Egg prices have surged in recent months. Whether it’s a brunch café or a quick-service restaurant that relies on eggs for the breakfast daypart, operators everywhere are feeling the squeeze. With supply chain disruptions, new regulations, and inflationary pressures driving costs up, operators are looking for ways to protect their bottom lines without sacrificing menu quality.
Why Are Egg Prices Rising?
Several factors have contributed to what the industry has dubbed “eggflation.” First, avian influenza outbreaks have severely impacted poultry farms, causing a significant reduction in egg supply. With fewer hens producing eggs, scarcity has pushed prices up. At the same time, rising feed and energy costs are making poultry farming more expensive, and farmers are passing those costs down to buyers.
Regulatory shifts have also played a role, particularly laws mandating the use of cage-free eggs. While these regulations aim to improve animal welfare, they’ve constrained supply and increased production costs.
Finally, supply chain issues such as labor shortages and transportation challenges continue to drive price volatility, making it harder for restaurants to predict and manage expenses. With egg prices unlikely to stabilize in the near future, operators must take a proactive approach to controlling costs. Here’s how restaurants can stay profitable while keeping eggs on the menu.
Audit Your Menu and Adjust Pricing Strategically
A well-structured menu can absorb cost fluctuations without alienating customers. The key? Analyze where eggs are used most and adjust pricing accordingly.
Start by identifying high-egg-use dishes and evaluating their profitability. If a dish isn’t making much profit, try tweaking portion sizes or pairing it with a higher-margin item to even things out. Another option is to update menu descriptions to highlight premium ingredients—often, that small change makes customers more accepting of a price increase.
Tiered pricing models can also be effective. If your restaurant serves breakfast or brunch all day, you might raise prices on egg-heavy dishes while keeping other menu items the same. You can also cut back on eggs in certain dishes or make them an optional add-on instead of a standard ingredient. This saves on costs without making big, noticeable changes to the menu.
Using ingredients across multiple dishes is another smart way to offset rising egg costs. If eggs play a big role on your menu, finding creative ways to make the most of them can help keep expenses in check. For example, if you’re using egg yolks for house-made aioli or custards, don’t let the whites go to waste—turn them into meringues, add them to cocktails, or use them in protein-packed breakfast dishes. Small adjustments like these can stretch your inventory and help balance costs.
Another egg-ffective tactic is portion control: Adjust the number of eggs used in certain recipes. For example, a three-egg omelet could be reworked as a two-egg omelet with added vegetables or cheese for volume, maintaining the dish’s appeal while cutting costs. Or, offering a smaller portion of a popular egg-based dish as a side or appetizer can encourage sales while using fewer eggs per serving.
Seasonal menu updates can also help by allowing restaurants to temporarily shift away from egg-heavy dishes while promoting other profitable options. A brunch spot, for example, might temporarily emphasize grain-based bowls, smoked fish platters, or avocado toasts instead of egg-heavy benedicts or scrambles. Highlighting limited-time specials that use eggs strategically—such as a featured soufflé or a signature deviled egg dish—can help maintain customer interest while keeping egg consumption under control.
Back Office’s food costing tools help operators track profitability in real-time, making it easier to adjust pricing dynamically based on ingredient costs. With accurate data, restaurants can make informed menu decisions without sacrificing quality or customer satisfaction.
Tighten Inventory Control and Reduce Waste
Eggs are highly perishable, and the resulting waste can be a big profit killer. To avoid this, restaurants need to optimize inventory management to reduce spoilage and ensure efficient usage.
Implementing the first in, first out (FIFO) method moves older eggs before newer ones, which prevents unnecessary waste. Storage optimization also plays a role; maintaining proper refrigeration and humidity levels extends shelf life and reduces spoilage.
In the kitchen, standardizing recipes and training staff on portioning can minimize excess usage. Small adjustments, such as using eggs more efficiently in batters or switching to pre-portioned liquid egg products, can lead to significant savings over time.
Additionally, restaurants can repurpose surplus eggs in creative ways to minimize waste. Excess eggs can be used in house-made sauces, dressings, or desserts, saving product that might otherwise expire.
Back Office’s automated inventory tracking and predictive analytics allow restaurants to optimize their purchasing and reduce waste. By leveraging these tools, operators can minimize egg-related losses and make more strategic purchasing decisions.
Optimize Vendor Relationships for Better Pricing Stability
Building strong supplier relationships is one of the best ways to stabilize pricing and secure better deals on eggs.
Operators should explore bulk pricing agreements or long-term contracts to lock in more favorable rates. Additionally, working with alternative suppliers—such as local or regional egg producers—can sometimes offer better pricing flexibility than reliance on large-scale distributors.
Monitoring price trends and being flexible with supplier changes can also provide cost-saving opportunities. Some vendors may offer promotional pricing at certain times of the year—operators who stay informed can take advantage of these opportunities.
With Back Office’s purchasing analytics, operators have a clear view of spending data, making it easier to track COGS trends, identify savings opportunities, and manage vendor relationships more effectively. And since Back Office is part of the Buyers Edge Platform, restaurant operators also have access to one of the industry’s largest GPO networks, which increases buying power and offers a competitive edge in vendor negotiations.
Consider Cost-Effective Egg Alternatives
If prices remain high, some restaurants may need to explore alternative egg products to manage costs without sacrificing menu quality.
Liquid and frozen eggs are often more cost-effective than shell eggs and have the added benefit of a longer shelf life. However, liquid eggs have also increased in price, so operators should compare costs before making a switch.
Plant-based egg substitutes can serve as vegan-friendly solutions for certain dishes. Additionally, switching to smaller egg sizes can provide savings, as they are often priced below larger eggs. Testing substitutes in limited menu items before widespread implementation can help gauge customer reception and ensure that quality remains high.
Back Office’s local market pricing allows operators to compare their costs to broader market trends, which helps them stay informed about pricing fluctuations. Additionally, the software automatically maps and categorizes ingredients, eliminating the need for manual updates introducing substitutes. This means that even as restaurants switch suppliers or experiment with different egg products, inventory and reports remain accurate and hassle-free.
Take a Data-Driven Approach to Food Cost Management
Eggflation is just one of many cost challenges restaurants are currently facing, so operators must take a proactive, data-driven approach to food cost management to stay ahead.
Using Back Office’s food cost management solutions, restaurants can track ingredient costs, adjust pricing, optimize inventory, and negotiate better vendor contracts. Rather than reacting to market changes in terms of fluctuating egg prices, operators can stay ahead by leveraging real-time data to make smarter purchasing and menu decisions.
