The current bird flu outbreak has resulted in a huge decline in egg production over the last few months due to contamination risks. Inventory has fallen around 2% nationwide, making it harder for the industry to keep up with consumer demand as the flu outbreak drags on.
Because of the egg shortage, prices have skyrocketed, with a 12-count carton of eggs costing approximately $8.50 in New York and up to over $10 in some states. This is a huge jump from the beginning of this year when eggs reached $5 per dozen, which now seems like a bargain in comparison.
According to the U.S. Bureau of Labor Statistics, the cost of eggs rose to an all-time high, rising over 15%. This was the most significant increase since June 2015, accounting for about two-thirds of the monthly food-at-home increase.
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Due to the continuous rise in food prices overall, restaurants, especially small businesses, are struggling to survive.
American diners are known for serving large portions at a lower price than most breakfast places. Unfortunately for these establishments, some of their key ingredients, eggs and milk, have become a luxury to afford or even obtain.
Breakfast dishes displayed at an IHOP location.
Jeff Greenberg/Getty Images
Popular American breakfast chains add surcharges to menu items containing eggs
Over the last few days, small local diners have increased prices on menu items containing eggs, which was expected since they tend to generate less revenue and have less investment capability than the usual company-owned restaurants.
However, the fluid state of the economy has now trickled down to even some of the biggest American breakfast chains.
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In early February, Waffle House announced it would implement a 50-cent surcharge per egg on all its menus nationwide. Although this is a phenomenon for the chain, it’s not the first (or probably the last) diner chain to increase the prices of its egg-based menu items.
By the end of that same month, Denny’s (DENN) also joined the trend, announcing it would temporarily add surcharges to menu items containing eggs since prices have skyrocketed over the last few months. Denny’s will implement the price increases based on the market and location.
IHOP announces the launch of the new Everyday Value Menu
This month, IHOP (DIN) announced the launch of the new Everyday Value Menu, featuring four of the chain’s most popular breakfast combos at just $6 to $7 each, depending on the location. This menu is available every day of the week from 7 a.m. to 10 p.m.
The menu includes select fan-favorite items, including the Breakfast Faves Combo, Ham & Cheese Omelette, French Toast Faves Combo, and House Scramble.
However, there’s a catch. This new value menu will only be available until June 1, as it is being tested in only four U.S. cities: Baltimore, Maryland; Oklahoma City, Oklahoma; Jacksonville, Florida; and Fresno-Visalia, California.
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The most surprising part about this launch is not the affordable prices but rather that all the select menu items contain eggs, which are currently one of the most costly grocery staples in the nation.
This reveal comes after two of IHOP’s biggest rivals, Denny’s and Waffle House, announced they would charge extra for all egg-based dishes on their menus.
Unlike its rivals, IHOP has not announced any price increases to its egg-based menu items. Instead, it has taken the opposite approach by offering value deals, which could be a strategy to get ahead of the competition.
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