Egg Prices Impact Philadelphia Breakfast Restaurants' Bottom Lines
The rising cost of eggs and other breakfast staples is significantly impacting Philadelphia breakfast restaurants like Green Eggs Cafe, forcing price adjustments and challenging profit margins as inflation rises.
Most menu items at the popular Philadelphia breakfast chain Green Eggs Cafe are made with eggs, as co-owner Stephen Slaughter notes that about 90% of its dishes depend on this key ingredient. With vendors charging $8 for a dozen eggs, the six Green Eggs Cafe locations have felt the financial strain.
Slaughter explained that a year ago, the cost for a plate of bacon, eggs, and toast with coffee was approximately $3 or $4; now, those costs have doubled. “It's cutting into our margins pretty significantly,” he said.
Egg prices alone have nearly doubled since December, impacting many breakfast restaurants. Waffle House, for instance, announced a $0.50-per-egg surcharge due to inflation and the worst avian influenza outbreak in history.
Additionally, coffee prices are at a 47-year high, exacerbated by climate disruptions in Brazil and Vietnam. Frozen orange juice and flour prices have also seen significant increases in recent years.
Slaughter's team last raised prices in October 2023. “We're trying to do everything we can to not raise our prices,” he stated. However, experts warn that breakfast spots are particularly vulnerable to these rising costs.
Amy Smith, an economist, highlighted that the median price increase for breakfast items like eggs, coffee, and bacon was 19% compared to last year, which could alienate customers already feeling the effects of inflation.
Daniel Soloway, director of procurement for Mecha Noodle Bar, emphasized that many breakfast restaurants have few options for cost adjustments. “You're exposed,” he noted, as the cost of primary ingredients rises.
Many restaurants are adapting by adding new items with cheaper raw ingredients. Neil Kleinberg, chef and co-owner of Clinton St Baking Co, indicated that increasing costs could lead to further price hikes, stating he now pays nearly $300 for a case of eggs.
Sam Yoo, owner of Golden Diner, has also adjusted prices to accommodate rising costs while striving to keep dining experiences accessible. He acknowledged challenges outside of egg prices, such as the impact of congestion pricing on customer traffic.
Kleinberg reported ongoing struggles for New York restaurants, stating, “Everyone tells me it's harder and harder to make money in the restaurant business.” Many businesses have resorted to cutting hours or using lower-quality ingredients in response to rising overhead costs.
