This article explores how small diners and eateries are coping with skyrocketing egg prices, driven by bird flu and rising demand. With creative solutions and alternative ingredients, restaurant owners are striving to maintain their businesses while navigating this difficult economic landscape.
Small Eateries Struggle with Record Egg Prices Amid Rising Costs
Small Eateries Struggle with Record Egg Prices Amid Rising Costs
As egg prices soar due to supply issues, restaurants across the U.S. are adapting to this economic challenge.
In recent months, small restaurants have grappled with unprecedented increases in egg prices, significantly impacting their operations and bottom lines. The Square Diner in New York City, where eggs constitute a large portion of the menu, has faced these difficulties head-on, reflecting a broader trend affecting eateries across the country.
The surge in wholesale egg prices to over $8.50 a dozen can be attributed to bird flu outbreaks that resulted in substantial losses of egg-laying chickens. With grocery chains experiencing similar burdens, many smaller establishments, relying on the basic ingredient, are feeling the strain as they now pay substantially more for this essential item. Traditionally, eggs have comprised a staple of diner menus and breakfast chains, but now, these businesses must consider adding surcharges or altering menu offerings to offset costs.
In response, restaurant owners are getting inventive, swapping fresh eggs for liquid or powdered alternatives that have seen less dramatic price spikes. Some, like the Square Diner, have also diversified their menus to include non-egg offerings. Others are selling takeout items such as falafel or even non-food products like fresh flowers to maintain cash flow under these challenging conditions.
Though prices have seen a slight decrease in the past few weeks, they remain alarmingly high and present ongoing concerns. The U.S. Department of Agriculture forecasts that egg prices could further increase by nearly 58 percent in the coming year, especially as demand remains strong due to trends favoring all-day breakfast and protein-rich diets.
Rob Handfield, a supply chain expert, emphasizes the logistical challenges for smaller businesses, noting that eggs are highly perishable, making stockpiling impractical. Without adequate cash reserves for storage, these restaurants rely heavily on frequent deliveries. As these small businesses navigate current economic challenges, their ability to innovate and adapt will be crucial to their survival amidst continued pressures on egg prices.
The surge in wholesale egg prices to over $8.50 a dozen can be attributed to bird flu outbreaks that resulted in substantial losses of egg-laying chickens. With grocery chains experiencing similar burdens, many smaller establishments, relying on the basic ingredient, are feeling the strain as they now pay substantially more for this essential item. Traditionally, eggs have comprised a staple of diner menus and breakfast chains, but now, these businesses must consider adding surcharges or altering menu offerings to offset costs.
In response, restaurant owners are getting inventive, swapping fresh eggs for liquid or powdered alternatives that have seen less dramatic price spikes. Some, like the Square Diner, have also diversified their menus to include non-egg offerings. Others are selling takeout items such as falafel or even non-food products like fresh flowers to maintain cash flow under these challenging conditions.
Though prices have seen a slight decrease in the past few weeks, they remain alarmingly high and present ongoing concerns. The U.S. Department of Agriculture forecasts that egg prices could further increase by nearly 58 percent in the coming year, especially as demand remains strong due to trends favoring all-day breakfast and protein-rich diets.
Rob Handfield, a supply chain expert, emphasizes the logistical challenges for smaller businesses, noting that eggs are highly perishable, making stockpiling impractical. Without adequate cash reserves for storage, these restaurants rely heavily on frequent deliveries. As these small businesses navigate current economic challenges, their ability to innovate and adapt will be crucial to their survival amidst continued pressures on egg prices.
