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Originally Posted by superdog
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That said, seeing some shifts in the economy and the rising cost of food, I am starting to thinking buying into the food industry might be a good bet.
More specifically, I am thinking supermarket chains. Restaurants are getting crazy expensive. Tipping expectation is out of control, customer service quality is down and even the food quality seems less so than it has been (my personal experience).
I am thinking the easiest way for people to cut back on expenses is eat at home more. So I am asking if any of you guys have any opinions on this theory and on any good quality stocks or ETF's to buy.
Thank you,
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Generally speaking, margins in the supermarket chain stores are very thin, even with the cost of food skyrocketing. In the US, Walmart is the largest seller of groceries and Costco has a large chunk of sales as well. Very tough business.
I'm in 100% agreement with your assessment of restaurants and the dining experience. It seems since Covid, the costs have gone up, which is to be expected with the cost of food going up, but the quality of both the meals and service has significantly declined. We've haven't consciencely said we're not going to go to restaurants, but we've naturally found ourselves doing it simply because I can make better meals to home, regardless of price point.