Denny’s Implements Temporary Egg Surcharges Amid Nationwide Shortage
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Denny’s, the popular diner chain, has announced a temporary surcharge on meals that include eggs. This decision comes amidst a widespread egg shortage across the nation, primarily driven by an outbreak of avian flu.
Details of the Surcharge
According to a statement provided to CNBC, the specific surcharge amounts will vary across Denny’s 1,500 locations. However, the company has not disclosed which restaurants will adopt these surcharges.
Denny’s Official Statement
In a statement to Axios, Denny’s communicated, “Our pricing decisions are being made market-by-market, and restaurant-by-restaurant due to the regional impacts of the egg shortage.” They also emphasized their commitment to providing value, particularly through their existing $2 $4 $6 $8 value menu, while navigating the complexities of the current market conditions.
The Impact of Avian Flu on Egg Production
The ongoing avian flu outbreak has led to the culling of approximately 160 million birds since it began in 2022, significantly affecting the supply of egg-laying chickens and contributing to soaring egg prices. The federal government’s response has included nearly $2 billion in expenditures, which encompasses around $1.2 billion in financial assistance to farmers for the loss of their flocks.
Current Egg Price Trends
As reported by the Associated Press, the average price for a dozen Grade A eggs surged to $4.95 in January, surpassing the previous record of $4.82 set two years prior. This notable increase is more than double the low price of $2.04 recorded in August 2023 and marks a significant rise not seen since the last bird flu outbreak in 2015.
Responses from Other Restaurants
Other dining establishments are also feeling the pinch of rising egg prices. Waffle House recently announced a temporary surcharge of 50 cents per egg. Smaller, local restaurants are similarly imposing surcharges to accommodate heightened costs. Additionally, major retailers such as Trader Joe’s, Costco, and Sam’s Club have begun limiting the quantity of eggs customers can purchase in-store.