wildwonder’s Post

Did you hear what happened in the grocery, restaurant, and hospitality industries this week? Check out the latest headlines from our #ShermsWeeklyInsider series! P.S. Follow us and our Founder & CEO Neal Sherman for the latest industry news. #grocery #cstore #restaurant #hospitality

Here's our Top 5 takeaways from the downfall of Foxtrot. 1. Even For Grocery, It's All About Ambiance: Foxtrot's upscale shopper base craves the same curated retail environment at a convenience store that they do at a Saks Fifth Avenue. 2. If You Launch Local, Stay Local: Early on, Foxtrot prided itself on serving coffee sourced from nearby roasters. As it scaled nationally, it started serving La Colombe out of Philadelphia to coffee drinkers in Chicago, D.C. and Texas. A small act that symbolized losing its soul. 3. Gamification of Snacking: Foxtrot's unrivalled assortment of "rare items" aka hard to find drinks, snacks, and candies created a deeply loyal fan base who adored the experimental merchandising. But the store's parallel emphasis on ready-to-eat foods like lasagna blurred its focus, leading to unnecessary "side quests." We're wondering, if Foxtrot been more relentless in its focus -- fresh items grocer, a legendary snacks cornerstore or a simple coffee shop -- could it have survived the vibecession? Either way, its downfall is a tragedy for snack lovers and a loss for the retailing community. #Foxtrot #FoxtrotClosing #FoxtrotChicago #FoxtrotDC #FoxtrotDallas #RetailNews #Top5 #Takeaways #Retailing #CPG #Innovation #Thoughtleadership

WALL STREET on YOUR STREET -- Under the category of you-have-to-be-kidding, surge pricing for hamburgers is coming to a Wendy's near you. CEO Kirk Tanner shared in a conference call this month, “Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling,” Hmmm ... "suggestive selling." A new business-school phrase I suppose. #wendysisnuts https://lnkd.in/e-4z5yA3

Our client, TXB, was highlighted by the Wall Street Journal this past weekend in an article that discussed food being an appetizing opportunity for convenience stores. Industry wide, food-service sales account for about a quarter of in-store sales for convenience stores but well over a third of in-store gross profits (both figures are industry averages). The food strategy for most convenience store chains is hands-off; prepared foods are brought in and heated up in the store. Chains that prepare and sell freshly made food – like TXB and Casey’s – have the potential for better loyalty and margins. This strategy of having an on-site kitchen can be complicated and requires additional investment. 1912 Ventures knows firsthand, as we have represented multiple restaurant chains with their commercial real estate, including two dedicated commercial kitchen projects (with no retail service) over the past 18 months. A shift to electric vehicles should increase the food business for convenience stores if it means customers spend more time charging their vehicles. TXB has deliberately placed EV charging stations near their outdoor dining facilities. My favorite quote in the article came from Darren Rebelez (Casey’s CEO), who said: “You might fill up a tank once a week, but you eat three times a day.” As an aside, 1912 Ventures originally helped Bucky’s Convenience Stores expand into Texas and open five locations prior to the entire chain being sold as a portfolio to Casey’s. That sale included 94 retail stores, 79 dealer locations, and several real estate parcels for building new stores in the future. https://lnkd.in/gY9ehKwC #commercialrealestate #cre #retailrealestate #retailtechnology #realestatedevelopment #fuel #restaurants #foodservice

New week, new headlines 📰❗️— you know the drill! Check out Neal Sherman's latest roundup of headlines from the restaurant, grocery, and hospitality industries. #ShermsWeeklyInsider #hotelnews #restaurantnews #cstorenews #foodindustrynews 

Change is afoot and venerable Market Hall Foods is, sadly, not immune as they close their Berkeley location while keeping Rockridge in Oakland open. These are tough but necessary choices that reflect the push and pull of increasing cost and uncertain demand. This follows recent closures across the country including Foxtrot and Dom's Kitchen & Market. Folks often lament these closures and posit what they believe to be the issues driving the moves, but the below article lays in stark relief some of the commonalities that thread through the industry as it hits some inevitable bumps. Contrary to what we have all long believed, more and bigger is not always better, and there is no shame in taking three stores to two, or two to one, if it means that the core business model and consumer value proposition can remain viable and healthy, if not compelling. Let's patronize our specialty retailers and be intentional about supporting not only them, but the smaller producers they feature that are vital to our food and beverage ecosphere! #retail #retailclosing #specialtyfood #retailtrends #supportsmallbusiness

Learn more about the R&D behind our new Teton Taste Buds Line in the latest issue of Supermarket Perimeter

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Very surprising news from Kitchen United today with the announcement that they are terminating the retail experiment with Kroger. Especially since Kroger was an investor in a $100 Million round a bit over a year ago. Obviously, it was not working and the company announced that it was pivoting back to a capital-light software business. It raises the question if any ghost kitchen operator can really make a good return on capital with any scale. There are clear examples out there of successful ghost kitchens but this is really a high-risk tricky segment to be in if the objective is to create a sustainable long-term business model with attractive financial returns. Investors are certainly not too keen in this high-interest rate environment to throw money at businesses with high cash burn rates and no foreseeable path to profitability. In my view, this is a good thing and the quicker these weak businesses die out the better so capital can be re-allocated to better opportunities. There is also no question that the legacy supermarket model needs large-scale innovation and the Kroger experiment with Kitchen United was worth taking. Eventually, after numerous failed experiments (small bets), I am pretty sure that companies like Kroger will find the right strategy mix going forward or they might just disappear. Interesting times indeed!! https://lnkd.in/edAieuas