Denny’s Implements Temporary Egg Surcharge Amid Shortage
In response to a significant nationwide egg shortage, Denny’s has announced the introduction of a temporary surcharge for meals that include eggs across its more than 1,500 locations. The specifics of this surcharge amount will vary by market and restaurant, as the chain adapts to local conditions.
Insights from Denny’s
Commenting on the situation, Denny’s stated, “Our pricing decisions are being made market-by-market, and restaurant-by-restaurant due to the regional impacts of the egg shortage,” as reported by Axios. The restaurant chain is mindful of customer expectations regarding value and is committed to finding solutions that maintain affordability through initiatives like their $2, $4, $6, $8 value menu.
Causes of the Egg Shortage
The current egg supply crisis has been largely attributed to an outbreak of avian influenza, resulting in the culling of approximately 160 million birds since the onset of the outbreak in 2022. This tragic measure predominantly affected egg-laying hens, subsequently driving egg prices to unprecedented levels.
According to the Associated Press, the federal government has allocated nearly $2 billion for bird flu management, which includes around $1.2 billion designated for compensating farmers affected by the loss of their flocks.
Current Egg Prices
The latest consumer price index reveals that the average cost of a dozen Grade A eggs in the U.S. hit $4.95 in January, eclipsing the previous record of $4.82 from two years prior. This marks a steep increase from the low price of $2.04 seen in August 2023, highlighting the most dramatic rise since the last major bird flu outbreak in 2015.
Wider Industry Impact
Other dining establishments have started to implement similar surcharges as they cope with soaring egg prices. For example, Waffle House introduced a temporary surcharge of 50 cents per egg in early February. Additionally, many local eateries have followed suit by applying their own egg surcharges.
Retailers like Trader Joe’s, Costco, and Sam’s Club have also responded by limiting egg purchases for customers, reflecting the widespread impact of the ongoing shortage.
