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04/06/2022

Kroger Launches Restaurant Supply Service in Dallas

Grocer connects local operators with fresh food at wholesale prices
Marian Zboraj
Digital Editor
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Kroger Launches Restaurant Supply Service in Dallas
Kroger's new restaurant supply service connects local operators with fresh food at wholesale prices.

Expanding beyond its known grocery store persona, The Kroger Co. is now entering the world of restaurant supply service. The retailer’s Dallas division has launched Kroger Restaurant Supply exclusively in the greater Dallas area.

Kroger Restaurant Supply makes it simpler for local restaurants to keep their customer-favorite items on the menu by offering an alternative to ordering in large quantities that have highly variable pricing and require deliveries on a set schedule. Kroger's new service touts competitive wholesale pricing, opportunities to purchase items by the case or unit, and seven-day-a-week delivery.

"Running a restaurant has always been difficult – and today it feels like it's harder than ever," said Jay Scherger, director, Kroger Technology & Digital/E-Commerce Accelerator. "This new service will bring our fresh assortment directly to regional businesses – all at consistent prices, product availability and delivery cadence they can count on."

"Supply chain bottlenecks are impacting nearly every restaurant across the country – this opportunity comes at a great time for small and independent restaurants," added Corey Mobley, executive director of the North Texas Region of the Texas Restaurant Association (TRA). "We're proud to work with Kroger to strengthen our industry." 

The TRA represents the state’s $70 billion restaurant industry, which comprises approximately 50,000 locations and a workforce of 1.3 million employees.

Regional restaurants, bakeries and catering companies are invited to take part in Kroger's new service, which offers free next-day delivery on all orders of $250 or more. Businesses can order by midnight and receive next-day deliveries seven days a week.

Interested organizations can learn more and start their first order at www.kroger.com/restaurantsupply. Businesses must submit an EIN and Texas state tax ID to begin an order.

"Like our resident shoppers, we know our commercial customers want options and solutions that offers fresh food, consistent pricing and reliability," said Keith Shoemaker, president of Kroger's Dallas division. "When our DFW [Dallas-Fort Worth] restaurants think food, we want them to think Kroger. We look forward to providing this new offering and extension of our overall grocery ecosystem."

The restaurant service debut comes amid the acceleration of Kroger's delivery service. The grocer recently revealed that its fulfillment network is expanding to three new cities: Austin and San Antonio, Texas, and Birmingham, Ala. Kroger is also scheduled to open a 350,000-square-foot automated customer fulfillment center this spring in Dallas.  

Meanwhile, Kroger reported increases in sales and profit during its fourth quarter ended Jan. 29. Same-store sales increased 4%, while digital sales grew 105% on a two-year stack. Total company sales were $33 billion in the period, compared with $30.7 billion for the same period last year. Total company sales, excluding fuel, increased 3.7% compared with the same period last year. Net income at Kroger totaled $566 million, or 75 cents per share, a 1.7% increase from the prior-year period. Adjusted EPS was 91 cents. 

Serving 60 million households annually nationwide through a digital shopping experience, and almost 2,800 retail food stores under a variety of banner names, Cincinnati-based Kroger is No. 3 on The PG 100, Progressive Grocer’s 2021 list of the top food and consumables retailers in North America.

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