Key takeaways:

• Denny's adds a temporary surcharge for egg dishes amid soaring egg prices and shortages.
• Major grocery retailers such as Trader Joe's and Walmart are limiting egg purchases to manage supply.
• The surge in egg prices is primarily due to the ongoing avian influenza outbreaks affecting poultry.
• Waffle House has also implemented egg surcharges in response to the drastic increase in egg costs.

Denny's has joined the ranks of several restaurant chains that have instituted an egg surcharge due to escalating prices caused by an alarming nationwide egg shortage. This temporary fee, which varies by location, reflects the drastic rise in egg prices as the impact of a severe outbreak of the H5N1 strain of avian influenza continues to affect poultry supplies across the United States.

As reported by Forbes, egg prices have seen staggering increases, with the average price of a dozen large, grade-A eggs climbing from $4.15 in December to $4.95 in January, representing a 15% hike—the largest increase noted in a decade. Some consumers have reported prices soaring to as high as $8 per dozen at local grocery stores, creating a concerning reality for households reliant on this essential food item.

The situation prompted retailers like Trader Joe's to cap purchases at one dozen eggs per customer to help manage dwindling supplies. Additionally, Kroger, Costco, Walmart, and Sam's Club have introduced similar restrictions, highlighting the widespread impact of this crisis.

Denny's statement regarding its surcharge notes that "this pricing decision is market-by-market, and restaurant-by-restaurant due to the regional impacts of the egg shortage." The chain follows other dining establishments like the Waffle House, which has also announced a 50-cent surcharge per egg to offset rising costs attributed to the egg supply crunch.

The broader economic situation surrounding egg prices has been attributed to the avian flu outbreaks, which have resulted in the culling of millions of birds. The USDA has confirmed nearly 19 million birds have been slaughtered in recent weeks alone, exacerbating a troubling food supply chain issue. The agency forecasts that egg prices could rise an additional 20.3% in 2025 due to ongoing market volatility.

This crisis has also impacted major legislative decisions, with some states temporarily suspending regulations on cage-free eggs to manage supply levels. For example, the state of Nevada has halted its cage-free law implementation, allowing eggs to be sourced from producers meeting basic food-safety guidelines regardless of housing conditions.

Amid these challenges, consumers are left to navigate fluctuating prices and limited availability, making it uncertain when or if the situation will return to normal. As the USDA continues to monitor the impacts of the bird flu on poultry production, restaurant chains like Denny's and Waffle House are adapting to the ongoing economic pressures, striving to balance customer needs with rising operational costs.

Keep up with the latest developments on this issue through outlets like Newsweek and CBS News.