What's happened
Denny's and Waffle House have eliminated their egg surcharges due to falling egg prices. Denny's removed its surcharge on May 21, while Waffle House followed suit on June 2. The price drop is attributed to decreased demand and increased imports, following a surge caused by bird flu outbreaks earlier this year.
What's behind the headline?
Price Trends and Market Response
- The elimination of surcharges by Denny's and Waffle House reflects a significant shift in the egg market, where prices have dropped to an average of $4.55 per dozen.
- Increased imports from countries like Brazil and Mexico have contributed to this decline, indicating a recovery in supply.
- The USDA's proactive measures against bird flu, including the approval of new import facilities, are likely to stabilize the market further.
Implications for Consumers and Restaurants
- Consumers will benefit from lower prices at these popular dining chains, which had previously faced tough decisions regarding menu pricing.
- The removal of surcharges may encourage more customers to dine out, positively impacting restaurant revenues.
- However, the USDA warns that the situation remains precarious, as bird flu can still affect future egg supplies.
What the papers say
According to AP News, Denny's confirmed the removal of its egg surcharge on May 21, while Waffle House announced its cancellation on June 2, stating, 'Egg-cellent news…as of June 2, the egg surcharge is officially off the menu.' The NY Post highlighted that the average wholesale price of eggs has decreased by 7%, allowing these chains to drop their surcharges. The Independent noted that the average price of eggs at grocery stores has fallen significantly since April, contributing to the decision by these restaurants to eliminate additional charges. The USDA's actions to combat bird flu have also played a crucial role in stabilizing egg prices, as reported by multiple sources.
How we got here
Both Denny's and Waffle House implemented egg surcharges in February due to soaring egg prices, which peaked at $6.23 per dozen in March due to bird flu outbreaks. Prices began to decline in April as demand eased and imports increased.
Go deeper
- What caused the egg prices to rise earlier this year?
- How are restaurants adjusting to the changes in egg prices?
- What measures is the USDA taking to prevent future surges?
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Waffle House, Inc. is an American restaurant chain with 2,100 locations in 25 states in the United States. Most of the locations are in the South, where the chain is a regional cultural icon.
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