This is an interesting issue. The recently deceased head of Wegman’s is the guy who financed much of the effort to standardize bar codes and UPC’s for US grocery stores. I have shopped at their stores for over 25 years, first in upstate NY, and as they pushed their way down Interstate 81, to stores closer to NYC. Their store in Woodbridge, NJ is only a few miles away from the borough of Richmond (Staten Island) via the Outerbridge Crossing.
The first time you walk into one of those huge Wegman’s, you are overwhelmed. You have never seen anything like it. Their grocery prices are average, but without as many cherry picking items as at ShopRite, Pathmark, etc. But as the OP mentioned, the prices for on-premise value-added foods is astronomical, especially since you are still getting supermarket, as opposed to gourmet, quality merchandise.
Wegman’s is a privately held company. Its pretty hard to know how much money they are making. I get alarmed when I see the kinds of price increases we have been seeing lately. I have this sinking feeling that Wegman’s will hit the same glass ceiling that Daitch Shopwell did in the New York City Metro area with their Food Emporium stores. They eventually sold out to Tengelmann/A&P of Montvale, NJ.