This is really a supply and demand issue. There are about 300 million chickens laying eggs, but the avian flu has decimated supply by 15 to 20%. This flu is very contagious, and our chicken farmers are scrambling (sorry for the pun)! They put all their workers in hazmat suits and the chickens are “locked down” inside their sheds. It’s like COVID for chickens! When supply goes down, prices go up. We've done business with our farmers for 35 years, and they've guaranteed we'll get our normal supply of eggs. Prices have doubled since last year and we’re now at about $10/dozen for conventional. Here's what I find interesting: why are conventional eggs double the price of specialty eggs (organic, cage-free, pasture-raised)? Specialty eggs have always been more expensive than conventional! It's an inverted pricing model that I've never seen in my lifetime. But, it has to do with commodity pricing, which is different than the specialty egg market. We've been able to keep our egg shelves full, but we had to limit four dozen per customer (a restaurant came in and bought 60 dozen!).
What you need to know:
1. No health concerns for you! Even though it’s “the flu,” it doesn't affect humans.
2. There is not a quick fix. This will last two to six months until our farmers can replenish their supply of baby chicks (it takes 12 weeks to grow to egg layers).
3. We should see egg prices drop in the future. Hang in there. Don't panic!
2. How will the tariffs affect me?
I've spoken to our liquor suppliers and importers from Canada and Mexico. Enough tequila has been purchased to last 6 to 12 months, and we've been told tequila prices (can only buy from Mexico) will remain stable. Avocados will go up in price if tariffs are imposed. Right now, a premium large avocado is at $2.50. I'm not going over $2.99 each or sales will drop. I'm going to have to eat some of the increase, but we want to sell a lot of avocados (currently, we sell 2 million per year). Salmon from Canada is not a problem as we can buy from the Faroe Islands in the Nordic region at similar pricing.
What you need to know:
1. This is a dartboard! Tariffs on…tariffs off! We are just following day by day - or even by the hour!
2. We’re going to get you the best quality at the best price. That's our job at Stew’s!
3. Can You Sell More Gluten-Free and Organic Products?
To keep everything FRESH, FRESH, FRESH, we only sell fast movers. We've tried many gluten-free items, but they don't sell that well. Only 1% of the population has celiac disease, and about 8% have a gluten-related disorder. We carry some successful gluten-free items, including a great bread from Canyon Bakery. We understand your concerns and are constantly searching for more items! Many come from you - our customers - so if you see a “hot” gluten-free item, write me back!
Same with organics. Fast growing category, especially among younger moms and dads. My grandfather, who began processing milk and delivery 100 years ago, wouldn't believe that organic milk outsells conventional milk! My daughter only buys organic whole milk for her kids. Some successful organic items at Stew’s are chicken breast, strawberries, and blueberries. It costs more to farm organically, so those products usually cost more. But prices are coming down as organic farming increases.
4. Can you open a Stew’s in Florida, LA, Chicago..?
My father had a great saying: “The farmer’s shadow is the BEST fertilizer.” Our family is more concerned about quality and providing a fun shopping experience versus rapid expansion. We’re happy just being in the metro NY area. We can visit the stores and make sure you’re happy. Another of my dad’s quotes is, “Only happy customers come back!”
5. Is the Stewie the Duck Swim School part of Stew Leonard’s?
100%. Our family created the swim school as a result of my wife and I losing our 21-month-old son to drowning in 1989. We created a charitable 501(c)(3) and provide 35,000 free lessons each year for kids in need. We’re planning a new swim school next to our Clifton food store. It should open in the fall. My daughter Ryann is championing that project.
6. I have thousands of loyalty points. How do I use them?
We began giving out free ice cream cones and coffee, and that’s been a rousing success. But, customers say, “I can’t eat that much ice cream or drink that much coffee.” We added quarts of ice cream and will soon be adding even more rewards. Stay tuned for more details.
7. Why can’t I find the same products in all your stores?
A customer wrote to ask why our Farmingdale store didn’t sell pumpkin bagels. We keep about 80% of the products the same but let each store bring in products requested by their customers. Pastrami & Rye sells great in Yonkers but not in Newington, CT. Yonkers also sells pernil at their buffet, but it doesn’t sell well in other stores. If a store brings in an item, we want volume to keep it fresh every day.
8. Why are grocery prices so high?
Inflation really hit the grocery industry hard. Labor costs have exploded over the last three years. We went from an average hourly pay rate of $17 to $22 per hour. If you want great, friendly people, you have to pay. We have two people in each store making fresh guacamole. I could source it, but it's never as good. Same with mozzarella balls, butchers to cut the meat, etc. Health insurance costs are up as is packaging.
9. Do you really write your own newsletter?
YES. I try to write the newsletter in my voice. I get lots of input from our farmers and buyers, but I'm doing the writing. I’m just glad I haven't heard from my high school English teacher! She’d probably give the newsletter a “see me after class.”
10. How’s your mom doing?
My dad passed away a few years ago. He and my mom were together 70 years and still would hold hands. She talks about my dad every day, but we try to focus her on her 12 beautiful great-grandchildren. Our family tries to keep her spirits up every day. She gets lonely but plays bridge online every day and loves to do puzzles!
See you in the store!
PS: I never heard of Dubai chocolate…but now it’s my new favorite thing! Each of our stores got about 200 bars last weekend and we sold out. It went viral on TikTok, and even I haven’t had a chance to try it! We’re expecting another shipment next week.
