High Eggs Prices Stressing Consumers, Restaurants

The news isn't good when it comes to eggs -- prices continue to rise and there's no end in sight.

Bird flu has been rampant among chickens in the United States, killing flocks of poultry or causing owners to sadly have to euthanize them, creating a shortage of eggs.

But it's a simple case of supply and demand.

The demand is as it's always been, says restaurant consultant and expert Derek Simms, but the supply has been dwindling for many months, and because eggs are used in everything from cakes and pies to casseroles and Chinese dishes, it's putting stress on restaurants.

"It's just like oil or any other commodity, these things change and fluctuate as they get more supplies or they're reduced, and it just adds to the mix," Simms says.

To put it in perspective, for restaurants "a 15-cent egg is now 72-cents, so you know your omelet is gonna cost a little more, unfortunately."

And the problem for restaurants is they're not a high-profit business to begin with.

"Our margins are only three-to-five-percent, so when our costs go up if we don't react fast enough we end up losing money."

But the worst news for both consumers and restaurants is that the destruction of the supply chain for eggs isn't improving much so far this year, and of course chickens take time to grow the reach the age of egg-laying, so there is no end in sight for the egg cost inflation.


Sponsored Content

Sponsored Content