Denny's Takes Drastic Step In Response To Soaring Egg Prices

Denny's, one of America's largest full-service restaurant chains, has presented a temporary solution to America's skyrocketing egg prices. Denny's has reportedly added an "egg surcharge" to all dishes containing eggs. The surcharge is an attempt to offset rising egg costs for the diner mainstay during the nation's avian flu-induced egg shortage. For now, the surcharge is 50 cents per egg.

While Denny's is also set to close locations in 2025, it has not yet provided the exact details on which restaurant locations — out of the chain's tentative 1,500 remaining– will implement their proposed egg surcharge. In a late February 2025 statement to USA Today (and a variety of outlets), Denny's Corporation said the surcharge will be levied "market-by-market, and restaurant-by-restaurant due to the regional impacts of the egg shortage." Denny's Corporation also added: "This situation is continuing to evolve, and we are working closely with our procurement team and our franchisees to make decisions that are right for the business while maintaining value for our guests." Whether raising already-high egg prices will prove to be a financial grand slam for Denny's — or instead leave the breakfast-slinging chain with egg on its face — remains to be seen.

Denny's may be upping its egg prices, but the chain isn't alone in taking such egg-streme measures. Waffle House, another of America's leading diner chains, similarly implemented a 50-cent egg surcharge earlier in February 2025 across all of its 2,100 or so locations. However, unlike Denny's per-market egg surcharge decision, Waffle House's egg surcharge blankets the restaurant's entire fleet of locations, with notices of the egg surcharge affixed clearly to restaurant menus.

In a statement to CNN, Waffle House stated that "the continuing egg shortage caused by HPAI (bird flu) has caused a dramatic increase in egg prices." They also added that "customers and restaurants are being forced to make difficult decisions." Waffle House also wisely preempted any accusations of potential price gouging in the face of the egg shortage crisis by also adding that the company is "continuously monitoring egg prices and will adjust or remove the surcharge as market conditions allow." Unfortunately, market conditions show no signs of improving for avian creatures or their eggs anytime soon.

Egg prices are sky-high due in large part to supply being absolutely decimated by avian flu since 2022. Even worse, 2024 saw the first cases of H5N1 bird flu passing from infected cows to humans. While rising egg prices are a secondary concern compared to the potential impact of H5N1 on human health and safety, it's impossible to ignore the financial impact those prices have on those buying — and selling — eggs. A February 2025 USDA report on the state of the country's egg market paints an especially grim picture of the impact of highly pathogenic avian influenza (HPAI) on egg prices and supply. Per the report, demand remains high even though nationwide production faces a year-to-year deficit of 5.4 million cases of eggs. The USDA also reported that an HPAI-induced depopulation of 13.2 million egg-laying birds occurred in 2024, and is still counting in 2025.

With grocers already limiting customer egg purchases in an attempt to stretch supply, it makes sense that breakfast-based restaurant chains like Denny's need to take similar measures during this bird flu crisis. However, while grocery stores can try to tempt customers into purchasing different product lines, and shoppers can engage in creative grocery shopping strategies to save money, diners already pressed by inflationary factors may simply refrain from dining out, or ordering egg-based meals at all. While a well-stocked pantry can save you money, the idea of entirely skipping out on ever-pricier meals out — especially due to disease-induced shortages — is truly a bunch of rotten eggs.