Denny’s restaurants have begun charging customers extra for egg-based meals amid a nationwide shortage, becoming the latest chain to pass on costs from a devastating bird flu outbreak affecting America’s food supply.
At a Glance
- Denny’s is adding temporary egg surcharges that vary by region due to the nationwide egg shortage
- The shortage stems from a bird flu outbreak that has killed millions of egg-laying chickens
- Egg prices have more than doubled, with costs reaching as high as $8 per dozen in some areas
- Other chains like Waffle House have already implemented similar surcharges
- Major retailers including Costco and Trader Joe’s have limited egg purchases
Bird Flu Cracks the Food Supply
A widespread bird flu outbreak has forced America’s restaurants to make difficult choices as egg prices soar to historic levels – and some restaurants are passing the cost on to customers.
Classic American diner chain Denny’s joins a growing list of food service businesses adding surcharges to offset the unprecedented cost increases. The avian influenza outbreak has led to the culling of millions of birds across the country, primarily affecting egg-laying chickens and creating significant supply constraints that ripple throughout the food service industry. According to USDA data, at least 18.9 million birds have been affected by the virus in just the last 30 days.
Consumers have already seen the impact at grocery stores, where egg prices reached a record high average of $4.95 per dozen in January for Grade A eggs in U.S. cities. In some locations, prices have skyrocketed even higher, with reports of eggs selling for up to $8 per dozen. The shortage has become so severe that major retailers including Costco, Sam’s Club, and Trader Joe’s have imposed purchase limits on eggs to prevent hoarding and ensure more equitable distribution among shoppers.
Denny’s has opted for a market-by-market approach to implementing the egg surcharges, recognizing that the impact of the shortage varies across different regions of the country. The company has not specified exactly how much extra customers will pay at different locations, but the surcharge is being presented as a temporary measure to navigate the challenging market conditions while minimizing the impact on diners.
“Our pricing decisions are being made market-by-market, and restaurant-by-restaurant due to the regional impacts of the egg shortage,” Denny’s said in a statement.
Waffle House, another popular breakfast chain, has already implemented a 50-cent price increase for egg-containing meals. Other smaller restaurants across the country have been forced to make similar adjustments. Despite these challenges, Denny’s has emphasized its commitment to providing value for customers through options like its budget-friendly value menu, which offers items at $2, $4, $6, and $8 price points.
Government Response and Economic Impact
The egg shortage has triggered a substantial government response, with the federal government spending nearly $2 billion on bird flu mitigation efforts to date. This includes approximately $1.2 billion in payments to farmers who have lost birds to the disease. The crisis has developed into a significant economic concern, with the U.S. Department of Agriculture projecting that egg prices could rise by another 20% this year, further straining household budgets and food service businesses.
The shortage has even led to unusual consequences at America’s borders, with authorities stopping over 90 people from smuggling raw eggs from Mexico into the United States. Meanwhile, Turkey has stepped up to help address the shortage by exporting a record 420 million eggs to the U.S. market. State and federal agencies are implementing various measures to address the crisis, including temporarily suspending cage-free egg laws in some jurisdictions to increase production flexibility.
2020 was the year the world went nuts over a bat virus. 2025 is the year we lose it over…chickens.
