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Why is Beef Tenderloin So Expensive? A Detailed Look at This Prized Cut

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Beef tenderloin is one of the most coveted yet contentious cuts of beef. With its elegant, tapered shape and gleaming rosy hue, it looks like something truly special. And when prepared correctly, it delivers – succulent buttery, and incredibly tender. No wonder it’s the star of the show at upscale restaurants and dinner parties.

But beef tenderloin also comes with a hefty price tag. While delicious is it really worth paying so much more than other cuts of beef? What exactly makes this cut so expensive?

In this article, we’ll take a close look at beef tenderloin to understand what it is, why it costs so much, and whether it’s worth splurging on.

What is Beef Tenderloin?

First, let’s make sure we all know what cut we’re talking about.

Beef tenderloin is an oblong, tapered muscle that runs along the underside of a cow’s spine. It’s sometimes called the psoas major or, more informally, the filet or fillet.

Located in the short loin primal cut, it’s one of the most tender cuts on the animal because it doesn’t get much exercise. It only makes up about 2-3% of a steer’s total body weight.

Within the tenderloin are two especially tender sub-primal cuts:

  • Chateaubriand – The thicker center cut, usually cut as a roast.
  • Filet mignon – The tapered tip, cut into individual steaks.

Compared to other cuts like chuck or brisket, tenderloin is very lean. It has less intramuscular fat marbling and connective tissue.

This leanness contributes to its mild, subtle beefy flavor and tender texture when cooked. It doesn’t have the robust richness of fattier cuts like ribeye.

Why is Tenderloin So Expensive?

Now onto the million dollar question: What makes this cut so pricey compared to others?

There are a few key reasons tenderloin commands such a high price per pound:

Limited Supply

Remember that tenderloin makes up only about 2-3% of a steer’s total body weight.

With such a small yield per animal, supply is low. There’s only so much to go around.

Limited availability drives up costs for this high-demand cut. With beef consumption on the rise globally, supply is stretched even thinner.

High Demand

Speaking of demand, consumer demand for tenderloin is very high. It’s considered one of the most desirable cuts of beef.

Its uniform shape with no tough muscles or heavy fat layers makes it appealing. The tender, buttery texture when cooked also makes it very popular.

Being an iconic fancy restaurant steak raises its cachet. Many diners will splurge on filet mignon as a special treat.

This celebrity status and high consumer demand keeps prices elevated, even when availability increases.

Processing Costs

Processing tenderloin is labor-intensive, which contributes to costs passed onto consumers.

It requires meticulous trimming by skilled butchers to remove all silver skin and connective tissue. This adds to production costs.

The uniform cylindrical shape also yields very little scrap loss. Other odd-shaped cuts generate more scraps and trimmings to be used in ground beef, keeping their costs lower.

Restaurant Markups

Order filet mignon at a steakhouse and you’ll really see the price tag soar. Restaurant markups dramatically increase the price.

A tenderloin that costs $14-$18 per pound wholesale may be marked up 3-4 times to $50-$60 on a restaurant menu.

This covers labor costs along with restaurants’ high overhead. But diners are often willing to pay the premium for a special night out.

Is the High Price Tag Worth It?

With all these factors driving up the price, is splurging on tenderloin worth it? Opinions vary on this hotly contested cut.

Some professional chefs and butchers argue tenderloin is overrated. While tender and lean, it lacks the rich beefy flavor and juicy marbling of ribeyes or strip steaks.

But Food Network chef Michael Symon defends the cut, saying supply and demand determines the price more than flavor profile. Customers love it for the tenderness.

Potentially Worth the Splurge

For many beef lovers, the extra cost is justified to enjoy this famously tender, elegant cut. The buttery texture when pan-seared or roasted to a perfect medium-rare is hard to match.

Special occasions like anniversaries or Valentine’s Day are common times to splurge on filet mignon. The extra cost feels worth it to indulge.

Just be sure to select Prime grade beef and cook it properly to experience the best possible flavor and texture.

Look for Sales on Whole Tenderloin

One way to enjoy tenderloin at a more reasonable price is to buy a whole center-cut roast instead of pre-cut filet steaks.

Whole roasts often go on sale for $7-$9 per pound. Cut your own steaks to get more for your money. An average roast yields 5-8 steaks.

You can also ask your butcher about any deals on untrimmed whole tenderloin. With a little hands-on trimming, you can save even more.

Choose Select or Choice Grade for Savings

Opt for Select or Choice grade tenderloin to trim costs if Prime is too expensive. You’ll still enjoy tender, mild flavor.

Select has less marbling so requires careful cooking to stay moist. Choice offers a good midpoint between cost and quality.

Consider Other Tender Cuts

If you want to save money but still enjoy tender beef, consider cuts like top sirloin, tri-tip, flank steak, or skirt steak. They offer great value at lower costs.

While not as universally tender as tenderloin, they can rival it in tenderness and flavor when cooked correctly.

Tips for Cooking Tenderloin

If you do splurge on tenderloin, follow these tips to get the most from this pricey cut:

  • Let roast or steaks come to room temperature before cooking for even cooking.
  • Pat extremely dry with paper towels before searing to promote browning.
  • Avoid overcooking. Cook to 145°F max for perfect medium-rare when served.
  • Allow roast to rest at least 10 minutes before slicing for juiciest results.
  • Complement with richer sides like compound butter, béarnaise sauce, or blue cheese.
  • Enhance flavor with dry rubs or marinades, but avoid masking the subtle flavor.
  • For whole roasts, gently truss with twine to maintain shape.
  • For lean cuts like tenderloin, reverse searing helps keep moisture in.

Is Beef Tenderloin Worth the Splurge?

Beef tenderloin undoubtedly comes with a steep price tag thanks to limited supply, painstaking processing, high demand, and restaurant markups.

For special occasions or as an indulgent treat, the melt-in-your mouth texture justifies the cost for many. It lives up to its reputation as the ultimate tender cut.

But for regular cooking, other cuts can offer great flavor and tenderness at a fraction of the price. With strategic shopping and proper cooking, you can enjoy tenderloin without breaking the bank.

Whichever route you take, following cooking tips will ensure you get the very most from this prized cut. Tenderloin may be expensive, but with the right approach, it’s a true beef lover’s treat.

why is beef tenderloin so expensive

Techniques: Breaking Down A Beef Tenderloin – Cheap Filet Mignon!

FAQ

Why is beef tenderloin so expensive right now?

Beef is so expensive right now because drought, high grain prices, inflation and rising interest rates made cattle farming a costly endeavor in recent years.May 1, 2025

How much will a 5 lb beef tenderloin feed?

It’s actually fairly easy to figure out how much beef tenderloin per person you need to buy: Simply purchase 8 ounces (1/2 pound) of meat for each guest. If you’re feeding six people, you’ll need 3 pounds of meat. For a larger crowd, say 12 people, you’ll need closer to 6 pounds of meat.

What is special about beef tenderloin?

Tenderloin, Boneless | Lean. A long, narrow, and lean muscle located within the Loin, this is the most tender cut of beef available. The Tenderloin is the source of Tenderloin Steak or Filet Mignon, and is a component of T-Bone and Porterhouse Steaks.

What is a cheaper alternative to beef tenderloin?

Chuck-eye roast (which can also be labeled “chuck center roast,” “chuck eye roll,” “inside chuck roll,” or “boneless chuck fillet”) typically rings in about the third of the cost of beef tenderloin (and even less than filet mignon, which is cut from the tenderloin).

Why is Tenderloin meat so expensive?

Theshort supply and high demand for meat result in significantly increasing the price of tenderloin meat. With time, the demand for filet mignon’s only increasing due to which increasing the prices of this specific part of the meat is the only outcome.

Is beef tenderloin a good meat?

An interesting fact about tenderloin meat is thatit is actually one of the most tender parts of a cow. It is also one of the most desired parts of the meat. Due to this, the demand of filet mignon is quite high. The soft and juicy texture of beef tenderloin makes it an ideal meal for most.

Why is beef expensive right now?

Beef is expensive right now because drought, high grain prices, and rising interest rates have made cattle farming costly. To deal with rising operating costs, many U.S. cattle farmers reduced their herd sizes, and some even left the business.

How hard is it to get Tenderloin from cows?

As explained earlier, getting tenderloin from cows isexceptionally hard as the amount of tenderloin meat present in a cow is quite low. Comparatively, the demand for such meat is really high. The short supply and high demand for meat result in significantly increasing the price of tenderloin meat.

Why is ribeye steak so expensive?

If you’ve ever wondered why that rib-eye steak or beef tenderloin was so expensive, you probably assumed it was because the most desirable cuts of meat naturally cost more. And that’s true; if people stopped buying filet mignon tomorrow, the price would come down.

Why is filet mignon so expensive?

Another huge reason behind the high price of the product is thefilet mignon’s demand. As explained earlier, getting tenderloin from cows is exceptionally hard as the amount of tenderloin meat present in a cow is quite low. Comparatively, the demand for such meat is really high.

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