The U.S. is experiencing unprecedented egg price surges, primarily due to a devastating avian influenza outbreak that has culled millions of poultry. This situation has significantly impacted restaurants nationwide, forcing them to adapt to manage escalating costs in various ways.

The Surge in Egg Prices

As of January 2025, the average price for a dozen Grade A eggs reached $4.95 in U.S. cities, marking a record high. This spike is primarily attributed to the bird flu outbreak, which has resulted in the loss of nearly 158 million birds.  

Impact on Restaurants

Restaurants, especially those specializing in breakfast or baked goods, have been particularly hard hit by these price increases. For example, Waffle House, known for its extensive breakfast menu, serves approximately 272 million eggs annually. The chain implemented a surcharge of $0.50 per egg to offset rising costs.

Similarly, Denny's, which operates over 1,500 locations, introduced a temporary surcharge on egg-containing meals. This move aims to manage increased expenses while maintaining the value of its offerings, such as the $2, $4, $6, and $8 value menus.  

In Washington, D.C., Steve Salis, CEO of Catalogue, which owns multiple restaurants, including Ted's Bulletin, reported that egg costs surged from $32 to over $70 per case within weeks. This increase has led to an additional $20,000 in weekly expenses for his establishments. To cope, Salis implemented a 75-cent surcharge on dishes containing eggs, mirroring strategies adopted by other chains like Waffle House and Denny's.

Adaptation Strategies

Restaurants are employing various tactics to navigate the egg price crisis:

• Menu Adjustments: Some establishments are introducing more egg-free options. For instance, The Broken Yolk Cafe, a chain of 40 brunch restaurants in the Western U.S., offers pancakes and wraps with plant-based chorizo. The café is also negotiating better deals with suppliers and considering sourcing eggs from smaller, local farms.  

• Surcharges: As previously mentioned, chains like Waffle House and Denny's have added per-egg surcharges to manage increased costs without overhauling their entire pricing structure.

• Temporary Promotions: Some restaurants use promotions to attract customers despite high egg prices. P. Terry's, an Austin-based fast-food chain, lowered the price of its egg burger to $2 for one day, absorbing the higher egg costs to maintain customer loyalty.

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Looking Ahead

The U.S. Department of Agriculture forecasts that egg prices could surge by over 40% in 2025 due to ongoing bird flu outbreaks. In response, the government has introduced measures to combat the flu, including a $1 billion investment focused on enhancing farm biosecurity and potential vaccine development. However, analysts believe it could take several months for consumers and businesses to see significant price relief.  

In conclusion, the soaring egg prices have placed considerable strain on restaurants, prompting them to adopt various strategies to manage costs and maintain customer satisfaction. As the situation evolves, these establishments continue to adapt to ensure their viability in a challenging economic landscape.

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