The price of breakfast just went up a notch.
Waffle House, the beloved Georgia-based breakfast chain, has implemented a 50-cent surcharge on every egg-containing dish.
Is this a temporary blip or an indicator of deeper economic issues affecting the restaurant sector?
This article explores the forces behind this decision, the financial implications for both the company and its customers, and whether this surcharge signals broader challenges across the industry.
The Egg-Sact Details of the Surcharge
Effective February 3rd, Waffle House applied a surcharge to all menus across its nearly 2,000 locations in 25 states.
The company insists that its commitment to quality, fresh-cracked Grade A large eggs remains unchanged.
The duration of the surcharge?
It all hinges on the volatility of egg prices.
“We are continuously monitoring egg prices and will adjust or remove the surcharge as market conditions allow,” the chain stated.
But what exactly is driving this sudden price surge?
Let’s dive deeper.
Avian Flu: The Culprit Behind the Crisis
The primary catalyst for this egg-flation is the rampant outbreak of avian influenza, or bird flu, across the United States.
More than 14 million birds from commercial flocks had been lost as of January 2025, leading to record-high egg prices at grocery stores.
In December, a dozen Grade A large eggs averaged $4.15, according to the USDA.
In certain locations, prices skyrocketed to as much as $12 a dozen, prompting some stores to impose purchase limits.
The numbers tell a stark story.
The current outbreak, which began in 2022, has affected over 135 million birds.
Avian flu’s highly contagious nature makes it notoriously difficult to control.
As Wells Fargo economist Michael Swanson noted in 2023, “Once one bird gets the flu, they all get taken out in short order.”
Adding to the complexity, avian flu can also affect other animals, including cows and cats.
In December, California Governor Gavin Newsom streamlined the state’s response after cases were detected in dairy cows.
Are these isolated incidents, or harbingers of a wider agricultural crisis?
Human Health: Is Bird Flu a Threat?
While human contraction of bird flu is rare, it’s not impossible.
In Louisiana, a patient with underlying health conditions died after contracting a strain of avian flu following contact with a non-commercial backyard flock and wild birds, according to the CDC.
The risk from commercially produced eggs remains low due to stringent safety testing and inspection programs, as per the FDA.
To further mitigate risks, the FDA recommends cooking eggs to a safe temperature and avoiding cross-contamination.
Better safe than sorry, as they say.
Backyard Chickens: A Viable Alternative?
Soaring egg prices have spurred increased interest in backyard chickens.
Keeping home chickens as a pastime has grown since the pandemic.
However, prospective chicken owners should carefully consider the planning and investment required to raise chickens and protect them against bird flu.
Costs may far exceed the nationwide average of $4.15 a dozen.
Kathy Shea Mormino, a home chicken blogger and author, cautions, “Anyone who’s done an ounce of research will very quickly understand that there are no free eggs, there are no inexpensive eggs in keeping chickens.” She adds that start-up costs and the learning curve can be significant.
Coop costs alone can range from $200 to $2,000, while feeders and waterers can range from $8 to $50 or more.
Matthew Aversa, co-owner of a nonprofit sanctuary and farm animal rescue, notes, “We’ve seen a real uptick in calls recently from people wanting to start their own backyard flocks.
With the egg shortages at grocery stores, many are excited about the idea of raising chickens and taking steps toward sustainability.” His organization receives at least a dozen inquiries per week about adopting entire flocks.
Is this a temporary fad, or a shift toward more sustainable living?
Kate Perz, the animal science coordinator for Cornell Cooperative Extension of Suffolk County, New York, points out, “It’s not always cost-effective.
You have to really look at how many eggs you’re eating and what the cost of those are versus what you would be spending.” There are, of course, other intangible benefits, such as the joy of having chickens around.
Legal and Logistical Considerations
Mormino, author of “The Chicken Chick’s Guide to Backyard Chickens,” emphasizes the importance of researching local regulations before diving in.
“Don’t assume your county, town, or city will allow it.” She advises checking zoning and building codes yourself or consulting a municipal law attorney.
Are building permits required for coops?
Are roosters banned under noise ordinances?
Many codes are permissive use regulations, meaning that if the code doesn’t explicitly permit something, it’s not allowed.
She also recounted her personal experience fighting a lawsuit to legalize backyard chickens in her farming town.
It’s a reminder that local politics can significantly impact your ability to pursue this option.
Mitigating Bird Flu Risks in Backyard Flocks
Bird flu’s highly contagious nature poses a significant risk to backyard chickens, especially if they roam freely.
Mormino notes, “There’s a limited number of things that we can do because our birds live where wildlife live.” She advises contacting the USDA if birds die suddenly and need testing for bird flu.
Symptoms of bird flu include sudden death without clinical signs, swelling of the head, diarrhea, stumbling, decreased egg production, and coughing.
Experts recommend avoiding bringing sick birds indoors, washing hands thoroughly after tending to chickens, and using dedicated footwear.
Most importantly, don’t introduce new chickens into your flock without proper quarantine and health checks.
Cost Analysis: Backyard Chickens vs.
Store-Bought Eggs
Sarah Penny, who keeps chickens on her 7,000-square-foot property in Knoxville, Tennessee, estimates her startup costs at around $2,500.
Monthly costs vary based on feed and coop maintenance.
She spends about $15-$20 every two weeks on feed and uses the deep litter method for composting, reducing the frequency of coop cleanouts.
“But the cost of starting with backyard chickens is definitely quite expensive.
I don’t know if a lot of people know that,” she says.
Penny feeds her chickens healthy human leftovers, avoiding toxic foods like onions and avocados.
Ultimately, she finds it worthwhile because her family consumes a lot of eggs, using about a dozen every two days.
“We’re an ingredient household, so the majority of our food is cooked from scratch,” she explains.
So, is the investment worth it for your household?
According to the USDA, wholesale prices for a dozen large eggs in the Midwest now cost an average of $7.08, about seven times the price just two years ago.
The United Egg Producers estimates that some 104 million egg-laying hens have been lost since the outbreak started in 2022, with 29 million killed since October.
What impact will this continue to have on consumers?
Ozempic and Egg Demand: An Unexpected Twist
The rising popularity of drugs like Ozempic, used for weight loss, is also boosting demand for eggs as a source of protein, according to Amanda Oren, vice president of industry strategy for grocery in North America at supply-chain platform RELEX Solutions.
This adds another layer of complexity to the supply-demand equation.
Who would have predicted that weight loss drugs could influence egg prices?
Regional Disparities and Consumer Reactions
In New York City, prices have reached as high as $11.99 for a dozen cage-free eggs at Whole Foods Inc., which has placed a three-carton purchase limit on customers at some locations.
Organic eggs are also in short supply.
In Chicago, grocers including Aldi, Fresh Thyme, and Marianos have limited purchases to two cartons of eggs.
Panic-buying behavior only exacerbates the problem.
Are consumers stockpiling eggs when they can find them?
Karyn Rispoli, managing editor for eggs in the Americas at price-reporting service Urner Barry, notes that the outbreak first hit grocery stores because the farms impacted by the most recent wave of bird flu primarily supplied the retail sector.
Some companies that typically crack eggs to make liquid products are now shifting to loading cartons because it’s more profitable, according to the USDA.
This impacts restaurants that rely on liquid eggs.
Coulter of Biscuit Belly is now turning to liquid eggs for some menu items to cope with rising costs without raising prices for consumers.
“We know the consumer is fed up with high prices,” he said.
“We’re just going to hold off for now and just watch it.”
Consumer Panic and Stockpiling Behavior
Rising egg prices and shortages have sparked panic-buying, reminiscent of the early days of the COVID-19 pandemic.
Jagdish Vastani, a pricing expert at Emory’s Goizueta Business School, observes that some consumers who typically buy a dozen eggs are now buying four dozen.
This creates a vicious cycle of higher demand and empty shelves.
Vastani suggests that some consumers may be confusing egg price increases with worries about consumer goods tariffs.
“Many people are assuming that egg prices are going up because of tariffs,” he said.
He also notes that some industries may be trying to sneak in price increases under the guise of tariffs.
Is this a legitimate concern, or simply a case of consumer paranoia?
Neil Saunders, a retail analyst at GlobalData, agrees that talk about shortages and constantly increasing prices is prompting people to stock up.
“This creates a vicious cycle of higher demand at a time when supply is already under pressure,” he says.
“It is going to take quite some time for the market to normalize.”
Root Causes: A Multifaceted Problem
Experts point to several factors driving up egg prices: the bird flu outbreak, rising business costs, and, in some locales, changing laws.
The combination of these factors has created a perfect storm in the egg market.
Price Trends: A Deep Dive into the Data
Comparing egg prices from December 2023 to December 2024, the latest available data from the Bureau of Labor Statistics, shows a 65.1% increase nationwide.
The average cost in December 2024 for a dozen Grade A eggs in the U.S.
was $4.15, compared to $2.51 in December 2023.
As of January 31, the wholesale price for a carton of large eggs in the New York market rose to $7.25 per dozen, up from $6.06 in early January.
The Midwest region saw prices at $7.03 per dozen, up from $5.75.
According to the USDA, retail egg prices increased by 8.4% in December 2024 and continue to experience volatile month-to-month changes.
The volatility makes it difficult for both businesses and consumers to plan ahead.
Is there any stability on the horizon?
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Navigating the Egg Crisis: Frequently Asked Questions
Why did Waffle House add an egg surcharge?
Waffle House implemented a 50-cent surcharge on egg-containing dishes due to the rising cost of eggs caused by the avian flu outbreak.
What is causing the increase in egg prices?
The primary cause is the widespread avian influenza (bird flu) outbreak, which has led to the loss of millions of commercial birds.
Additionally, rising business costs and increased demand are contributing factors.
Is bird flu a threat to human health?
While human contraction of bird flu is rare, it is possible.
Stringent safety testing and inspection programs minimize the risk from commercially produced eggs.
It is recommended to cook eggs to a safe temperature and avoid cross-contamination.
Are backyard chickens a good solution to egg shortages?
Backyard chickens can be an option, but they require significant planning and investment.
Start-up costs, the risk of bird flu, and local regulations should be carefully considered.
What can restaurants do to mitigate the impact of egg shortages?
Restaurants are exploring alternatives like switching to cheaper eggs or liquid eggs for some menu items to cope with rising costs without significantly raising prices for consumers.
The Great Egg Scramble: Finding Stability in Uncertainty
The Waffle House egg surcharge symbolizes the broader challenges impacting the restaurant industry and consumers alike.
The avian flu outbreak, coupled with rising business costs and increased demand, has created a volatile egg market.
While short-term solutions like backyard chickens and alternative egg sources offer some relief, long-term stability hinges on controlling the spread of avian flu and addressing underlying economic factors.
Cracking the Code: Your Next Steps
- Stay informed about avian flu outbreaks and their impact on egg prices through reliable sources like the USDA and CDC.
- Consider the costs and benefits of backyard chickens, researching local regulations and potential risks.
- Support restaurants and businesses adapting to the egg crisis by trying alternative menu options and being understanding of price fluctuations.
