Brace for impact: Egg prices won’t be only shock for NJ restaurants

💲Eggs are 10 times as expensive as a year ago, according to one diner owner

💲Prices have come down in recent weeks

💲Coffee, meat and vegetables may jump in price

EAST BRUNSWICK — The price of eggs has given New Jersey restaurant owners yet another punch in the gut and presented a quandary of whether to raise prices or ride it out.

Since restrictions were put in place by Gov. Phil Murphy during the COVID-19 pandemic the industry has faced the challenge of just staying open and waiting for the return of "normal" dining habits. Labor costs and changing social habits have also impacted the industry.

The latest challenge is the skyrocketing price of eggs, which reached a high of $5.81 per dozen at the start of January, according to the website TradingEconomics.com, which tracks the price of commodities nationwide.

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Egg prices have dropped 40% since the beginning of January to $3.45 per dozen.

It's still high for Spiro Hadjiyerou, owner of the Colonial Diner on Route 18 in East Brunswick, who says the cost of eggs has gone up 10 times higher than what he was paying a year ago. Hadjiyerou has not raised the price of menu items with eggs.

"In the beginning, we were just dealing with it. It wasn't that bad. But as it got higher, we started using the smaller-sized eggs. We went from extra large to large. That saved some money," Hadjiyerou told New Jersey 101.5. "Then we started getting cage-free or brown eggs, because they were still as the price of regular eggs went up, cage-free and organic eggs stayed the same."

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Customers surprised

Hadjiyerou said his customers are surprised he hasn't raised prices, especially on his omelets which he makes with three or four eggs each. If he uses smaller eggs he just has to use more to make them look like customers expect.

"The omelet is our diner go-to item on a Sunday brunch and you can't be chintzy. People rather pay and get what they're used to. Then pay less and get less. So for now, we're not increasing our prices.

Hadjiyerou said it's not just egg prices that are on the rise. The price of beef has gone up "tremendously" in the past month and it has been the worst season for Arabica coffee beans, which is what most restaurants serve. Tariffs imposed on products from Mexico will also impact menus.

"A lot of vegetables are coming in from Mexico. Anything avocado on your menu sells like crazy. Tomatoes are coming from Mexico. A lot of the vegetables are coming out of Mexico," Hadjiyerou said. "It's just a matter of time before you have to look at your menu. Do you take items off your menu? Do you increase the prices? And most likely, you'll increase prices."

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Other food prices set to jump

New Jersey Restaurant & Hospitality Association President & CEO Daniel Klim believes that local restaurants are in a better position than chain restaurants to survive.

TGIFridays and On The Border recently closed their Toms River locations.

"I think restaurants like Spiros, the independent operators, the community supports them. They are among the community and they are involved at the local level. So that's why I think you'll see the sustainability for them," Klim said. "They don't want to raise prices. But unfortunately, with the environment where we're at and prices increasing everywhere, it just becomes a nature to stay in business."

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