By the early 1980s, however, Gristede's, as well as other supermarket chains with outlets in New York City, was reeling from a number of adverse conditions, including the small size of the stores, the high cost of delivery in the city, escalating rents, and competition from gourmet shops and specialty food stores. In 1980 the chain still consisted of 100 outlets, including 24 Charles & Co. sandwich shops, but by 1983, when Gristede's fell into the red, there were only 84. During 1983-84 Gristede's concentrated its operations in Manhattan, closing 36 stores and its warehouse. In 1985 there were 18 conventional supermarkets; 17 generally smaller service stores featuring telephone ordering, home delivery, and charge accounts; ten Charles & Co. sandwich shops and one gourmet shop; and one liquor store. Sales came to about $105 million in 1985.