Stew Leonard, Jr. Explains Why BBQ Costs Are Skyrocketing

Forbes

3 days ago

Stew Leonard's is a serious player in American food retail. What's kept it relevant and profitable ... More across generations is a deep-rooted commitment to culture and customer service.
Tariffs are not fully to blame for the high costs of BBQs this year, reaching an all-time high. The average cost of a BBQ for ten people is now $103, breaking the $100 barrier for the first time. However, the increased costs have more to do with a historically low cattle herd size. In 2024, the U.S. cattle inventory was the smallest in 73 years. "It takes 18 months to raise cattle, so there's a lag in the system. The ranchers we've talked to all say the same thing - it's just too expensive to raise cattle right now, so they've put their herd growth on pause,' explains Stew Leonard Jr., president and CEO of Stew Leonard's grocery store chain based in Connecticut. Smaller herds have led to declining production and higher beef prices for consumers.
'Hot dog prices are up nearly 19% because they're tied to red meat supply and demand—the raw materials are up. Hot dogs are a mixture of pork and beef, but it's the beef side that's really driving costs. If you get into all-beef hot dogs, you're really seeing the price impact,' said Paul McLean, chief merchandising officer at Stew Leonard's.
Stew Leonard's Team Talks Tariff Impact
The tariff landscape is creating unexpected market dynamics. 'While European wine and cheese producers report sales drops of 5-6%, American producers are experiencing double-digit growth. Wisconsin cheese makers are up significantly, and California artisan producers are also seeing significant gains,' explains Leonard. Wisconsin-identified specialty cheese sales grew more than four times faster than the rest of the category last year, with dollar sales up 6 percent. With the current trade conditions and tariffs on most imported cheeses from Italy at 20%, consumers are turning to American-made cheeses.
Wisconsin cheese makers are seeing sales increase while European producers slump, as American ... More shoppers ditch imported Gouda for homegrown cheddar.
Lobster tariffs for outbound shipment to China have resulted in a decline in exports and lower prices in the U.S. The U.S. and Canada exports approximately 80 million pounds of lobster annually. "A lot of that product out of Maine usually goes to China and Asia, and a lot of it isn't going there now. So it's opened up to the American consumer at 25% reduced prices," explains McLean. With tariffs of around 25% on lobster exports to China, much of this premium product that would normally be shipped overseas is now staying in the domestic market. "The United States is benefiting from the tariffs in these particular cases, a counterintuitive outcome that demonstrates how trade policies can have unexpected positive effects for domestic consumers in certain product categories,' explains Leonard.
Spanish and Portuguese wines hit the sweet spot for consumers delivering quality without the tariff ... More bite that's stinging French imports.
Wine production faces tariff increases on multiple components (corks, wooden boxes), and while Stew Leonard's has not yet seen US wine sales surge since most current inventory is pre-tariff product, customers are gravitating toward European Union wines from Spain and Portugal that offer better value propositions. 'Customers are adapting by seeking value under $15, with Spanish and Portuguese wines becoming the sweet spot for quality without the tariff sting," said Blake Leonard, president of Stew Leonard's Wines & Spirits.
Stew Leonard, Jr. Provides Tips For Saving Money On BBQs This Summer
Stew Leonard's offers free samples leading to full shopping carts even Stew Leonard, Jr. admits, ... More 'Walk away from our demos... they're very tempting and impulsive.'
'The first thing we say is, make sure your propane tank is full... that almost leads to many divorces that we see in the store because the husband's standing over there, saying, oh, my wife had everything ready, and the propane was empty," jokes Leonard.
For budgeting purposes, however, on a more practical note, Leonard suggests the following:
Current Economic Conditions Are Reshaping America's BBQ Tradition
With profit margins in the low single digits, grocers have virtually no cushion to absorb cost increases. When banana tariffs jumped 10%, Stew Leonard's and their suppliers each ate 5% rather than burden customers with the full price hike. However, grocery stores do not have the ability to absorb all of the costs due to inflation or tariffs. The meats, poultry, fish, and eggs index rose 6.1% over the last 12 months. While consumers exercise newfound spending discipline, retailers are walking a tightrope between maintaining competitive prices and preserving already minimal profitability, creating a delicate balance that's reshaping the grocery landscape.