From fluffy omelets to decadent desserts, eggs are a cornerstone of American restaurant menus. But a perfect storm of avian flu outbreaks, inflation, and supply chain woes has sent egg prices skyrocketing—and U.S. restaurants are scrambling to cope. With wholesale egg costs up 300% year-over-year in some regions, chefs and diners alike are feeling the pinch. Here’s how the industry is cracking under pressure and what’s next for your favorite breakfast spots.
Why Are Egg Prices Out of Control?
- Avian Flu Resurgence:
- Since 2022, highly pathogenic avian influenza (HPAI) has wiped out 58 million U.S. poultry birds, including egg-laying hens.
- Outbreaks in Midwest farms spiked prices again in early 2024.
- Feed and Fuel Costs:
- Corn and soybean prices (key chicken feed) rose 20% due to drought and global demand.
- Transportation costs surged with diesel prices up 35% since 2021.
- Labor and Regulation:
- Stricter cage-free laws in states like California and Massachusetts added production costs.
By the Numbers:
- Average wholesale egg price: **3.30/dozen∗∗(Jan2024)vs.3.30/dozen∗∗(Jan2024)vs.1.93 pre-pandemic (USDA).
- Restaurants spend 4–8% of food budgets on eggs (National Restaurant Association).
Restaurants on the Brink: From Diners to Bakeries
- Breakfast Chains Hit Hard:
- First Watch and Denny’s report 10–15% profit margin drops due to egg costs.
- Some diners swap eggs for cheaper proteins (e.g., tofu scramble) or charge extras for egg dishes.
- Bakeries Reinvent Recipes:
- Cupcakes and pastries now use “flax eggs” or applesauce substitutes.
- “We can’t pass all costs to customers—it’s about creativity,” says Sarah Kim, owner of Brooklyn’s Buttercrust Bakery.
- Fast Food’s Eggflation:
- McDonald’s raised Egg McMuffin prices by $0.50 in 2023.
- Subway tests egg-free breakfast options like avocado wraps.
How Restaurants Are Adapting
- Menu Shrinkflation:
- Smaller portions (e.g., two-egg plates instead of three).
- Charging extra for egg whites or organic options.
- Supplier Diversification:
- Sourcing locally or from smaller farms to avoid volatile industrial suppliers.
- Tech Solutions:
- AI tools like BlueCart optimize inventory to reduce waste.
- Customer Transparency:
- Signs explaining price hikes: “Blame the chickens, not us!”
The Ripple Effect: Beyond Breakfast
Eggs aren’t just for brunch—they bind meatballs, glaze pastries, and thicken sauces. Rising costs impact:
- Prepared Foods: Supermarket sushi and salad kits.
- Processed Items: Mayo, pasta, and baked goods.
- Global Cuisine: Ramen, French pastries, and Mexican custards.
Quote:
“Eggs are the duct tape of the kitchen. Losing them forces a total rethink.”
– Marcus Samuelsson, Celebrity Chef
When Will Prices Crack?
- Short-Term: Prices may ease by late 2024 as farms rebuild flocks.
- Long-Term: Climate and disease risks could keep volatility high.
Wild Card: Lab-grown eggs? Startups like Every and Clara Foods are racing to scale animal-free alternatives.
Key Takeaways
🍳 Avian flu, feed costs, and regulations are driving egg prices to record highs.
🍳 Restaurants are shrinking portions, swapping ingredients, and hiking prices.
🍳 Innovation—from plant-based substitutes to AI—may offer long-term relief.
As menus evolve, one thing’s clear: the humble egg’s role in American cuisine is being rewritten. Whether through innovation, substitution, or grit, the industry is determined to keep serving up comfort—sunny-side up or not.
Skyrocketing egg prices are forcing U.S. restaurants to reinvent menus. Explore the causes, adaptations, and future of eggs in this deep dive.
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