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Business Insider
2 days ago
- Business
- Business Insider
A Michelin-starred chef shares the menu-building strategies he uses to navigate rising food costs
Behind the plush seats and pastel-pink interior of Chicago's first Michelin-starred Indian restaurant — and one of the rare Indian fine-dining tasting menus in the US — was a risk. While restaurants continued to shutter or pivot in 2022 because of COVID-19, Indienne opened its doors. "That was, I think, the biggest risk I've taken," said Sujan Sarkar, Indienne's chef and co-owner, who has more than 22 years of experience opening and managing restaurants around the world. Sarkar told Business Insider that throughout the pandemic, the restaurant's vision — to spread a new Indian-food movement backed by high-end, flavorful dishes — stayed the same. "It can be profitable," he said. "We can build a successful business if we are consistent." But today's turbulent market, while different from the pandemic's, presents fresh challenges. The Economic Research Service's Food Price Outlook predicts that food costs will increase by 3.5% in 2025, and supply chains show no sign of easing up anytime soon. As inflation continues to grip the US and tariff negotiations remain in flux, causing companies to hike their prices, restaurant owners are preparing to face the brunt of the economic pressures. And while the industry has been battle-tested in the past, fine-dining leaders are perhaps at a crossroads: Shut down, pivot, or stay the course? For Sarkar, it's all about sticking to what's worked in the past. "We have to be sensible about everything, because the diners who are coming to dine in our restaurant are coming for something that we are known for," Sarkar said. "We are seeing that people are really appreciating what we do, and that's why the business is also sustainable, even though the cost is rising." BI spoke with Sarkar about his plans for navigating economic pressures and how fine dining could adapt to stay ahead. Sujan Sarkar: We run four different tasting menus. We have nonvegetatian, vegetarian, vegan, and pescatarian. With the vegan menu, my cost is lower than the nonvegetarian menu because of no protein. Our vegetarian and vegan menus do not include caviar, scallops, or lamb. When diners choose these menus, the price is only a $10 or $15 difference from the nonvegetarian menu. But when they opt for this, my profitability goes up because the food costs are lower. We also always offer a supplement course that people can add to their tasting for $15 to $24 extra. I don't do last-minute makeshift dishes. So if you read a menu before you come, it's much easier for you and for me as a business. When we have the planning in place, we can control the cost. If my restaurant is full, I can manage because I know how much business we'll do, and my forecasting is much easier. I also have four other restaurants in the city. We share a lot of resources, and that also helps us cut costs. How does simplicity and seasonality play into how adaptable you've been as a restaurant? An example is how we work with farmers to get baby corn. I purchase a guaranteed minimum quantity of baby corn every week so I can get better pricing and farmers can have secure revenue. It's local and seasonal, which keeps my costs down and also gives the farmers business. We don't grow a lot of vegetables here in the winter, so I have to rely on people from California who can get them. But I can't only give them business in the winter — there isn't a written contract, but there's an understanding that I will give them yearlong business. So they are also doing things for us, like sourcing baby vegetables, micro herbs, and edible flowers. That way, the menu can be consistent, and we can set its cost. Restaurants are going from highly priced menus to something affordable. We did just the opposite. We used to do a tasting and an à la carte menu when we started, but now we are only a tasting restaurant. We are not creating a lower-priced menu to attract more diners. But almost a month ago, I opened a new restaurant called Nadu, where you can get food that is only à la carte. We just took a different route at Indienne, but the people going appreciate that more because they know exactly what they're coming and paying for. We're getting an overwhelming response. It's still Indian food, but a much simpler version. Still, everything is cooked in-house, everything is flavorful, but now it's as close to our traditional Indian dishes as possible. What advice would you give to emerging chefs or restaurateurs trying to build something ambitious in a time when margins may be tighter than ever? I've waited almost 21 years to open Indienne. I could have opened before — I opened restaurants in so many different countries and all over America — but you have to be sure about what you're doing. It's not only about you when you open a restaurant. There are a lot of people who are going to trust you. If you fail, they fail as well. You may be good at cooking, but that's only 30% of any restaurant. You have to learn so many other things. Your people-management skills, your accounting skills, your interpersonal skills, your PR — everything comes into play. The restaurant business is very volatile, and the profit margin is getting limited every day. It's not easy, but just wait for the right time and get the right people by your side: investors, teammates, your mentor — everyone.
The Star
24-05-2025
- Business
- The Star
INTERACTIVE: Malaysians have highest grocery bill in South-East Asia
PETALING JAYA: Malaysians are experiencing a heavy burden when it comes to rising food prices, with data showing that they spend more on groceries than any South-East Asian country. Data from the US Department of Agriculture (USDA) Economic Research Service shows that Malaysia's consumer expenditure on food at home was highest in the region in 2023 at US$1,940 per person per year. The USDA figures are not adjusted for inflation or differences in living costs between countries. According to Bank Negara Malaysia's exchange rate in 2023, the US$1,940 figure for Malaysia is equivalent to RM8,848. However, at current exchange rates, it is equivalent to RM8,286. Singapore was second at US$1,831, followed by Thailand (US$1,108), Philippines (US$1,070) and Cambodia (US$898). Experts said several factors explain why Malaysians spend a relatively high amount on food at home compared to other countries in the region. They include a reliance on food imports, a weaker Ringgit and farm labour shortages. Other reasons include the rising cost of input in food production such as fertilise and animal feed, monopolies and oligopolies in food production, as well as low farm productivity. 'Malaysia's elevated food cost per person relative to its Asean counterparts points to the need for concerted efforts by the government and private sector to expand food production and raise farm productivity,' said Sunway University economics professor Dr Yeah Kim Leng. He said other complementary actions include dismantling monopolies and liberalising food markets, reducing transport and storage costs and improving supply chain efficiencies to bring down food prices. He said Malaysia's higher food expenditure per person at home compared to Asean countries with lower per capita income can also be explained by its higher income level. 'However, despite income per capita that is in multiples that of Malaysia, Singapore's food expenditure per capita is about the same as Malaysia's during the 2017 to 2023 period, with the 2023 figure dipping below Malaysia's in 2023,' he said. While the data specifically does not take inflation into account, Yeah noted that the food component in Malaysia's consumer price index (CPI) basket has been experiencing higher inflation averaging 3.1% annually between 2020 and 2024 compared to the overall CPI inflation of 1.8%. Khazanah Research Institute's research associate Dr Teoh Ai Ni said the total amount spent on food consumed at home would vary depending on how frequently individuals spend eating at home. She said Malaysians also spend a larger portion of their monthly spending for food on food at home compared to Singaporeans. 'Data from the Household Expenditure Survey 2022 shows that Malaysian households spent about 48% of their total monthly food expenditure on food away from home, with 52% spent on food at home. 'In comparison, Singaporean households spent 68% of their food expenditure on food away from home.' 'This is why the consumer expenditures spent on food at home for Singapore is lower than that of Malaysia, and it does not imply that food in Malaysia is more expensive,' she said. She noted that the use of US dollar in USDA's data as the unit for comparison does not take into account the variations in the current strength or cost of living, nor does it equal purchasing power. Fellow research associate at KRI, Nik Syafiah Anis said Malaysia is also one of the more food import-dependent nations in Asean, which means its food system is vulnerable to global supply chain disruptions and external price shocks. She said other Asean countries such as Thailand and Vietnam have transitioned into major agricultural powerhouses, with Vietnam's food exports surging more than 15-fold between 1995 and 2018, driven by rice, seafood, and coffee. She in comparison, Malaysia's food import bill reached RM75.6 billion in 2022 and it remains a net importer of essential food items, particularly animal or vegetable fats and oils, cereals, and dairy products. 'One key dimension of this dependency is the country's reliance on imported animal feed - particularly corn and soymeal, which are key inputs in poultry, livestock, and aquaculture production. 'For example, Malaysia imports around 95% of its corn needs, largely from Argentina, Brazil, and India. This includes corn for feed and food, seed, and industrial (FSI) use,' she said. She said over-reliance on imported feed has a trickle-down effect on domestic food prices. She added that with global disruptions such as geopolitical tensions or poor harvest due to climate change, feed prices can spike, leading to higher prices for chicken, eggs, fish and meat at the consumer level. Meanwhile, Teoh said the share of income spent on food depends on wages and food expenditure. Malaysians' portion of food spending is comparatively lower than most other countries in the region. 'The differences are attributable to a combination of factors, including income level, food prices and food consumption patterns. She said that as income rises, the share spent on basic necessities like food would likely decrease while the share of spending on discretionary items like entertainment and recreation would likely to rise.
Zawya
30-04-2025
- Business
- Zawya
How falling oil prices could impact South Africa's HoReCa sector?
As oil prices declined in April 2025, the South African food services industry might see an opportunity to cut costs. However, caution should be applied as the short-term relief brought on by cheaper oil could carry long-term consequences for local cooking oil producers, the HoReCa sector - hotels, restaurants, cafés, and caterers as well as broader food supply chain. According to the US Department of Agriculture's Economic Research Service, while overall oil prices are expected to dip, prices for fats and oils could rise by 0.6% in 2025. Their forecast range spans from a 4.4% decrease to a 5.9% increase, underscoring the market's volatility. Factors such as crop yields, global production deficits, and processing constraints are increasingly playing a bigger role than crude oil prices alone. And while this may seems too far removed from what happens in the kitchen – the ripple effect of oil prices, supply chain and quality is being felt. However, for South Africa, this presents both a warning and an opportunity. The fluctuating oil price consequence Crude oil prices took a dive to 2021 levels which is a direct impact of the current trade wars and fluctuating demand. While this brings temporary financial relief for consumers and businesses with cheaper imported oils being more accessible to South Africa, a hefty impact will be felt by local cooking oil producers who are struggling to compete with low prices. Morne Botes, commercial director at Southern Soil. Image supplied Take the HoReCa sector for example, in order to maintain years of credibility, food safety and quality produced in the kitchen in line with the history of the business, the use of low-grade oils can have a negative impact on the businesses and its reputation. Imported oils, while they solve the immediate problem of cost, often lack transparency in terms of sourcing and quality control. On the other hand, palm oil exports have dropped significantly below the record volume exported six years ago, with production challenges including disease outbreaks like ganoderma fungus pushing up costs. At the same time, demand for higher-quality oils like canola is shifting due to political tensions and trade disputes among major producers like Canada, China, and the US This dynamic is making South African producers more vulnerable, as imports outpace local demand and threaten industry viability. Cheaper Oils – what you should know Unfortunately, not all cooking oils are made the same and are not upheld to the same quality and sustainability standards, especially those of the country they are being imported into. As a result, this has an impact on several things: - Retailers may unknowingly stock lower-quality products, which can compromise food safety and brand trust. - Supply chains become more fragile, dependent on volatile global markets and foreign policy shifts, which we are currently experiencing because of climate change and the current trade tariff war. - Local sustainability initiatives are undermined by cheaper but environmentally damaging options. Take South Africa for example, there is a growing push toward ethical sourcing and environmentally conscious consumerism. Furthermore, soybean oil consumption is being revised downward globally, even as crushing activity increases in countries like Argentina, revealing deep market imbalances that could affect long-term oil quality and availability. In fact, for businesses that rely on cooking oil, like Canola play towards a business strategy that values sustainable spending. It's high smoke point, neutral taste, shelf life and cost-effectiveness - make it perfect for high-volume, professional kitchens. Food services in the crosshairs These challenges, coupled with inflation can play a huge role in forcing the HoRecA sector and food manufacturers to opt for cheaper oils as a way to manage the high costs and meet the various demands of food services business. While this solves one problem, it has a hidden cost on health, taste, reputation, and reliability – which is often far more detrimental to the business as opposed to saving money. In fact, the US biofuel industry's crisis due to reduced oil imports has already shown how volatile policy decisions can disrupt feedstock flows and create artificial shortages. For South Africa, overreliance on imports could place similar pressure on the local market if global supply chains tighten unexpectedly. The 3S's - Smart, Sustainable, and Strategic It is clear that supporting the local cooking oil industry is a smart business move. Local producers: - Deliver oils that meet rigorous quality and safety standards. - Contribute to the national economy and create jobs across the agriculture and manufacturing sectors. - Help build food system resilience in a world where global economic and environmental uncertainties dominate frequently. - The homegrown oils route also allows businesses to promote sustainable farming practices and reduce their carbon footprint. This option removes the risk of unpredictable price swings, trade wars, and supply shortages. The question we must ask is, amidst all the uncertainty, will the South African HoReCa sector chase short-term gains or invest in long-term stability? Choosing high-quality, locally produced cooking oil isn't just good for business - it's vital for the health, sustainability, and future of the nation's food economy.
Yahoo
16-03-2025
- Business
- Yahoo
13 Items Getting More Expensive At The Grocery Store And What To Buy Instead
Yes, you're probably noticing that your weekly or biweekly grocery run is ringing up a little higher than normal, but sometimes it's difficult to see just how much individual grocery prices have increased, particularly when they increase little by little. However, if you look at data from the U.S. Department of Agriculture's Economic Research Service, the difference in grocery prices over the last four years is stark. Since 2020, the service reports that U.S. food prices have risen by nearly 24%. That means, if you were spending $200 on groceries every two weeks for your family, now you're spending about $250 — and if your income isn't keeping up, that's a tough bill to swallow. Even over the last year, grocery prices have increased to a noticeable degree — and the experts expect those prices to continue going up. According to the Consumer Price Index, grocery prices rose 2.5% between January 2024 and January 2025, and the index expects grocery prices to increase another 3.3% over the year ahead, with some prices potentially rising by as much as 7%. Where are you likely feeling these high prices the most, what should you maybe leave out of your grocery cart in the months ahead, and what should you buy instead? Here are some of the items becoming noticeably more expensive at the grocery store and what to replace them with. Read more: The Ultimate Ranking Of Grocery Store Rotisserie Chickens, According To Customers Let's start with the obvious, shall we? Everyone's talking about the rising cost of eggs. According to data compiled by Nerdwallet, the cost of a dozen Grade A large eggs had risen 53% between January 2024 and January 2025, with average costs sitting at $4.95. As of March 2025, you'll pay closer to $6 buying the same at Walmart. Yes, the rising cost of eggs can be chalked up to the growing concerns over bird flu and reports of egg producers needing to wipe out huge numbers of birds in order to contain the spread. However, the rise has been so dramatic that, as of March, the Department of Justice announced an investigation into egg pricing practices, to see if something more nefarious and conspiratorial is going on. Whatever the case may be, if you're not exactly up for spending about $0.50 per egg these days, there are plenty of top egg substitutes you can use, for a cheaper price. In baking goods, carbonated water can act as an egg used as a leavening agent. Used a can of chickpeas? Hold on to that aquafaba that you'd otherwise throw away and use it in place of egg whites. The rising cost of chicken has been credited to many of the same reasons that eggs are going up in price. Luckily, the cost of chicken hasn't risen quite as dramatically. According to U.S. News & World Report, in 2019, you could buy a whole chicken at a per-pound cost of $1.47. By the end of 2024, that cost had only risen by about $0.60 per pound. Still, if you're trying to pinch pennies where you can, you might make a few changes to your chicken-buying practices moving forward. For example, if you're not buying a whole chicken, you can choose the cuts of chicken that are trending cheapest. U.S. Foods, reporting on the poultry market in early March 2025, for example, noted that prices for boneless, skinless thighs, and all chicken breast meat, increased in the early part of the month. Meanwhile, small chicken tender pricing remained stable, and wing prices declined. You might also choose other forms of protein altogether. According to the U.S. Bureau of Labor Statistics' average retail food and energy prices for January 2025, while chicken is still some of the cheapest fresh meat you can buy at the grocery store, some cuts of pork may actually be cheaper, by the pound. While you're perusing your options in the fresh meats section of the grocery store, you may think that ground beef is the better way to go. However, while the rising cost of ground beef isn't as well-publicized as the rising cost of eggs, it's still there — and substantial. One NPR study found that the cost of ground beef rose 7.2% between December 2023 and December 2024. If you compare ground beef prices from December 2024 to August 2019, you'll notice a whopping 33.9% difference. There are several reasons why the price of beef is going up. Primarily, farmers' costs have gone up, due to drought and rising feed costs. Additionally, the number of cattle farmers in the United States has decreased over the last several decades, lessening supply and further driving costs upward. If you're looking for a suitable protein replacement to take the spot of your ground beef, consider what you could do with a boneless pork chop — the same NPR study found that, between December 2023 and December 2024, the cost of boneless pork chops had actually decreased by more than 20%. The price of coffee hit an all-time high in January 2025, with prices increasing 80% year over year and more than 40% since late 2024. There are numerous reasons why this is the case, including climate change and geopolitical issues. Drought has affected coffee producers in Brazil. Floods have impacted coffee producers in Vietnam. It's not just coffee beans and grounds that are going up in price, either. Even instant coffee has risen in price, by more than 4%. As such, you might want to consider cutting back on the number of cups of joe you drink per day, or replacing some or all of them with tea, instead. While the tea industry is by no means immune from global warming, a cup of black tea is still cheaper than a cup of black coffee, with 100 cups of Lipton selling for under $5 at Walmart. In contrast, a 25.9-ounce container of Folgers Classic Roast is just under $12 at Walmart. You can get about 23 cups of coffee out of a 12-ounce bag, so it's safe to assume you'll get about 50 cups of coffee out of 25.9-ounce container — so half the number of cups of tea for double the price. Both eggs and chicken are going up in price. It just makes sense, following the same logic that, if the price of beef is going up, the price of milk is going up, too. NPR's study tracking Walmart prices over six years found that, from December 2023 to December 2024, a gallon of 2% milk rose nearly 20% in price. On average, a gallon of whole milk in 2019 was $2.91; at the end of last year, that same gallon was $4.10. It's expected these high prices are here to stay for the year, too, due to demand outpacing production. To save money on milk moving forward, be sure to compare prices for non-dairy alternatives. While some, like oat milk, are notoriously more expensive than traditional milk, others may be very comparable, such as some soy milks, which you can buy for around $2.40 per half gallon. You can also try making your own oat milk at home, which literally requires only water and a cup or so of rolled oats. As NPR found, from December 2023 to December 2024, Tropicana orange juice didn't just go up in cost by more than 13%. The brand also reduced its package size, so you get less juice with each purchase. It's likely that you're now paying a quarter more for each 32-ounce jug of orange juice you buy, compared to February not just the "fresh" OJ that you buy in the dairy aisle that's increasing in price, either. Frozen juice prices are up, too. Unfortunately, this has been a long-standing issue. Record-high orange juice prices were seen last year due to extreme weather and disease impacting orange groves. In fact, the same poor weather in Brazil that's impacted coffee prices is also impacting orange juice prices, as the country is the world's largest orange juice exporter. If you're trying to reduce the amount you spend on OJ, you might consider picking up another juice variety. With Great Value 64-ounce cartons of orange juice going for over $5 at Walmart, you could save yourself a few dollars by choosing a 64-ounce bottle of apple juice ($2.14) or cranberry juice ($4.23), instead. It's not uncommon to open up a new bag of potato chips and wonder if they just don't contain the same number of chips anymore. Whether or not the bag is filled with more air than spuds these days, though, one thing is clear. From December 2023 to December 2024, Lay's party-size potato chips rose in price more than 9%, (via NPR). Today, a bag will run you $4.50 at Walmart, at the "rollback" price that chips are often marked at. So what can you replace your potato chips with? Rather than paying $4.50 for 13 ounces of potato chips, consider buying a 12-count box of popcorn, instead, with many options available for $6.36 at Walmart. A pack of Orville Redenbacher popcorn will produce about 11.25 cups of popcorn. That's about 135 cups of popcorn in one box — way more cups of snackage than you'll find in a bag of potato chips. In the realm of snack food, soda isn't faring much better than potato chips. The price of a 2-liter bottle of Coca-Cola rose more than 8% from December 2023 to December 2024, (via NPR). You'll pay $2.78 for 2 liters of Coke at Walmart, and more than $7 for a 12-pack of 12-ounce cans. Increases in soda prices aren't new, though. From April 2018 to October 2023, prices for a 12-pack of 12-ounce sodas rose nearly 65%. However, some worry that soda prices could just continue on rising, due to tariffs impacting the aluminum used for canning. However soda prices fluctuate in the months ahead, your wallet may find a little relief if you look toward a simpler (and healthier option). A 12-pack of 12-ounce cans of sparkling water, for example, goes for $4.73. If you sacrifice carbonation, but still want flavor, you can save even more, by, for example, buying flavored drink mixes and bottled water, for more than 20 drinks for about the same price as a 12-pack of 12-ounce cans of Coke. Chocolate prices were reported to be at extreme highs in 2024, and that trend has continued in 2025. As of February 2025, cocoa prices are at a 50-year high due to, in part, climate change impacting cocoa-producing countries around the world. During the Valentine's Day rush for chocolate, it wasn't uncommon for consumers to see prices 10% to 20% greater than what they might've in the past. Reese's and Hershey's prices jumped 13% and 12%, respectively, year over year. Lindt Chocolates also saw a significant increase, with prices from December 2023 to December 2024 rising nearly 8%, per NPR. While it's easy to pick up a cheaper, non-chocolate candy option when you're looking for a sweet treat, though, it might not be as easy adjusting your favorite baking recipes to adapt to higher baking chocolate prices. The good news? Cocoa powder is still significantly cheaper than baking chocolate, so you can save a bit by swapping the latter out for the former. For every ounce of unsweetened baking chocolate you want to replace, use 3 tablespoons of cocoa powder and 1 tablespoon of vegetable oil. Yogurt — specifically Yoplait yogurt cups — likewise rose in price by about 7%, from December 2023 to December 2024, according to NPR's Walmart pricing study. NPR found that, since mid-2019, Yoplait's prices had risen 28%, with the brand citing dairy inflation. Today, a 6-ounce Yoplait cup at Walmart is $0.77. If you're looking for a cheaper alternative to yogurt, you may want to consider sour cream. While you're not exactly going to want to sit and eat it with a spoon like you might your morning cup of yogurt, for recipes and a cheaper price for ounce, sour cream makes a suitable yogurt substitute, particularly if your recipe calls for an even pricier yogurt, like Greek yogurt, which can go for $0.72 for a 5.3-ounce cup. That adds up to a cost of $2.17 per pound. Comparatively, you can buy a 1-pound container of sour cream at Walmart for $1.97. You can substitute sour cream for yogurt in cold, savory and sweet dishes like dips at a 1-to-1 ratio. NPR's Walmart study found that medium raw shrimp prices between December 2023 and December 2024 had risen just under 4%. Simultaneously, NPR found that Walmart's Great Value pink salmon fillets actually decreased in price during the same time period, quite a lot, by 25%. As such, while shoppers may've normally reached for shrimp as a more affordable seafood option, now they might want to consider salmon, instead. Prices for salmon in 2025 may continue going down as well, due to a few reasons. For one, the number of farmed salmon is expected to increase this year, by as much as 4%, particularly in Norway and Europe. With greater supply available, this allows producers to be more competitive with cheaper-priced proteins, including beef, pork, and chicken. Even if you don't buy salmon this year, though, due to potentially further reduced prices, if you're looking for other alternatives to shrimp, just be sure to steer clear of some of the cheap fish that are really not worth buying, according to experts. Fish like tilapia, monkfish, catfish, orange roughy, and fluke may come at somewhat cheaper price points than other options, but they're usually better left at the grocery store, due to factors such as lack of quality or questionable fishing practices. Olives and olive oil are pricier than normal at the moment. Olive prices are up nearly 3%. Meanwhile, olive oil has been jumping in price for years now, with a nearly 200% increase in price since 2019. The reason? Again, it's all about climate change. The areas of the world that produce the most olive oil and olives are hit hard by changing, extreme weather. For example, Spain has seen particularly hot weather for several years in a row. Olive groves in other areas of the world, such as Greece and Turkey, picked up the slack, but they're not able to produce large harvests year over year, so that leads to further shortages. In some cases, like in Italy, disease threatens the olive trees. Today, you can buy a 7-ounce jar of Great Value olives at Walmart for about $2. To get more for your money, consider buying other, similar ingredients that could be used as snacks or in recipes like salads — something like giardiniera ($2.87 for 16 ounces), pepperoncini ($1.97 for 12 ounces), or gherkins ($2.52 for 16 ounces). The same issues impacting the cost of orange juice are impacting the cost of canned fruit. Canned fruit prices have risen nearly 3% due to climate change. As such, while canned produce is often touted as more affordable and just as nutritious as the fresh stuff, that might not be the case moving into 2025, at least where cost is concerned. For example, at Walmart, you can now buy fresh peaches for a cheaper price-per-pound ($2.48) than canned peaches ($2.69), depending on factors like brand purchased. As is the case with many grocery items that are becoming more expensive in 2025, to find the best deals on fruit at the grocery store, consumers will need to compare and contrast their options like never before, to uncover what truly is the most affordable product. Items that were previously assumed to be more expensive, like fresh food or even locally grown food (one study from the USDA found that local products at a farmers market are competitively priced to the same products at retail stores, within a 10% price range, the majority of the time), might now be the cheaper buy. For more food and drink goodness, join The Takeout's newsletter. Get taste tests, food & drink news, deals from your favorite chains, recipes, cooking tips, and more! Read the original article on The Takeout.
Axios
07-03-2025
- Business
- Axios
Egg prices could rise by 41.1% this year, USDA estimates
The price of eggs is expected to rise by 41.1% this year as the bird flu continues to rip through the nation's agricultural economy, the federal government projected in a new report. Why it matters: That's more than double the 20% increase predicted in January. Egg prices have been climbing to record highs daily and shortages have been growing, which has led stores to limit how many eggs any one shopper can buy. The big picture: The outbreak of the highly pathogenic avian influenza that begun in 2022 has recently intensified. In January, it affected 18.8 million egg laying hens, the highest monthly total of the three-year crisis, according to the U.S. Department of Agriculture. By the numbers: The USDA's Economic Research Service provided a range for its 2025 price-growth prediction of between 15% to 74.9%. Egg prices already increased 13.8% in January after rising by 8.4% the prior month, the report said. Prices this January were 53% higher than they were 12 months earlier. State of play: Restaurants, including Waffle House and Denny's, have added temporary egg surcharges because of high egg prices and shortages. But McDonald's has no plans to add an egg fee and is expanding its breakfast menu and offering a deal on Egg McMuffins this Sunday. Michael Gonda, the fast-food giant's McDonald's North America chief impact officer, wrote on LinkedIn Tuesday that "unlike others making news recently, you definitely WON'T see McDonald's USA issuing surcharges on eggs, which are 100% cage-free and sourced in the U.S." Trump admin plan to "make eggs affordable again" What's next: Agriculture Secretary Brooke Rollins said today in a WSJ op-ed that the Trump administration "will invest up to $1 billion to curb this crisis and make eggs affordable again." "We are working with the Department of Government Efficiency to cut hundreds of millions of dollars of wasteful spending," Rollins wrote. "We will repurpose some of those dollars by investing in long-term solutions to avian flu, which has resulted in about 166 million laying hens being culled since 2022." Rollins noted prices should "start coming down maybe this spring, this summer as we work to implement some of these bigger picture solutions." "Once we're past Easter, then we'll hopefully have some really good solutions for the American people," Rollins said. The intrigue: If egg prices are still high for Easter, expect families to turn to alternatives like painting and hiding potatoes, an idea that sprouted in 2023 because of high prices. More from Axios: Tooth fairy payouts drop to lowest rate in years Crafts retailer Joann going out of business; 19,000 jobs lost Peter Rawlinson out as CEO of luxury EV maker Lucid
