Egg supply issues lead to restriction of egg purchases at Trader Joe's stores
In the midst of a nationwide egg shortage caused by a devastating bird flu outbreak, businesses have had to adapt to maintain supplies and manage costs. The outbreak, which began in 2022, has forced many farms to cull entire flocks upon detection of the virus, leading to a significant reduction in the U.S. egg-laying flock.
Over 31 million egg-laying hens and 2.5 million pullets have been culled due to the outbreak, impacting the supply of eggs, particularly cage-free eggs, which accounted for nearly 60% of bird flu cases in 2024. Seven states with laws banning conventional eggs for animal welfare reasons have also contributed to further supply constraints, especially for cage-free eggs.
As a result, many retailers changed pricing practices to avoid running out of stock, keeping egg prices higher to ensure shelves remained stocked. The price of eggs spiked dramatically in early 2025, reaching over $8 per dozen in March, though prices have since declined.
Trader Joe's, a popular grocery chain, responded to the shortage by limiting customers to purchasing just one carton of a dozen eggs per visit to manage limited supplies. The company, which supports offering cage-free eggs, was affected by the bird flu impact on those hens.
Meanwhile, Waffle House, the iconic restaurant chain, imposed a 50-cent surcharge on egg dishes due to the high cost of eggs amid the bird flu outbreak. After egg prices fell significantly by July, Waffle House announced it was removing this surcharge, calling the removal "egg-cellent news".
Other businesses, like Costco and Denny's, also imposed purchase limits and surcharges during the peak price period to handle supply shortages. Some grocery stores restricted customers to three cartons in some locations, while Denny's added an egg surcharge.
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As the bird flu outbreak continues to impact the egg supply, businesses like Trader Joe's and Waffle House illustrate typical responses to this supply crisis by balancing customer demand with limited eggs availability. The U.S. has increased egg imports to meet demand, but a net trade deficit in eggs indicates that domestic supply remains below demand. Some officials and analysts have pointed to animal welfare laws in states like California as a factor in high egg prices, as these laws impact how eggs are produced and contribute to supply constraints.
Financial institutions have had to closely monitor the fluctuating prices of eggs due to the ongoing bird flu outbreak, with costs impacting the overall business expenses for various sectors. The temporary egg shortage has forced retailers to implement pricing practices aimed at maintaining stock levels while managing costs, including surcharges on egg dishes and purchase limits.
