The cost of eggs has skyrocketed to nearly $8 a dozen, hitting small restaurants like Karen Huebner’s Hot Grillz Diner hard. Despite holding prices steady on popular dishes, Ms. Huebner was forced to raise them when her order of eggs jumped from $300 to nearly $1,000 just weeks ago. The rising cost is partly due to the avian influenza caused by the H5N1 virus, which has led to the slaughter of over 45 million chickens.
As a result, restaurants are struggling to pass on the increased costs to customers without driving them away. Ed Powers, director of operations at Broken Yolk Cafe, warns that raising prices too much could lead to customer losses. To mitigate the impact, some chains like Cracker Barrel are using promotions and loyalty rewards to stay competitive.
Egg analysts say two factors need to happen for prices to moderate: confirmed cases of bird flu must subside, allowing egg-laying operations to rebuild their flocks, and consumers must curb their hoarding tendencies. For now, shoppers continue to buy eggs in anticipation of future shortages, fueling demand.
With no end in sight for the egg shortage, restaurants are facing an uncertain future, and customers are feeling the squeeze.
Source: https://www.nytimes.com/2025/02/12/business/high-egg-prices-restaurants.html