Mike Stasko, the president of Sunny Street Cafe discusses how the restaurant franchise is navigating the challenges of rising egg prices while maintaining its commitment to quality and customer value.
Egg prices are once again on the rise, presenting a significant challenge for restaurants, particularly breakfast-focused concepts where eggs are a cornerstone ingredient. As a result of a fatal strain of bird flu that has persisted for two years, the cost of eggs has surged by 30% over the past year. For full-service and quick-service restaurants, this volatility impacts everything from food costs to menu pricing strategies. At Sunny Street Café, we’ve implemented several strategies to navigate these price hikes while protecting our bottom line and keeping customers happy.
1. Reducing waste and managing costs
The volatility of egg prices demands constant vigilance. At Sunny Street Café, we evaluate egg costs weekly, staying informed about market trends and anticipating price fluctuations. This level of monitoring allows us to make proactive decisions rather than reactive ones.
One of the most effective ways to offset rising egg prices, for example, is through tighter inventory and waste management. For us, that means leveraging technology like Restaurant365, an inventory management system that helps track every detail of food costs. By understanding the variances in expected versus actual costs down to a tenth of a percent, we identify areas where pennies can be saved.
This precision includes monitoring waste and preventing overportioning. When you can minimize losses in other parts of the business, it helps offset the financial hit from skyrocketing egg prices without passing those costs onto guests.
2. Strategic vendor partnerships
As eggs are a commodity, price increases are often unavoidable. However, exploring vendor partnerships and renegotiating terms in other categories can help balance overall costs. By taking a holistic approach to vendor relationships, we reduce the financial burden of higher egg prices.
Reimagining the Menu
Eggs are central to our identity, but when prices rise dramatically, we get creative with menu development. Limited-time offers (LTOs) and specials give us the flexibility to feature dishes that are less egg-centric. For example, we might promote our fancy pancakes or chicken and waffles instead of omelets or other egg-forward dishes.
These menu adjustments allow us to maintain profitability while offering guests exciting new options. Specials also help restaurants remain fleet-footed, adapting to cost changes without overhauling the core menu.
3. Supporting franchisees with data and communication
As a franchisor, communication with our franchisees is critical. We ensure they have access to the best available data to make informed decisions. This includes forecasting future price trends to minimize surprises. By providing clear insights into market dynamics, we empower franchisees to implement cost-saving measures without compromising the guest experience.
4. Protecting the guest experience
Raising menu prices is always a last resort at Sunny Street Café. We’re committed to ensuring our guests receive value, even in the face of rising costs. For us, it would be untenable to increase menu items by 50 cents every time egg prices spike. Instead, we focus on internal solutions — reducing waste, managing inventory and exploring alternatives — so that our customers can continue to enjoy their favorite dishes at a fair price.
5. Adapting for the future
While we hope for stabilization in egg prices, we recognize the importance of being prepared for ongoing volatility. Our approach combines strategic foresight, operational efficiency and a commitment to our guests. By keeping costs under control and creatively adapting our menu, we ensure Sunny Street Café continues to thrive while remaining true to our mission of delivering exceptional breakfast and brunch experiences.
Restaurants may be feeling the squeeze as egg prices rise, but with a little creativity and a lot of planning, operators can avoid putting all their eggs in one basket. By focusing on cost-saving strategies, reimagining menus and staying nimble, the industry can continue to serve up success without cracking under the pressure.
