I decided to write about all the questions I am asked by our customers (you) when I am on the store floor. Let me know what you think. - Stew
Where’s the beef?
Big national news story. Here’s what I told CNN, MSNBC, Fox News, and ABC. There are cattle ranchers all over the country. The Mid-West is full of them (“if you folded a map of the U.S. in half, that’s where I’m standing!”). These are great people, have great families and proudly wave the U.S. flag. Pure Americans, many of whom took over the ranches from their parents and grandparents. Cowboy hats, boots and big belt buckles. You get the idea.
Yeah, but what’s that have to do with my steak?
One of our favorite ranchers is Fred Wacker from the Cross Four Ranch in Miles City, Montana. He has 35,000 head of cattle that are out chewing on grass right now. His closest neighbor lives over a mile away. Fred needs to get his cattle to a bunch of different meat packing plants, but they are telling him they can’t take all the cattle he wants to supply. Why? These plants have been hit with the Covid-19 virus. They are at 70% capacity due to quarantines, new elevated cleaning procedures, and re-engineering their workplaces. Thus, a shortage of supply.
Remember Economics 101?
When there is an increase in demand (Memorial Day is coming, grills will be full of burgers) and a shortage of supply, prices will rise. That’s what we’re faced with now. The meat packaging plants say that they will be at 80% capacity in a few weeks and 100% in a month from now. We are already seeing an easing of beef prices.
Yeah, but the news says the food index has increased to historic levels.
I’ve been in the business for 50 years and seen all sorts of market swings. After all, we’re in the commodity business. But, I’VE NEVER SEEN ANYTHING LIKE THE LAST TWO MONTHS! There have been huge swings in prices like the egg market. Back in 2018 the extra large eggs at Stew’s were $2.29 a dozen. In 2019 they dropped about $1 a dozen and our chicken farmer in Pennsylvania was not making any money. Then, in March and April the price shot up again in the $3 plus range. Now, in May, they are back down in the $2 range. Our farmer increased his flocks and now, there are plenty of eggs. What’s the big deal? Across the board, we have not raised prices at Stew’s. Milk is still $2.99 a gallon, my sister’s bakery hasn’t changed any prices, fruits and vegetables are following the market, and Stew’s is very competitive. Yeah, meat prices will increase (Ground beef $3.99 lb. last year, this year $5.99 lb.), but other than that, the prices are the same. I feel this food index does not account for the wild ride we have had in March and April (restaurants and schools closings along with people working from home). Hang loose, prices are now beginning to return to normal levels. And as our rancher Fred says, “I HAVE PLENTY OF CATTLE!”
So, how can you say your shelves will be full?
We don’t buy much from the big packing houses. We mostly are buying from smaller, family-owned farms and have had relationships for 20+ years with most of them. Just like any good customer, they have assured us that we will get what we order. So far, so good. We haven’t had to put any limits on any fresh products, and the daily deliveries are continuing. We’ll have plenty of meat for Memorial Day weekend!
I’m talking to our buyers every day. Here’s what they are saying:
Produce: Citrus sales have tripled … why? There have been recent studies released about the health benefits of citrus against the flu and colds. Oranges, lemons, limes, and grapefruit have been rocking. Also, Ginger and Turmeric have been on fire. I just put some olive oil, garlic and turmeric on some Halibut the other night and it was delicious. Cherries have just started in California and, we’re working on a deal to sell them at $5.99 this week. I love cherries! And, we have some Organic Blueberries for $4.99 a pint. Watermelon and cotton candy grapes are a great deal and sweet. We’re excited about the season so far.
Shucking corn … no more.
We’ve noticed that loose corn sales have dropped due to Covid-19. Customers want the peeled corn that is packaged. It’s just as good and the crop is moving from Florida to Georgia right now. Weather is warming.
More people are eating fish
We’ve seen a spike in our fish sales since everyone is cooking at home. They are exploring more types of food; fish is one of them especially. We just featured lobster tails (used to go to the restaurants) for $4.99 and are coming back with the same deal this week. We also have some Salmon Steaks from the Bay of Fundy in Maine for $7.99. And, Barnegat Light, N.J., scallops for $12.99. I brought these to Martha Stewart’s house (my one delivery this year!) and she was thrilled with the size and freshness.
Meat – We committed to 3 trailer loads of filet mignon (whole tenderloin) at $8.99. Our butchers will cut them into any size steak your heart desires. One of the best meat values out there for Memorial Day.
Garden Center- “People want to brighten their lives!” Hanging baskets, New Guinea Impatiens, and Geraniums are selling brisk. Growers are telling us that we’re past the cold snaps so, customers are letting loose in their yards. We can’t get enough vegetable plants.
Cheese and Deli – We’re waiting for a drop in the cheese market. When there is an abundance of milk, byproducts are butter and cheese. We’re still waiting to hear what Italy is going to do about the Reggiano Parmigiana prices. Sit tight. We also noticed a big increase in the pre-sliced and packaged cold cuts and cheese. The key is FRESH CUT EVERY DAY!
Bakery – Kids are home and our bread sales are strong. My sister Beth is baking 10,000 loaves a week. The bakery crew even agreed to adjust their schedules so they can practice social spacing at night (a crew now comes in at midnight!). Bagel sales have dipped since you can’t “pick you own” anymore. Oh well. When will we ever go back to the old way?
Lastly, our good friends at Rao’s. We’ll have their sauce at $5.99 for the large jar. I called Ronnie up at Rao’s and was hoping we could sell their meatballs at Stew’s. His response, “fuhgettaboutit!”
Are people drinking more?
With the restaurants closed, it’s hard to measure, but we have certainly seen an increase in cocktails. What’s hot? MARGARITA’S are popular along with Manhattan’s, Old Fashioneds, and Mimosa’s. Also, a huge jump in boxed wine.
How’re your Dad and Mom?
This is one of my most asked questions on the store floor. My Dad is 90, healthy and sharp as a tack. I talk to him and my Mom daily, and he always has an idea. Hope I have those genes!
My friend visited a restaurant in Florida with his family and loved the experience. Why?
Even though Stew’s has never closed, I feel we have had to reopen over a dozen times. Why? Gov. Cuomo has new executive orders. So does Gov. Murphy in N.J., and Gov. Lamont in Ct. We’ve had to be nimble and react quickly.
Florida is slowly reopening. My friend brought his family to a restaurant and 1) Was really impressed by how clean it was. Also, they were visibly wiping things down during his meal. Go to the bathroom and, there was a Sani-wipe available upon your return. 2) They took social spacing seriously; every other table was being used. 3) Their team was well trained about the virus (masks and gloves). 4) You could tell there was great communication between the owner and the staff. When he left, his family said, they were very nice, made us feel comfortable, and we would love to go back. That’s how we’ll reopen America. Wait a minute? How was the food?
My favorite customer service story this week is …
Stew’s does all its home delivery through Instacart. Their people shop our store and then deliver to our customers’ homes. It’s really become popular since many people do not want to leave their homes.
Now the juicy part.
Rebecca received a phone call from a long-time Stew’s customer who just tried home delivery. She placed a $300 order and complained about the service. She was downright nasty. Did Rebecca lose her cool? No, she calmed the customer down and then offered a gift card to make her happy. The next day, I get a phone call from this customer APOLOGIZING for the way she spoke to Rebecca. She said she used to be a relocation manager for a Fortune 100 company and had rude clients, too. She hated those people but, after sleeping on it, realized she was that person to Rebecca.
A happy ending …
I found Rebecca in the store and personally thanked her for winning over a customer. She said thanks and said this customer just placed another order for even more and was very happy. Isn’t that what customer service is all about?
I started to smile and then my heart sank when …
I spoke to good customer, Karen, who just volunteered for the Connecticut Food Bank. She told me that the families were so happy with the Stew’s Chicken Chili that she was giving out. I smiled. Then she said that people were lined up for half a mile, and at the end of the day, the shelves were empty again. She said it was sad to see families so desperate for food standing there with their young children. My heart sank. But we’re putting together another trailer load of food for the food banks now. Don’t worry, I’ll be smiling again … briefly.