HEALTHIER FOOD FOR LESS

Organic Garage  bases its success on introducing healthy food to as many people as possible

By Joe Tuck  •  Photography by Robyn S. Russell

When Matt Lurie was 19 years old, he opened his first Subway franchise. By the time he was in his early 20s, he owned and operated three Subway franchises and was one of the youngest multi-unit franchisees in Canada. In 2006, at 25 years of age, he went out on his own, armed with a youthful optimism, and opened Organic Garage in Oakville.

This family business is 80 years in the making. Lurie is the grandson of Polish immigrants who, beginning in 1931, owned a one-stop-shop grocery store on College Street in Toronto. Due to changing demographics and the rise of supermarket stores, in the 1980s the business was forced to close its doors.

Lurie’s vision for Organic Garage echoes that of the storefront sign that hung above his grandparents’ former shop: “We Sell For Less.” Tweaking this charming declaration slightly, Organic Garage’s motto is “Healthier Food For Less.” Lurie notes, “I knew that with a smart buying strategy it was possible to offer customers the opportunity to buy organic and all-natural products for less money than they were used to paying.” For instance, a popular brand of Almond Milk is priced at $1.97. Competitors have priced the same item between $2.25 and upwards of $4.50.

“We are most known for our pricing structure,” Lurie states. His goal is to be well-priced across all categories and the best-priced.

No compromise on standards

How is this bold declaration made possible? “Customers know us for having a lot of in-and-out specials, manufacturer’s clearance items, short-coded items and distributor liquidation items,” Lurie says. “I get 8-10 calls a day on liquidation products from our vendors because we are now known in the industry as a company that can help a manufacturer-distributor liquidate something. Without compromising our high-quality standards, we pass the savings on to our customers.”

As evidenced upon entering the store, what sets Organic Garage apart from other stores is the large amount of produce it carries, a typically low-margin inventory item. Organic Garage wants to acquire and retain the conventional shopper who wishes to eat healthier, and wants the store to be comfortable for people who might be more used to shopping at the big supermarkets.

Organics is big business

For organic food sales, Oakville is one of the more competitive markets in the region, with several stores vying for customers. “Fifteen years ago ‘organics’ in food stores was in its infancy, now it’s big business,” Lurie says.

As a new retail start-up six years ago, Organic Garage faced two big challenges. “First, we were grossly under-financed when we opened, which meant that we had to basically build the store over the last six years. This isn’t ideal because it meant a constant reinvestment in the business. However, it did allow us to adjust to what our customers wanted without having to do major renovations. Second, we had to overcome our competition. By comparison to other regions, Oakville is a very cut-throat market with a high density of grocery stores for one town,” Lurie explains.

There is a Loblaws, Walmart, Sobeys, Fortinos, Metro, Food Basics, No Frills, Price Chopper/FreshCo, Whole Foods, two Longo’s (with a third opening in the next two years), to name a few.

Lurie continues, “This increased competition really splits the dollar that customers are willing to spend, and means we have to be on our toes when it comes to our own pricing, quality and customer service.” Those three tenets—pricing, quality and customer service—are the backbone of Organic Garage’s business philosophy.

Lurie claims, at most, in the interests of cost versus benefit, the “big box” stores will only commit 10 per cent of their effort and inventory to organics. This is why, he feels, since organics will never be a primary focus for the big chains, they are not necessarily his primary competition.

Food is the core business

So, as the field narrows, what sets Organic Garage apart from its direct competitors? “Unlike other organic food stores, we don’t require a distributor to get a vendor’s new product in the door,” answers Lurie. In addition, where other health food stores might fill their shelves with high-margin, non-perishable and long-lasting products such as vitamins, pharmaceuticals and supplements, Lurie is proud that, “Organic Garage’s core business is food.”

They are 100 per cent, as opposed to 10 per cent, committed to stocking food that contains non-hydrogenated or partially hydrogenated oils, no high fructose corn syrup, no artificial colours, flavours, sweeteners or preservatives, no antibiotics, synthetic growth hormones or animal by-products. On this topic, Lurie states: “We constantly audit our products to ensure their ingredients don’t change.” Some of the popular items stocked include natural breads, popcorn, chips, drinks, rice, diapers, frozen foods, soaps, organic milks and cheeses.

No paper flyers

To grow the business, Organic Garage avoids the use of traditional advertising methods such as paper flyers or corporate literature. With the exception of an e-flyer and the website, there is no media advertising. Instead, Lurie and his team have implemented events-based campaigns geared at building customer loyalty.

Quinoa, kamut…what?

The first part of that approach is the educational program. Lurie explains: “A lot of shoppers don’t know what quinoa or kamut are. Without preaching in store, we tell a story about what a product is and its benefits. An individual’s dietitian might tell them to ‘eat quinoa.’ Well, this is not a quick switch, and it’s difficult for the conventional shopper. This is why we don’t preach. For us, it’s a red light, yellow light, green light approach. Live your life in yellow and when you are ready, at your own pace, gradually go all-in on green,” he explains.

Lurie admits that he enjoys the occasional “red-light item” such as a Chips-Ahoy cookie, though he does encourage people to moderate their favourite guilty pleasures and gradually replace them with a healthier option each time they shop. Eventually, in time, people will make the complete shift toward healthier eating and enter “the green light zone,” completely abandoning their guilty pleasures.

Lurie states, “We are in the business of food. We are not scientists or food experts. Our staff cannot be expected to have ALL of the requisite knowledge pertaining to the hundreds of products and brands on our shelves.” To compensate for this, Organic Garage brings in experts and holds many annual events.

Educating customers

For example, the Gluten-Free Fair runs May 12-13. Organic Garage’s website heralds the
3rd Annual Gluten-Free Fair as, “your opportunity to meet representatives from our
best-selling gluten-free brands. We invite you to try new products, get answers to questions you may have, take home free samples and enjoy specials on the products being featured in our special Gluten-Free E-Flyer.”

In addition, Organic Garage has a partnership with Mapleton’s ice cream, and on June 9, 2012, they are holding a Free Ice Cream Cone Giveaway.

In celebration of National Organic Week, Organic Garage will be providing samples of local organic foods. And, from November 24 to 25, 2012, Organic Garage will hold its first ever Health and Beauty Fair. Here, people will have the opportunity to meet representatives from health and beauty brands. This month, from April 13-15, 2012, Organic Garage will have a booth at the Green Living Show (at Toronto’s Direct Energy Centre), and at the National Women’s Show, from October 19-21, 2012.

So what does the future hold for Organic Garage? Lurie maintains that his industry is still in its early stages, and there are still a lot of “up-and-comers.” Currently, Organic Garage employs 50 salaried, full-time and part-time staff. He is optimistic about Organic Garage’s potential for future growth, and predicts that if the right building presents itself, in the years to come, a new Organic Garage location could open its doors in Toronto’s west end. This would make his family’s story come full circle, back to where his grandparents began their livelihood and food retailing tradition, 80 years ago.