What’s causing the increase in egg prices
The increase in egg prices is a direct result of the spread of bird flu. Each month, U.S. farmers are forced to slaughter millions of chickens to limit the spread of the disease. That has resulted in higher egg costs for consumers. Smaller businesses, with tighter margins and less purchasing power, are hit even harder.
Marte estimates that up to 50% of city bodegas have already raised prices on their classic BEC sandwich. He says the cost of a case of eggs has surged over 200%, jumping from $67 last month to $225 today.
Moshe, owner of Pick-a-Bagel in Kips Bay, has also had to raise the price of his BEC — by 75 cents. “We had to... I would not sell a sandwich, losing money. Nobody would,” said Moshe, who asked NY1 to only be identified by his first name. He estimates a similar increase in egg prices, saying two months ago, eggs went for $100 a case but now cost $235 per case.
They’re not the only ones to feel the pinch. Small businesses across the country are having to make hard decisions as egg prices continue to soar. Kathleen Regelman, the owner of Kreger's Bakery in Wisconsin, told WAOW News she didn’t want to raise prices again after already doing so due to rising prices in general.
“When something increases like this, like double or triple, we feel the impact much greater… and it forced us to make some tough decisions,” she told WAOW. “We don’t want to increase our prices for our customer base. We’ve already had to do that quite a bit with just rising prices in general.”
Instead, Regelman has decided to cut back on some items to avoid passing that pain on to her customers.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreSmall businesses especially impacted
Small businesses, like Moshe and Marte’s shops, tend to pay a bit more than larger corporations for ingredients. That means they have a harder time absorbing price hikes, but even big brands aren’t immune to the price increases.
Waffle House recently announced it's added a 50-cent surcharge per egg to its dishes. Although the increase is supposed to be temporary, it can add up for consumers. Trader Joe’s and Costco have started limiting egg purchases to ensure that their supply lasts.
The national average for a dozen eggs climbed to $4.95 in January, and the U.S. Department of Agriculture warns prices could rise another 20%. This could put even more pressure on smaller businesses, which have less buying power and smaller profit margins.
Moshe said he understands consumers’ pain and the headache of rising costs.
“I feel the pain for everybody because I go and I shop for my family and I see prices,” Moshe told NY1. “I understand where those frustrations come from. The point is, we have no choice in order to keep a business running.”
The soaring price of eggs is just another challenge for small business owners already struggling with inflation and supply chain issues. But even as costs rise, many remain committed to serving their communities, adapting as best they can to keep their doors open and their customers fed.
The richest 1% use an advisor. Do you?
Wealthy people know that having money is not the same as being good with money. Advisor.com can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning.
Try it now
