Waffle House has added a 50-cent-per-egg surcharge to customers’ bills as egg prices reach record highs due to the HPAI (bird flu) outbreak. The Georgia-based chain is watching market conditions and may adjust or remove the extra charge.
The median price for a dozen eggs nationally was $7.55 during the week of Feb. 3, according to data from MarginEdge, an accounting software provider that helps restaurants track expenses. CEO Bo Davis says this increase is challenging for egg-centric restaurants, which already operate on thin margins.
Restaurants must balance profitability with customer demand, as customers are tired of high prices and may switch to other establishments if their favorite diner becomes too pricey. The impact of the 50-cent surcharge will be difficult to recapture, especially since many menu items rely heavily on eggs.
Davis suggests that restaurants cope with high egg prices by adjusting operations, driving customers to substitute menu items, raising prices (though this is challenging), lowering the quantity of ingredients per dish, or trading down quality. Waffle House applied a surcharge instead of raising its menu price, believing it’s temporary and hoping it will alleviate pressure on customers.
Industry experts predict that more restaurants may follow suit with similar surcharges as the shortage persists. The situation highlights the need for substitute products to help consumers cope with the increased costs.
Source: https://www.isustudentmedia.com/indiana_statesman/news/national/article_2d1f84aa-f01d-5e99-8242-1e7889c78d18.html