Egg-price surge forces restaurants to hype burgers, smoothies

CHICAGO – Record-high egg prices in the U.S. are forcing restaurants to get creative with their advertisements.

Denny’s Corp. is pushing burgers instead of omelets, while Dunkin’ Donuts is advertising smoothies and iced coffees. Panda Express has swapped in corn for the eggs in its fried rice.

Blame bird flu for the changes. The worst U.S. outbreak of the disease killed more than 48 million fowl in the six months through mid-June. That sent prices surging 31 percent to a record $2.57 for a dozen large eggs in June, according to the Bureau of Labor Statistics. Consumers paid just $1.96 in May.

At Denny’s, eggs make up about 10 percent of commodity costs. Due to the soaring prices, the company raised omelet prices and is advertising non-egg items. It’s also planning to market a Burger Bash, “which is markedly counter to an egg promotion,” CEO John C. Miller said on a conference call this month. Denny’s sells three-egg omelets in varieties such as Philly Cheesesteak, Loaded Veggie and Meat Lover’s.

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Dunkin’ Donuts nixed a promotion that it was scheduled to run this quarter because of a tight supply of eggs. The Dunkin’ Brands Group Inc.-owned chain is now focused on advertising smoothies and cookie-flavored coffees.

“There was an impact in terms of supply,” CEO Nigel Travis said last month. “The concern is, with the winter coming, will the flu come back?”

There’s also concern that egg prices may rise further this fall as Americans start baking for the holiday season, Eggland’s Best Inc. CEO Charles Lanktree told Bloomberg TV last month.

Fried rice

Panda Express Inc., the American Chinese-chain with about 1,800 restaurants, can’t get enough eggs to meet diners’ demands. That’s why it started using sweet corn in its fried rice in June.

“Due to an industrywide shortage of eggs, we are unable to source a consistent and safe supply,” the company said on its website. “We are preparing for there to be no eggs for 18 to 24 months.”

Not all restaurants, however, have such flexibility with their menus. At the Famous Toastery, based in Davidson, N.C., the main business is breakfast and brunch. Its best-selling morning item is an avocado omelet.

“We’ll push more for lunch stuff, more of the non-egg stuff,” said Robert Maynard, co-founder and CEO of the six-location chain. “But at the end of the day, that’s what people want. They want eggs.”

After its regular distributor started rationing eggs, the company turned to local grocers, such as Harris Teeter and Whole Foods. The shortage is costing the company an additional $4,200 a week, and it will have to raise prices soon, Maynard said.

“It’s going to take a while for the market to stabilize,” he said. “There’s no relief in sight.”

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