The Drive-Thru: stores reopen, the pandemic bankruptcies start, and meat shortages plague fast food and retail
Advertisement
Shoshy Ciment
May 9, 2020, 02:22 IST
Samantha Lee/Business Insider
Advertisement
Hello and happy Friday if you are still keeping track of the days of the week!
Welcome back to another week of The Drive-Thru, Business Insider's weekly round-up of everything restaurants and retail. Somehow, we're in May already. And apparently April showers bring May bankruptcy filings ... and meat shortages (?). But we'll get to that. Keep reading for everything you need to know!
By the way, if you were forwarded this newsletter or stumbled upon it by chance, congrats! Now you get the chance to subscribe here to get me, Shoshy Ciment, and my colleague, Kate Taylor in your inbox every Friday.
The coronavirus pandemic is causing serious issues in the American supply chain, particularly in meat factories. Tyson, the largest US meat producer, warned that meat shortages were likely — and fresh meat prices were up 8.1% at the end of April.
Plus, a new report from CoBank says that Pork and beef prices could increase by 20% in the coming months.
Stores like Giant Eagle, Kroger, and Costco are limiting meat purchases in some locations to offset the shortage. Meanwhile Impossible, a plant-based protein company, has rushed to fill the meat void, announcing it will sell plant-based "beef" grounds at over 1,700 Kroger stores across the US.
On the fast-food side, some Wendy's stores are running out of burgers, but the chain says it has no plans to serve hamburgers made with frozen beef.
Retailers like Kohl's, Macy's, Ulta Beauty, and Gap have all announced plans to start reopening stores. Hayley took a look at how the shopping experience will change. Fitting-room closures and quarantines of returned goods are among some of the changes shoppers can expect.
Plus, malls are starting to reopen in some states like Texas, Oklahoma, and Indiana with newly implemented changes to enforce social distancing and hygiene measures. Madeline gathered some photos of these newly opened malls and the scenes are pretty eerie.
On the restaurant front, some chains are choosing to reopen dining rooms while others are waiting it out: Here's a running list to keep track of it all.
Gold's Gym also filed for bankruptcy on Monday. And other retailers followed suit throughout the rest of the week, including Neiman Marcus and True Religion.
As major retailers struggle amid the pandemic, some digitally native direct-to-consumer companies are avoiding these pitfalls. I spoke to 10 CEOs from various DTC companies who revealed how their brands were poised for success when the pandemic began.
Some highlights: Peace Out, a thriving DTC skincare brand says sales are soaring during the pandemic with twice as many orders of more than $500 each. And Magic Spoon, a direct-to-consumer cereal company, revealed why a killer social-media presence helped boost sales when the pandemic struck.
Plus, a coronavirus meal kit boom has been great for Blue Apron, the meal kit company's CEO Linda Kozlowski told Bethany. The pandemic might actually help the company finally make a comeback.
NewsletterSIMPLY PUT - where we join the dots to inform and inspire you. Sign up for a weekly brief collating many news items into one untangled thought delivered straight to your mailbox.