Walk into grocery stores, bakeries, or restaurants across the United States, and you’ll see evidence of what has been dubbed the Great Egg Crisis. A severe shortage caused by the ongoing bird flu outbreak has led to skyrocketing prices, forcing stores to limit purchases and restaurants to adjust their menus—or raise prices for customers.
The ripple effect of rising egg prices is hitting businesses hard, from local diners and bakeries to large restaurant chains. Establishments that rely heavily on eggs for their signature dishes and baked goods now face difficult decisions: increase menu prices, change recipes, or cut items altogether.
Egg Prices Have Doubled in a Year—And Could Climb Even Higher
According to the Bureau of Labor Statistics, the average price for a dozen large Grade-A eggs reached $5.90 in February 2025, compared to just $3.00 a year earlier—a nearly 100% increase. Even worse, prices have surged by 19% in just the past month alone.
On February 26, the U.S. Department of Agriculture (USDA) revised its projections, predicting egg prices could increase by more than 40% in 2025—double its previous estimate of a 20% increase.
“Prices have been unpredictable,” says Amy Emberling, a managing partner at Zingerman’s Bakehouse in Ann Arbor, Michigan. “At first, we held off raising prices, hoping for stabilization. But in the last two months, egg prices have surged aggressively—now we’re paying 50% more than in the fall, with no end in sight.”
For bakeries like Zingerman’s, which uses an estimated 18,000 eggs per week, the impact has been significant.
Restaurant Chains Pass the Cost to Customers
Large restaurant chains, which use millions of eggs annually, have introduced surcharges or adjusted their menus to compensate for the price hike.
Waffle House, which serves approximately 272 million eggs per year, introduced a 50-cent surcharge per egg on customer orders.
Denny’s, with 1,500 locations nationwide, followed suit, adding temporary egg surcharges that vary by location.
Mac’s Deli & Cafe in Santa Rosa, California, has implemented a $2 surcharge per egg dish—a reflection of its skyrocketing cost of $142 per case of eggs, compared to just $30 per case previously.
Fewer Customers, Fewer Profits
Although these price increases help businesses recover costs, they also risk driving away customers.
📉 Placer.ai, a retail and restaurant analytics platform, reports that traffic at breakfast chains like Waffle House, Denny’s, and Broken Yolk Cafe has steadily declined since mid-January—coinciding with the introduction of egg surcharges.
R.J. Hottovy, Placer.ai’s head of analytical research, explains: “Price-sensitive consumers seem to be reacting negatively to egg price surcharges.”
For independent restaurants, the problem is even more pronounced. Many mom-and-pop diners and cafes rely on low-cost breakfast dishes to attract regular customers. Now, customers are reconsidering their orders—or choosing to eat at home instead.
Bakeries, Ice Cream Shops, and Other Businesses Feel the Squeeze
It’s not just breakfast spots struggling with rising egg prices. Bakeries, dessert shops, and ice cream parlors—many of which rely on eggs for custard-based desserts and baked goods—are also being forced to rethink their menus.
Zingerman’s Bakehouse has discontinued its egg salad sandwich and is removing angel food cake from its spring menu due to the high cost of egg whites.
Sweet Republic, an ice cream shop in Phoenix, Arizona, raised the price of waffle cones and waffle bowls and reduced the number of flavors that use an egg-based custard.
Pine River Dairy, a family-owned business in Wisconsin, had to double the price of its ice cream scoops for the first time since 1978 due to rising costs.
In response to rising prices and customer fatigue, some restaurants have chosen to replace egg-heavy dishes with alternatives.
Side Biscuit, a comfort food restaurant in Ann Arbor, Michigan, recently removed its Kaeser Salad (a take on Caesar salad) from the menu, swapping it for a spicy miso-cucumber salad that contains no eggs.
“We don’t relish increasing prices and are sensitive to the price fatigue our customers already feel,” Emberling notes. “But we also need to keep our business sustainable while ensuring fair wages for our staff.”
Could Job Losses Be the Next Impact?
If egg prices continue to rise, the next big concern for restaurants may be staff cuts.
📉 In January 2025, the restaurant industry lost 15,700 jobs, according to the U.S. Bureau of Labor Statistics. Additionally, the agency recently revised its employment figures, revealing that there are 100,000 fewer workers in food businesses than previously reported.
If small restaurants can’t afford to keep up with the rising costs, closures or job cuts may follow.
Economists warn: If prices don’t stabilize soon, menu adjustments won’t be enough, and layoffs could accelerate in the coming months.
Final Takeaways: What Comes Next?
✔ Egg prices have surged nearly 100% in a year, with further increases expected throughout 2025.
✔ Major restaurant chains have introduced surcharges to offset rising costs, but consumer backlash is causing sales to drop.
✔ Bakeries, ice cream shops, and independent restaurants are struggling, with some eliminating egg-heavy menu items.
✔ If the crisis worsens, job losses in the food industry may rise, further impacting workers and businesses alike.
While grocery shoppers have already felt the pinch, restaurant owners are now being forced to make difficult choices. If egg prices continue to soar, customers should expect higher prices, fewer menu options, and potential staffing cuts in the food industry.
For now, all eyes are on the USDA’s next forecast—and whether egg prices will stabilize or continue their climb into unprecedented territory.
– More coverage of rising egg prices and updates from FingerLakes1.com
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