Jacob Kremple

All these things cost money for them to stand up and run, right?

And so I think what you're seeing is while grocery EBITDA is about the same, they're all still that, you know, traditionally it was four to six.

Now you might see the larger retailers and that's still maybe four to six, five to seven range.

as margin.

At the end of the day, when you take all their costs into account, they have a lot more expense on the books in ways that they didn't have before because they're having to pay for the additional labor and tech infrastructure and warehouses to be able to do the direct delivery, the more like Amazon style approach that everybody is used to of like, I want something today and I want it now.

Yep.

And they're also charging you a higher price as well.

Right.

Like I think some of the consumer is definitely paying for some of their want of being able to get stuff more on demand.

Right.

Right.

As well as the variety that they're expected to carry a grocery store in the 70s.

A produce department was probably 75 to 100 SKUs.

A grocery store today is 300 to 500 SKUs in their produce department.

So they're expected to carry this high variety, all these unique things.

That comes with more shrink as well.

So they had to balance all of that.

So with those economic changes for them, I do think what we're seeing is that retailers are tending to hold on to prices longer than they traditionally would.

to try to help pay for some of this.

And that's where you think of beef is also one of the things everybody's talking about how crazy beef prices are and they are insane.