"The Los Angeles grocery chain selling these fancy concoctions is doing so well, it opened three new stores in 2025-its biggest expansion since 2011. The chain reportedly generates $1,800 to $2,500 in sales per square foot, up to five times what a typical U.S. supermarket earns."
"Even as inflation-weary consumers have traded down to store brands in many categories, premium and specialty products held up and even grew their dollar share of the market through 2025."
"When people feel life is out of control, they reach for something small, expensive, and signaling virtue. This is the real reason premium food is booming while some traditional luxury brands struggle."
Consumer confidence in the U.S. has fallen to a decade low, with Americans cutting back on dining out and delaying purchases. Despite this, premium food products, like Erewhon's $22 smoothies, are thriving, leading to significant sales growth in the specialty food market. This market has expanded by nearly 150% over the past decade, outpacing overall grocery sales. Consumers are gravitating towards small, luxurious items as a coping mechanism for economic stress, indicating a complex relationship between anxiety and spending habits.
Read at Fast Company
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