Famous Toastery Isn’t Walking on Eggshells

As the CEO of Famous Toastery, a North Carolina-based breakfast restaurant brand with 6 locations and 40 in the pipeline set to open across the country before the end of 2016, it’s safe to say that Robert Maynard knows eggs.

Obviously, he knows about much more than eggs, too. With a background in banking and working his way up from the mail room for Michael Steinhardt and then JP Morgan, Maynard applies his financial background to his restaurant gig now. This has become especially handy as the price of eggs has steadily increased.

According to the U.S. Department of Agriculture, prices of large Grade A eggs hit between $2.73 and $2.81 in the Midwest Regional area. The increase is the result of a one of the largest outbreaks of bird flu in decades, affecting more than 48 million birds since it was spotted in December.

"We're an egg place. We won't push other things, so we're just embracing it," said Maynard in regards to the recent increase in egg prices.

As a result of the price surge in one of its foundational ingredients, Famous Toastery is raising the prices of its egg-based dishes. While competitors immediately raised prices in the panic over egg price increases, Maynard and his team worked together to find areas and places they could adjust internally before raising menu prices. After taking various internal measures to offset the rising cost, altering the price was the only course of action remaining. Still, the homegrown breakfast spot continues to offer customers specials on egg dishes.

"It's happening to everyone,” Maynard said. “One day it could be beef, the next day it'll be coffee, so you have to be able to weather food costs. It's the restaurant business so you have to be aware of the shift.”

Maynard predicts that the price increases will have an impact on his brand for the next two years. Famous Toastery is spending about $1,000 more per restaurant due to the egg price increase. Some commodity prices have gone down, though, and has somewhat offset the expenditure increase.

"You've got to think customer first," added Maynard. "If you look at them as the solution to any price increase problem right away and raise prices without spending time managing how to raise menu prices with the least impact, then they won't be back again after the commodity prices go back down."