Hy-Vee replacing all Market Grilles w/ Wahlburgers. Lower pay rate for those not losing their job

[Franisdaman]

Hy-Vee replacing all Market Grille restaurants with Wahlburgers

By John Ewoldt
Minneapolis Star Tribune
MARCH 10, 2020 — 5:51PM

Hy-Vee officials said Tuesday there will soon be a new kid on their block.

Wahlburgers restaurants will replace Market Grille in Hy-Vee's 22 stores with a sit-down dining option.

The new restaurants will offer counter service instead of table ordering but the seating and bars will remain.

"Our customers are wanting more fresh and convenient meal options in a quick-service setting," said Tina Potthoff, vice president of communication at West Des Moines-based Hy-Vee.

The transition, which will last into spring, affects only the Market Grille restaurants, not Market Grille Express, which already provide a quick-service model.

In Minnesota, restaurants in Brooklyn Park, Cottage Grove, Eagan, Lakeville, New Hope, Oakdale, Savage, Shakopee and Rochester will be affected. The three Market Grille Express restaurants in Robbinsdale, Plymouth and Maple Grove will not see changes.

In 2017, Hy-Vee announced a partnership with the Wahlberg brothers Mark, Donnie and Paul to open 26 franchised Wahlburgers locations. The first one opened in Mall of America in 2018. A second one in Maple Grove opened last month. The chain is known for its proprietary blend of beef, housemade sauces and dressings, as well as sides such as mac and cheese and adult beverages such as frappés.

Potthoff said that Hy-Vee does not have a final number of employees who may be laid off or transferred to other positions, including Wahlburgers. One Twin Cities Market Grille employee who asked not to be identified said employees were called to an emergency meeting with several hours notice. Of the 45 employees who worked at the Brooklyn Park location, seven or eight were asked to stay on to work at the new Wahlburgers at a lower pay rate, the employee said. Some general managers were given two weeks severance pay.

During the transition, the Market Grille restaurants will be open more limited hours daily from 6 a.m. to 9 p.m. and will serve a modified menu including breakfast, appetizers, burgers, sandwiches and other daily specials that can be ordered at a kiosk.

Wahlburgers opened its first location in 2011 in Massachusetts and parlayed that into an A&E reality show in 2014.
.................................................

John Ewoldt is a business reporter for the Star Tribune. He writes about small and large retailers including supermarkets, restaurants, consumer issues and trends, and personal finance.

jewoldt@startribune.com
612-673-7633
StribEwoldt

http://www.startribune.com/hy-vee-r...rille-restaurants-with-wahlburgers/568679282/

 

[sober_teacher]

Is this for all Hyvee locations or just in Minneapolis?

 

[hawkeye54545]

Hy Vee has had a bad week of PR.

 

[HawkOptimist]

Man, Hy-Vee can’t seem to get out of its own way lately. Guess one could’ve seen it coming when they started trying to be everything to everyone.

What next? A quick lube auto service near produce? A daycare over by the cereal? Maybe a gentlemen’s club in the liquor section?

Guess I shouldn’t post all that. Someone from Hy-Vee might steal my ideas and run with it.

 

[Huey Grey]

2 weeks severance pay. Hy-Vee is a joke.

 

[NorthernHawkeye]

One of the biggest mistakes was when they stopped having the order counter and instead started using wait staff.

All I want to do is order my food, get it, sit down and eat. There is no need for the obligatory tipping.

 

[Nipigu]

Just continued HyVee business realignments as some of their fulfillment centers are closing.

 

[Pepperman]

In central Iowa, they've also apparently bought some of the Quick Trip gas stations. I've seen at least two that are being renovated into some sort of HyVee Fresh format. I get that the foray into fuel sales has been great for them, but this seems unnecessary. Guessing people will continue to wonder WTF with HyVee...

 

[General Tso]

Setting themselves up to ne acquired.

 

[Hawk and Awe]

Does this impact them selling breakfast? Haven’t been there in a couple years, but it used to be one of my favorite spots.

Grocery business is changing.... they’ve made some mistakes but it’s smart they’re willing to try.

 

[timinatoria]

One of the biggest mistakes was when they stopped having the order counter and instead started using wait staff.

All I want to do is order my food, get it, sit down and eat. There is no need for the obligatory tipping.

And do they need and additional liquor license or a different type of license since they are serving alcohol instead of just selling it out the door? Not to mention I’m sure their liability insurance went way up.

I said the Market Grills were a dumb idea right away. Prices went up and the quality of the food went down. And Hy-Vee’s costs when way up.

 

[On Iowa]

One of the biggest mistakes was when they stopped having the order counter and instead started using wait staff.

All I want to do is order my food, get it, sit down and eat. There is no need for the obligatory tipping.

This. I have been told by Hy Vee managers that the Market Grill has been a financial disaster. They can't compete with real restaurants. People don't want that. People want breakfast #4 or a plate full of shitty Chinese food, a place to sit and eat it, and a quick out.

 

[timinatoria]

This. I have been told by Hy Vee managers that the Market Grill has been a financial disaster. They can't compete with real restaurants. People don't want that. People want breakfast #4 or a plate full of shitty Chinese food, a place to sit and eat it, and a quick out.

This. Jesus Hy-Vee, know your customers.

My sister, her husband and three kids used to go to the Hy-Vee deli every single Sunday after church. When it went to the Market Grill, it was more expensive, took longer, and the food was often worse. They quit going there for breakfast. Anecdotal evidence I know, but my experiences there, and my parents were the same.

I did go again last fall for breakfast and sat at the bar thinking I might get faster service. Nope, it took forever. The guy behind the bar told me he never works back there, but 1/3 of the wait staff called in sick that day.

 

[Menace Sockeyes]

And do they need and additional liquor license or a different type of license since they are serving alcohol instead of just selling it out the door? Not to mention I’m sure their liability insurance went way up.

I said the Market Grills were a dumb idea right away. Prices went up and the quality of the food went down. And Hy-Vee’s costs when way up.

This. I have been told by Hy Vee managers that the Market Grill has been a financial disaster. They can't compete with real restaurants. People don't want that. People want breakfast #4 or a plate full of shitty Chinese food, a place to sit and eat it, and a quick out.

Exactly. It was baffling to me when they went that route. Anyone who knew anything abut the food service industry knew that dine-in with wait staff locations were losing ground with, and giving way to, the "fast casual" model. That actually suited Hy-Vee and they blew it up.

 

[On Iowa]

This. Jesus Hy-Vee, know your customers.

My sister, her husband and three kids used to go to the Hy-Vee deli every single Sunday after church. When it went to the Market Grill, it was more expensive, took longer, and the food was often worse. They quit going there for breakfast. Anecdotal evidence I know, but my experiences there, and my parents were the same.

I did go again last fall for breakfast and sat at the bar thinking I might get faster service. Nope, it took forever. The guy behind the bar told me he never works back there, but 1/3 of the wait staff called in sick that day.

And they used to do a massive amount of business for quick lunches, which has all gone away with the Market Grill model, where they have to compete with every other sit-down restaurant for business. We go to lunch at an old Hy Vee all the time, but would never go to a Market Grill.

 

[Old_wrestling_fan]

Does this impact them selling breakfast? Haven’t been there in a couple years, but it used to be one of my favorite spots.
...

I used to go there for breakfast too, but stopped when they switched to the Market Grille. As someone else said above...I just want to get some bacon and eggs and eat in peace, not have a server ask me once, "How are you doing?" and then feel an obligation to leave a tip.

FWIW, I think the Wahlburger's idea sounds dumber than the Market Grille concept.

 

[Bro D]

I was very happy that the Hy Vee on Kimberly and Eastern didn't go the stupid Market Grille route. Nobody wants to go to a sit down restaurant at a freaking grocery store. They're putting a ton of work in to this location as well. New liquor store looks to be fantastic

 

[On Iowa]

I was very happy that the Hy Vee on Kimberly and Eastern didn't go the stupid Market Grille route. Nobody wants to go to a sit down restaurant at a freaking grocery store. They're putting a ton of work in to this location as well. New liquor store looks to be fantastic

The new Hy Vee in Coralville/North Liberty that just opened last year has the old fashioned counter ordering with the open seating area, but they also have a bar. The store construction was delayed a long time for "redesign" and I'm sure this was the area they were reworking. The bar area is generally pretty busy during happy hour times, and the fast turnover counter order or hot bar food still allows you a quick in-and-out if that's what you are looking for. In my mind, a great compromise that seems to be successful.

 

[hawkmart]

I used to go there for breakfast too, but stopped when they switched to the Market Grille. As someone else said above...I just want to get some bacon and eggs and eat in peace, not have a server ask me once, "How are you doing?" and then feel an obligation to leave a tip.

FWIW, I think the Wahlburger's idea sounds dumber than the Market Grille concept.

Same here. Since often times I'm the first one up I'd go there for breakfast every Sat morning, bs with the other old farts and start my day. I quit after they switched. If I wanted the diner experience, I'd go to a diner.

 

[Run&Blade]

Idiots. Wahlburgers will flame out just as quick.

should have built stand alone restaurant to see if they can make it work. If they can just start acquiring empty restaurants around shopping malls.

nobody is in the mood for grocery store dining. It’s almost laughable.

 

[Im4Iowa]

The new Hy Vee in Coralville/North Liberty that just opened last year has the old fashioned counter ordering with the open seating area, but they also have a bar. The store construction was delayed a long time for "redesign" and I'm sure this was the area they were reworking. The bar area is generally pretty busy during happy hour times, and the fast turnover counter order or hot bar food still allows you a quick in-and-out if that's what you are looking for. In my mind, a great compromise that seems to be successful.

Agreed. I don’t mind this concept at all and enjoy going there with the kids. If I’m going to spend $50+ on a meal for my family of 5 and have to leave a tip, I’m definitely not going to Hy-Vee.

 

[UKGrad93]

The new Hy Vee in Coralville/North Liberty that just opened last year has the old fashioned counter ordering with the open seating area, but they also have a bar. The store construction was delayed a long time for "redesign" and I'm sure this was the area they were reworking. The bar area is generally pretty busy during happy hour times, and the fast turnover counter order or hot bar food still allows you a quick in-and-out if that's what you are looking for. In my mind, a great compromise that seems to be successful.

I had heard that the store was delayed because Hy Vee nearly ran out of money around 2016. Around that same time, some friends that worked for Hy Vee corporate got laid off. They were re-hired by a store, then eventually re-hired by corporate. Crazy times for the Vee.

 

[On Iowa]

I had heard that the store was delayed because Hy Vee nearly ran out of money around 2016. Around that same time, some friends that worked for Hy Vee corporate got laid off. They were re-hired by a store, then eventually re-hired by corporate. Crazy times for the Vee.

Could be a combo of both, for sure. But when they stopped after foundations were poured, it seemed like they were committed to finish. Overall, I think the changes they made in store design between the Coralville remodel at Lantern Park and the new store.

 

[Tenacious E]

I was very happy that the Hy Vee on Kimberly and Eastern didn't go the stupid Market Grille route. Nobody wants to go to a sit down restaurant at a freaking grocery store. They're putting a ton of work in to this location as well. New liquor store looks to be fantastic

Most agree. It works where you can collect a lot of foot traffic. It looks to me that the Hy-Vee downtown DSM does very well. I think the north hy-vee in ankeny also gets a lot of after school foot traffic.

 

[Franisdaman]

Is this for all Hyvee locations or just in Minneapolis?

it appears to be all locations which still have a Market Grille

so, bottom line, there will be no table wait staff anymore once they become Wahlburbers; you place your order either at the counter or at a kiosk, grab a number, sit down and wait for your food to be brought out

I think you can still belly up to the bar and get service from a bartender, however

 

[Franisdaman]

Man, Hy-Vee can’t seem to get out of its own way lately. Guess one could’ve seen it coming when they started trying to be everything to everyone.

What next? A quick lube auto service near produce? A daycare over by the cereal? Maybe a gentlemen’s club in the liquor section?

Guess I shouldn’t post all that. Someone from Hy-Vee might steal my ideas and run with it.

the rumors I heard were that the Market Grill locations in Minneapolis / St Paul were all losing multiple tens of thousands every month; they never looked busy inside, either, even on Sunday brunch

funny you mention quick lube auto center; at least one location in Mpls/St Paul has a car wash

 

[fredjr82]

This. Jesus Hy-Vee, know your customers.

My sister, her husband and three kids used to go to the Hy-Vee deli every single Sunday after church. When it went to the Market Grill, it was more expensive, took longer, and the food was often worse. They quit going there for breakfast. Anecdotal evidence I know, but my experiences there, and my parents were the same.

I did go again last fall for breakfast and sat at the bar thinking I might get faster service. Nope, it took forever. The guy behind the bar told me he never works back there, but 1/3 of the wait staff called in sick that day.

The Edgewood Market Grill in Cedar Rapids was actually pretty good. I'm kind of sad to see it go. Service was always average to above average, good food, decent specials during sporting events, brunch on Sundays. I believe most Hy Vees serve a Sunday Brunch regardless. I'm surprised it didn't do a little better than they did. People eat at Hy Vee regardless. You didn't HAVE to order from the menu. You can go get Chinese food and sit down to eat it.

FWIW, I was talking to a bartender at the Edgewood location. I asked her if she ran out of a product if she could just go grab it off the shelf and she indicated she couldn't do that. All MGs and Hy Vees were completely separate from each other.

 

[Franisdaman]

Just continued HyVee business realignments as some of their fulfillment centers are closing.

Yep. FOUR online order fulfillment centers will be closed, resulting in up to 2,000 jobs lost. Each center is LARGE, too.

Here is the story from the Kansas City Star:

Hy-Vee will lay off nearly 600 Kansas City employees as part of wider company cuts
BY KEVIN HARDY
March 10, 2020

Grocery chain Hy-Vee will lay off nearly 600 workers as it shutters its Kansas City fulfillment center.

The Iowa-based grocer confirmed last week that it would close four fulfillment centers in the Midwest, including the Kansas City facility at 8700 Elmwood St. It’s also closing fulfillment operations in Omaha, Des Moines and Eagan, Minnesota.

On Saturday, Hy-Vee spokesman Christina Gayman said those facilities would stop fulfilling orders the week of March 23, but she would not provide numbers of expected job losses. A notice filed with Missouri state regulators posted online this week says up to 583 employees in Kansas City will be affected.

Hy-Vee opened the Kansas City fulfillment center in 2019 as part of a reported $90 million investment in Kansas City operations. It was created to serve online orders for grocery pickup and delivery customers in the metro. But now, the chain says, those operations will shift to retail stores.

“We are listening to our customers and they are wanting a full assortment of products, personalized shoppers and same-day pick up at the store, which we are unable to fully provide when we process orders at a fulfillment center,” Gayman wrote in an email to The Star. “Fulfillment center operations will be transferred to our retail stores in the market later this month — that means customers’ orders will once again be fulfilled at their local Hy-Vee store.”

She said employees were given 60 days notice and that the company’s human resources department was working to help employees find other job opportunities. Some workers could move to other positions in the company, Gayman said.

The grocery company received a 10-year, 50% personal property tax abatement for its Kansas City facility, the Kansas City Business Journal reported. The building, owned by NorthPoint Development, also benefits from a property tax exemption granted by the Port Authority of Kansas City.

Mayor Quinton Lucas called the news “incredibly disappointing for Kansas City.”

“Probably one of the sadder parts of it is that I believe they just moved in there about a year ago and received significant incentives in connection with it,” Lucas told reporters Tuesday. “Kansas City’s been taken a lot of times on these incentive deals. And it’s why we’re asking more questions about it now. Because everybody comes to town and they tell us 1,000 exceptional things and all that sort of stuff and then it’s not carried out to fruition. So I’m disappointed today that Hy-Vee made that choice.”

The closure of the four Midwestern fulfillment centers is just the latest structural change for the grocery chain in recent months.

In February, the company cut back hours at many stores, discontinuing the practice of keeping them open overnight. The same month, the company said a restructuring of store-level management could lead to “promotions, reallocations or reductions,” according to trade publication Progressive Grocer.

The grocery chain, based in West Des Moines, last year announced it would nix plans to build a new distribution center in Austin, Minnesota.

Hy-Vee is an employee-owned corporation with more than 265 retail stores across eight Midwestern states. With sales of $10 billion annually, it ranks among the nation’s largest privately held companies, according to Forbes.

LINK: https://www.kansascity.com/news/business/article241064536.html

 

[Franisdaman]

This. I have been told by Hy Vee managers that the Market Grill has been a financial disaster. They can't compete with real restaurants. People don't want that. People want breakfast #4 or a plate full of shitty Chinese food, a place to sit and eat it, and a quick out.

Same as here in Mpls/St Paul. Market Grilles were losing a lot of money.

Also, when it comes to Fast Casual, their Juice Bar and Mexican (not as good as Chipotle) are not working, either. When you look at the square footage taken up by a Market Grille, the Juice Bar, the Mexican station, etc, that's a lot of square footage in these large stores where they are losing money.

 

[Pinehawk]

I can't believe Hy-Vee would be short on cash. It feels like I give them most of my money.

 

[Run&Blade]

I can't believe Hy-Vee would be short on cash. It feels like I give them most of my money.

I use to work for a grocery store supplier and the story that is always told is grocery stores work on very thin margins.

 

[Franisdaman]

The Edgewood Market Grill in Cedar Rapids was actually pretty good. I'm kind of sad to see it go. Service was always average to above average, good food, decent specials during sporting events, brunch on Sundays. I believe most Hy Vees serve a Sunday Brunch regardless. I'm surprised it didn't do a little better than they did. People eat at Hy Vee regardless. You didn't HAVE to order from the menu. You can go get Chinese food and sit down to eat it.

FWIW, I was talking to a bartender at the Edgewood location. I asked her if she ran out of a product if she could just go grab it off the shelf and she indicated she couldn't do that. All MGs and Hy Vees were completely separate from each other.

From what I can tell, there will still be the same amount of seating and the TVs are not going away. You can still belly up to the bar. The only change is you won't have any wait staff and you place your order at the counter or at a kiosk.

And I think you are right; I think all HyVees (even those currently w/ Market Grille Express) have a Sunday Brunch.

In Mpls/St Paul, it was exactly what you stated; they told us we could take our fast casual food (Chinese, pizza slices, etc) to either the cafeteria seating or to the Market Grille.

 

[brownd7949hawks]

Bet they are pumped to have dumped all the money into installing electric charging stations at all their new stores too. I have never once seen a car plugged into any of them.

 

[jellyfish10]

At first I felt the same about the Market Grille concept. Why would I want to eat a sit down dinner where I get groceries? However, I ended up really enjoying the menu, the staff, and bottomless Sundays. My son and I would go there often on Tuesdays when he could eat for free.

It was pretty clear that the bottomless Sunday was a bad idea. The place was typically packed and they were constantly running out of vodka or champagne. I don’t remember what the hours were, 10-2 maybe, but for 9 bucks anything after your second was basically free. I’m not saying that is the sole reason, but it certainly didn’t help.

I do know that when they restructured, the staff had maybe 2 days notice to find a different job or be placed elsewhere in the store. That’s a pretty shitty way to treat employees.

 

[HawkAttackDial911]

I didn't understand the Market Grill but it was nice getting an app and beer for under $10 during happy hour. I don't understand the fast casual either where they have a person working at every small station. Couldn't they have combined all into one long counter with just a couple people working it?

 

[fredjr82]

From what I can tell, there will still be the same amount of seating and the TVs are not going away. You can still belly up to the bar. The only change is you won't have any wait staff and you place your order at the counter or at a kiosk.

And I think you are right; I think all HyVees (even those currently w/ Market Grille Express) have a Sunday Brunch.

In Mpls/St Paul, it was exactly what you stated; they told us we could take our fast casual food (Chinese, pizza slices, etc) to either the cafeteria seating or to the Market Grille.

I see most being built like the North Liberty store moving forward. Everything has a "food court" feel and then you sit in a common area or the bar area. I always liked half price apps and taps during Sunday NFL.

 

[doughuddl2]

Stopped in Hy Vee on New Year's Eve for booze and snacks and overhead the chef complaining to the store manager in front of the grill. "I told you no one would come in". Sign said "Steak and Lobster for two, $55". Only meal they served that night. Are you kidding me? Plus a hostess to seat me. At Hy Vee.

 

[doughuddl2]

I used to go there for breakfast too, but stopped when they switched to the Market Grille. As someone else said above...I just want to get some bacon and eggs and eat in peace, not have a server ask me once, "How are you doing?" and then feel an obligation to leave a tip.

FWIW, I think the Wahlburger's idea sounds dumber than the Market Grille concept.

Maybe Hy Vee management doesn't have anyone born before 1997.

Fuddruckers shuts at Home Depots after heavy losses

Sep 29, 1997, 12:00am EDT
Updated Sep 29, 1997, 12:00am EDT
Admitting defeat after losing several million dollars, the parent company for Fuddruckers has closed 12 restaurants in Home Depot stores around the country.

 

[blhawk]

One of the biggest mistakes was when they stopped having the order counter and instead started using wait staff.

All I want to do is order my food, get it, sit down and eat. There is no need for the obligatory tipping.

There's always McDonald's and Burger King for the cheapskates

 

[sober_teacher]

And they used to do a massive amount of business for quick lunches, which has all gone away with the Market Grill model, where they have to compete with every other sit-down restaurant for business. We go to lunch at an old Hy Vee all the time, but would never go to a Market Grill.

The new Hy Vee in Coralville/North Liberty that just opened last year has the old fashioned counter ordering with the open seating area, but they also have a bar. The store construction was delayed a long time for "redesign" and I'm sure this was the area they were reworking. The bar area is generally pretty busy during happy hour times, and the fast turnover counter order or hot bar food still allows you a quick in-and-out if that's what you are looking for. In my mind, a great compromise that seems to be successful.

I don't totally hate the concept of a diner option for dinnertimes, but the old counter-ordering option worked great for breakfast. Never understood why they thought people would want to sit down to eat at a grocery store.