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Egg shortage 2015: How is your restaurant coping?

Due to the egg shortage, local and national restaurants have had to improvise when it comes to providing eggs to their customers. Some have had to limit egg offerings, cut back on breakfast hours, embrace egg substitutes and charge more for egg-based products.

June 29, 2015 by Nicole Troxell — Associate Editor, Networld Media Group

Whataburger customers had fewer hours to order breakfast, over the past month, since the fast casual chain was forced to limit its breakfast hours due to the egg shortage caused by Bird Flu. In early June, the chain only served breakfast from 5 to 9 a.m. Luckily, it returned to normal breakfast hours last week after obtaining additional supplies of eggs.

"We know it’s been a tough couple of weeks for our customers, but we’re really grateful for their support while we worked to build up our egg supply,” said Whataburger COO Dino Del Nano. “All of us at Whataburger are so happy to get back to normal and serve our full breakfast menu to customers during our usual breakfast hours from 11 p.m. to 11 a.m.”

Although Whataburger has found a way around the shortage, egg supplies continue to dwindle and costs are climbing, according to a MarketWatch report. The U.S. Department of Agriculture's price for combined regional weekly averages for large eggs more than doubled from the month prior and now stands at $2.43 per dozen. In early May, the federal government approved $330 million in emergency funding to help states fight the spread of Avian Influenza, a virus that has already caused more than 47 million bird deaths and led to the national egg shortage. Iowa, Nebraska, Wisconsin and Minnesota have all declared states of emergency due to the virus, two strains of which have been detected since December.

Whataburger isn't the only brand adjusting to the egg shortage; it's affecting most  local restaurants and national chains, including Taco Cabana, causing them to either limit the hours in which they sell eggs, use more egg substitutes or charge more for egg-based products.

Liquid eggs are now in high demand and short supply, said Wade Winters, VP of Supply Chain for Consolidated Concepts, a purchasing partner for U.S. restaurants. Restaurants, hotels, hospitals, bakeries and packaged food producers using liquid eggs are significantly impacted by higher prices, which can lead to higher pricing on shell eggs as end users look to replace liquid eggs. Distributors are now facing product allocations based on prior purchase history from each individual distribution center.

What restaurants should tell their customers

Though the infection can be transmitted, eggs properly handled and cooked are safe, and the strains of AI detected have not affected humans to date, according to theAmerican Egg Board. 

Guidelines for keeping supplies safe deem that AI-infected facilities are not allowed to transport shell eggs to market. Various systems have been established to track AI-infected facilities' shipments, AEB said on its website. Since liquid, frozen and dried eggs are pasteurized, effectively killing AI, these products are not at risk.

What restaurants need to know

"Avian influenza is the largest outbreak of bird flu the US has ever experienced. We anticipate the impact to continue limiting egg supplies for up to 18 months," Winters said.

As a consequence of the shortage, distributors are instituting measures, such as restricting purchases to dole out what little supply they have.

"Broadline and specialty distributors are taking systematic actions to allocate product based on prior operator level purchase history, including closed coded items within their product catalogs. In many cases, new and existing clients will only be able to purchase liquid egg products they have previously purchased," Winters said.

Winters suggested that operators contact their distribution partner for specific options, and "Prepare to pay much higher prices for liquid eggs for the balance of the year and well into 2016."

Cost and menu solutions

Changing menu items, marketing, prices and ingredients are several strategies enabling restaurants to cope with supply shortages and rising costs.

Some operators have not yet passed these rising costs completely onto the consumer, in an attempt to bypass a shocking shopping experience, MarketWatch reported. They have instead marketed specialty eggs, such as organic, vegetarian-fed, cage-free and nutritionally enhanced, to absorb some of the cost.

Corbion Caravan, a provider of bio-based products made from renewable resources, is providing customers with two egg replacement solutions designed to deliver the flavor and characteristics of eggs, according to a press release from the company.

Corbion's Bro-Eg replaces whole eggs and acts as an extender. It can substitute for up to 50 percent of whole eggs in cakes and batters and 100 percent in yeast products, the company said. It's Cara-Eg can swap 25-to-50 percent of whole eggs in sweet goods and completely substitute yeast products.

"We expect a one-to two-year recovery before pricing and whole egg availability recover," Kathy Sargent, manager, sweet goods, for Corbion Caravan said in a statement.

Winters suggested that restaurants place fewer eggs on the menu where possible, and adjust menu offerings of eggs to every other day. And much like MarketWatch, Winters also recommended that restaurants consider shell eggs as an alternative to liquid eggs.

"Local produce distributors and dairy distributors frequently stock liquid and shell eggs. This may be a viable option in your market," he said.

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