It's a chicken-and-egg problem: Restaurants are struggling with record-high U.S. egg prices, but their omelets, scrambles and huevos rancheros may be part of the problem.
Breakfast is booming at U.S. eateries. First Watch, a restaurant chain that serves breakfast, brunch and lunch, nearly quadrupled its locations over the past decade to 570. Eggs Up Grill has 90 restaurants in nine southern states, up from 26 in 2018. Florida-based Another Broken Egg Café celebrated its 100th restaurant last year.
Fast-food chains are also adding more breakfast items. Starbucks, which launched egg bites in 2017, now has a breakfast menu with 12 separate items containing eggs. Wendy’s reintroduced breakfast in 2020 and offers 10 items with eggs.
Reviews website Yelp said 6,421 breakfast and brunch businesses opened in the United States last year, 23% more than in 2019.
In normal times, producers could meet the demand for all those eggs. But an ongoing bird flu outbreak, which so far has forced farms to slaughter more than 145 million chickens, turkeys and other birds, is making supplies scarcer and pushing up prices. In January, the average price of eggs in the U.S. hit a record $4.95 per dozen.
The percentage of eggs that go to U.S. restaurants versus other places, like grocery stores or food manufacturers, is not publicly available. U.S. Foods, a restaurant supplier, and Cal-Maine Foods, the largest U.S. producer of shell eggs, did not respond to The Associated Press' requests for comment.
But demand from restaurants is almost certainly growing. Foot traffic at U.S. restaurants has grown the most since 2019 for morning meals, 2019, according to market research firm Circana. Pre-lunchtime hours accounted for 21% of total restaurant visits in 2024.
Breakfast sandwiches are the most popular order during morning visits, Circana said, and 70% of the breakfast sandwiches on U.S. menus include eggs.
Eggs Up Grill CEO Ricky Richardson said breakfast restaurants took off after the COVID pandemic because people longed for comfort and connection. As inflation made food more expensive, customers saw breakfast and lunch as more affordable options for eating out, he said.
The growth in restaurant demand reverses a pattern that emerged during the pandemic, when consumers tried to stock up on eggs for home use but restaurants needed fewer of them, according to Brian Earnest, a lead economist for animal proteins at CoBank.
Changing preferences since then have caused further market strain. Americans are increasingly looking for protein with few added ingredients, and eggs fit that bill.