Denny’s has announced a temporary surcharge to meals containing eggs at some of its restaurants due to the nationwide egg shortage caused by outbreaks of bird flu.
The big picture: The decision to add the surcharge is being made on a market-by-market and restaurant-by-restaurant basis to address the regional impacts of the egg shortage, reflecting the localized nature of the issue.
- In response to the egg shortage and price surge, Denny’s stated it is collaborating with vendors to minimize the impact of market volatility on its costs and menu pricing.
Driving the news: Outbreaks of bird flu in 2022 have disrupted the U.S. egg supply and led to heightened demand, resulting in a substantial 15.2% price increase in January, according to the Labor Department’s consumer price index.
- This increase in egg prices accounted for nearly two-thirds of the total monthly rise in food prices and marked the largest surge in egg prices since June 2015.
Zoom out: Major U.S. grocers such as Trader Joe’s and Whole Foods have implemented purchasing limits to manage product availability, while restaurants operating on thin margins have started passing costs on to consumers.
- Waffle House, a Southern breakfast food chain, also implemented a temporary 50-cent-per-egg surcharge, acknowledging the difficult decisions consumers and restaurants are faced with as egg prices continue to rise exponentially.
