Egg prices have skyrocketed, nearly doubling since December, a trend that has left many breakfast diners and restaurants grappling with unprecedented challenges. According to the U.S. Department of Agriculture, the median price increase for quintessential breakfast items like eggs, coffee, sausage, bacon, and orange juice has reached 19% compared to last year. This inflationary wave is taking a toll on both small and large businesses, forcing them to adjust prices and operations in ways they never anticipated.
The cost of popular items has not only soared but also caused ripple effects across various sectors. Frozen orange juice prices have doubled since 2020, largely due to citrus diseases and climate-related disruptions. Flour prices have spiked following geopolitical tensions such as Russia's invasion of Ukraine. Coffee, too, has hit a 47-year high, driven by climate disruptions in Brazil and Vietnam, the world's largest producers.
Breakfast establishments are feeling the squeeze more than most. Many restaurants have resorted to cutting hours or using lower-quality ingredients as a means to manage their rising overhead costs. Others have implemented multiple price hikes over recent years to keep pace with inflation. A plate of bacon, eggs, and toast with coffee that used to cost $3 or $4 now often costs double.
“Most of what we’re famous for is our pancakes, French toast, waffles, biscuits, egg dishes, eggs Benedict,” – Neil Kleinberg
Clinton St Baking Co is one such establishment struggling under these financial pressures. The price of their eggs Benedict has risen from $16 to $18. Waffle House, a major chain with over 2,000 locations, recently introduced a $0.50 surcharge per egg due to inflation and the avian influenza outbreak.
The avian influenza outbreak has led to the culling of tens of millions of birds, further exacerbating the egg price surge. For some vendors, the cost of a dozen eggs has escalated from $100 to nearly $300. This increase has left restaurants scrambling for strategies to offset soaring costs and still offer consumers affordable options.
“We’re getting either price-gouged, or the prices are out of control or fluctuating so much that we don’t know how much to charge for an omelet or an eggs Benedict,” – Neil Kleinberg
Congestion pricing in Manhattan has compounded these challenges by deterring customers from outer boroughs, adding another layer of complexity for businesses trying to maintain customer flow.
“We’re trying to do everything we can to not raise our prices. No one wants to go into a breakfast place and have to pay $25,” – Stephen Slaughter
The impact of these rising costs on consumer behavior is palpable. Amy Smith notes that companies are hesitant to increase prices due to already wary consumers.
“If they’re paying triple or quadruple for a dozen eggs every week and coffee is going up, it’s certainly going to impact the decision to go out for a fancy brunch.” – Amy Smith
As Daniel Soloway points out, the situation leaves little room for businesses to maneuver.
“Whether you’re a high-end, top-tier bakery in an urban setting or a Starbucks, there are few places to hide for a breakfast sandwich and a cup of coffee in 2025.” – Daniel Soloway
“At a breakfast place, if the cost of protein – sausage and bacon – is going up, eggs are going up and flour is affecting the cost of bread, there’s no room to improve things for yourself,” – Daniel Soloway
Efforts to find innovative solutions are underway as everyone seeks ways to alleviate the financial strain on both businesses and consumers.
“Everybody I’m talking to is trying to figure out something that can offset [costs] and give the consumer another option,” – Daniel Soloway