Discover Why An Employee-Owned Grocer In Indiana Ditched Print Ads & Isn't Looking Back

Welcome back, everyone.

This is Omnitok Retail.

I'm Anne Mazinga.

And I'm Chris Walton.

And we're coming to you live from the Food Solutions Expo here with Spartan Nash at the Simbi and Omnitok booth number four.

Four, four.

And Chris, we have a wonderful guest here.

Joining us today we have Josh Kubander, VP of Neighborhood Fresh.

Josh, welcome to omnitalk.

Well, thank you.

Pleasure to be here.

Yeah, it's good to have you here.

Yeah.

So, Josh, let's start off by this.

Let's start.

Or let's start off with this.

So tell us, tell us about how you got involved with Neighborhood Fresh and what to the grocery industry to begin with.

So I've been in the grocery industry, I like to say, all my life.

All your life.

Okay.

So I grew up, my, my dad was in the grocery industry, was in the produce industry.

And so when he's sitting there in the, in the garage building displays, I was out there really?

Oh, yeah.

Building, you know, free labor.

Right, right, right.

But you know, I started, I worked in produce for 16 years with Kaido Foods.

Okay.

And then, and then Neighborhood Fresh was a customer of mine.

Okay.

And so getting to know them and really getting involved with them, it's like, this is what I want to do.

This is what I like to do.

And that's, that's how I got started.

And I've been with Neighborhood Fresh now since June of 2022.

Okay.

So.

All right.

And tell our audience, who might not be familiar a little bit about Neighborhood Fresh and kind of what makes Neighborhood Fresh unique in the grocery landscape.

Sure.

So Neighborhood Fresh, we're a four store chain in Northern Indiana, Northeast Indiana.

And what we do is, you know, we try to, we just, we really focus on, we're employee owned.

Okay.

So we are an ESOP that sets us apart.

I think one thing that sets us apart from other, you know, independents is that we, we do not have a print ad that we distribute.

And so really, so we stopped distributing our print ad back in January of 2024.

Okay.

And as a result, you know, we've not heard anything from our customers.

So we try to market to them well, you know, we try to, you know, communicate to them in such a way that, you know, they don't have to receive it.

They come to the store, they can pick up the ad and so forth.

What's that change been like for customers?

So with the ad, you get lots of questions from customers and.

But we have this week's ad, next week's ad.

In store.

And so when somebody asks, well, I don't.

I don't get that anymore.

It's like, well, you can pick up this week's ad and next week.

And so you can still.

You can still plan your shopping trip ahead of time.

So you've got next week's ad pricing.

So overall, it's been very well received.

Yeah.

So, Josh, I'm curious.

You know, operating four stores in smaller Indiana communities, like, it can't be easy competing against the big guys.

So how do you.

How do you try to do that day in and day out?

So the way we do that is, again, is still trying to be customer centric.

You know, like all of our stores, we still have baggers, you know, so just that customer attention, customer focus.

We also have meat cutters, you know, so, you know, that, you know, if they want a special cut of meat, we can, we can do that as well.

But again, I think is loyalty.

And so we have our own loyalty program with AppCard.

Okay.

Which we have had since 2021.

Okay.

And being able to use the loyalty program with running different promotions, you know, really making that customer feel, hey, there's a value there, getting them engaged, really just focusing on that.

That is where we have really seen a lot of our strengths.

Like right now, 86% of our sales runs through the app called so it's a huge part of what we do.

So basically summing up loyalty and service, that's how you pretty much try to differentiate day in and day out, correct?

That is correct.

Well, the grocery landscape, there's some challenges facing being able to offer that loyalty, that service.

Labor shortages are an issue.

You have rising costs, changing consumer habits.

How are you really uniquely looking at trying to solve those challenges at Neighborhood Fresh?

So one thing we tell the stores is only.

Only you can only control the controllables.

Right.

You know, so, you know, inflation, we can't control inflation.

So let's not.

I mean, does it impact our business?

Absolutely.

Yeah.

But we can't just sit there and focus on it.

You know, what we can focus on.

All right, Is that display full?

You know, is that bunker full?

You know, are you.

Are you doing your job there?

And, and what, what happens is when we're focused on those right things, then.

Then everything else just kind of works its way out.

Right.

I think too, you know, battling, you know, so inflation and, you know, price is, is.

Is key.

But, you know, quality, you know, in stocks, not out of stocks, those sorts of things I think go a long way and resonate with the Customer.

So, you know, that sort of thing you mentioned, you know, labor challenges and yeah, we do, we do face that.

But, you know, being an ESOP and employee owned, you know, changes things.

It does, it does.

Yeah.

Our employees thought about that.

Right, right.

Especially when it's a community business.

Like that too.

Like, I think that probably doubles down on that for some of the labor.

Josh, let's get you out of here on this.

So in addition to the like, kind of the macroeconomic challenges that Ann mentioned that are facing grocery, overall, you know, inflation, labor shortages, are there any trends that you would also call out for our audience, particularly from the independent grocer standpoint that you're trying to keep an eye on, whether it be, you know, merchandising, you know, anything else?

I would say one major one for us is E Commerce.

Okay.

That is something that we have not done.

Oh, really?

But we're definitely looking at thinking hard of.

It's something that we.

We plan to do, should do.

It's just one of those things that it's important, but you don't want to make the wrong decisions because, you know, that that could really hurt your company.

So, you know, we want to make sure when we jump in, it's going to be, you know, both feet and really, you know, hit it.

Hit it.

Right.

That's interesting because we've talked to a few grocers here at this conference that said that the pandemic particularly pushed them into that some of them have since gotten out of it, some of them have since expanded it.

How did you guys handle it during the pandemic?

So in the pandemic, it was basically survival mode all the way around.

And, you know, if you had something on the shelf, people bought was a service that we didn't have, we didn't offer.

And I think a lot of people, that's when they did jump into it and they were able to do it.

I think nowadays, though, there was so much that people and companies have learned that if you don't do it right.

Yeah.

You're really just going to upset customers and then you've.

You've just really hurt your business.

Right.

So, yeah, there's the upset customers as well as the increase in cost, too.

Right.

To do it, so.

Yeah, exactly.

Wow.

All right, well, thank you so much.

We appreciate you taking the time to talk to us.

Tell us about Neighborhood Fresh.

Thank you again to Simbi and Spartan Nash for hosting Omnitok Retail here at the Food Solutions Expo.

And we have a couple more interviews still yet to come today.

So until then, be careful out there.