At Monchy’s, a popular taqueria in east Houston, owner Lucinea Canyfer Vazquez has watched beef prices climb by roughly $2 per pound since last year. The family-owned restaurant raised its Taco Tuesday special from $1.00 to $1.50 per taco — a decision Vazquez described as painful but necessary.
“That hurt my heart, but we had to do it,” Vazquez said.
Wholesale beef prices were up nearly 16% in May 2026 compared to the same period last year, according to the U.S. Department of Agriculture. The USDA projects prices will increase by more than 9% over the full year. The U.S. cattle inventory has fallen to its lowest level in decades, driven by drought, historically low herd sizes, and concerns about the new world screwworm outbreak.
The squeeze is particularly acute for Houston’s taquerias and food trucks, which depend on daily sales and operate on thin margins. Kelsey Erickson Streufert of the Texas Restaurant Association said taco businesses face a difficult balancing act: “They really can only raise that price so much before a big benefit of the taco — which is its affordability — disappears, and that makes it less attractive to consumers.”
Mando Rayo, host of the Tacos of Texas podcast, said taco trucks are especially vulnerable because they cannot purchase ingredients in bulk like chains or brick-and-mortar restaurants. Many truck operators are reluctant to raise prices, choosing loyalty to their neighborhoods over profit margins.
Alonzo Peraza, a 26-year-old who opened Trap Tacos in a Houston parking lot three months ago, has been shopping at different suppliers to control costs but refuses to change his menu or prices. “People come to me for the flavor, for the meat,” Peraza said. “I don’t want to change that.”
Some customers are adjusting their habits. Vazquez has noticed patrons shifting to cheaper options like chicken and pork. But not everyone is willing to compromise. Regular customer Jessey Rojas said he will keep ordering steak fajitas regardless of price: “If it costs, it costs. But you only live once, so you might as well eat.”
The beef price surge compounds broader challenges for Houston restaurant owners, who are also contending with rising fuel costs and steady inflation. The USDA’s Food Price Outlook indicates that beef and veal prices are among the fastest-rising food categories in 2026, with no immediate relief expected as cattle herd rebuilding takes years.
Sources: Houston Public Media, USDA Economic Research Service
