Amazon's Whole Foods Market Plans Off-Site Kitchens: Report

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  • Supermarket chain Whole Foods Market, a subsidiary of Amazon.com Inc AMZN, reportedly plans to construct commercial kitchens.
  • Operation of self-owned kitchens will likely help Whole Foods with better quality control in its prepared-foods business, the WSJ reported.
  • It is to be noted that Whole Foods Market outsourced its food production to cut costs.
  • Whole Foods Market has bakehouses in Colorado and Florida. It is also planning to buy existing kitchens, the report added.
  • Apart from region-specific items, Whole Foods has a team to prepare ready-to-eat and prepackaged meals. 
  • With an idea to expand its prepared-foods business, the company has launched catering services, expanded its bakeries' cake lineups, and selling meals online.
  • Before being acquired by Amazon, Whole Foods closed three commercial kitchens in an effort to ramp up efficiency in its operations.
  • Price Action: AMZN shares are trading lower by 0.57% at $101.48 in premarket on the last check Monday.
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