Egg prices continue to break records, leaving restaurants scrambling for solutions. Several major chains are not commenting on their egg plans, but experts say it’s only a matter of time before others follow suit.
Industry insiders note that smaller, local chains and individual restaurants have already started adding surcharges for eggs due to the rising costs. Waffle House is reportedly the only major chain adding such a fee, but experts warn that others will likely follow soon.
The problem lies in the fact that restaurants lack options to mitigate the crisis. Unlike airlines, which can hedge fuel costs, restaurants cannot lock in egg prices. This has led some to promote other items to manage demand for eggs, but there is no quick fix.
Egg prices continue to rise, with Midwest large eggs now costing $7.79 per dozen. Food manufacturers are also re-evaluating their formulations to work out the high prices, raising concerns about broader food price hikes.
The issue goes beyond individual sales, as eggs are a crucial ingredient in many dishes, making them an inelastic commodity. This means that even small price increases can have significant impacts on food costs.
As the nation’s egg supply dwindles – with around 305 million hens currently in production and a ratio of one hen per US citizen suggested – restaurants will need to get creative with their pricing strategies. With the US population at approximately 340 million, it remains to be seen how low prices can go.
Source: https://www.axios.com/2025/02/04/egg-shortages-restaurants-waffle-house