Got yolk? Skyrocketing egg prices hit restaurants and consumers alike

Editor’s note: This story has been updated to correct the spelling of Argie Karafotias’ name.

In downtown Batavia, breakfast at Daddio’s Diner comes with a side of creativity beyond the usual eggs over easy.

For instance, there’s the “Kiss the Sky” skillet, named after a nearby record shop. Or the “Hangover Special,” a mass of French toast, melted cheddar cheese, bacon, sausage and hash browns, topped by two eggs.

The tiny diner goes through about 1,800 eggs a week, as cooks whip up the egg-centric menu that includes pancakes, waffles, crepes and French toast.

As the price of eggs has skyrocketed, it has put co-owners Scott and Terry Beltran in a pickle the last few months. What used to be a $200 to $240 bill each week now is costing them $1,100 to $1,350.

As he shopped for eggs Wednesday morning on his computer, from his perch at the end of the counter, Scott said he does not want to do what Waffle House is doing — charging customers a surcharge for each egg ordered.

“But I might be forced to do that real soon,” he said. That could mean adding a buck an egg, for example, to an order for a three-egg omelet.

The issue

Egg prices have increased as bird flu hit egg farms nationwide, including big producers in the Midwest. If one bird on an egg farm comes down with the flu, federal law requires all the birds to be killed. For large operators, that could mean losing a million chickens in one fell swoop.

Scott Dickinson is president of Natural Direct LLC in Aurora, which distributes eggs, dairy, meat and other products to stores and food-service businesses.

Its food-service customers use cage-free and non-GMO eggs, sourced from Milo’s Poultry in Wisconsin and Farmers Hen House in Iowa.

“Supplies are tight, we cannot take on new customers, but we have been able to continue to service our existing cafés and bakeries at regular volumes,” Dickinson said.

He said the small farms they deal with have not been impacted directly by the bird flu.

Natural Direct’s egg costs have gone up 32%, so it has increased its prices 28% to minimize the impact during what Dickinson called a temporary period.

Nationwide, wholesale egg prices hit on average $7.34 per dozen last week, according to the U.S. Department of Agriculture. That was 51% higher than at the beginning of the year.

The Waffle House chain added a 50-cent-per-egg surcharge this month. Others may turn to egg substitutes like tapioca starch for some recipes or cut egg dishes from the menu, said Phil Kafarakis, president and chief executive officer of the International Foodservice Manufacturers Association.

First Watch President and CEO Chris Tomasso said the company, which has locations in six Chicago suburbs and is opening a seventh next month in Algonquin, has been able to obtain the eggs it needs and isn’t charging extra for them. First Watch also is increasing portion sizes for non-egg items like meat and potatoes, Tomasso said.

Small operators

But First Watch and Waffle House are large chains that may have more capacity in their budgets to absorb higher costs.

That’s not the case for the Golden Brunch restaurant in Arlington Heights.

Owner Argie Karafotias said rising prices for eggs, as well as increasing costs for other things such as natural gas, electricity and property insurance, are making it tough for him to hold on.

“Right now we are losing money,” he said.

The 165-seat restaurant has been open eight years. “It is ridiculous,” he said of the egg prices. “We are a small business. We are not a corporation. We cannot do that (raise prices) to our customers.”

He did increase prices six months ago, he said, but since then has been just absorbing cost increases. If he raises prices again, “People will not come in,” Karafotias said.

Karafotias said he is paying about 40 cents an egg now; a year ago, that was 18 cents. Golden Brunch uses 4,000, to 5,000 eggs a week, including five in each of its omelets, which are priced from $13.49 to $14.95.

“We can’t charge $18 for an omelet,” he said. “I grew up in this business. This is really hurting.”

• Associated Press contributed to this report.