Waffle House is feeling the pinch from soaring egg prices and will now pass the cost onto its customers with a 50 cent per egg surcharge across all menus. "The continuing egg shortage caused by HPAI (bird flu) has caused a dramatic increase in egg prices," the popular diner chain stated in a press release.
The company has not provided any timeline for the removal of the surcharge, indicating only it will continuously monitor egg prices. "Customers and restaurants are being forced to make difficult decisions," they added, attempting to convey the seriousness of the situation. Waffle House assures patrons, "as long as they are available, quality, fresh-cracked, Grade A Large eggs will remain a key ingredient in many of our customers’ favorite meals." While the company hopes these price fluctuations are temporary, they cannot predict how long the shortage will last.
According to NBC News, the average price for a dozen eggs was $5.29 at the beginning of January, up from $4.15 just the previous month and $3.65 back in November. This spike in egg prices when compared to around $3.50 for the same quantity just one year earlier highlights the sharp increase consumers have been experiencing.
Since December 2024, the U.S. Department of Agriculture estimates that more than 13 million egg-laying chickens have either died due to HPAI or have been culled to prevent the spread of this contagious disease among flocks. The bird flu has impacted 124 flocks across the U.S., affecting approximately 23 million birds as of February 3. Georgia alone has reported two commercial flocks and one backyard flock affected, totaling nearly 176,000 birds.
The rise of egg prices is not merely due to the bird flu outbreak causing supply shortages. Cage-free egg laws enacted in ten states have also meant tighter restrictions and greater challenges for egg producers. These laws have already gone live across several states, including California, Massachusetts, and Oregon, forcing compliance and changing production methods, possibly exacerbated by the current health crisis.
Georgia-based Waffle House is known for its affordable comfort food and its new surcharge, effective as of this past Monday, is indicative of the wider trend. "We are continuously monitoring egg prices and will adjust or remove the surcharge as market conditions allow," the chain added, attempting to assure customers about the temporary nature of this measure.
The impact of bird flu on the U.S. food service industry remains significant; as prices continue to climb, reports suggest customers are finding empty shelves or paying more than double the average price for eggs. Not only has this situation driven increased prices, but it has also raised concerns about the overall availability of egg products.
The average price per dozen eggs has experienced fluctuations, but predictions indicate it could rise another 20% this year, as some grocery stores have placed purchase limits to hold shortages at bay. On Monday, shoppers at retail outlets found conventional dozen eggs priced as high as $4.49 and cage-free options at $6.19, reflecting the gap between different types of products.
The overall economic impact from avian influenza is compounded by its spread to dozens of mammalian species and confirmed human cases, including fatalities reported this year. While public health officials maintain the current risk remains low, the situation continues to evolve, leaving many restaurants scrambling to find alternatives.
Waffle House’s latest surcharge serves as yet another example of how rapidly the economic environment can shift, forcing establishments long known for stable pricing to reevaluate their models for survival. The decision signifies not only increased operating costs but also broader instability within the supply chain.
Waffle House emphasizes their commitment to quality, describing their eggs as "fresh-cracked" and of superior grading. They have made price adjustments before but this temporary surcharge appears to be more comprehensive, targeting the exact ingredient causing higher operational expenses.
Currently, Waffle House is observing the market and has not ruled out additional adjustments should conditions improve or worsen. With over 2,000 locations spanning 25 states, the restaurant chain faces mounting pressure as input costs escalate, burdening their ability to serve customers at affordable prices.
This backdrop of volatility highlights the challenges food service businesses are facing due to bird flu and resulting changes to how consumers experience pricing. Waffle House is asking its customers for patience, hoping for favorable changes in market conditions soon as they navigate through this unprecedented crisis.