This sounds like Ocean State Job Lot, Surplus Center or Marden's but with just food. The business model is well proven (be flexible about what you buy, buy stuff suppliers need to unload at a steep discount, pass some of that discount on to consumers). There's some extra complexity coming from the fact that food needs to be handled more carefully and sold more quickly but I don't see that as being insurmountable especially since they've clearly been successful at it for years.