Egg shortages lead to restaurant surcharges that scramble costs for owners and customers

SANTA BARBARA, Calif. - The cost of a meal with eggs these days is going up due to the nationwide shortage.

Breakfast locations in the tri-counties are already showing signs of cost impacts. Some have added a surcharge to the bill while the situation continues.

The National Restaurant Association says the costs for eggs have risen 40 percent in the last year, but mainly it's focused on the impact of the HPAI (bird flu).

 By the case, the cost of 15 dozen eggs  has gone up about $100 from where it was a year ago according to a restaurant owner who orders many cases a week.

Restaurants that have added increases have said they held out as much as possible, but there is no relief in sight.

The charges can range from 50-cent an egg to $2.00 an egg dish.

It's still to be seen if customers will veer from eggs for awhile and go to other menu items or if they will pay the new price.

Ramiro Elizalde at the Mesa Cafe says he held back for months on making any price changes hoping the problem would stabilize but it hasn't.

"We actually lost money on the process of keeping the prices down, " he said.   "But it got to the point that it went up like 70 percent increase and we could not hold it anymore."

Menu items with eggs are $1 more in part because of a delayed increase and menu changes held back from last year while the costs were fluctuating so much.

Even with the slight change in prices, customers said  they understand what is going on and it is not going to stop them from going to their favorite locally owned restaurant.

Angelique Musicant was dining outside at the Mesa cafe and said, "well after working at a restaurant I totally get that you have to do that have to do because they have to make a profit if it costs them more you have to raise the price."

Greg Aposporis said, "this place has been here for years and we have been coming here for years and implicitly trust it.  "

Elizalde said, "every pasta, every bread that we serve has contains egg so it really affects all the prices."

During this unusual crisis,  service, value and knowing the local owner are making a difference and not leaving a bitter taste.

Elizalde said he is not making portions smaller or cutting staff but is adjusting to the rising supply costs.  "People understand we need to do the change in order to survive. I haven't had any complaints from people, only support."

This issue is also impacting bakeries that go through cases of eggs each week to meet their orders and attain the top quality customers expect.