President and CEO of Stew Leonard's, Steward Leonard Jr., Talks Consumer Spending and War Impact

Summary

Podcast Summary: Bloomberg Talks

Episode: President and CEO of Stew Leonard's, Steward Leonard Jr., Talks Consumer Spending and War Impact

Date: March 20, 2026
Host: Bloomberg
Guest: Stewart Leonard Jr., President & CEO of Stew Leonard’s

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Overview

This episode features Stewart Leonard Jr., the head of the renowned regional supermarket chain Stew Leonard’s, in conversation with Bloomberg about the impacts of inflation, tariffs, and the recent Iran war on consumer spending, store pricing strategy, and meat markets. Leonard offers an on-the-ground view of how rising costs are affecting both grocers and shoppers, what strategies the company uses to manage price increases, and how customers are adapting diets to manage food bills.

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Key Discussion Points & Insights

The Challenge of Rising Costs in Grocery Retail

Timestamps: 00:37–02:17

• Impact of Tariffs and Gas Prices:
  Leonard points out that inflation isn’t new for supermarkets, but recent tariffs and rising transportation costs following the Iran war have made cost control especially difficult.

  • “We operate on very thin margins in the food business, all supermarkets do… I gotta hold [prices] as long as I can, but I, I can't do it forever, otherwise I'll start losing money.” — Stewart Leonard Jr. (01:33)

• Customer-Centric Approach:
  The company’s strategy is to delay passing on costs to consumers for as long as possible, prioritizing customer retention and satisfaction.

  • “I grew up in this business… I want to think like a customer and they're fed up right now… their food bill right now is up to their chin.” — Stewart Leonard Jr. (01:23)

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Sharing the Burden: Suppliers, Retailers, and Shoppers

Timestamps: 02:17–03:41

• Splitting Surging Costs:
  Stew Leonard’s first approach is to split surcharges and transportation costs with suppliers, hoping such measures will be temporary as government and market conditions stabilize.

  • “Usually what we can do is say we'll split it with you. That's the first step. So that's what we're probably going to start doing.” — Stewart Leonard Jr. (03:17)
  • He expresses hope that government intervention and oil market normalization will eventually lower energy prices.

• No One Wins When Prices Increase:
  Leonard stresses that price hikes hurt everyone—from suppliers to farmers to customers.

  • “Nobody wins when you raise prices, okay? The suppliers don't win, the ranchers don't win, the farmers. Stu Leonard doesn't win.” — Stewart Leonard Jr. (02:38)

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Outlook on Tariff Rollbacks

Timestamps: 03:41–04:31

• Uncertainty Over Refunds:
  With the Supreme Court recently striking down Trump-era tariffs, Leonard admits uncertainty about how rebates will be handled in retail.
  • “I don't really know how they're going to rebate people… I like getting a refund check, I guess, if it happens.” — Stewart Leonard Jr. (04:09)

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Meat Markets: Beef, Pork, and Consumer Shifts

Timestamps: 04:31–06:22

• Persistent High Beef Prices:
  U.S. cattle herd sizes are at a 50-year low, mostly due to drought, causing beef prices to remain high.

  • “There is a 50-year low supply of cattle… So obviously it's going to drive price.” — Stewart Leonard Jr. (05:05)

• Substituting Beef for Cheaper Proteins:
  Leonard suggests customers can save by switching from beef ($15/lb) to pork or chicken (as low as $5/lb), a trend he’s already seeing in stores.

  • “So you could switch from a $15 product down to a $5. You could do it with chicken. So we’re noticing customers a little bit are starting to alter their diets a little bit… by buying lower, lower price items right now.” — Stewart Leonard Jr. (06:09)

• Memorable Moment:
  Leonard holds up a Tomahawk steak during the broadcast—a favorite among his ranchers—and uses it as an example of high beef prices versus suggested switches.

  • “That's, that's what our ranchers, when they come back from the Midwest, that's what they want to eat. It's a rib eye, you know, tomahawk steak. And, and they're great.” — Stewart Leonard Jr. (04:51)

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Notable Quotes

| Timestamp | Quote | Speaker | |-----------|----------------------------------------|--------------------| | 01:23 | "I want to think like a customer and they're fed up right now with any. Their food bill right now is up to their chin, you know, so what, what can I do? I gotta hold it as long as I can, but I, I can't do it forever, otherwise I'll start losing money." | Stewart Leonard Jr. | | 02:38 | "Nobody wins when you raise prices, okay? The suppliers don't win, the ranchers don't win, the farmers. Stu Leonard doesn't win." | Stewart Leonard Jr. | | 03:17 | "Usually what we can do is say we'll split it with you. That's the first step. So that's what we're probably going to start doing." | Stewart Leonard Jr. | | 04:09 | "I don't really know how they're going to rebate people… I like getting a refund check, I guess, if it happens." | Stewart Leonard Jr. | | 05:05 | "There is a 50-year low supply of cattle… So obviously it's going to drive price." | Stewart Leonard Jr. | | 06:09 | “So we're noticing customers a little bit are starting to alter their diets a little bit. Yeah, by buying lower, lower price items right now.” | Stewart Leonard Jr. |

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Key Takeaways

• Rising costs due to tariffs and war-driven fuel surcharges are pushing supermarkets like Stew Leonard’s to make tough decisions on pricing.
• The company tries to delay passing on price hikes, often splitting costs with suppliers before raising prices for customers.
• Beef prices are likely to remain high until herd sizes rebound, but alternatives like pork and chicken provide value-conscious consumers with choices.
• The ongoing economic climate is forcing both retailers and shoppers to adapt, with flexibility and empathy at the core of Leonard’s approach.

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Stewart Leonard Jr.’s engaging and candid discussion offers unique insight into the current challenges and strategies in the supermarket industry, with practical advice for households looking to navigate food inflation.

Transcript

[A]

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[B]

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[C]

Well, rising prices for staples like food due to tariffs and out gas following the start of the Iran war are certainly things are top of mind for folks who are going anywhere right now. So let's check in with Stuart Leonard Jr. He's President CEO of John Tucker's favorite market, Stu Leonards, and he joins us from Connecticut. Sue, it's great to speak with you. No one likes having to raise prices, but at some point they need to. How have you been, what's been your strategy when it comes to price increases because of higher costs on your end?

[D]

Well, you know, we're in the fresh food business basically, and you know, it ebbs and flows all the time. You know, it could be bad weather some places, there could be a drought out in the Midwest, and that all affects food prices. So one of the things, look, we operate on very thin margins in the food business, all supermarkets too. And you know, when something like this comes up, like the tariffs when they hit us now, we got the fuel surcharges that are hitting us right now, we try to just eat it for as long as we can. You know, just, just hold on. I grew up in this business. I've been doing it 50 years. I grew up on the floor here. And I gotta think about the people pushing the shopping carts around the store. You know, I want to think like a customer and they're fed up right now with any. Their food bill right now is up to their chin, you know, so what, what can I do? I gotta hold it as long as I can, but I, I can't do it forever, otherwise I'll start losing money.

[E]

Stu. So, I mean, based upon your experience so far this year with the higher tariffs, kind of what's. I know you try to work with your suppliers to kind of share the cost here. How is it kind of shaken out how much has been borne by you, the retailer, by maybe your suppliers and then maybe by the consumer?

[D]

Well, I think your opening comment that you had today, nobody wins when you raise prices, okay? The suppliers don't win, the ranchers don't win, the farmers. Stu Leonard doesn't win. So everybody holds off. Usually what we end up probably doing, we're starting to get some fuel surcharges hitting us right now. We're bringing fresh product in from the beef from the Midwest and you know, berries and produce from Florida and California, you know, and those fuel costs, I mean, the guy's got to fill his truck up to get in here. So those costs have been going up. Usually what we can do is say we'll split it with you. That's the first step. So that's what we're probably going to start doing. And then hopefully the way I feel this is, this is going to be short term. I hope the government is going to get this all worked out with, with the flow of oil and I hope energy prices will be coming down in the future.

[C]

Yeah, well, I think that's something we all hope for. Of course, we also know that the supreme struck down President Trump's tariffs and I'm wondering where that leaves you, Stu Leonards, and where that leaves prices on those goods where they had gone up because of tariffs.

[D]

You know what, I think that's above my bank grade right there. You know, we're a family business here in the metro New York area. I, I don't really know how they're going to rebate people. I know Costco was, was suing the government and I think our wine suppliers just wrote that there's some, some money coming back from the tariffs on the, on the liquor business. But I don't really know how that's going to work out. I like getting a refund check, I guess, if it happens.

[E]

Hey, Stew, one of the areas that seems to be persistent area of inflation for shoppers is the cost of beef. And you know, we've been told that the, the actual cattle herd in this country is at a very low level. What's, what's your understanding of that market?

[D]

And look what I have for you right here. I brought one of these. How's that look?

[E]

Oh, there we go. The Tomahawk.

[D]

That's, that's what our ranchers, when they come back from the Midwest, that's what they want to eat. It's a rib eye, you know, tomahawk steak. And, and they're great. But you know what, right now there, there is a 50 year low supply of cattle. Right now it's at the low. The herd sizes are the smallest they've been. So obviously it's going to drive Price. One of the reasons is there was a great drought. The grass wasn't out in the, in the pastures. So the ranchers had to start feeding the cattle food instead of letting them eat the free grass. So that drove the price of beef and it's held up there. A lot of the ranches we thought were starting to expand in their herds now. So I, I sort of see prices coming down on beef as, as supply increases a little bit. But, you know, here's what you can do if you want to save money instead of buying beef. Like if I want to go get a New York strip right now, it's going to be roughly around 15 bucks a pound. What you can do is instead if you go to pork, which I've done, you get a, we have this prime pork from Pennsylvania and it's delicious. So you could switch from a $15 product down to a $5. You could do it with chicken. So we're noticing customers a little bit are starting to alter their diets a little bit. Yeah, by buying lower, lower price items right now.

[C]

Makes a lot of sense and certainly everyone's taking a closer look at those price points when they make that decision. Stu, thank you so much for joining us. Stuart Leonard Jr. Is president and CEO of Stu Leonard's, a very popular market across Connecticut.

[E]

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