Denny’s Introduces Temporary Egg Surcharge Amid Rising Prices

In response to a significant increase in egg prices across the nation, Denny’s has announced a temporary surcharge for customers who order egg dishes. This decision follows a disturbing trend in the breakfast restaurant industry as egg prices have surged due to a nationwide shortage.

Background on the Egg Shortage

The escalation in egg prices can be largely attributed to the ongoing effects of a bird flu outbreak. Over the last month alone, nearly 19 million birds from commercial and backyard flocks have been culled, exacerbating the already limited supply. The U.S. Department of Agriculture (USDA) confirmed that this situation has been deteriorating since a highly pathogenic avian influenza (HPAI) strain was identified in the U.S. three years ago.

Details of the Surcharge

Denny’s, which operates 1,499 locations primarily through franchises across the United States, stated that the fee would differ based on regional pricing variations. The company expressed that this measure is necessary to mitigate the pressures of market fluctuations on its operational costs and menu pricing.

Impact on the Breakfast Market

Waffle House recently introduced a similar strategy by implementing a 50-cent surcharge on egg orders, emphasizing a hopeful outlook that current price spikes may not last. However, they acknowledged the unpredictability of the supply chain issues.

Current Market Prices

As of January, the price for a dozen large, grade-A eggs averaged $4.95, reflecting a notable increase from December’s price of $4.15, according to the Bureau of Labor Statistics. The USDA has predicted that egg prices could rise by as much as 20% this year due to the supply crisis.

Other Chains’ Responses

Despite the rising costs, not all chains have adjusted their pricing strategies. The International House of Pancakes (IHOP), with over 1,800 restaurants worldwide, has so far refrained from raising menu prices in response to the egg shortages. The chain has not yet commented on whether this could change in the future.

Conclusion

The egg surcharge implemented by Denny’s reflects a broader challenge facing the food service industry as they navigate the implications of supply chain disruptions. As these dynamics continue to evolve, more restaurants may need to consider similar measures to manage costs and sustain operations.