Key Updates – August 28, 2025

A Shifting Retail Landscape

While Dane County is home to over 81 supermarkets and grocery stores, the retail food landscape is experiencing significant consolidation. The acquisition of local favorites like Metcalfe’s Market and Fresh Madison Market by large national distributors like SpartanNash (and now C&S Wholesale) changes the dynamics of our food economy. This consolidation can make it more difficult for small- and medium-sized local producers to get their products on store shelves, and it concentrates control over food pricing and distribution in the hands of a few large corporations, making food access more difficult for Dane County residents. We are currently seeing a spike in food insecurity in Dane County in part because of these rising costs of food.

The Infrastructure Gap: Storage and Logistics

A critical missing link in our local food system is infrastructure, specifically in cold and frozen storage and distribution. Small- and medium-sized producers often struggle to get their products to market because they lack access to affordable warehousing and transportation. The industry is dominated by just two major companies, Americold and Lineage, which control over 50% of the refrigerated warehouse industry nationwide. This has led to a significant gap between the supply of and demand for cold storage in Dane County, making it a major barrier for local food businesses, particularly farms, to grow.

The Challenge of Commercial Space

Finding suitable and affordable commercial space remains a significant hurdle for food entrepreneurs, even in a city like Madison that has ample available retail space. Rent prices for these retail spaces remain high and inconsistent, often depending on personal relationships. For many new ventures, using a shared commercial kitchen is a much more viable option than building out a dedicated space, which can cost hundreds of thousands of dollars. The average annual commercial rent for a dedicated restaurant or retail space in Madison is $21 – $26 per square foot, with prime locations costing much more. Fortunately, resources like FEED Kitchens and the new Isthmus Eats Kitchens provide valuable alternatives, eliminating the need for extensive upfront capital investment in kitchens and equipment. Despite these assets, the need for these kinds of spaces far exceeds the supply, and places like FEED experience bottlenecks that result in significant wait lists for small businesses to access the space.

Workforce and Fair Wages

The food sector is a major employer in Wisconsin, and as an industry, it is a driving force in the county’s economy. However, challenges related to workforce development and fair wages persist. Many food industry workers face unpredictable hours and low wages, while operators face tight margins, high food costs, and intense competition for employees. These factors make it difficult to attract and retain talent. Despite the need for workforce talent in the industry, environmental factors like high cost of living and the inability to provide benefits keep workers from staying in the industry long term.

The Power of Local

The importance of supporting local food businesses goes far beyond convenience. When you spend money at a local restaurant or grocery store, a larger portion of that revenue stays within the community. According to a 2017 study by Dane Buy Local, locally-owned retailers and restaurants return 47% and 61% of their revenue, respectively, back to the local economy. In contrast, chain stores return a much smaller percentage. In addition, tourism is a major driver of the local food economy, with over $450 million in food and beverage spending by visitors in Dane County in 2024. This demonstrates the critical role that a vibrant, local food scene plays in the economic health and appeal of our region.

Conclusion

Despite Dane County’s rich food culture, major issues such as high capital demands, tight labor markets, and slim margins make the food business sector ultra competitive. Our hopes through this plan are to increase collaboration, resources, and knowledge-sharing to address these needs of businesses. The Food Sector is a major part of our culture, economy, and community and intervention is needed at the local level to protect the value of small, locally-owned businesses.