Nationwide Egg Shortage Impacts Bakeries
American bakeries are grappling with soaring egg prices, significantly impacting their operations and forcing difficult decisions about menu pricing. Bread Furst, a popular bakery in Washington, DC, is feeling the pressure. General Manager Scott Auslander shared his concerns, stating that suppliers are uncertain when — or if — egg prices will drop. Bread Furst, which uses approximately 150 eggs daily, now faces costs more than double compared to last year. This surge led to a price increase across a third of its menu, including its well-loved “messy egg sandwich,” which now costs a dollar more.
The egg crisis stems from a severe bird flu outbreak that led to the culling of over 40 million egg-laying chickens last year, according to the US Department of Agriculture. This has created a national egg shortage, with wholesale egg prices soaring by 186% in January compared to the same month a year prior. The surge marks the fourth-largest annual increase since 1992. Many bakeries are left with no choice but to raise prices to stay afloat, prompting them to rethink strategies for navigating this unprecedented challenge.
Exploring Alternatives Amid Price Hikes
In response to the rising costs, some bakeries are considering egg substitutes. Werner Simon, owner of Manhattan Sweets Boutique Bakery in Long Island, New York, revealed that his bakery plans to raise prices but is also experimenting with egg replacers to mitigate costs. These substitutes contain a blend of egg yolk and soy, reducing egg usage by 5% to 10%. However, Simon remains cautious about using too much, fearing it could compromise the quality of his pastries.
Meanwhile, demand for plant-based egg alternatives is surging. Eat Just Inc., a company known for its plant-based egg products, reported a fivefold increase in sales over the past month. CEO Josh Tetrick noted that retailers like Walmart, Whole Foods, Kroger, and Publix are now approaching them for supplies, a reversal from the usual dynamic. To keep up with demand, the company has ramped up production and expedited orders for ingredients and packaging, although this has impacted profit margins. Despite the challenges, Eat Just Inc. is maintaining its prices to attract long-term customers.
Navigating Customer Reactions to Price Increases
Raising prices is never easy, as it risks losing customers. Charles Lindsey, a marketing professor at the University at Buffalo School of Management, emphasized that effective communication is crucial. He explained that businesses must clearly explain the reasons behind price hikes to minimize customer dissatisfaction. “It all boils down to how well a business can explain why and how they’re sharing the pain,” Lindsey said.
Kerri Francis Bradley, co-owner of D Light Cafe & Bakery in Washington, DC, shared her concerns about the impact on small businesses. Before the egg crisis, her bakery paid around $50 for a 30-dozen box of eggs; now, the same box costs over $200. While she and her husband have been absorbing the costs, Bradley anticipates the need for price increases soon. To ease the transition, she plans to communicate changes transparently through social media and in-store signage, hoping loyal customers will continue supporting small businesses.
As egg prices remain volatile, bakeries nationwide are navigating a complex landscape of rising costs, alternative solutions, and customer expectations. Whether through price adjustments or creative ingredient substitutions, these businesses are finding ways to survive the egg crisis.
