Denny's temporarily adds egg surcharge as bird flu drives up prices

Denny’s is going to temporarily add a surcharge to meals containing eggs on their menu amid a nationwide egg shortage. 

The restaurant chain told CNBC that the size of the surcharge will vary at its 1,500 locations but did not specify which eateries would implement the surcharges. 

This egg shortage and rising costs of the commodity is related to the bird flu outbreak.

Denny’s statement on egg surcharge

What they're saying:

"Our pricing decisions are being made market-by-market, and restaurant-by-restaurant due to the regional impacts of the egg shortage," Denny's said in a statement obtained by Axios. "We understand our guests' desire for value, and we will continue to look for ways to provide options on our menu, including our $2 $4 $6 $8 value menu, while navigating these rapidly changing market dynamics responsibly," the company added.

RELATED: Waffle House adds surcharge to eggs as prices continue soaring

Bird flu outbreak impact on egg prices 

Dig deeper:

The bird flu outbreak has resulted in the killing of 160 million birds to help control the virus since the outbreak began in 2022. Most of the birds killed were egg-laying chickens, causing the spike in egg prices. 

According to the Associated Press, the federal government has spent almost $2 billion on the bird flu response, including close to $1.2 billion in payments to farmers to reimburse them for their lost birds.

What is the average cost of eggs?

By the numbers:

Citing the recent consumer price index, the Associated Press reported that the average price of a dozen Grade A eggs in U.S. cities reached $4.95 in January, surpassing the previous record of $4.82 from two years earlier and more than double the low of $2.04 that from August 2023.nThis surge in egg prices was the largest since the last bird flu outbreak in the U.S. in 2015. 

Are other restaurants adding surcharges for eggs?

Local perspective:

The Waffle House earlier this month added a temporary surcharge of  50 cent per egg at its restaurants. Axios noted that smaller, local restaurants have also added a surcharge for eggs.  

Meanwhile, multiple stores, including Trader Joe’s, Costco and Sam’s Club have also placed limits on the number of eggs customers can purchase at their stores.