Since February 2024, Midtown steakhouses such as Gallagher’s and Keens have cut back on seafood menu items in response to sharp price increases for lobster and oysters.

  • Wholesale lobster prices rose 22% year-over-year according to Fulton Fish Market data.

  • Keens Steakhouse reduced its oyster selection from six to three varieties in March 2024.

  • Gallagher’s replaced its signature crab cocktail with a shrimp-based alternative in April.

Seafood prices in New York City have risen steadily in the first half of 2024. Wholesale data from the Fulton Fish Market show notable increases in lobster, crab, and oyster costs. The change has affected purchasing decisions for restaurant groups in Midtown Manhattan.

Steakhouses in Midtown—including Smith & Wollensky, Gallagher’s, and Keens Steakhouse—have started trimming raw bar and fish offerings. Keens Steakhouse cut its oyster varieties by half in March. Gallagher’s introduced a shrimp cocktail in April, citing unpredictable supply and cost for crab.

Several restaurant managers report that seafood is no longer profitable at pre-2024 rates. David Orozco, general manager at Gallagher’s, said the steakhouse is “prioritizing core cuts and reducing loss leaders from the seafood section.” Some locations have increased prices on remaining seafood dishes, while others have shifted focus to steak and poultry.

Experts attribute the price hikes to adverse weather in Atlantic fisheries and fuel cost spikes. Many operators say these conditions could persist through summer 2024, affecting menu planning and supply contracts.

Frequently Asked Questions

Why are Midtown steakhouses changing their seafood menus?

Midtown steakhouses are revising seafood offerings due to sharp increases in wholesale prices for lobster, oysters, and crab. Many restaurants have found seafood dishes less profitable and are adapting menus to reduce losses or reflect higher costs.

Which restaurants have made the biggest changes?

Keens Steakhouse and Gallagher’s are among the most prominent Midtown steakhouses to alter their menus in early 2024. Keens reduced available oyster varieties and Gallagher’s replaced its crab cocktail with shrimp. Other steakhouses have adjusted prices or reduced raw bar selections.

How long are these seafood price increases expected to last?

Industry experts cite ongoing supply challenges and higher operational costs as reasons for continued price pressure. Most operators expect seafood prices to remain high through at least the summer of 2024, impacting menu planning and pricing strategies.

Frequently Asked Questions

Why are Midtown Manhattan steakhouses reducing seafood menu items?

They are reducing seafood menu items due to significant increases in wholesale prices for lobster, oysters, and crab, making these dishes less profitable.

Which steakhouses in Midtown Manhattan have changed their seafood offerings in 2024?

Keens Steakhouse and Gallagher’s have made notable changes, with Keens reducing oyster varieties and Gallagher’s replacing its crab cocktail with a shrimp-based alternative.

How much have wholesale lobster prices increased in early 2024?

Wholesale lobster prices rose 22% year-over-year according to Fulton Fish Market data.

What factors are causing the rise in seafood prices in New York City?

Experts attribute the price hikes to adverse weather in Atlantic fisheries and fuel cost spikes.

How long are the high seafood prices expected to last at Midtown steakhouses?

Most operators expect seafood prices to remain high through at least the summer of 2024, affecting menu planning and pricing strategies.

Editorial Transparency. A first draft of this story was produced with AI-assisted writing tools, then reviewed for accuracy and tone by the named editor before publication. More on our process: Editorial Policy.