Higher egg prices combined with an egg shortage are affecting communities around the country and in Montgomery County.
Egg prices reached a record high in the United States in January. The Bureau of Labor Statistics announced Wednesday the national average cost is $4.85 for a dozen eggs. That is 15% higher than a year ago.
Cost of Eggs Soars at Supermarkets
However consumers in some places are paying nearly double that amount. Eggs at some Giant stores are selling for more than $8 a dozen in the County. Safeway is selling a dozen eggs for a couple dollars cheaper but still above the national average. Trader Joe’s prices are at or below the national average for a dozen eggs. Whole Foods is selling them for about $5 a dozen. However, prices at all 4 chains are much higher for a dozen of organic eggs or other specialty egg items.
Bird Flu’s Impact on Higher Costs
Analysts say the bird flu outbreak is mostly to blame for the higher costs. The outbreak began in 2022 and has devastated the bird population.Workers have killed nearly 150 million birds either infected or exposed to the avian flu during this time.
This high death toll is now causing egg shortages across the country. Trader Joe’s is limiting the amount of eggs a person can buy to one dozen a day. Costco, Walmart, and Sam’s Club also are limiting how many eggs a customer can purchase.
Impact on Some Bakeries
Some local bakeries and diners in the County are dealing with the higher costs of eggs in different ways. MCM spoke with Stella Cawley, the owner and manager of Stella’s Bakery in Rockville. She said the higher egg prices are a problem but she is dealing with it the best she can. Cawley said she does not plan to raise her prices at the moment. However that could change.
“We have to think carefully about it. This is a very difficult thing. It takes time and it becomes costly to raise prices,” Cawley said.
Therefore, she is absorbing the higher cost in her business. But she admits the higher egg prices and other expenses related to the egg increase makes it hard to sustain her bakery.
“We are careful about waste, it is just very difficult. Something is needed to control the fluctuation of the cost. It is difficult to figure out the budgeting. That is why so many places are closing because of the cost,” Cawley explained.
MCM asked her whether she would ever consider using an egg substitute in her products. She emphatically said no.
“I would close the bakery before I would do that. Then, it is about making money and not about making a good product,” Cawley said.
MCM also spoke with the owner of Paris Baguette in Rockville. He said his bakery is just trying to break even on a lot of egg heavy products. He said his bakery has incurred an 8% rise in costs over the past year. But he has no plans to pass on those costs to his customers. He is just hoping the price of eggs drops soon.
Impact on Diners
Eggs are a big seller for diners and breakfast spots around the region. While the closest Waffle House is in Frederick, the restaurant chain announced last week it is adding a 50 cent surcharge per egg that customers buy. Waffle House has about 2,100 restaurants across the country.
Some Local Chains
Silver Diner has 23 restaurants in the mid-Atlantic region plus several Silver restaurants. Three of its locations are in the County.
MCM spoke with Ype von Hengst, the co-founder of Silver Diner. He provided a sobering assessment of the spike in egg prices and the egg shortage right now. He said the cost of eggs between December 2024 and January of this year jumped 40%.
While the price hike has gained national attention in recent weeks, he said the problem has been going on since the fall. Von Hengst said the restaurant chain, on average, buys about 10 million eggs a year. He expects Silver Diner will lose about $1 million this year because of the higher cost of eggs.
He said eateries like the Silver Diner have small profit margins and this added cost eats into those profits very quickly. Despite the higher costs the chain is experiencing, there are no plans to pass them on to its customers.
“We have not passed our costs on to our guests. They expect great value. We understand how difficult it is for people right now with the economy already. Gas prices, everything is high these days. We want to remain a good value for our guests. This is not to say that if the situation gets worse, there might be a time we might have to do something. But right now we have no intention of raising prices. You have to show heart and sympathy to customers, sometimes you have to bite the bullet,” Von Hengst said.
Customers Paying More
MCM also spoke with Gene Wilkes, the owner of Tastee Diner in Bethesda. He said “I’ve never seen the cost of eggs this high; it’s almost like the cost of a T-bone steak. The price is going up more, and it’s something we need to pass on to the customer.”
He said his restaurant is now charging 50 cents more for an omelet. That price change went into effect last weekend. He expects other items on the menu including waffles, eggs, and egg combinations will eventually cost more. Wilkes said he is raising prices “not out of greed but out of necessity.”
He expects egg prices will continue to rise. His supplier told him prices may go up an additional 20 to 25% in the coming weeks. Wilkes said that is not sustainable, and that is why he must pass along his costs to his customers.
Previous Bird Flu Outbreak
Von Hengst said this is not the first time an egg disruption has taken place. He said another bird flu outbreak in 2016 also impacted the cost and supply of eggs. Von Hengst said his restaurant chain lost about $500,000 that year. He remains hopeful prices will come down, but he is realistic that he too, might have to raise prices on his menu items if the situation becomes dire.
