The Grub Box - Whole Foods Comparison
One of our Grub Box customers told us about a very interesting story about how a friend of his had argued that Whole Foods Market has more affordable produce than People’s Grocery’s Grub Box. Our customer’s friend wanted to challenge the premise that People’s Grocery’s $12 Grub Box is more affordable than a similar basket of produce sold at Whole Foods. So they went to Whole Foods and put together a basket of produce that was comparable to our Grub Box. The grand total at the cash register was ….. $30! Apparently they were pretty surprised at the difference in price and had to acknowledge that the Grub Box was a better deal.
Of course there are a few factors that skew this comparison. This first is that the quantity for each item of produce sold by People’s Grocery is smaller than the quantity for each item of produce sold by Whole Foods. So for example, a bunch of broccoli or carrots sold at Whole Foods is larger than a bunch of broccoli or carrots sold by People’s Grocery. If we adjusted our produce pack size upward or if Whole Foods adjusted their pack sizes downward, the difference in price would be less, although People’s Grocery would probably still be a little cheaper.
Another key aspect that skews this comparison is the fact that the $12 Grub Box is a subsidized offer for low-income families. Our “sponsor” customers, who are people of more able economic means, pay $24 per box (the two boxes are identical in selection, quality and quantity). Part of this premium is used to provide a discount for low-income families, which is how we can sell the Grub Box for $12. So, to get at a more accurate comparison one would have to compare against the $24 Grub Box, which is still of course less than $30.
If you adjusted quantity and removed the subsidy our produce prices are probably about the same as Whole Foods’ prices. But then one also should consider the “hidden costs” or “externalities” that are not reflected in the price a customer pays at Whole Foods. Because unfortunately, the entire food system, including Whole Foods, depends on externalizing costs in order to keep food prices lower. As the customer who told us this story said: “What is the net energy, Co2 outputs, and the experience of those producing the food for Whole Foods? Is the food coming from impoverished foreign countries? Do I get the food from a community member whom I can call by first name, or do I have to wait in line at a store that has no local ownership or character?”
