The US restaurant industry is experiencing a breakfast boom, but rising egg prices due to bird flu outbreaks are putting pressure on eateries.
Breakfast is experiencing a significant surge in popularity within the United States restaurant industry. Several chains specializing in breakfast, brunch, and lunch have witnessed remarkable expansion in recent years. First Watch, for example, has nearly quadrupled its locations over the past decade, reaching 570 restaurants. Eggs Up Grill has grown from 26 restaurants in 2018 to 90 establishments across nine Southern states.
Florida-based Another Broken Egg Café celebrated its 100th restaurant last year.Fast-food chains are also capitalizing on the breakfast trend by introducing more breakfast items. Starbucks, which launched egg bites in 2017, now boasts a breakfast menu with 12 distinct egg-based offerings. Wendy's reintroduced breakfast in 2020 and features 10 breakfast items incorporating eggs. Data from Yelp reveals that 6,421 breakfast and brunch businesses opened in the United States last year, representing a 23% increase compared to 2019.This surge in demand for breakfast coincides with an ongoing bird flu outbreak that has tragically forced farms to cull over 145 million chickens, turkeys, and other birds. Consequently, egg prices have soared. In January, the average price of eggs in the U.S. hit a record $4.95 per dozen. While the exact percentage of eggs allocated to restaurants versus other sectors like grocery stores or food manufacturers remains undisclosed, the growing demand from restaurants is undeniable. Foot traffic at U.S. restaurants has seen the most significant increase since 2019 for morning meals, accounting for 21% of total restaurant visits in 2024. Breakfast sandwiches, particularly those containing eggs, are the most popular order during morning meals.The rising tide in restaurant demand for breakfast marks a departure from the trend observed during the pandemic when consumers stocked up on eggs for home use while restaurants faced reduced demand. However, changing consumer preferences have exacerbated the market strain. Americans are increasingly seeking protein with minimal added ingredients, and eggs perfectly align with this trend. Chris Tomasso, President and CEO of First Watch, emphasizes that eggs are integral to their brand identity, appearing in the majority of their offerings. Despite the challenges, First Watch has managed to secure the necessary eggs and has not implemented surcharges.Ricky Richardson, CEO of Eggs Up Grill, acknowledges the impact of rising egg prices but states that they chose not to add surcharges after consulting with franchisees. The industry is grappling with the consequences of higher egg prices. Wholesale egg prices reached an average of $7.34 per dozen last week, a 51% increase from the start of the year. Some chains, like Waffle House, have resorted to adding surcharges to offset the cost of eggs. Others may explore egg substitutes or remove egg dishes from their menus, according to Phil Kafarakis, President and CEO of the International Foodservice Manufacturers Association. The long-term implications of this egg price surge on the breakfast industry remain to be seen
RESTAURANTS BREAKFAST EGGS BIRD FLU PRICES DEMAND
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