US beef sales drop: At Home Plate BBQ, a popular American-style restaurant in Beijing, a significant change is underway. Due to the ongoing US-China trade war, the restaurant will soon be removing US beef from its menu. For years, Home Plate’s beef was sourced entirely from the US, but with the imposition of retaliatory tariffs by Beijing, the restaurant has been forced to seek alternative suppliers.
The Impact of Tariffs
The tariffs, which amount to 125% on top of the existing 22% duty, have made US beef unaffordable for Home Plate. The restaurant uses around 7-8 tonnes of brisket every month, and once the current stock of US beef is depleted, it will switch to Australian beef. According to Charles de Pellette, Home Plate’s operations director, the tariffs have essentially made it impossible for the restaurant to continue using US beef.
Switching to Australian Beef
Home Plate has already begun testing Australian beef and has found it to be of similar quality and taste to US beef. The restaurant will be switching to Australian M5 beef, which is considered to be of high quality. De Pellette said that while the taste and quality of the beef are important, the restaurant has had to make the switch due to market pressures and tariffs.
Still on US beef sales drop
Changes to Menu Items
The impact of the trade war is not limited to beef. Home Plate will also be switching to Canadian pork ribs, which will replace the US pork ribs that were previously used. The restaurant’s menu will undergo significant changes, with Australian beef ribs, brisket, and sausages smoked in the traditions of Texas and the American South.
Industry-Wide Impact
The experience of Home Plate is not unique. According to a beef supplier based in Beijing, many restaurants in the city are being forced to switch to Australian beef due to the tariffs. Even American steak restaurants are making the switch, the supplier said.
Price Increases
US beef prices had already risen significantly before the trade war began, due in part to shortages caused by years of dry weather that shrank herds to their smallest since the 1950s. The imposition of tariffs has further increased prices, making US beef almost double what it was a year earlier. In contrast, Australian brisket is 40% cheaper, making it an attractive alternative for restaurants like Home Plate.
Customer Reaction
Despite the changes, Home Plate’s customers seem to be happy with the switch to Australian beef. De Pellette said that the restaurant has tested the Australian beef for a few months and found it to be just as good as the US beef. Come May, diners will be enjoying Australian beef ribs, brisket, and sausages, smoked to perfection in the traditions of Texas and the American South.
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