Egg Shortage Drives Up Restaurant Prices in the U.S.

The ongoing shortage of eggs in the United States is beginning to have a significant impact on restaurant chains, forcing many to either raise their prices or seek cheaper alternatives. Waffle House has chosen to implement a 50-cent surcharge per egg on their dishes, while other chains like Biscuit Belly—operating 14 locations across six states—have switched to using liquid eggs in certain recipes to cut costs, according to a report by Bloomberg.

The wholesale price for a dozen eggs in the Midwest has skyrocketed to $7.08, which is seven times higher than it was two years ago, based on data from the U.S. Department of Agriculture. They also forecast an additional 45% increase in 2024.

Supermarkets and Consumer Impacts

Grocery stores have not been spared from the effects of this shortage. In New York, some Whole Foods locations have been selling cage-free eggs for $11.99 per dozen, with a purchasing limit of three cartons per customer. Similarly, in Chicago, retailers like Aldi and Kroger have restricted purchases to two cartons per person due to the scarcity.

The egg liquid market has also been hit, with some processing companies redirecting their production to sell carton eggs instead, thus reducing the availability of liquid eggs for restaurants. This shift is driven by the increased demand for eggs as a protein source, especially among individuals using weight-loss medications such as Ozempic.

Waffle House's Response to Rising Costs

This past Tuesday, Waffle House, a chain with nearly 2,000 locations in the U.S. including several in Florida and corporate offices in Georgia, announced a 50-cent increase on the price of meals containing eggs. This adjustment is a response to the egg shortage triggered by an avian flu outbreak. The company stated in a release reported by EFE that these new prices are already in effect.

While they anticipate these price fluctuations to be temporary, there is uncertainty about how long the crisis will persist. The surge in egg prices is a consequence of the avian flu outbreak, which has led to the culling of millions of laying hens since December, severely affecting supply and driving prices to unprecedented levels.

Broader Implications and Political Debate

Since last year, the average price of eggs in the U.S. has risen by 50%, and experts warn that the shortage shows no signs of easing in the near future. The current average cost for a dozen eggs exceeds $7, more than three times the price from a year ago when it was just over $2.

Over 100 million laying hens have been culled in the U.S. due to the avian flu outbreak, directly impacting the product's availability. The outbreak has also had public health implications, with the Centers for Disease Control and Prevention (CDC) reporting 67 cases of infection and one death in the United States, as noted by EFE.

The egg supply crisis has sparked political debates. Recently, White House spokesperson Karoline Leavitt blamed the previous administration of Democrat Joe Biden (2021-2025) for the shortage and price hikes, citing the mass culling of 100 million chickens to control the virus's spread.

As the situation continues, rising production costs are still affecting both restaurants and consumers, with no clear resolution in sight. According to the Associated Press, Waffle House's 50-cent surcharge per egg is a direct response to the most severe avian flu outbreak in a decade, which has drastically reduced egg availability and increased costs.

The ongoing avian flu has forced farmers to cull millions of chickens monthly, driving the average price of a dozen eggs in December to $4.15. The U.S. Department of Agriculture projects prices will rise another 20% in 2024, raising concerns in the food industry and among consumers.

Waffle House, known for its affordable breakfast offerings, stated that the surcharge is now in effect across all its menus. Currently, a two-egg breakfast with toast and a side dish costs $7.75. The company is closely monitoring market prices and may adjust or remove the surcharge depending on how the supply crisis unfolds.

In addition to economic impacts, the shortage has led to unusual incidents, such as the theft of 100,000 eggs in Pennsylvania, valued at $40,000, which is currently under investigation by the police, as reported by El Nuevo Herald.