Waffle House Implements Temporary Egg Surcharge Amid Nationwide Shortage

Rising Egg Prices Force Waffle House to Add Surcharge

The increasing cost of eggs has prompted Waffle House, a beloved Georgia-based restaurant chain, to introduce a temporary surcharge on orders containing eggs. The surcharge, amounting to 50 cents per egg, is a direct response to the national surge in egg prices, which has been exacerbated by a severe avian flu outbreak. This move reflects the challenges faced by the food industry as a whole, with Waffle House being one of the latest casualties of the escalating crisis. The surcharge is clearly indicated on signs displayed at their restaurants, ensuring transparency with customers about the additional cost.

The Root Cause: Avian Flu and Egg Shortage

The primary driver of this issue is the aggressive H5N1 avian flu strain, which has devastated poultry farms across the country. Since its outbreak in early 2022, the virus has led to the culling of over 108 million birds, with 75 million of these being egg-laying hens. This drastic reduction in the egg-laying population has resulted in a severe shortage and, consequently, a significant rise in egg prices. Waffle House, in a statement to CNN, highlighted the dire situation, emphasizing that both restaurants and customers are being forced to make tough decisions in light of the ongoing egg shortage.

Waffle House’s Response and Commitment to Monitoring Prices

Waffle House, renowned for its extensive menu featuring eggs as a staple, has emphasized its commitment to adjusting the surcharge as market conditions evolve. As a chain with approximately 2,100 locations, Waffle House consumes an astonishing 272 million eggs annually, surpassing even their iconic hash browns and waffles in popularity. This sheer volume underscores the significant impact of rising egg costs on their operations. The chain has assured customers that it is closely monitoring egg prices and will revise or remove the surcharge as the situation improves, demonstrating a customer-centric approach during these challenging times.

Industry-Wide Impact on Breakfast-Focused Restaurants

The National Restaurant Association has corroborated the severity of the crisis, noting that egg prices have risen by nearly 40% over the past year. Breakfast-focused establishments like Waffle House are particularly vulnerable to these fluctuations, as eggs are a core component of their menus. Sean Kennedy, Executive Vice President of Public Affairs at the National Restaurant Association, explained that operators are collaborating closely with suppliers to mitigate the impact, exploring options such as menu adjustments and price increases to remain operational.

Avian Flu Outbreak Worsens, Exacerbating Egg Supply Issues

The avian flu outbreak has shown no signs of abating, with the situation deteriorating further in late 2024 due to a resurgence of the virus. Data from the USDA indicates that approximately 17 million egg-laying hens were lost in November and December alone, accounting for nearly half of all birds killed by the virus in 2024. This sudden spike in hen mortality has further strained an already fragile egg supply, leading to higher prices for consumers. The average cost of a dozen large grade-A eggs soared to $4.15 in December, up from $3.65 the previous month, according to the Bureau of Labor Statistics.

The Future Outlook: A Prolonged Egg Crisis

Unfortunately, relief is not imminent, as the USDA forecasts a 20% increase in egg prices this year. Emily Metz, President and CEO of the American Egg Board, has cautioned that the egg supply will remain tight until the virus is brought under control, emphasizing that the industry is "in this for a while." This bleak prognosis suggests that consumers and restaurants must adapt to the new reality, at least in the short term. For now, Waffle House’s surcharge serves as a stark reminder of the broader challenges facing the food industry, as it grapples with the dual pressures of supply chain disruptions and rising costs.