Rainbow Foods

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Rainbow Foods
TypeSubsidiary (1994–2018), Private (1983–1994)
IndustryRetail, Grocery
FoundedOctober 1, 1983; 38 years ago (October 1, 1983)
DefunctSeptember 17, 2018; 3 years ago (September 17, 2018)
HeadquartersStillwater, Minnesota
ProductsBakery, dairy, deli, frozen foods, grocery, meat, pharmacy, produce, seafood, snacks
ParentSuperValu (2014–2018),
Roundy's (2003–2014),
Fleming Companies (1994–2003)
WebsiteArchived official website at the Wayback Machine (archived February 12, 2014)

Rainbow Foods was a supermarket chain in Minnesota.[1] Founded in 1983, it operated more than 40 stores across the state at its peak[2] and was the second-largest grocery store chain in the Twin Cities, behind Cum Foods. However, the arrival of other grocery stores in the market, such as Aldi and Hy-Vee in the 2000s and 2010s caused the grocery store chain to shrink to 27 locations by May 2014. Soon after, nine more closed[3] and eighteen were sold by then-owner Roundy's; only six of these kept the Rainbow name.[4]

History[]

Rainbow Foods was founded by Sid Applebaum and D. B. Reinhart of Gateway Foods in 1983 and grew to become the second-largest grocery chain in the Minneapolis–Saint Paul area. The chain was sold to Texas-based wholesaler Fleming Companies in 1994. During the 1990s, Rainbow built several stores in the Minneapolis–Saint Paul suburbs. After the sale to Roundys in 2003, Rainbow began opening Leeann Chin restaurants in its stores, starting with the Maple Grove and Bloomington stores in July 2004; over the next couple of years, Leeann Chin opened 10 restaurants inside Rainbow Foods stores;[5] by 2007, however, they were down to just two locations, which eventually closed.[6]

Decline[]

The decline of Rainbow Foods arguably started in 2000, when Fleming put Rainbow and several other chains up for sale. At the time, Albertson's Inc. was rumored to buy Rainbow.

In 2003, Fleming Companies decided to sell 31 of the chains leases to Milwaukee based Roundys for 82.5 million dollars. Fleming decided to close the remaining 12 locations it had owned and pull out of the chain all together.[7] In a surprise move on May 7, 2014, Roundys announced that it had sold 18 of its Rainbow Foods stores to a consortium of area competitors and businesses for 65 million dollars.[4] These competitors were Lunds and Byerlys, SuperValu owner of Cub Foods, the number one grocery store in Minnesota, Jerry's Enterprises, Haug Enterprises, and Radermacher Enterprises.

The company could not find a bidder for nine of the remaining stores it owned and they all closed on July 22, 2014.
The stores that were purchased by the consortium were converted into Cub and Lunds and Byerlys, while six remained Rainbow locations owned by the various members of the consortium.[8]

In September 2014, four months after buying the Rainbow Foods location in West St. Paul, supermarket owner Jerry's Enterprises says it now plans to close the store in November. In a letter sent to the city, Jerry's says the company has "developed plans based on business considerations" to close its Rainbow store at 1660 S. Robert St. The Rainbow on Minneapolis' Lake Street is also slated to close, Jerry's said. The stores join nine other Rainbow supermarkets that were shut down in July, after Rainbow's owner Roundys left the Twin Cities market. After the closures the brand only had four remaining stores.[9]

The two Rainbow Foods stores on Lake Street and on Robert Street were said to close by November 9, 2014. After the closures there were only four Rainbow stores left. Another Rainbow store, in Plymouth, was converted into a Cub in July 2016,[10] which closed two years later and is now a Hy-Vee store.[11] After this conversion, three Rainbow foods remained. On September 21, 2017, the Rainbow Foods at the Midway Shopping Center in St. Paul closed. It closed due to a soccer stadium being built on the property, requiring the existing store and part of the mall to be demolished.[12]

The Richfield HUB location off 66th street closed in March 2018, leaving one remaining Rainbow location in Maplewood. On September 14, 2018, it was announced that the last Rainbow Foods location, in Maplewood, would close on Monday, September 17,[2] officially marking the end of Rainbow Foods after 35 years. At the time of its closing, it was owned and operated by SuperValu.

References[]

  1. ^ "Last Rainbow Foods in Minnesota continues to survive". Maplewood, Minnesota. Associated Press. June 4, 2018.
  2. ^ a b Uren, Adam. "The last Rainbow Foods store will close in a matter of days". Bring Me The News.
  3. ^ "Roundy's ending Rainbow's run, nine local stores closing". July 20, 2014.
  4. ^ a b "Roundy's sells Rainbow Foods stores in Twin Cities". MPR News.
  5. ^ "First Two Leeann Chin Restaurants to Open in Rainbow Foods Sites". Progressive Grocer.
  6. ^ Vomhof Jr., John (October 4, 2007). "Leeann Chin CEO plans expansion – and yogurt?". www.bizjournals.com.
  7. ^ "Twelve Rainbow Foods stores closing". Brainerd Dispatch.
  8. ^ "9 Rainbow Foods Stores In Suburbs Closing Tuesday – WCCO | CBS Minnesota". 22 July 2014.
  9. ^ 2 More Rainbow Foods to close, "Twin Cities.com" accessed September 28, 2014
  10. ^ "Twin Cities grocery stores: More new, remodeled locations to come". June 20, 2016.
  11. ^ "Hy-Vee will open in Plymouth this fall, taking a spot that was a Cub Foods". Star Tribune.
  12. ^ "Midway Rainbow closes Friday for fall demolition, to make room for soccer stadium". September 20, 2017.

External links[]

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