Denny’s Introduces Egg Surcharge Amid Rising Costs and Bird Flu Shortages

Denny’s, the well-known American diner chain, has implemented a temporary surcharge on egg-based meals in response to the ongoing nationwide egg shortage and rising costs.

“Due to the nationwide egg shortage and increased cost of eggs, some of our restaurant locations will need to temporarily add a surcharge to every meal that includes eggs,” Denny’s stated to CNN. The company emphasized that the surcharge varies by region and individual restaurant, depending on local supply chain impacts.

The shortage stems from a persistent bird flu outbreak, which has significantly reduced the population of egg-laying hens across the U.S. since 2022. According to the U.S. Department of Agriculture, more than 140 million birds have been affected, with 18.9 million culled in the past month alone. This has led to soaring egg prices, with the average cost of a dozen large, grade-A eggs reaching $4.15 in December, up from $3.65 the previous month.

Denny’s, which operates over 1,500 locations, did not disclose how many restaurants are implementing the surcharge or the exact additional cost per meal, citing the fluid nature of the situation. However, the chain reassured customers that it remains committed to providing value while navigating these price fluctuations.

Other restaurant chains have also adapted to the rising costs. Earlier this month, Waffle House introduced a 50-cent surcharge per egg at its 2,100 locations, stating that it is “continuously monitoring egg prices” and may adjust the fee as conditions improve. Meanwhile, McDonald’s has opted not to impose an egg surcharge and will instead offer a one-day promotion on March 2, selling its Egg McMuffin for just $1.

The impact extends beyond diners, with bakeries also feeling the strain. Scott Auslander, general manager of Bread Furst in Washington, D.C., described the spike in egg prices as unprecedented. The bakery, which uses around 150 eggs daily, has seen costs more than double, leading to price increases on egg-heavy menu items.

Major retailers, including Costco and Trader Joe’s, have also responded by placing limits on egg purchases to manage supply shortages. As the industry continues to face challenges, businesses and consumers alike are left grappling with the effects of the ongoing crisis.

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