Denny's Introduces Egg Surcharge Amid Spiraling Costs

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Denny's is charging customers extra for dishes containing eggs, amid a supply chain crisis that has caused prices to skyrocket.

First reported by Bloomberg, Denny's said the surcharge will be temporary and will vary by location. The diner chain did not specify which areas would be impacted, but told the outlet it is putting plans in place to minimize the effects for customers.

Newsweek has reached out to Denny's via email for comment.

Why It Matters

Consumers accustomed to paying around $2 for a dozen eggs have seen prices more than double in recent years, with sharper increases seen toward the end of 2024. The average cost of a dozen large, grade-A eggs hit $4.15 in December and $4.95 in January, according to federal data. Some shoppers are encountering empty supermarket shelves and prices as high as $8 per dozen, with many grocery stores enforcing purchase limits.

The price increase has put further strain on already tight household budgets. While price hikes are common ahead of Easter due to increased demand, this year's surge is being driven primarily by supply disruptions, and has become a key area of concern for the new administration.

What To Know

The drastic increase in egg prices has been prompted by a nationwide shortage due to an outbreak of H5N1—a strain of avian flu that has affected American poultry and cattle across the country.

State and federal agencies have enacted several measures to respond to the outbreak and the associated price surge, with the Nevada Department of Agriculture temporarily suspending its cage-free egg law, meaning that "eggs for retail sale can be sourced from any egg producer meeting food-safety guidelines."

The Department of Agriculture (USDA) has also taken action by reversing its decision to fire dozens of employees—under the guidance of the Department of Government Efficiency (DOGE)—and told NBC last week that it would be "rectify[ing] the situation" by rescinding letters of termination sent to those involved in dealing with the bird flu response.

There have even been reports of crackdowns on egg smuggling.

Denny's decision to place surcharges on meals containing eggs follows a similar move by Waffle House, announced earlier in February. As reported by CBS, the Georgia-based restaurant chain said it would be adding a 50-cent-per-egg surcharge to orders due to the "unprecedented rise in egg prices."

What People Are Saying

Denny's, in a statement to ABC, said: "Some of our restaurant locations will need to temporarily add a surcharge to every meal that includes eggs. This pricing decision is market-by-market, and restaurant-by-restaurant due to the regional impacts of the egg shortage."

A farmer in Clarence, New York, told the BBC last week: "Egg farmers are in the fight of our lives and we are losing."

Dr. J.J. Goicoechea, Director of the Nevada Department of Agriculture, said: "Eggs are typically the most cost-effective protein source for food insecure populations. When families can't find eggs on the shelf, and when they do the prices are not attainable, this can leave them without an essential food they depend on."

On Friday, President Trump said that his USDA Secretary, Brooke Rollins, would: "Do something with the eggs, cause I'm hearing so much about eggs." The president added that egg prices were one of the issues "inherited" from the Biden administration.