Walmart is not the only competitor grocers have to look out for. When Darden Restaurants reported last week that it expects one-fifth of its Olive Garden chain’s sales will come from takeout as it initiates home delivery, grocery store operators near any of those nearly 850 locations should have taken note.
That could mean losing another $125,000 in sales a year if their customers decide to have their dinner delivered by Olive Garden. According to the company, Olive Garden takeout sales already account for 10% of its revenue – or about $125,000 per unit. So combined each unit could average $250,000 in sales for food consumed off premises. Meals that likely were previously purchased in ingredient form or prepared at their local supermarket.
So the prediction by Willard Bishop at The Food Institute Future of Food Retailing webinar on June 17th that traditional grocery stores will see their share of food sales slip to just 36.8% by 2019 from 39% currently, gains significant perspective. To see a recording of that webinar, click here.
Ninety-eight bankruptcies were filed by companies with at least $50 million in liabilities year-to-date, the highest since 2009, reported Bloomberg (May 28).read more
A former president of The Food Institute, Brian has been interviewed on consumer and food industry trends on a number of television programs, including Fox News, The Today Show, NBC News, the CBS Evening News and the PBS Nightly Business Report, and quoted in publications ranging from The Wall Street Journal and New York Times to Supermarket News, Progressive Grocer and Food Processing magazine. He has also been a frequent guest on various Public radio programs discussing food prices, mergers & acquisitions, and other industry issues.
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