Whole Foods Market is exploring building commercial kitchens that would make prepared meals for the grocer’s food bars and refrigerated cases, according to The Wall Street Journal.
The Journal noted that the move is a “shift” for the Amazon-owned supermarket operator, which has outsourced much of its food production to other companies after years ago closing its own kitchens to cut costs.
The Journal cited people familiar with the matter as saying that operating its own kitchens could help the Whole Foods “better control the quality of its multibillion-dollar prepared-foods business.” There is also some talk of the giant US grocer weighing the idea of buying existing kitchens.
Meanwhile, Jeff Turnas, senior vice president of global culinary at Whole Foods, told the Journal that the company is “constantly evaluating ways” to produce food, including operating its own facilities, working with third parties and using in-store kitchens. The company has bakehouses in Colorado and Florida.
Austin, Texas-based Whole Foods which is popularly known for its organic selections, has nearly 500 more than 500 locations in the US, Canada and UK — and even more stores in development. The company also runs in-store eateries such as coffee bars and wine bars.
Whole Foods prepared foods, such as pizza and soups, the hot food and salad bar traditionally have been a draw for shoppers.
Whole Foods said in early 2017 it was closing three commercial kitchens, part of a broader effort to streamline operations and cut costs before Amazon acquired the company later that year for $13.7 billion. If reports are to be believed then the current bosses may be re-thinking that old strategy.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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