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

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.

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)

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)

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)

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)

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. |

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.

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.