• UNFI, a major food distributor, said Monday that its IT system had "unauthorized activity."
• The issue affected grocery deliveries to some supermarkets, the company said.
• Shelves at some Whole Foods stores appeared mostly empty over the weekend in social media posts.

Shelves at some grocery stores are sitting empty after an IT problem at a major food distributor.

United Natural Foods, or UNFI, said on Monday that "unauthorized activity" on some of its IT systems has "temporarily impacted the Company's ability to fulfill and distribute customer orders."

"The incident has caused, and is expected to continue to cause, temporary disruptions," UNFI said in a filing with the Securities and Exchange Commission on Monday morning.

At some stores, that meant shelves appeared to go empty over the weekend.

One post late Sunday on a Reddit page dedicated to Whole Foods included photos showing largely bare cooler cases that normally contain yogurt, milk, and other dairy products. The poster did not immediately respond to a message from Business Insider.

"We are experiencing a temporary out of stock issue for some products," a sign on one of the cooler doors read in the photos. "We apologize for the inconvenience and should have your favorite products back in stock soon."

BI was unable to determine the scale of the outage. Whole Foods did not immediately respond to a request for comment. UNFI has a supply agreement with Whole Foods that lasts until 2032.

UNFI does not disclose all of the supermarket chains that it works with. The company says that it supplies about 30,000 individual stores "ranging from some of the largest grocers in the country to smaller independents."

Do you have a story to share about the UNFI outage? Contact this reporter at [email protected].

• Cracker Barrel is the latest company to report a hit from tariffs.
• The restaurant chain expects tariffs to dent earnings from its gift shop business later this year.
• Cracker Barrel is rethinking its gift store selection as part of a broader revamp of its business.

President Donald Trump's tariffs have part of Cracker Barrel's business over a barrel.

Cracker Barrel diners usually walk through the shop, which sells everything from rocking chairs to skillets featuring Dolly Parton's likeness, on their way into and out of Cracker Barrel's restaurants. The restaurant chain sources roughly one-third of those products from China, CEO Julie Masino said during an earnings call on Thursday.

The number is higher when counting China-made products that Cracker Barrel buys from US-based suppliers, the CEO said. She did not say what share of the stock those items account for.

As a result of tariffs, Cracker Barrel expects a $5 million hit to its EBITDA — a measure of profitability — next quarter, CFO Craig Pommells said. The chain expects EBITDA for its 2025 fiscal year of between $215 million and $225 million.

Cracker Barrel's retail sales made up about 20% of its revenue last year, according to the company. The majority of revenue came from its restaurants.

Like many retailers, Cracker Barrel has worked to limit the cost of tariffs by negotiating with its suppliers, finding new sources of products, and rethinking its prices, Masino said.

"The teams have been thinking about tariffs for months," she said on the call.

At the same time, Cracker Barrel has been planning changes to its gift shops as part of its broader business strategy, Masino said.

Last year, after Cracker Barrel reported a net loss and lower foot traffic, Masino said the chain's restaurants were "not as relevant as we once were." Cracker Barrel has started a three-year plan to turn around results, including new restaurant formats and menu items.

On Thursday, Masino said that Cracker Barrel was reevaluating the product selection at its gift shops as part of that turnaround plan. The company is also reconsidering when it brings in seasonal items, such as Halloween and Christmas decorations, she said.

"There have been a couple of key things that the tariff situation has actually enabled us to accelerate," Masino said.

Do you have a story to share about Cracker Barrel or another restaurant chain? Contact this reporter at [email protected].

• Becoming a franchisee for a fast food restaurant is one road to running a business.
• But costs and requirements vary widely depending on the restaurant chain.
• Business Insider compiled a list of financial requirements to become a franchisee for 12 major fast food chains.

A fast food franchise can be a lucrative business. 

One top performing Chick-fil-A restaurant reported sales of over $17 million in 2021, more than double the average per unit sales volume for the chain, according to Chick-fil-A's 2022 franchise disclosure document. Other chains also say that franchisees can earn millions of dollars a year from a single store.

Opening a franchise requires a hefty amount of cash to cover the startup costs, though. Many chains require franchise fees in the tens of thousands of dollars as well as personal worth requirements in the hundreds of thousands, for instance.

There are also ongoing monthly fees for royalties, advertising, and other services that often get deducted from sales.

Business Insider compiled a list of some basic financial requirements for becoming a franchise owner of 12 of the biggest fast food chains in the US based on public filings. The values below are based on "traditional" franchise locations, meaning they are stand-alone restaurants as opposed to units in airports, malls, universities, or other buildings.

Following the name of each restaurant chain are the average total startup costs to open one restaurant in the US.

Arby's: $644,950 to $2.4 million

Total startup costs: $644,950 to $2.4 million

Minimum liquid asset requirement: $500,000

Minimum net worth requirement: $1 million

Franchise fee: A $12,500 development fee, a $37,500 license fee

Ongoing fees: Arby's charges a royalty fee of either 4% or 6.2% of sales, depending on store type, plus an advertising and marketing service fee of 4.2% of sales. 

Average per-unit sales: $1.1 million to $1.6 million, depending on store type, per franchisee disclosure document

Burger King: $363,400 to $4.7 million

Startup costs: $363,400 to $4.7 million

Minimum liquid asset requirement: $500,000

Minimum net worth requirement: $1 million 

Franchise fee: $50,000 for a 20-year franchise agreement

Ongoing fees: Burger King charges a 4.5% royalty fee and a 4.5% advertising fee (based on monthly gross sales).

Average per-unit sales: $1.66 million for traditional stores, $1.32 million for non-traditional stores, per franchisee disclosure document

Chick-fil-A: $426,735 to $2.3 million

Startup costs: $426,735 to $2.3 million

Minimum liquid asset requirement: none

Minimum net worth requirement: none

Franchise fee: $10,000 

Ongoing fees: Chick-fil-A franchisees pay a "base operating service fee" of 15% of sales. Chick-fil-A limits its rent charges to 6% of sales. 

However, it's important to note that Chick-fil-A prohibits most of its franchisees from opening multiple units, which can limit potential profits, and franchisees must devote their full time and attention to operating the business. A Chick-fil-A spokesperson previously told BI it selects "a relatively small number of franchisees to operate multiple units."

Average per-unit sales: In 2024, most locations averaged about $9.3 million in annual sales.

Dairy Queen: $1.5 million to $2.5 million

Startup costs: $1.5 million to $2.5 million

Minimum liquid asset requirement: $400,000

Minimum net worth requirement: $750,000

Franchise fee: $45,000

Ongoing fees: Dairy Queen charges a 4% royalty fee and between 5% to 6% in marketing fees.

Average per-unit sales*: $1.2 million

*2023 figures according to QSR Magazine.

Dunkin' Donuts: $526,900 to $1.8 million

Startup costs: $526,900 to $1.8 million

Minimum liquid asset requirement: $250,000

Minimum net worth requirement: $500,000

Franchise fee: $40,000 to $90,000

Ongoing fees: Dunkin' Donuts charges 5% of gross sales for advertising fees and a royalty fee of 5.9% of gross sales.

Average per-unit sales: $1.3 million in 2024, per franchisee disclosure document

KFC: $1.9 million to $3.8 million

Startup costs: $1.9 million to $3.8 million for a traditional outlet

Minimum liquid asset requirement: $750,000

Minimum net worth requirement: $1.5 million

Franchise fee: $45,000

Ongoing fees: KFC charges franchisees about 10% of gross revenues (4% to 5% for royalties and 5% for advertising).

Average per-unit sales: $1.3 million, per franchisee disclosure document

McDonald's: $1.5 million and $2.7 million

Startup costs: $1.5 million and $2.7 million

Minimum liquid asset requirement: $500,000 

Franchise fee: $45,000

Ongoing fees: Base rent depends on when the restaurant opened, along with the acquisition and development costs. The rent for most new McDonald's restaurants ranges between 10% of total gross sales to 15.75% for new restaurants that have opened since January 1, 2020. 

Additionally, there are numerous monthly and annual fees franchisees must pay, including a royalty fee of 4% or 5% of sales and an advertising and promotion fee that is a minimum of 4% of gross sales. Franchisees also pay annual fees for various software and digital equipment, such as a $150 annual fee for using self-ordering kiosks.

Average per-unit sales: $4 million

Papa John's: $272,915 to $989,415

Startup costs: $272,915 to $989,415

Minimum liquid asset requirement: $250,000

Minimum net worth requirement: $750,000

Franchise fee: $25,000

Ongoing fees: Papa John's charges a monthly royalty fee of 5% of net sales. Papa John's also requires that franchisees spend 6% of net monthly sales on marketing.

Average per-unit sales: $1.1 million

Sonic: $1.7 million to $3.4 million

Startup costs: $1.7 million to $3.4 million

Minimum liquid asset requirement: $500,000

Minimum net worth requirement: $1 million

Franchise fee: $30,000 of the $45,000 initial license fee credited via royalty.

Ongoing fees: Sonic charges a royalty fee of up to 5% of gross sales and advertising fees of at least 3.25%.

Average per-unit sales: $1.6 million

Subway: $199,135 to $536,745

Startup costs*: $199,135 to $536,745

Minimum liquid asset requirement: $100,000  

Minimum net worth requirement: $150,000 

Franchise fee: $15,000

Ongoing fees: Subway franchisees pay weekly fees based on gross sales, which include an 8% royalty fee and 4.5% fee for advertising.

Average per-unit sales: $490,000 in 2023, according to Technomic

Taco Bell: $1.9 million to $4.3 million

Startup costs: $1.9 million to $4.3 million

Minimum liquid asset requirement: $2 million

Minimum net worth requirement: $5 million

Franchise fee: $45,000

Ongoing fees: Taco Bell charges a period franchise fee equal to 5.5% of gross sales and a period marketing fee equal to 4.25% of gross sales.

Average per-unit sales: $2.1 million in 2023, according to QSR Magazine

Wendy's: $1.5 million to $3 million

Startup costs: $1.5 million to $3 million for a cash purchase, though the fee can be lower depending on financing options

Minimum liquid asset requirement: $500,000

Minimum net worth requirement: $1 million 

Franchise fee: $50,000

Ongoing fees: The advertising fee is 4% of gross sales and covers both national and local advertising. The royalty fee is 4% to 6% of gross sales.

Average per-unit sales: $2.1 million for franchise locations

• Rides and deliveries through Uber could get cheaper in a recession, CEO Dara Khosrowshahi said.
• More people could sign up to work for the app, making Uber's labor costs lower, he said.
• Uber is "recession-resistant," Khosrowshahi said.

Your ride to the airport or Friday-night dinner delivery through Uber might cost less if an economic downturn arrives, according to its CEO.

If the economy enters a recession, more people could sign up to drive and deliver for Uber, Dara Khosrowshahi said on Friday.

"If there is more unemployment, the cost of Uber will come down, because, to some extent, the cost of labor comes down," Khosrowshahi said at the Semafor World Economy Summit in Washington, D.C.

Khosrowshahi said that Uber tends to be "recession-resistant" since many people still want groceries, restaurant delivery, rides around town, and other "everyday use cases" — even if they cut back spending in other areas.

"You may put off going on vacation in Europe this summer, but you're still going to treat your family to a nice dinner," he said. "We specialize in small treats, not big treats."

Consumers have turned to said small treats when the economy — and their income — have deteriorated in the past.

Lipstick sales, for instance, rose during the 2001 recession as some shoppers looked to makeup as an affordable luxury even as they avoided larger purchases.

Economists, executives, and others worry that a recession could be sparked this year by President Donald Trump's tariffs.

Many retailers and consumer brands have said that they will pass the costs of the tariffs to shoppers, leading to higher prices on store shelves and online after years of post-pandemic inflation.

While shoppers pulled back spending in many areas last year, many did keep paying to have what they bought delivered through services including DoorDash, Instacart, and Uber Eats, earnings reports at the time showed.

Getting work on Uber and other gig apps might not be so easy for laid-off workers and others in a recession, though.

Current gig workers have told Business Insider that many apps are already saturated with people looking to claim work, and that some even have wait lists for prospective independent contractors.

Do you have a story to share about Uber or other gig work apps? Contact this reporter at [email protected] or 808-854-4501.