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Shoppers turn to Amazon for fresh produce and seafood, helping it take market share from supermarkets

Amazon delivery worker loads paper bags into a cargo e-bike on a residential city street.
Amazon's expanded fresh food delivery is helping it win market share from more traditional retailers.

: Deb Cohn-Orbach/UCG/Universal Images Group via Getty Images

  • Amazon's sales of fresh groceries like seafood and produce are growing fast, new data show.
  • The retail giant is also gaining market share against more traditional retailers, Nielsen IQ found.
  • The data shows momentum for Amazon in a business it's spent years trying to break into.

Amazon is gaining ground in grocery thanks to items like fresh shrimp and berries.

Roughly a year after expanding same-day fresh grocery delivery to thousands of cities and towns in the US, Amazon's perishable grocery sales are booming — and taking market share from traditional retailers, according to data from market research firm Nielsen IQ.

Sales of groceries such as seafood, dairy, and produce on Amazon increased severalfold between June and August, per Nielsen IQ's data. Amazon also posted market share gains in the food category for the year through late August as traditional grocery stores lost it, Nielsen found.

Two bar charts compare total and online food dollar share changes by retail channel versus year ago.
Amazon gained market share in food sales, both overall and online, as rivals such as grocery stores lost it.

Nielsen IQ

"Shoppers are increasingly embracing Amazon for categories that historically represented one of the largest barriers to online grocery adoption," Nielsen wrote in its report.

Amazon has spent years trying to break into grocery, though it hasn't hit a home run in the category as it did with books or cloud computing. The company acquired Whole Foods, opened and shuttered another brick-and-mortar grocery chain, and created a selection of private-label groceries, among other steps.

The Nielsen IQ data suggest that Amazon's latest push — toward delivering fresh groceries quickly across much of the US — is yielding some results in the competitive grocery space.

Many of the shoppers buying fresh foods on Amazon come from households with incomes over $100,000 and tend to be older, according to Nielsen IQ. They also tend to be frequent Amazon users, placing more orders and spending more money on the platform than an average user.

That means fresh groceries, one of the most frequent purchases for US households, are "a potentially important lever for increasing shopper frequency and overall spend" on Amazon, the report reads.

To keep the momentum going, Amazon will need to take on formidable rivals. One is Walmart, which already uses its stores and its own army of gig workers to deliver groceries same-day.

Amazon is considering opening about 1,000 same-day fulfillment centers around the US by 2031, Business Insider reported in September. That move would create the same sort of advantage that Walmart has by placing more fulfillment centers close to more customers, one analyst said.

Do you have a story idea about Amazon's retail operations? Contact this reporter at abitter@businessinsider.com or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

Read the original article on Business Insider

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Have You Been to the Sixth-Worst McDonald’s in America?

There is virtually no way I could have resisted Sylvie McNamara’s dispatch from her journey to a disreputable McDonald’s in Stafford, Virginia. I’ve listened to my share of the Doughboys podcast, and regularly debate burger rankings with my son. What’s more, I went to high school just two miles down the road from this particular location, whose aggregated Google reviews won it dubious distinction in a nation of interchangeable fast-food franchises. Thankfully, McNamara’s lighthearted investigation, which invites readers to consider Robert Caro and teenage commitments to the social contract, will satisfy you no matter your relationship with the Golden Arches. It reminded me of tongue-in-cheek alt-weekly features, a few pleasurable Paris Review web essays, and that episode of Mystery Show where Starlee Kine goes deep with a Ticketmaster employee. Ba-da-ba-ba-ba, I loved it.

I asked the employee for an explanation. “I think I can give you real insight,” he said. “It be the certain workers we got.” He himself is a high schooler, but he said that “we’re starting to get more younger managers. As soon as they turn 18, they’re getting a manager spot. I think my general manager’s 20. It’s a lot of kids getting these manager titles and positions, but they’re not really managers.”

I told him that to be honest, that environment sounded kind of fun.

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I spent $100 on dinner for 2 at LongHorn Steakhouse. I now understand why the chain is so successful.

longhorn steakhouse
LongHorn Steakhouse is outpacing many other casual-dining chains. After visiting for the first time, I can see why.

Erin McDowell/Business Insider

  • I recently visited LongHorn Steakhouse as the chain reports positive sales growth this year.
  • Many casual-dining chains are struggling, but LongHorn is performing surprisingly well.
  • I thought the food was high quality and a great value for the cost.

LongHorn Steakhouse is having a moment.

While many casual-dining chains continue to struggle, LongHorn has posted some of the strongest sales growth in Darden Restaurants' portfolio.

In the fiscal first quarter, which ended August 30, LongHorn same-store sales rose 6.2% from a year earlier, outpacing sister chain Olive Garden, whose same-store sales rose 1.1%. LongHorn's overall sales across all locations increased by nearly 11% to $861 million, making it Darden's fastest-growing major chain that quarter.

During the company's earnings call, CFO Raj Vennam said LongHorn's first-quarter sales growth reflected both stronger sales at existing restaurants and the expansion of its footprint. LongHorn grew from 595 to 624 restaurants over the past year.

LongHorn's success is not a recent comeback, but rather a steady rise to the top. In the preceding quarter, which ended May 31, LongHorn's same-store sales rose 9.5%, while total sales increased nearly 22% to more than $1 billion. Darden credited a record-breaking Mother's Day weekend and strong lamb-chop sales for the results.

The chain has now posted positive same-store sales for 22 consecutive quarters, and its sales at existing restaurants have climbed 17% over the past three years.

Still, it's a tough time for casual dining.

Applebee's same-store sales fell 1.8% year-over-year in its most recent quarter, while Cracker Barrel's sales at existing locations fell 2.1% and its total revenue declined 2.2%.

In an environment where chain restaurants are constantly competing for customers, I wanted to find out what about the Texas-inspired steakhouse chain was drawing people in.

I visited LongHorn for the first time and was surprised by the quality of the food, generous portions, and overall value for the price.

I tried LongHorn Steakhouse for the first time to see what the hype was about.
longhorn steakhouse

Erin McDowell/Business Insider

LongHorn Steakhouse has quietly become one of casual dining’s biggest success stories, and recently outpaced its sister brand, Olive Garden, in same-store sales growth.

I’d never been before, so I brought a friend along to our nearest location in Queens, New York, to see whether the food, atmosphere, and value lived up to the hype.

The restaurant felt much warmer and more polished than I expected.
longhorn steakhouse

Erin McDowell/Business Insider

I expected a fairly standard chain-restaurant experience, but the entryway felt inviting right away.

The stone accents, dark wood, and low lighting gave it a cozy, classic steakhouse atmosphere. It was casual, but it did not feel cheap. I could see why it would potentially work for both casual weeknight dinners and slightly more special celebrations.

Despite visiting on a Friday night during the dinner rush, we were seated quickly in a booth at the busy shopping center location.

The dining room was busy, but it still felt comfortable and relaxed.
longhorn steakhouse

Erin McDowell/Business Insider

The restaurant had plenty of tables, yet it did not feel overly crowded or chaotic. The warm lighting made the large dining room feel more intimate. It was definitely family-friendly, but couples and groups of friends were also dining there.

About halfway through our meal, one of the tables next to us broke into a rendition of "Happy Birthday" for a guest.

I also thought the vibe was much more polished than a typical casual chain. It was more on par with chains like Red Lobster than slightly more casual ones like Chili's or Applebee's.

The menu had a surprisingly broad selection beyond just steak and sides.
longhorn steakhouse menu

Erin McDowell/Business Insider

LongHorn’s menu is centered on steak, but there were plenty of chicken, seafood, salad, burger, and sandwich options, too.

Even though I went in wanting to understand the chain’s steakhouse appeal, there were enough tempting appetizers and sides that narrowing down our order was harder than I expected.

My friend and I started off with a round of cocktails.
longhorn steakhouse margarita

Erin McDowell/Business Insider

A steakhouse dinner calls for a drink, and the classic "Perfect" margarita ($11.49) was a refreshing — and surprisingly inexpensive — way to start the meal.

It was ice-cold and citrusy, served in a generously sized glass with an extra shaker on the side. My friend ordered the Texas tea ($10.99), LongHorn's version of a Long Island iced tea, which she said was sweet and not too strong.

We were both impressed by the price and serving size of our drinks — they were on par with what we'd spend at a dive bar in Brooklyn, but with much better service and flavor.

The complimentary bread was a nice start to the meal.
longhorn steakhouse bread

Erin McDowell/Business Insider

The bread arrived warm with a side of butter before our appetizers hit the table. It had a slightly sweet, honey-wheat flavor and a tender texture.

It was simple, and probably could have had a better crust — but it was free.

The stuffed mushrooms were one of the meal’s first real surprises.
longhorn steakhouse stuffed mushrooms

Erin McDowell/Business Insider

We ordered the white cheddar stuffed mushrooms ($12.29) as an appetizer, and they arrived bubbling hot in a rich, creamy four-cheese sauce that reminded us slightly of Alfredo pasta sauce.

The mushroom caps were tender without becoming soggy and had a slightly salty flavor.
longhorn steakhouse stuffed mushrooms

Erin McDowell/Business Insider

The cheesy filling gave them a savory, indulgent flavor that made them feel like a true steakhouse starter.

It was the kind of appetizer that disappeared quickly, and one I'd definitely order again. I had to remind myself to save room for the rest of our food.

Around the same time as our appetizer, our server brought out my salad course.
longhorn steakhouse caesar salad

Erin McDowell/Business Insider

The lettuce was crisp, the generous helping of croutons added good crunch, and the dressing had plenty of flavor. It was a classic steakhouse Caesar; it did exactly what it needed to do, but it wasn't anything mind-blowing.

It was also more than big enough to share with another person as a way to add something fresh before our richer entrées.

The ribeye steak and loaded baked potato made for a filling, indulgent entrée without an over-the-top price tag.
longhorn steakhouse ribeye and loaded potato

Erin McDowell/Business Insider

For my entrée, I ordered the ribeye steak ($30.79), which came with the aforementioned Caesar salad and one side. I chose the loaded baked potato, which came topped with cheddar cheese, sour cream, bacon, and green onions.

The steak arrived with a flavorful sear and a side that felt like a meal in itself. Together, the plate felt hearty and indulgent without being unnecessarily over-the-top. It was easy to see how a diner could leave feeling like they got their money’s worth.

The loaded baked potato was fluffy inside and piled high with toppings.
longhorn steakhouse loaded potato

Erin McDowell/Business Insider

The potato was rich and comforting, with a soft, fluffy center, while the potato's outer shell was perfectly crispy.

I appreciated that LongHorn did not skimp on the toppings. It helped make the entrée feel more complete and substantial, without having to upgrade to a premium side.

The steak was surprisingly tender and well-seasoned.
longhorn steakhouse ribeye steak

Erin McDowell/Business Insider

The steak had a savory, well-seasoned crust that added a lot of peppery flavor, but the true magic lay within.

Inside the tender ribeye, the meat was buttery and unbelievably juicy. It was not trying to be a high-end steakhouse steak, but it was extremely satisfying for the price. I ordered the steak medium-rare, and it came out at the right temperature.

This was the dish that made LongHorn’s popularity click for me.

Instead of ordering a main entrée, my friend ordered a side of roasted Brussels sprouts and the mac and cheese.
longhorn steakhouse brussels sprouts

Erin McDowell/Business Insider

The crispy Brussels sprouts ($6.49) were roasted just enough to caramelize while still holding their shape and flavor.

The mac and cheese was a standout part of our meal.
longhorn steakhouse mac and cheese

Erin McDowell/Business Insider

The steakhouse mac and cheese ($6.49) had a rich, creamy sauce and a browned topping that added texture, while bacon bits added even more savory, smoky flavor.

It was exactly the kind of comforting side I want with a steakhouse meal.
longhorn steakhouse mac and cheese

Erin McDowell/Business Insider

If you weren't ordering it as a main dish, the portion was also plenty large enough to share, especially alongside everything else we ordered.

I preferred this chain-restaurant mac and cheese to others I've tried.

By the end of dinner, I understood completely why LongHorn is winning over value-conscious diners.
longhorn steakhouse

Erin McDowell/Business Insider

The food was more polished than I expected, the portions were generous, and the experience felt like a real sit-down dinner rather than a quick chain-restaurant meal after a day at the mall.

We ordered two drinks, an appetizer, a salad, a steak, and multiple hearty sides, yet our bill for two still came in under $100 before tip. With the tip, we paid $103.83.

By the time we left, I could see exactly why LongHorn has become a go-to for diners who want a steakhouse meal without steakhouse prices — and I'll definitely be back for more.

Read the original article on Business Insider
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Former McDonald's exec spills the beans on why healthier menu favorite got the axe

McDonald's is looking to expand its chicken offerings, including potentially bringing back grilled chicken sandwiches — a menu item the fast-food giant discontinued in 2020.

At a September investor meeting, McDonald's executives discussed plans to expand the chain's chicken lineup, including grilled chicken sandwiches and wraps, as demand for protein options grows, according to Restaurant Dive.

The renewed interest comes years after McDonald's pulled its grilled chicken sandwich from U.S. menus, raising questions about why the healthier offering disappeared in the first place.

MCDONALD'S EXECUTIVE REVEALS SIMPLE MENU HACKS TO HELP CUSTOMERS PACK MORE PROTEIN INTO MEALS

Chef Mike Haracz, who served as McDonald's manager of culinary innovation from 2015 to 2019, told Fox News Digital why the grilled chicken sandwich ultimately failed to make the cut — and whether it could find its way back to the menu.

The reason was simple: Not enough customers were ordering it, Haracz said.

"For many of the menu items at McDonald's, and this is true for any corporate chain restaurant, there is a certain sales threshold that means it will be profitable, and it makes sense to have in the restaurant," said Haracz, who is based in Illinois.

"Once sales dip below a certain level, it does not make financial sense to keep it on the menu, as you will end up throwing away product."

In 1993, McDonald's introduced a grilled chicken sandwich as a healthier menu offering, but it did not stand the test of time.

MCDONALD'S BRINGS BACK POPULAR ITEM FOR SHORT TIME AS ONE STATE GETS A TREAT

The sandwich consisted of a marinated skinless chicken breast filet, lettuce, tomato, sweet red onion, Monterey Jack cheese and a herb sauce, all piled on a bun, according to a 1993 press release about the menu item.

McDonald's unveiled a more natural preparation of its grilled chicken in 2015, announcing on its website that it would be cooked using only canola oil, olive oil, and real spices and herbs.

The chain revamped the sandwich that year, introducing the Artisan Grilled Chicken Sandwich.

Ultimately, though, the grilled chicken sandwich lost its spot at McDonald's in 2020, when the chain also removed salads from its U.S. menus, according to Business Insider.

In his role at McDonald's, Haracz formulated new menu items for U.S. locations.

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People looking for healthier options at McDonald's appreciated the grilled chicken offering — especially parents, Haracz noted, because while their kids might have been excited about eating a Happy Meal, the parents were not as interested.

Like many other menu items, the grilled chicken sandwich was cooked on a flattop and held in the universal holding cabinets (UHCs).

Ultimately, it came down to simple dollars and cents.

Space is valuable at McDonald's, Haracz noted, with each location organized to make every square inch profitable.

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If an item is taking up space but not making money, it's probably not going to last too long, he said.

Consumer satisfaction played a big role, Haracz said, adding that he thinks the grilled chicken sandwich's flavor profile didn't always wow guests.

"McDonald's also realized once it gets to a point, there may be menu cannibalization, [which] means instead of ordering Chicken McNuggets, I might order the chicken sandwich," Haracz said. "Well, if we take the chicken sandwich away, are they still going to order Chicken McNuggets or other items? Most likely they are."

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Could the grilled chicken sandwich make a comeback? 

Haracz said he thinks it's possible.

"I do think there's a chance it could come back because many chains are dealing with the fact that beef prices are rising, and a way to offset that is to offer a more affordable protein option, which would be chicken," he said.

Haracz said he's not sure if there will be a renaissance of grilled chicken specifically. 

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"Certainly chicken items, in general, will be more popular, not only because of the beef prices, but also, that is a bigger profit margin if McDonald's develops it appropriately."

Fox News Digital reached out to McDonald's for comment.

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Woman sues popular Texas taco chain for $250K after allegedly finding cow tooth in meal, restaurant confirms

Taco 'bout biting off more than you can chew.

A Texas woman's lunch took an unexpectedly toothsome turn when she allegedly discovered a cow tooth in her taco, prompting a lawsuit against popular restaurant chain Torchy's Tacos over a bizarre ingredient the company has since confirmed was the real deal.

Nohemi Castillo claims she nearly swallowed the tooth while eating takeout from the chain's South Congress Avenue location in Austin on June 9, according to a lawsuit independently obtained by Fox News Digital and filed Oct. 13 in Travis County District Court.

ROACHES CAUGHT CRAWLING ACROSS POPULAR STEAKHOUSE'S KITCHEN FLOOR IN VIRAL EMPLOYEE VIDEO

The order included the chain's "Democrat" tacos, according to the complaint, although a cow tooth was certainly not among the advertised ingredients.

Torchy's Tacos confirmed the unusual discovery in a statement to Austin TV station KVUE, saying its own investigation determined that the object was a cow tooth.

"Upon receiving the guest complaint, we conducted a thorough review and identified the item as a cow tooth," the company said. "This can occasionally happen when processing the meat, though it is quite rare."

The restaurant explained that its barbacoa comes from natural beef cheek sourced from a supplier, adding that it has taken steps to prevent similar incidents.

FDA WIDENS CYCLOSPORA OUTBREAK INVESTIGATION TO SIX MORE STATES AS CONFIRMED CASES TOP 6,000

"We have partnered with our supplier to reinforce their internal procedures to prevent this from happening in the future," Torchy's said.

Castillo's attorney, Scott Vasquez, told Fox News Digital that the company did not acknowledge to him that the object was a cow tooth until the story attracted local media attention in October, roughly four months after the incident.

Vasquez provided Fox News Digital with additional photographs showing the tooth beside a tape measure, offering a closer look at the sizable object Castillo claims she nearly swallowed.

Another photograph included in the court filing shows the object resting on aluminum foil beside what appears to be taco meat.

A witness statement provided by Castillo's attorney describes the moment an ordinary lunch with a colleague took an unpleasant turn.

THREE WENDY'S EMPLOYEES ALLEGEDLY TOOK FOOD FROM TRASH, SPAT ON IT BEFORE SERVING UNHAPPY CUSTOMER

"As we were eating, I heard an ‘awww!’ When I turned to Nohemi, I saw her pulling something out of her mouth, she said, 'I think it's a bone,'" the witness wrote.

The colleague described Castillo examining the object while holding her left cheek before concluding that it appeared to be a tooth.

According to the lawsuit, Castillo was disgusted and sickened by the discovery and visited a doctor later that evening, where she received prescriptions.

The complaint alleges that she incurred medical expenses and experienced physical pain, mental anguish and other damages.

Castillo is suing Torchy's Tacos and Success Foods Management Group, which does business as Torchy's Tacos, alleging that the defendants failed to properly prepare, inspect and distribute the food before selling it to customers.

The lawsuit further alleges that Torchy's failed to adequately monitor its meat supplier and breached implied warranties that food sold to consumers is fit for consumption. It also alleges violations of the Texas Deceptive Trade Practices Act and federal food safety requirements.

Castillo contends that she would not have purchased the meal, or would have examined it more closely, had she known about the alleged defect.

She is seeking monetary relief of $250,000 or less, with any final award to be determined by a jury.

Vasquez also told Fox News Digital that he has become aware of other individuals reporting similar experiences with Torchy's since the story received attention, although those accounts have not been independently verified.

The attorney characterized the company's earlier responses as providing limited information while shifting blame and responsibility to others.

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Torchy's, meanwhile, maintains that it took the complaint seriously and conducted a thorough review.

"We are aware of the situation and take all concerns about our food seriously," the company told KVUE.

Torchy's did not immediately respond to Fox News Digital's request for comment.

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