The soaring cost of eggs is creating challenges for small businesses like Ferrara Bakery and Square Diner, impacting their bottom line and forcing tough decisions. With egg prices skyrocketing to historic highs due to a nationwide avian flu outbreak, these establishments are feeling the financial strain. Ernest Lepore, the president of Ferrara Bakery in Manhattan’s Little Italy, shared his family’s century-long baking legacy and the current struggles they face with rising egg prices.
Ernest Lepore’s family has been baking pastries for four generations, serving up iconic treats like cream puffs, cannoli, and sfogliatelle that have become synonymous with the neighborhood. However, the recent surge in egg prices is making it increasingly difficult for Ferrara Bakery to maintain their prices without compromising quality. As Easter approaches, Lepore noted that egg prices are escalating, putting a strain on their operations.
The current cost of eggs has reached unprecedented levels, with wholesale shoppers paying over $8 for a dozen eggs in recent weeks. While the national average wholesale price has slightly decreased to $6.85 per dozen, small businesses like Ferrara Bakery and Square Diner are feeling the impact. Theodore Karounos, the owner of Square Diner in Tribeca, highlighted the significant financial burden these rising costs pose to his business, estimating an additional $70,000 in yearly expenses for eggs alone.
The avian flu outbreak has devastated the nation’s egg supply, leading to a sharp decline in the number of egg-laying hens. Karyn Rispoli, a managing editor at Expana, emphasized the severity of the current outbreak, with millions of poultry birds affected, resulting in a dire shortage. As a result, small businesses reliant on eggs are grappling with the dilemma of absorbing the higher costs or passing them on to consumers.
Unlike larger restaurant chains that have implemented egg surcharges to offset the price increase, smaller establishments are facing unique challenges. Dartmouth College economics professor Bruce Sacerdote explained that restaurants like Ferrara Bakery and Square Diner may struggle to fully pass on the price hike to customers, impacting their profit margins. John Ieromonahos of Tom’s Restaurant, the inspiration for “Seinfeld’s” Monk’s Café, detailed the strain on his business as egg prices continue to rise.
At The Hungarian Pastry Shop, owner Philip Binioris expressed his reluctance to raise prices for customers, highlighting the delicate balance that small businesses must maintain. As consumers and businesses alike navigate the repercussions of the avian flu outbreak on egg prices, industry giant Cal-Maine Foods has reported soaring profits, further underscoring the economic disparities within the market.
Looking ahead, Rispoli cautioned that even as the egg supply begins to recover, grocery shoppers may still face increased prices as retailers seek to recoup lost earnings. Meanwhile, Ernest Lepore of Ferrara Bakery is exploring cost-saving measures and operational adjustments to mitigate the impact of rising egg prices. By baking smaller batches of goods and optimizing resources, Lepore is determined to navigate the current challenges and uphold his family’s baking tradition.
As small businesses across the nation grapple with the repercussions of the avian flu outbreak on egg prices, the resilience and adaptability of entrepreneurs like Ernest Lepore underscore the enduring spirit of community and tradition in the face of economic adversity. Through innovation and perseverance, these establishments are striving to weather the storm and emerge stronger on the other side, ensuring that generations to come can continue to enjoy the beloved pastries that define their neighborhoods.
