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Rising Egg Prices Impact Restaurants Across the U.S.
As 2024 draws to a close, James Wong, a baker at Breadbelly in San Francisco, is bracing for further increases in egg prices. Following significant surges in late 2022 and throughout 2023 due to widespread bird flu outbreaks, Wong has seen his costs skyrocket by 150 percent in just four months. “It’s definitely more prevalent,” he observes, noting the ongoing challenges posed by the bird flu crisis.
The United States Department of Agriculture (USDA) reported that egg prices in December 2024 were 36.8 percent higher than the previous December, although they remained below January 2023 levels. Projections indicate a further increase of 20.3 percent for 2025 as ongoing bird flu situations continue to disrupt the poultry supply chain, leading to a record number of chicken fatalities and leaving egg supplies struggling to meet demand.
This volatile environment presents unique challenges for bakeries that incorporate eggs into their menus. Wong reports difficulties finding large eggs, often receiving medium-sized eggs at higher prices instead. This shortage forced him to remove the iconic egg coffee—made with fresh egg yolks—from the menu. The future of other popular items, like the egg salad bun priced at $17, is uncertain, despite their popularity among customers.
The rising costs affect not only individual items but also the very essence of Breadbelly’s offerings. Wong points out that their signature kaya toast relies on eggs for both the bread and the jam, highlighting the interconnectedness of ingredient prices and menu viability. Many food businesses have operated under the assumption of stable egg availability, but that assumption is now being tested.
In Brooklyn, Eric See, owner of Ursula, faces similar challenges. His restaurant, famed for breakfast burritos and brunch menus, sees about 50 percent of its menu reliant on eggs. While prices for liquid eggs have remained stable, loose egg prices have been erratic, soaring from $45 for 15 dozen eggs in September to as much as $170 recently.
See remarks, “I’ve never seen the prices increase this quickly.” The restaurant has absorbed these rising costs thus far, but the tight margins complicate that strategy during traditionally slow months. He notes, “With breakfast, you can’t adjust menu prices as flexibly as with higher-end items like seafood.”
Prior to current price hikes, See bought extra eggs in anticipation of further increases and has stored them at a friend’s location due to limited space. However, he recognizes a pressing need to reassess when he restocks at even higher prices and predicts that some of these additional costs will need to be passed on to customers, despite previous attempts to keep his prices stable.
Major chains are not immune to the crisis; Waffle House recently announced a temporary surcharge of 50 cents per egg due to the rising costs associated with their annual consumption of 272 million eggs.
Joe Frillman, chef and owner of Daisies in Chicago, has managed to keep his pasta prices unchanged, even as egg costs have jumped from nine cents to around 60 cents per egg. To mitigate costs, Frillman has strategically altered his menu, introducing new dishes that do not rely heavily on eggs and modifying existing recipes to focus less on the pricier ingredients.
Frillman envisions dishes such as a brown-butter tajarin that emphasizes the noodles rather than costly components, indicating a creative pivot in response to the financial strain. Similarly, classic items may be adjusted to incorporate more vegetables or cheese to reduce reliance on egg-based dough.
On the pastry front, executive pastry chef Leigh Omilinsky is experimenting with vegan alternatives and egg-free desserts, replacing traditional eggs with flax seeds, which offer analogous binding properties.
Contrastingly, some restaurants managing high egg volumes have found ways to shield themselves from price hikes. Jesse Wendel, executive chef at Uncle Wolfie’s Breakfast Tavern in Milwaukee, sources eggs from a local farm at costs lower than market rates. “We’re incrementally raising our prices, which is fine,” he noted about the small-scale supplier’s adjustments.
Evan Hanczor, owner of Little Egg in Brooklyn, shares a similar experience, explaining that his primary suppliers have kept prices relatively stable. He emphasizes that his choice to work with smaller, local farms helps insulate his business from broader market fluctuations.
“When shocks to the larger food supply chain occur, we’re less vulnerable because of our relationships with local farmers,” Hanczor explains, suggesting that supporting local economies has benefits beyond just quality.
The crisis in the egg market can largely be attributed to the factory farming systems that produce commodity eggs, where conditions can facilitate the rapid spread of diseases like bird flu. Smaller farms, which typically produce specialty eggs, may also face challenges, as seen with Long Island’s Crescent Duck Farm, recently forced to cull their entire flock due to an outbreak.
Looking ahead, industry experts warn that the tight supply is likely to persist. Emily Metz, president and CEO of the American Egg Board, expressed concerns about the ongoing bird flu situation, indicating that it will take considerable time before supply normalizes. As a result, consumers may increasingly confront higher prices for eggs and egg-based products.
Wong reflects on this shifting reality, noting that the notion of eggs being a staple commodity is quickly fading. “The idea of commodity products being affordable is disappearing,” he concludes, illustrating the broader implications of these agricultural challenges.
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