Are Restaurants Turning Into Grocery Services?

With grocery stores struggling to keep up with demand and several customers unable to order their items online to avoid the crowded stores in the midst of the coronavirus pandemic, the restaurant chains that are facing massive customer decline are doing their own grocery delivery service. Chains like Subway, Panera, Potbelly, and Fuddruckers are among those now selling their ingredients.
Subway recently introduced its grocery service at more than 250 of its locations, like states like California, Connecticut, Oregon, Tennessee, and Washington. They are selling the ingredients that people would usually put in their sandwiches – sliced meat, cheese, veggies, plus the bread itself.


Potbelly sandwich chain also recently launched a “pantry” section which also sells its ingredients with a line up of stacks of turkey breast, ham, roast beef, and salami. Panera is adopting the same idea as well, selling items like bagels, bread loaves, milk, fresh fruits, and veggies. While the Fuddruckers burger chain hasn’t announced a grocery service, some locations are testing out new solutions. Two Florida locations are selling grocery items which include toilet paper, bleach, and gloves.
While the grocery stores are facing shortages, restaurant sales have sharply declined. Restuarant traffic declined by 42 percent by the end of the week of March 29. UBS analyst Dennis Geiger predicts that up to 20 percent of restaurants in the U.S. could close permanently.

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