Why Are Egg Prices So High in 2025?

Egg prices have surged significantly in 2025, creating challenges for food businesses that rely heavily on eggs for their menus and products. The primary cause of this increase is the continued outbreak of Highly Pathogenic Avian Influenza (HPAI), or bird flu, which has led to the culling of millions of egg-laying hens.

This sharp decline in supply has driven prices upward, with the U.S. Department of Agriculture (USDA) forecasting an additional 20.3% increase in egg prices this year.

Beyond the avian flu crisis, other factors are contributing to the rising costs, including:

• Increased feed and energy costs for poultry farmers
• Regulatory changes (see details) mandating cage-free egg production, require costly infrastructure upgrades
• Supply chain disruptions affecting egg transportation and distribution

With these factors in play, egg prices are expected to remain high throughout 2025, prompting food businesses to explore cost-saving strategies.

How Can Food Businesses Manage Rising Egg Costs?

Food businesses, including bakeries, cafes, caterers, and restaurants, are implementing various tactics to cope with the rising cost of eggs. Here are some of the most effective strategies:

1. Menu Adjustments & Recipe Modifications

• Reduce reliance on egg-heavy dishes by introducing alternative menu items.
• Experiment with egg substitutes, such as flaxseed egg replacement, aquafaba (yes, it’s a thing), or commercial plant-based egg replacements.
• Modify portion sizes where feasible to limit egg usage without compromising quality.

2. Sourcing Strategies & Supplier Negotiations

• Establish partnerships with local or regional egg suppliers for better pricing and availability.
• Purchase in bulk when prices are lower and store eggs efficiently to reduce spoilage.
• Consider contract pricing agreements with suppliers to lock in stable rates.

3. Improving Inventory & Waste Management

• Implement food waste tracking systems to monitor and minimize egg waste.
• Train staff on portion control and proper handling to reduce breakage and spoilage.
• Use technology-driven inventory management tools to optimize egg purchases based on real-time usage data.

4. Passing Costs to Customers Strategically

• Introduce a temporary egg surcharge to offset rising costs while maintaining transparency with customers. In our area, we paid a $0.50 per egg surcharge at a mom-and-pop restaurant this morning.
• Adjust pricing on certain dishes to spread the cost increase across the menu without making eggs unaffordable.
• Offer combo deals or meal packages that reduce the emphasis on egg-based items while still providing value.

5. Enhancing Operational Efficiency

• Identify other areas of cost reduction, such as optimizing labor and energy use, to balance rising ingredient costs.
• Invest in automation where possible to reduce manual labor and improve efficiency in high-egg-usage processes.

Looking Ahead: Will Egg Prices Go Down?

While the USDA expects continued volatility in egg prices, relief could come if avian flu outbreaks are controlled and poultry production stabilizes. However, businesses should prepare for sustained high prices and continue implementing cost-saving measures.

Egg-citing Conclusions: Cracking the Case of Rising Prices

With egg prices expected to stay elevated throughout 2025, food businesses must be proactive in adjusting menus, optimizing sourcing strategies, and improving operational efficiencies. By implementing these tactics, businesses can maintain profitability while continuing to meet customer expectations.

But in the short-term, I suggest a surcharge to share the cost with your customers. All of your customers are aware of increased egg prices, and they will appreciate that you’re doing a temporary surcharge instead of permanently raising the prices of their morning eggs.

Would you like personalized cost-saving recommendations for your food business? Let us know in the comments!