business news in context, analysis with attitude

Kroger announced yesterday that its Dallas division s launching Kroger Restaurant Supply there, which it says will offer "an alternative to ordering in large quantities that have highly variable pricing and require deliveries on a set schedule. This service offers competitive wholesale pricing, opportunities to purchase items by the case or unit and seven-day-a-week delivery."

According to the announcement, "Regional restaurants, bakeries and catering companies are invited to take part in this service that 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."

""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, in a prepared statement.  "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."

KC's View:

The thing is, I cannot imagine that this will be limited to Dallas.  If it works, other divisions can do it … as can the Ocado-powered warehouses that Kroger will be using to serve markets where it does not have physical stores.

This has the potential to be a disruptive, opportunistic play.