Egg prices have always been subject to fluctuation, but the recent surge has left bakeries across the United States struggling to keep up. Scott Auslander, general manager of Bread Furst in Washington, D.C., has never seen anything like it.
“Our suppliers have no idea when prices will drop—or if they even will,” he said. “Egg costs are through the roof.”
Bread Furst uses approximately 150 eggs daily, and its costs have more than doubled in the past year. As a result, the bakery recently increased prices on its egg-based pastries and dishes, including its popular “messy egg sandwich,” which now costs a dollar more. The nationwide egg crisis, fueled by a devastating bird flu outbreak, is forcing bakeries to reconsider their pricing strategies while searching for alternative solutions.
The Root of the Crisis
The ongoing bird flu outbreak, caused by the highly pathogenic H5N1 virus, has significantly impacted egg supply. The U.S. Department of Agriculture reports that more than 40 million egg-laying hens have been lost, leading to a severe shortage.
As a result, wholesale egg prices in January skyrocketed by 186% compared to the previous year—one of the highest increases on record. While bakery product prices have not yet reflected these rising costs, many businesses are on the brink of implementing hikes to stay afloat.
Seeking Alternatives
Some bakeries are looking beyond price increases to weather the crisis. Werner Simon, owner of Manhattan Sweets Boutique Bakery in New York, is testing egg replacers in his recipes. These alternatives, which combine egg yolk and soy, can substitute for about 5% to 10% of eggs in baking. However, Simon is cautious, noting that too much substitution could compromise the quality of his pastries.
Plant-based egg substitutes are also seeing a surge in demand. Eat Just Inc., a company that produces plant-based egg alternatives, reports that its sales to major retailers like Walmart, Whole Foods, and Kroger have increased fivefold over the past month. CEO Josh Tetrick explained that instead of pitching their products to retailers, stores are now reaching out to them.
To meet this demand, Eat Just has ramped up production and expedited ingredient sourcing, even at the cost of slimmer profit margins. The company hopes to gain lasting customers who will continue using plant-based egg alternatives even after the egg crisis subsides.
The Bigger Picture
Egg prices are just one of many concerns for bakeries. Other key ingredients, such as cocoa, have also seen price hikes, further straining businesses. Simon noted that rising costs across the board make it increasingly difficult to operate sustainably.
Auslander, meanwhile, is implementing new measures to maximize egg usage, training staff to extract every last bit from each shell before discarding it.
Will Consumers Understand?
Raising prices is always a risky move, as it can drive away customers. However, marketing professor Charles Lindsey emphasizes that transparency is key. Businesses that clearly communicate the reasons for price increases are more likely to retain customer support.
Kerri Francis Bradley, co-owner of D Light Cafe & Bakery in Washington, D.C., has so far absorbed the higher costs but acknowledges that price hikes are inevitable. She plans to inform customers through social media, in-store signage, and trained staff who can explain the situation.
“When prices change, people get upset,” Bradley said. “But if they understand why, they’re more likely to stick with us.”
As bakeries navigate this crisis, clear communication and innovative solutions will be critical in maintaining customer trust and keeping businesses afloat.
