In brief
Rising egg prices, exacerbated by bird flu outbreaks, pose a significant challenge for small eateries. Owners are innovating with substitutes and menu adjustments to manage costs effectively, while concerns persist over future price hikes.
Like many restaurants, Square Diner in New York City is grappling with exorbitant egg prices, given that eggs make up sixty percent of its menu. The surge in egg prices stems from significant bird flu outbreaks that led to the destruction of around 15 percent of the nation’s egg-laying hens. This crisis has pushed wholesale egg prices over $8.50 per dozen as of February, straining both grocery shoppers and small businesses alike.For restaurant owners who depend heavily on eggs, this spike in cost could threaten their livelihoods. To combat inflated prices, many are getting inventive. Some are shifting recipes, incorporating liquid or powdered eggs that haven't surged in price as much, and diversifying their offerings with items such as falafel, packaged snacks, or fresh flowers—anything that doesn’t require eggs.Although there has been a slight decline in egg prices recently, the current rates remain historically high. The U.S. Department of Agriculture has projected that egg prices may rise nearly 58 percent this year. Food trends, including the popularity of all-day breakfast and protein-rich diets, continue to sustain high egg demand, according to economists at CoBank.Small eateries face unique logistical challenges, as eggs are highly perishable and prone to spoilage. Most small businesses lack the capital to stockpile eggs. "You can’t stock up on a month’s worth of eggs,” explains Rob Handfield, a professor at North Carolina State University. “You rely on daily or weekly deliveries if you’re a small operation." The looming fear of further outbreaks only adds to the anxiety felt by these business owners as they navigate this tumultuous economic landscape.
