaurant chain.

Similar to the news earlier this week that National Beef and JBS have now entered the domestic US grass fed beef market, Carl’s Jr. offering an “All Natural, Grass-fed beef” burger will start to change the landscape of the fast food sector. If consumers respond favorably, and I anticipate they will, then other fast food chains will have to follow suit and offer grass-fed beef options as well.

All these recent developments will ratchet up the need for grass finished cattle and, therefore the need for significantly greater grass finishing capacity. Both National and JBS have indicated they will be seeking cattle that will grade USDA High Select and Choice for their programs. That will increase the need for additional grass based genetics that have the ability to grade well on a grass based diet and finish at under 30 months. It will also increase the need for highly skilled forage finishers who can finish cattle to a high degree on a year round basis and within a 20-24 month age range at harvest. To avoid cattle “aging out” at the processing plants, JBS and National will seek cattle that are source and age verified.
Locally sourced meat is top restaurant trend for 2015.

The recently released National Restaurant Association (NRA) “What’s Hot” survey found that locally sourced meat and seafood will be the No. 1 trend for restaurants in 2015. This has been an ongoing trend within the restaurant sector and continues to be a “growing concern”. In addition, the annual survey of 1,300 chefs also found that new cuts of meat will be a significant feature on menus in 2015. As beef continues to increase in price chefs are looking for alternative cuts to the traditional “middle meats” so that diners can have beef options within an affordable price range. So, cuts seamed out of the sirloin, chuck, round, and the thin meats will be more frequently featured.

Other trends in the top five food trends include more locally grown produce, foods that meet environmental sustainability standards, healthy kid’s meals, and more natural ingredients and minimally processed foods. Entrees will feature more grass-fed beef items, specifically new and innovative cuts that allow for better overall carcass utilization. With the continued rise in retail beef prices restaurants are looking for ways to offer diners more affordable beef items. This will include “seamed out” cuts from the chuck, sirloin, round, and the thin meats rather than always featuring middle meat items.

Other items that will be prominently featured in 2015 include artisan bacon, artisan cheeses, non-wheat flour, and artisan pickles. House-cured meats and innovative charcuterie, along with ethnic-inspired meat items, will dominate the appetizer menu.

All the recent breaking news surrounding grass-fed beef indicates continued growth in this market sector. The question is, “Are we ready and can we supply enough high quality grass finished beef to meet the growing demand?” Secondly, “can we supply domestic grass fed beef at a price point that is attractive enough for the Big 4 packers and their primary customer base?”