Denny’s, the popular diner chain, has announced a temporary surcharge on dishes that include eggs, a move prompted by a nationwide egg shortage. This decision comes as a result of a major bird flu outbreak affecting poultry production.

Surcharge Details

According to a statement from the company to CNBC, the surcharge will vary by location among its 1,500 restaurants, although specific implementation details were not disclosed.

Company Statement on Pricing

Denny’s management explained their pricing strategy, stating, Our pricing decisions are being made market-by-market, and restaurant-by-restaurant due to the regional impacts of the egg shortage. They emphasized their commitment to customer value, asserting that they will continue to offer a variety of menu options, including their well-known value menu as they navigate these challenges.

Impact of Bird Flu on Egg Prices

The egg shortage is largely attributed to a bird flu outbreak that has necessitated the culling of approximately 160 million birds since 2022, primarily affecting egg-laying hens. This dramatic reduction in supply has led to soaring prices.

As reported by the Associated Press, the federal government has allocated nearly $2 billion to combat the bird flu outbreak, including reimbursements to farmers for their lost livestock.

Current Egg Prices

Recent reports indicate that the average price for a dozen Grade A eggs reached $4.95 as of January, surpassing the previous high of $4.82 set two years earlier. This marks a significant increase from the low of $2.04 recorded in August 2023, with this recent surge being the largest since the bird flu outbreak in 2015.

Industry Response to Egg Prices

Other restaurants are also feeling the impact of rising egg prices. Notably, Waffle House has recently implemented a 50-cent surcharge per egg at its locations. Additionally, smaller, regional eateries have followed suit, and major retailers such as Trader Joe’s, Costco, and Sam’s Club have begun limiting egg purchases in response to the ongoing shortage.