It does look underwhelming. Will this survive once Eataly opens? I can see maybe locals using this store but with the cheaper Longos to the right and Eataly and others to the left, will there be any reason to go here?
As a longtime resident of the area, former fine dining cook at a McEwan-owned restaurant, and wonk who's done a stupidly aggregious amount of research into grocery trends for someone who isn't in the business, I offer my take:
I've speculated in the Manulife Centre thread that I think Bloor Street Market is going to be the big one to suffer. The current money-maker in the grocery game is prepared food, to-go and meal kits. There's little margin left on ingredients (whole produce, etc.), but lots of room for markup on prepared/half-prepared stuff. McEwan's shrewd and knows this; it's why barely ¼ of this new store is produce/grocery and the rest is prepared food and food to go. Eataly, likewise, is all about on prepared/to-go foods; it's their thing. Bloor Street Market's last renovation put a lot more focus on prepared/to-go foods as well, but the reality is they're a good (albeit small) grocery store that offers middle-of-the-road prepared/to-go foods. McEwan and Eataly easily have BSM beat on this angle, and Eataly will be in the same damn building.
The small size of the produce section in McEwan tells me that they're bringing in fresh for nearly the entirety of the to-go product they're selling. Combine that with a background in fine dining and it's guaranteed the product is better (even if it's about 20% more expensive) than BSM–who like most grocery chains, likely uses prepared/to-go as a means to avoid wasting product that's aging-out. A trip to McEwan at lunchtime today tells me it was quite busy. They're offering samples and making sure that the novelty of being the new guy in town doesn't wear off. I think that it'll be the favourite of the local office jockeys.
Eataly will have some customer crossover with McEwan, for sure. But Eataly is a bit of a different beast. It's more experience-driven and is more likely to be a draw for Yorkville tourists as much as lunch-seeking locals. I certainly think there's room for both McEwan and Eataly. I also think that due to location, and guaranteed better quality of food, that they will combined be the nail in the coffin for BSM and will do some damage to Pusateri's.
BSM will survive for a while—it could probably coast for a year or two on the seniors living in the building above. But merely slowing the blood loss of customers and relying on a population nearing the end of their independent years isn't a good longterm strategy, unless they back down on the prepared/to-go angle and focus on grocery and produce within a reasonable price. Aiming their sights at the Asian student market—a growing demographic in the area—might be the best bet, even with the competition of the nearby Galleria or H-Mart, as they have many more square feet and have the established Loblaws backbone. And with the overall growing density, we need more than just bodega-sized "grocery" stores in the Bloor-Yonge area. BSM'd do well to try and be as close to a JIT outfit as possible (if that's at all possible with produce) and deal with running out of product to avoid losses, but if they try to compete on prepared foods and to-go, they're gonna lose.
Don't get me wrong, I love BSM. They're one of the few grocery stores around selling medium ground beef–almost always ground from chuck (not trim) and at a good price to boot. I'm there a couple of times a week. I don't want them to go, but I don't see an easy road ahead for them.
Longo's will probably be just fine; they're not *as* focused on prepared food and offer the best produce in the area, but also have proximity to the subway entrance that gives them a traffic flow edge for those getting groceries and food on the way home. Especially with the nearby Rogers/Manulife crowd.
Pusateri's is a bit of a wild card. I see Pusateri's will compete more with McEwan than Eataly; but I also see them as a location for the well-to-dos not looking to mingle with the commoners. So who knows how they'll fare.