Egg Surcharge: Restaurants Raise Prices Amidst Record-Breaking Egg Costs

Atlanta, GA - Waffle House, in Atlanta, joined a growing number of restaurants implementing an egg surcharge this week due to soaring egg prices. A nationwide bird flu outbreak has decimated chicken populations, resulting in supply shortages and purchase limits at grocery stores.

The wholesale cost of a dozen large eggs in the Midwest has surged to an average of $7.08, a sevenfold increase in just two years. Restaurants are responding with price hikes to offset the increased costs.

Waffle House has added a temporary 50-cent surcharge per egg to its menu. Other restaurants like Jan's Fairlee Diner in Vermont and Cafe Olympia in New York City have announced egg-specific price increases.

Despite the higher prices, egg-based dishes remain popular. Manager Roberto Martinez of Cafe Olympia notes that while the surcharge is significant, customers understand the rising costs of all goods.

However, for some customers like Cristian Debe, the surcharge has made eggs unaffordable. He has resorted to ordering his breakfast sandwich "just butter."

The egg cost crisis is compounding inflationary pressures on restaurants. Many establishments had already raised prices post-pandemic to cover higher costs for labor and ingredients. This resulted in slower-than-expected traffic, prompting some chains to recalibrate with discounts and value-oriented menus.

Mark Kalinowski, CEO of restaurant investing advisory firm Kalinowski Equity Research, notes that there is limited room for further price increases. "This is a pressing problem for a significant portion of restaurants at the current price."

Some restaurants, like Ascent Hospitality Management and Sarabeth's in New York City, are hesitant to raise prices for now, emphasizing the importance of affordability for their guests. However, they acknowledge the potential need for adjustments in the future.

Biscuitville Fresh Southern, specializing in breakfast fare, is closely monitoring egg prices and may consider a surcharge soon. The company notes that the rising costs have become "unsustainable."

Kolache Factory, a bakery chain in Texas, has suspended coupons for egg products and warned customers of potential shortages.

At the Waffle House in Atlanta, staff estimate serving over 100 eggs daily. Cook Sam believes customers haven't yet noticed the surcharge but anticipates it may take a few days for the impact to be felt.