Denny's allegedly implements an egg fee due to escalating costs and avian flu scarcities
The ongoing bird flu situation in the United States has brought about a notable shift in the egg market. Since early 2022, this avian flu outbreak has wreaked havoc on flocks nationwide, resulting in a massive decrease in egg production and a subsequent surge in prices. This predicament has left numerous organizations scrambling to adjust their operations.
Denny's, with over 1,500 restaurants under its belt, is one of the many establishments grappling with this egg shortage. In a response to CNN, Denny's revealed that they are making their pricing decisions on a regional and business-by-business basis due to the disparate regional impacts of this egg crisis. The specifics of the affected locations and the exact surcharge amount remain undisclosed.
Meanwhile, menu prices at US restaurants are on the rise, with the average cost of a dozen large eggs climbing to $4.15 in December from $3.65 in November, according to the Bureau of Labor Statistics. This shockwave is not confined to restaurants alone. Retail giants like Costco and Trader Joe's have imposed buying limits to contain the escalating costs.
As for the cause of this crises, the US Department of Agriculture has reported that over 140 million egg-laying birds have perished due to the bird flu since 2022. During the last 30 days alone, at least 18.9 million birds were culled.
The egg industry's struggle is far from unique. Waffle House, another iconic US diner chain, introduced a 50-cent surcharge per egg, citing the "nationwide rise in cost of eggs." While Waffle House is closely monitoring egg prices and might adjust or rescind the surcharge as conditions improve, they are not alone in feeling the heat. Bakeries, such as the Bread Furst bakery in Washington, D.C., have also been hit hard by the rising egg prices. The surge in egg costs has more than doubled their expenses over the past year, forcing them to raise prices on egg-heavy items and reconsider their menu options.
In an effort to alleviate the problem, American businesses have looked overseas for some relief. Turkey, as the sole foreign country currently exporting eggs to the US, is ramping up its production to meet the increased demand, aiming to export 420 million eggs to the US this year, a record high.
Despite these efforts, the added egg-related expenses are set to persist in the US economy. The US Department of Agriculture predicts that egg prices could soar an additional 20% this year, keeping businesses and consumers in a state of perpetual adaptation.
Denny's, with its extensive network of over 1,500 restaurants, is forced to make pricing decisions on a regional and business-by-business basis due to the varying impacts of the egg crisis in 2022. The surge in egg prices seen in restaurants, with the average cost of a dozen large eggs reaching $4.15 in December, has also affected Bread Furst, a popular bakery in Washington, D.C., forcing them to raise prices on egg-heavy items.
