- Small businesses report up to $70,000 in annual egg cost increases
- Avian flu wiped out 52 million egg-laying hens since November 2024
- Wholesale prices remain 280% higher than 2022 averages
- Major egg producers saw 342% profit growth during crisis
- NYC establishments implement operational changes to delay price hikes
Four generations of the Lepore family have weathered world wars and economic collapses at Manhattan’s iconic Ferrara Bakery, but 2025’s egg price crisis threatens their 130-year legacy. President Ernest Lepore stares at invoices showing a 400% year-over-year increase for bulk egg purchases – a devastating blow for a business where 45% of recipes require this irreplaceable ingredient.
The national wholesale average of $6.85 per dozen masks a brutal reality for commercial buyers. While supermarkets sell eggs below cost as loss leaders, small businesses like Tribeca’s Square Diner pay true market rates. Owner Theodore Karounos calculates needing 18,000 eggs weekly to meet breakfast demand. At current prices, that’s $1,350 daily – enough to erase 12% of annual profits.
Three unique industry insights reveal deeper challenges:
- Energy-efficient equipment upgrades require upfront costs few can afford
- Local farm partnerships collapse as regional flocks get culled
- Insurance premiums jump 22% for food businesses using eggs
At Tom’s Restaurant – the real-life Monk’s Café from Seinfeld – co-owner John Ieromonahos now sources eggs from three states to maintain supply. Our $2,000 weekly egg budget could fund two full-time staff positions,he explains. The Hungarian Pastry Shop’s Philip Binioris has reduced baking batches by 30% to minimize waste, a strategy echoing Great Depression-era practices.
While Cal-Maine Foods reports record profits, family businesses face impossible choices. Ferrara’s Lepore installed $180,000 refrigeration systems to save $25,000 annually – a 7-year ROI period few can risk. Dartmouth economists note chains like Waffle House add temporary surcharges, but neighborhood spots resist alienating regulars. As USDA predicts 40% price hikes, the human cost emerges: Square Diner canceled its planned expansion, and Ferrara delayed hiring six seasonal workers.
Experts warn recovery could take 18-24 months even if avian flu subsides. With layer hen populations at decade lows, restaurants face permanent menu changes. Lepore’s team now tests chia substitutes in cream puffs, while Binioris considers almond milk alternatives. As Karounos grimly notes: We’re not just fighting prices – we’re fighting extinction.
