In recent weeks, egg prices have surged significantly due to a widespread bird flu outbreak, leading to a severe shortage of eggs across the country. This increase has left many businesses, particularly bakeries in the Twin Cities, scrambling to secure their supplies. One notable establishment, Lutunji’s Palate Bakery and Café in Minneapolis, is now faced with the difficult decision of potentially raising prices for the first time since its opening nearly three years ago.
Lutunji Abram, the owner of Lutunji’s Palate, has maintained stable prices since she opened the bakery in 2022. However, due to the ongoing egg shortage, she may soon have to revise her pricing strategy. Abram reports a staggering 28% increase in egg prices within the past year, which has resulted in an additional cost of approximately $170 per month. Last year, she spent around $250 monthly on organic eggs, but that figure has now skyrocketed to $420.
The egg shortage is not just a financial burden but also complicates the daily operations of bakeries like Lutunji’s Palate. Abram uses between two to three dozen organic eggs each day for various menu items, including sandwiches, omelets, and sweets. Over the course of a month, this totals approximately 50 to 70 dozen organic eggs. Unfortunately, there are times when wholesalers are completely out of stock, forcing her to resort to retail grocery stores where prices are significantly inflated—often by $4 to $8 more for a standard dozen.
Abram is dedicated to maintaining her prices and the quality of her offerings, as she believes it is crucial for building customer loyalty. Despite the mounting pressure from rising costs, she has not raised her prices since opening. "Inflation is outpacing foot traffic," she explains, noting that while revenue is slower, she is gradually attracting new customers. "It's not balancing, but it's still growing," Abram adds.
As customer growth is vital for any small business, Abram is now contemplating how to address her financial challenges. “I have thought about raising my prices, and if I do, it will be anywhere between 75 cents to $1," she reveals. She expects to make a decision on this matter before spring, as she assesses how long she can sustain her business without imposing a price increase. Despite the challenges posed by rising egg prices, Abram remains optimistic about the enduring appeal of her products.
The ongoing egg shortage caused by the bird flu outbreak is reshaping the landscape for bakeries in the Twin Cities. As prices continue to escalate, business owners like Lutunji Abram are navigating the delicate balance of maintaining customer loyalty while ensuring their businesses remain financially viable. With the situation evolving, many are left wondering how this will impact the future of local bakeries and their beloved offerings.
