1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,800 --> 00:00:10,440 Speaker 2: Well, rising prices for staples like food due to tariffs 3 00:00:10,440 --> 00:00:12,280 Speaker 2: and out gas following the start of the Iran war 4 00:00:12,560 --> 00:00:15,520 Speaker 2: are certainly things are top of mind for folks who 5 00:00:15,600 --> 00:00:18,680 Speaker 2: are going anywhere right now. So let's check in with 6 00:00:19,079 --> 00:00:22,800 Speaker 2: Stuart Leonard Junior. He's president CEO of John Tucker's favorite market, 7 00:00:22,920 --> 00:00:26,960 Speaker 2: Stu Leonards, and he joins us from Connecticut. Sue, it's 8 00:00:27,000 --> 00:00:29,520 Speaker 2: great to speak with you. No one likes having to 9 00:00:29,640 --> 00:00:32,800 Speaker 2: raise prices, but at some point they need to. How 10 00:00:32,840 --> 00:00:35,960 Speaker 2: have you been What's been your strategy when it comes 11 00:00:36,000 --> 00:00:40,400 Speaker 2: to price increases because of higher cost on your end? 12 00:00:40,600 --> 00:00:44,000 Speaker 1: Well, you know, we're in the fresh food business basically, 13 00:00:44,280 --> 00:00:46,880 Speaker 1: and you know it ebbs and flows all the time. 14 00:00:46,920 --> 00:00:50,880 Speaker 1: You know, it could be bad weather someplaces. There could 15 00:00:50,880 --> 00:00:53,920 Speaker 1: be a drought out in the Midwest, and that all 16 00:00:53,920 --> 00:00:57,120 Speaker 1: effects food prices. So one of the things, Look, we 17 00:00:57,480 --> 00:01:01,520 Speaker 1: operate on very thin margins and the food business all supermarkets, 18 00:01:02,520 --> 00:01:05,320 Speaker 1: and you know, when something like this comes up, like 19 00:01:05,360 --> 00:01:08,720 Speaker 1: the tariffs when they hit us now, we got the 20 00:01:08,800 --> 00:01:12,680 Speaker 1: fuel surcharges that are hitting us right now. We try 21 00:01:12,720 --> 00:01:15,320 Speaker 1: to just eat it for as long as we can. 22 00:01:17,160 --> 00:01:20,640 Speaker 1: You know, just just hold on. I grew up in 23 00:01:20,680 --> 00:01:23,160 Speaker 1: this business. I've been doing it fifty years. I grew 24 00:01:23,200 --> 00:01:26,160 Speaker 1: up on the floor here, and I got to think 25 00:01:26,200 --> 00:01:29,160 Speaker 1: about the people pushing the shopping carts around the store. 26 00:01:29,720 --> 00:01:32,200 Speaker 1: You know, I want to think like a customer, and 27 00:01:32,240 --> 00:01:36,640 Speaker 1: they're fed up right now with any Their food bill 28 00:01:36,760 --> 00:01:39,480 Speaker 1: right now is up up to their chin, you know. 29 00:01:39,560 --> 00:01:42,920 Speaker 1: So what can I do? I got to hold it 30 00:01:42,959 --> 00:01:45,160 Speaker 1: as long as I can, but I can't do it 31 00:01:45,200 --> 00:01:47,319 Speaker 1: forever otherwise I'll start losing money. 32 00:01:48,360 --> 00:01:51,440 Speaker 3: So I mean, based upon your experience so far this 33 00:01:51,520 --> 00:01:55,120 Speaker 3: year with the higher terrorfs ken, what's I know? You 34 00:01:55,160 --> 00:01:57,720 Speaker 3: try to work with your suppliers to kind of share 35 00:01:58,120 --> 00:02:00,560 Speaker 3: the cost here, how's it kind of taking out how 36 00:02:00,600 --> 00:02:03,480 Speaker 3: much has been born by you the retailer, by maybe 37 00:02:03,520 --> 00:02:05,760 Speaker 3: your suppliers, and then maybe by the consumer. 38 00:02:06,800 --> 00:02:09,359 Speaker 1: Well, I think your opening comment that you had today, 39 00:02:09,960 --> 00:02:14,639 Speaker 1: nobody wins when you raise price, Okay, The suppliers don't win, 40 00:02:14,880 --> 00:02:18,880 Speaker 1: The ranchers don't win, the farmers through Londons doesn't. So 41 00:02:18,960 --> 00:02:22,960 Speaker 1: everybody holds off. Usually what we'll end up probably doing. 42 00:02:22,960 --> 00:02:28,359 Speaker 1: We're starting to get some fuel surcharges heading up right now. 43 00:02:28,560 --> 00:02:31,400 Speaker 1: We're bringing fresh product in from the feed from the 44 00:02:31,480 --> 00:02:36,520 Speaker 1: Midwest and you know, berries and produce from from Florida 45 00:02:36,560 --> 00:02:40,760 Speaker 1: and California, you know, and those fuel costs. I mean, 46 00:02:40,800 --> 00:02:42,600 Speaker 1: the guy's got to fill this truck up to get 47 00:02:42,600 --> 00:02:46,040 Speaker 1: it here, So those costs have been going up. Usually 48 00:02:46,120 --> 00:02:48,720 Speaker 1: what we can do and say we'll split it with you, 49 00:02:50,639 --> 00:02:54,320 Speaker 1: that's the first step. So that's what we're probably gonna 50 00:02:54,320 --> 00:02:58,880 Speaker 1: start doing. Uh and then hopefully the way I feel 51 00:02:58,919 --> 00:03:02,079 Speaker 1: this is this is gonna be short term. I hope 52 00:03:02,160 --> 00:03:04,959 Speaker 1: the government is going to get this all worked out 53 00:03:05,680 --> 00:03:09,520 Speaker 1: with the flow of oil, and I hope energy prices 54 00:03:09,520 --> 00:03:11,320 Speaker 1: will be coming down in the future. 55 00:03:11,560 --> 00:03:13,920 Speaker 2: Yeah, well, I think that's something we all hope for. 56 00:03:14,760 --> 00:03:17,840 Speaker 2: Of course, we also know that the Supreme Court struck 57 00:03:17,880 --> 00:03:21,920 Speaker 2: down President Trump's tariffs, and I'm wondering where that leaves you, 58 00:03:22,200 --> 00:03:26,320 Speaker 2: Stu Leonards, and where that leaves prices on those goods 59 00:03:26,360 --> 00:03:29,120 Speaker 2: where they had gone up because of tariffs. 60 00:03:29,800 --> 00:03:32,519 Speaker 1: You know what, I think that's above my pagurade right there. 61 00:03:33,000 --> 00:03:36,160 Speaker 1: You know, we're a family business here in the metro 62 00:03:36,280 --> 00:03:40,760 Speaker 1: New York area. I don't really know how they're gonna 63 00:03:41,240 --> 00:03:45,320 Speaker 1: rebate people. I know, Costco was sueing the government and 64 00:03:46,160 --> 00:03:48,880 Speaker 1: I think our wine suppliers just wrote that there's some 65 00:03:50,400 --> 00:03:53,480 Speaker 1: money coming back from the tariffs on the liquor under 66 00:03:53,560 --> 00:03:56,440 Speaker 1: the business. But I don't really know how that's gonna 67 00:03:56,480 --> 00:03:59,520 Speaker 1: work out. I like getting a refund checked. I guess 68 00:03:59,520 --> 00:04:01,080 Speaker 1: a bit if it happened. 69 00:04:01,720 --> 00:04:04,240 Speaker 3: Heystu. One of the areas that seems to be persistent 70 00:04:04,280 --> 00:04:06,920 Speaker 3: area of inflation for shoppers just the cost of beef. 71 00:04:06,960 --> 00:04:10,760 Speaker 3: And you know, we've been told that the actual cattle 72 00:04:10,800 --> 00:04:14,119 Speaker 3: herd in his countries at a very low level. What's 73 00:04:14,160 --> 00:04:15,600 Speaker 3: what's your understanding of that market? 74 00:04:16,240 --> 00:04:18,159 Speaker 1: Hey, look what I've had for you right here? I 75 00:04:18,160 --> 00:04:20,520 Speaker 1: brought one of these how's that? Look? Oh, there we go. 76 00:04:21,600 --> 00:04:24,599 Speaker 1: That's that's what our ranchers when they come back from 77 00:04:24,600 --> 00:04:27,640 Speaker 1: the Midwest. That's what they want to eat for rib by, 78 00:04:28,360 --> 00:04:32,440 Speaker 1: you know, tomahawks, steak and they're great. But you know what, 79 00:04:32,560 --> 00:04:38,560 Speaker 1: right now there there is a fifty year low supply 80 00:04:38,720 --> 00:04:41,000 Speaker 1: of cattle. Right now, it's at the lower the herd 81 00:04:41,040 --> 00:04:44,840 Speaker 1: sizes of the smallest they've been, so obviously it's going 82 00:04:44,920 --> 00:04:47,479 Speaker 1: to drive price. One of the reasons is there was 83 00:04:47,520 --> 00:04:51,000 Speaker 1: a great drought. The grass wasn't out in the in 84 00:04:51,080 --> 00:04:54,800 Speaker 1: the pastors, so the ranchers had to start feeding the 85 00:04:54,880 --> 00:04:59,880 Speaker 1: cattle of food instead of letting them eat the freere. 86 00:05:00,400 --> 00:05:05,440 Speaker 1: So that drove the price of beef and it's held 87 00:05:05,520 --> 00:05:07,440 Speaker 1: up there. A lot of the ranchers we talked to 88 00:05:07,520 --> 00:05:11,320 Speaker 1: are starting to expand their herds now, so I sort 89 00:05:11,320 --> 00:05:16,880 Speaker 1: of see prices coming down on deep as supply increasons 90 00:05:16,920 --> 00:05:19,279 Speaker 1: a little bit. Well, you know, here's what you can 91 00:05:19,320 --> 00:05:22,880 Speaker 1: do if you want to save money instead of buying beef. 92 00:05:22,960 --> 00:05:24,320 Speaker 1: Like if I want to go get a New York 93 00:05:24,400 --> 00:05:27,760 Speaker 1: strip right now, it's going to be roughly around fifteen 94 00:05:27,800 --> 00:05:31,159 Speaker 1: bucks account. What you can do is instead if you 95 00:05:31,240 --> 00:05:34,760 Speaker 1: go to pork, which I've done it. We have this 96 00:05:35,000 --> 00:05:40,159 Speaker 1: prime pork from Pennsylvania and it's delicious, So you could 97 00:05:40,200 --> 00:05:43,240 Speaker 1: switch from a fifteen dollars product down to a five dollars. 98 00:05:43,279 --> 00:05:46,240 Speaker 1: You could do it with chicken. So we're noticing customers 99 00:05:46,240 --> 00:05:48,880 Speaker 1: a little bit of starting to alter their diets a 100 00:05:48,920 --> 00:05:52,520 Speaker 1: little bit. Yeah, by buying lower price items right now 101 00:05:52,880 --> 00:05:53,280 Speaker 1: makes a. 102 00:05:53,200 --> 00:05:55,880 Speaker 2: Lot of sense, and certainly everyone's taking a closer look 103 00:05:55,880 --> 00:05:58,680 Speaker 2: at those price points when they make that decision. Stu, 104 00:05:59,000 --> 00:06:01,800 Speaker 2: thank you so much for joining. Stuart Leonard Junior is 105 00:06:01,839 --> 00:06:05,279 Speaker 2: president and CEO of stut Leonard's a very popular market 106 00:06:05,279 --> 00:06:06,280 Speaker 2: across Connecticut.