Denny's increases its egg prices: All you need to know 

Denny's has increased its egg prices due to ongoing supply challenges linked to bird flu outbreaks, the chain confirmed in a statement to USA Today on Tuesday, February 25.

The temporary surcharge applies to menu items containing eggs, with costs varying by location. This follows a nationwide egg shortage that has driven grocery prices to record highs, impacting restaurants and consumers alike.

The surcharge, implemented in February 2025, reflects rising wholesale egg costs tied to avian influenza (HPAI). While Denny’s did not specify exact price hikes, examples from a Queens, New York, location show dishes like the Waffle Slam starting at $17.99, as per The Tasting Table.

Competitors like Waffle House have added similar fees, while Cracker Barrel has rejected surcharges, calling them “inhospitable.”

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Details of Denny's egg surcharge

Exploring Denny’s egg price hike (Image via Getty)

Denny's has increased its egg prices on a market-by-market basis, meaning customers in regions harder hit by supply shortages may see higher fees. The chain will continue offering its $2 $4 $6 $8 value menu, according to its statement. A spokesperson noted the surcharge is fluid and could adjust as egg availability changes.

Denny's clarified that fees depend on regional supply conditions. For example, areas with higher HPAI case rates or fewer suppliers may see steeper hikes. The chain encourages customers to check local menus or ask staff for details.

Waffle House, another major breakfast chain, introduced a 50-cent-per-egg fee in February, citing the same supply issues. Denny’s approach mirrors this strategy, though it has not disclosed per-egg rates.

Both chains emphasized the temporary nature of the hikes, with Waffle House calling it a “targeted” measure to avoid broad menu price increases.

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How bird flu impacts egg supply and costs

Egg shortages in the U.S. began in 2022 - (Image via Getty)

The current egg shortage stems from HPAI outbreaks that began in 2022, reducing poultry populations and tightening supply. The U.S. Department of Agriculture (USDA) forecasts a 20% rise in egg prices this year, compounding existing inflation. Wholesale egg costs have gone up $0.40 over a period of 30 days, per USDA data, forcing restaurants to adapt.

Denny's procurement team is working with suppliers and franchisees to stabilize inventory. However, the chain warned that egg-based items like omelets and pancakes could see further pricing adjustments if shortages persist.

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Competitor responses to egg shortages

While Denny's increased its egg prices, other chains have taken different approaches. Waffle House’s 50-cent-per-egg surcharge applies to its 2,100 locations, affecting dishes like omelets and breakfast platters. The chain serves 272 million eggs annually, making the fee a significant revenue buffer.

Denny’s vs. Cracker Barrel: Differing approaches to egg costs (Image via Pexels)

Cracker Barrel, by contrast, rejected surcharges. “There’s nothing hospitable about that,” the company stated, promoting its $7.99 Sunrise Pancake Special instead. Local diners and bakeries face similar dilemmas, with some absorbing costs and others adding modest fees.

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Denny's increased its egg prices as part of a short-term strategy to offset costs without overhauling its entire menu. The chain’s commitment to its value menu suggests a focus on retaining budget-conscious customers.

The USDA warns that egg prices may not stabilize until 2026, depending on HPAI containment. For now, Denny’s and its competitors navigate a volatile market, balancing customer loyalty with operational realities.