As businesses across industries struggle with supply chain challenges, small, independent players tend to be hit hard.
Leveraging its scale to create an additional revenue stream by offering a solution to those struggling in this respect, grocery giant The Kroger Co., parent company of not only its titular brand but also Ralphs, Fred Meyer and others, announced Tuesday (April 5) that its Dallas Division is launching Kroger Restaurant Supply.
“Running a restaurant has always been difficult — and today it feels like it’s harder than ever,” Jay Scherger, director of Kroger Technology and Digital/eCommerce Accelerator, said in a statement. “This new service will bring our fresh assortment directly to regional businesses — all at consistent prices, product availability and delivery cadence they can count on.”
The service provides next-day delivery of wholesale orders $250 and up to restaurants in the Dallas-Fort Worth area, promising “competitive” pricing. Additionally, the service’s web portal touts its non-fluctuating price structure, positioning itself as an alternative to other, often unpredictable suppliers.
“Like our resident shoppers, we know our commercial customers want options and solutions that offer fresh food, consistent pricing and reliability,” Keith Shoemaker, president of Kroger’s Dallas Division, said in a statement. “When our DFW restaurants think food, we want them to think Kroger. We look forward to providing this new offering and extension of our overall grocery ecosystem.”
According to data from PYMNTS’ March study, “Main Street Economic Health Survey: Navigating Economic Uncertainty,” created in collaboration with Melio, 22% of these businesses see the inability to purchase from suppliers as a relevant challenge, and 5% see it as their single biggest challenge.
Read more: New Survey Shows Main Street Businesses Fighting Economic Uncertainty With 3 Key Investments
Moreover, the study, which drew from a survey of more than 500 business owners on Main Street U.S.A. between January and February, found that, of the 5.5% of Main Street businesses that say there is a high chance they will not survive the next two years, 14% cite supply chain disruptions as one of the reasons they are pessimistic about survival.
As restaurants struggle with supply chain challenges, many are also finding solutions to optimize their buying, looking to minimize procurement of items that will ultimately go to waste to get more out of their purchases. Fast-casual chain Chipotle Mexican Grill, which has nearly 3,000 restaurants across five countries, for one, announced March 31 a trial of radio-frequency identification (RFID) technology to boost inventory management efficiency and precision.
See more: Chipotle Tries out RFID Technology
Indeed, restaurant technology providers are taking advantage of the opportunity to push tools that simplify the purchasing process for restaurants and provide greater transparency. In an interview with PYMNTS, Peter Dougherty, general manager of Hospitality at Lightspeed, argued that, in the face of supply chain and labor challenges, end-to-end digitized payments are more important than ever.
Read more: End-to-End Payment Digitization Empowers Restaurants to Take on Labor, Supply Chain Challenges
“The value of a true integrated payments experience [is underrated],” he said. “When you’re using your processing, and it’s deeply embedded into the back office of the commerce platform, you have … a better understanding of having your cash flow through from your processing all the way through to how you pay out your tips on your staff, and … [you] really understan[d] where you’re spending your money in terms of labor versus inventory and where you should make those investments.”
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More