In 2025, many restaurant owners are facing an unexpected challenge: dramatic increases in egg prices. A troublesome combination of inflation and avian flu has pushed the price of eggs to near-record levels, creating a temporary yet frustrating challenge in kitchens across America.
“We’ve heard from restaurant owners that a $35 case of eggs has risen to $175… A sudden surge in input costs like this can seriously challenge the industry,” said Josh Gold, eVP of Sales.
A staple ingredient in countless recipes, from breakfast dishes to baked goods, eggs play a major role in the daily operations of many restaurants. The significant price increase creates a non-negotiable challenge for the restaurant industry, affecting menu pricing, profit margins, and the overall viability of businesses.
Continue reading as we explore the factors behind rising egg costs, how these changes impact your restaurant, and practical strategies for navigating these dynamic times.
Why Are Egg Prices So High?
The spike in egg prices can be attributed to a combination of factors that have converged to create a perfect storm for the food industry. The two main drivers: Inflation and widespread cases of avian flu.
Inflation has steadily pushed food prices higher for the last few years. Compared to other staple breakfast components, like bacon, egg prices have seen dramatic fluctuations over the past decade, beginning around 2014.
Source: FRED St. Louis
Egg prices softened from 2015 to 2022 when prices skyrocketed. They decreased again shortly after, only to rise significantly once again in 2024.
The onset of avian flu heightened this trend. Poultry farms have had to downsize their supply considerably to contain the outbreak, creating a supply shock in egg markets. Prices increased quickly and significantly, and restaurants are feeling the pressure.
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How Egg Prices Impact Restaurants
Eggs are used in a variety of dishes, and even a modest increase in cost can add up quickly.
Restaurants have had to make difficult decisions of whether to remove egg-related items from the menu and risk losing customer satisfaction or absorb the cost internally and work with diminished revenue. Sides are chosen on a case-by-case basis, like Waffle House, which added a temporary .50 cent surcharge to egg-related items.
Regardless of the direction a restaurant takes, this situation is a lesson in flexibility for all business owners. It’s a temporary challenge, of course, but mitigating market disruptions and moving forward is a part of running a successful business. Challenges are guaranteed; It’s those who overcome them that go on to greatness.
How Restaurants Can Handle Surging Prices for Eggs
Given the challenges posed by rising egg prices, restaurant owners need to adopt proactive strategies to manage increased costs effectively. Here are a few suggestions:
- Menu Adjustments: Evaluate your menu to identify opportunities where you can adjust recipes or substitute ingredients without compromising quality.
- Portion Control: Consider refining portion sizes to better manage ingredient usage while still delivering a satisfying customer experience.
- Look for Savings in Other Areas: Look for areas in your operations where you can reduce waste or improve efficiency, helping to offset increased costs elsewhere.
- Capital Resources: Having a line of credit or other credit facility in place can allow restaurants to absorb price surges without impacting daily operations.
Restaurant owners, we feel for you. If you’re considering accessing business capital to mitigate disruptions in your kitchen, our advisory team is here to help.
When Will Egg Prices Go Down?
It’s difficult to predict the dynamics of commodity prices with absolute certainty, but industry data from the United States Department of Agriculture expect egg prices may begin to stabilize – and even decline – by the third quarter of 2025. This prediction is dependent on how the U.S. contains the bird flu outbreak. If progress isn’t made quickly, egg prices will remain elevated.
How National Business Capital Can Help
At National Business Capital, you’ll work with a business advisor to find the capital that makes the most sense for your unique needs. From our in-house capital solutions to those of our strategic lending partners, every restaurant can find the capital that allows them to mitigate disruptions from pricing surges and stay focused on their growth strategy.
Our support includes:
- Fast, Flexible Funding: Access to the capital you need quickly, so you can address rising ingredient costs without interrupting your operations.
- Customized Financial Solutions: Your advisor works closely with you to understand your business challenges and design funding options that align with your specific needs and long-term goals.
- Ongoing Dedicated Support: From initial consultation through to funding and beyond, your advisor is committed to ensuring that you have the financial support necessary to thrive.
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Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advice from National Business Capital and the author. Do not rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely on this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there may be errors, omissions, or mistakes.
Phil Fernandes
Phil Fernandes serves as Chief Operating Officer for National Business Capital. He boasts 15 years of experience in sales and 10+ years of management experience as National’s VP of Financing/Analytics. Phil is also an excellent writer who's completed the Applied Business Analytics executive program at MIT and regularly contributes articles to National Business Capital’s blog.
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