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Stew Leonard Jr., President and CEO of Stew Leonard's, highlighted the thin margins in the fresh food business and explained how tariffs and fuel surcharges directly impact consumer food bills. He noted that while businesses try to absorb these costs, price increases eventually become unavoidable.

Challenges in the Fresh Food Business and Rising Prices

Stew Leonard Jr., President and CEO of Stew Leonard's, discussed the challenges faced by the fresh food business, which operates on very thin margins. He explained that various factors, such as bad weather and droughts, historically affect food prices. More recently, tariffs and fuel surcharges have added significant pressure, leading to increased costs. Leonard stated that while they attempt to absorb these costs for as long as possible, continuous price increases become necessary to avoid financial losses.

Consumer Burden and Beef Market Dynamics

Leonard emphasized that consumers are currently burdened by high food bills. He expressed hope that the government will resolve issues related to oil flow, leading to a stabilization of energy prices. Regarding beef prices, he noted that the cattle supply is at a 50-year low, partly due to droughts in the Midwest that forced ranchers to feed their cattle rather than relying on free pasture. This situation has driven up beef prices. However, Leonard anticipates that as ranchers begin to expand their herds, beef prices will eventually start to come down. He also observed that customers are altering their diets by opting for lower-priced alternatives like pork and chicken to save money.

*Source: YouTube: Bloomberg (2026-03-21)*

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