The recent surge in egg prices has put bakeries across the U.S., including those in Los Angeles Koreatown, under increasing financial strain, forcing many to consider raising prices.
According to CNN, the avian influenza outbreak has led to the culling of tens of millions of hens, driving egg prices to historic highs. Eggs being a fundamental ingredient in baked goods, bakeries are struggling to absorb the rising costs.
The U.S. Department of Agriculture (USDA) reported that more than 40 million laying hens were slaughtered due to avian flu, contributing to a 186% year-over-year increase in wholesale egg prices—the fourth-largest annual price hike since 1992.
Bakeries nationwide are exploring alternative ingredients or seeking lower-cost suppliers. However, many face limitations due to food safety concerns and the difficulty of replacing eggs in baking. Small bakeries are particularly feeling the immense strain, as they find it harder to pass the increased costs onto consumers without risking customer loss.
In Koreatown, local bakeries are proceeding cautiously with price adjustments, worrying that even if egg prices stabilize, it will be difficult to lower product prices again.
Concerto Bakery has reluctantly increased the price of its egg-heavy castella cake by 75 cents, noting that it has refrained from raising prices on other items. An employee at the bakery stated, “We are doing our best to avoid price hikes.”
Other Koreatown bakeries, Coin De Rue Bakery and Paris Baguette’s Western Avenue location, have not yet raised prices despite the higher egg costs. However, many in the industry believe price hikes may become inevitable if the egg shortage continues.
Ellen Hwang, owner of Paris Baguette at Western Avenue, acknowledged that “pricing is a sensitive issue, so we always decide carefully.” He added, “However, if egg prices don’t stabilize, we may have no choice but to adjust prices.”
This issue extends beyond California. Washington, D.C.-based Bread Furst Bakery has already raised prices on a third of its products, including its egg-heavy mesh egg sandwich, as its egg purchasing costs have doubled in the past year. In New York’s Long Island, another bakery owner said they plan to raise prices in the coming weeks while also considering egg substitutes.
Charles Lindsey, a professor at the University at Buffalo School of Management, noted that raising prices often results in customer loss, making it a difficult decision for businesses. He advised that effectively communicating the reasons behind price increases can help mitigate customer attrition.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
