A class Act

Ten years after gracing our first cover, Toronto’s Markie Pharmacy continues to thrive based on good, honest and professional service

By Carlos Weigle

Wardrobe Styling by Kelechi Achonu
Mark Rosenhek is a fortunate man: he does what he has always wanted to do (since he was a little kid) and still enjoys it immensely. His career as a pharmacist started at a Shoppers Drug Mart in downtown Toronto, where he spent almost 15 years. Eventually he decided to open his own independent pharmacy nearby, and many of his customers opted to follow him. When Shoppers closed their location, a large clientele was left unattended. Those downtown customers were probably very happy to find out Rosenhek was setting up shop in the neighbourhood. That certainly helped Markie Pharmacy get established. However, it was just a good start; you need more than that to keep yourself in business.Ten years measured in business time can be close to an eternity. Long gone is the era when stores would remain open for decades without having to constantly reinvent themselves. Life cycles have become increasingly short and consumer loyalty is very fleeting. That’s why it’s refreshing to know that the pharmacist who was featured on our first cover, 10 years ago, is not only still open for business, he’s doing very well, thank you

Rosenhek had a brilliant idea: focus on natural health and alternative medicines at a time when very few pharmacies were interested in that. “Right from the beginning, I knew I didn’t want it to be just like another pharmacy and we started offering alternative products, just when the trend towards natural health was taking off. The timing was wonderful. You know they say ‘timing is everything’ and that is true,” says Rosenhek.

The decision to go solo was certainly the right one. As he explains it: “I make a better living here doing half the volume I did [at Shoppers Drug Mart], because of all the expenses I had there; I had a staff of 25 people, for instance.”

Building relationships

Another very smart move was creating relationships with the naturopathic and homeopathic doctors practising nearby. Before Rosenhek opened his doors in the posh Yorkville area, many of them had to carry products since certain brands were hard to find elsewhere. Most of the practitioners were happy to let a pharmacy take care of that part of the business. “They’re grateful that they don’t have to be sellers, because they’re too busy, their business is treating clients and not being salespeople,” says Rosenhek.

The relationships have only expanded and grown stronger over the years. However, changes were inevitable. One of the most noticeable ones is that big pharmacy chains have also been embracing the natural health trend. As Rosenhek puts it: “You go into a Shoppers Drug Mart or a Rexall Pharma Plus now and you can tell they’re less afraid of carrying some of these products that used to be the domain only of smaller pharmacies and health food stores. Mass marketers are getting into – yet still in a limited way – buying from the same suppliers we are.”

Those big companies are, evidently, in a better position to negotiate pricing, solely based on their sales volume. Rosenhek paints the picture: “If someone comes in and says, ‘gee, I bought this $2 cheaper somewhere else,’ we’ll match the price. However that’s not the only issue.” He adds that, “if people want a product they can’t find elsewhere, they will buy it no matter what the price is, and if they want information about it, they’ll come and ask a pharmacist.” That’s where professionals such as Rosenhek can have the upper hand. “Pharmacists at the big chains have many other things to worry about and they really don’t understand too much about homeopathy or herbals,” he points out. “I still think we have an advantage there, however I also think that was the biggest change I’ve seen happening in the last 10 years.”

Needless to say, it wasn’t the only factor that impacted the industry. The new regulations on natural health products, passed in 2004, has had a lasting effect as well. Rosenhek feels times are only going to get tougher, since the authorities seem determined to enforce those regulations. As he points out, “we bring in a lot of products from the U.S. and most of those manufacturers will not comply with Health Canada’s regulations on natural health products. And [the products] will just be banned, illegal. It’s the same with companies from Europe; very few European companies will comply.”

However, Health Canada seems to be only part of that troubling puzzle; other organizations might become involved too. Rosenhek explains: “Health Canada is going to enforce the regulations in the health food industry, yet the Ontario College of Pharmacists, for example, will enforce them from the pharmacy’s point of view, which means there will be at least two different inspection bodies.”

Not a grocery store

Another interesting change observed in the industry was diversification, the inclusion of other items such as groceries. Rosenhek never thought about going down that road: “Other pharmacies can sell food as much as they want. We’re not a grocery store. I pride myself in having a mix of products that are not food.” Rosenhek mentions staffing issues and low margins as some of the reasons that discourage him from selling that type of product. Of course he has other reasons too. “I don’t think that’s the business I want to get into. I didn’t go to school to sell bread, milk and eggs,” he says.

Markie Pharmacy’s success story proves it is possible to do well by sticking to your guns and being the best at what you do. “People come in and they get polite, quick, accurate service in filling their prescription and that’s a draw for them. As opposed to go into a chain where they may tell you to come back in an hour, you’ll get your prescription here in five minutes,” he explains. The fact that the pharmacy is located in an upscale area also determines the types of customers it gets and what their priorities are. “People around here are not concerned about the price of the prescription,” describes Rosenhek, “they want it accurate and they want it fast. That’s what’s more important to them.”

Rosenhek firmly believes that branching out would not have benefited his business. “The profit driver in any pharmacy is the dispensary,” he says. “It’s not the front store only, it’s the prescriptions. That’s changed quite a bit with the new government regulations because of the reduced professional allowances that pharmacists are now collecting. So it has impacted the bottom line, yet, the guts of any pharmacy is still the dispensary.”

In that respect, he adds “we’re fortunate that we have a profitable dispensary volume and we also have a thriving front store with not only supplements – also a large selection of skin and bath products. If you have to choose one or the other, you’d much rather have a busy dispensary and less of a front store.”

Some practices are, according to Rosenhek, becoming increasingly alarming: “I know there are pharmacies and health food stores that people go into and have a list of things to buy and the person behind the counter will say, ‘You don’t need this, you don’t need this, you should buy this and this,’ and they contradict what the practitioners told the patient to get due to the fact that they don’t carry the products being prescribed. We don’t do that. If someone wants A, they get A. If they want B, they get B. If they want information as to which product I think is best, then of course I will give them my opinion.”

Trends, trends and more trends

One thing that can’t be avoided is trends. Customers will be affected by them and will look for the latest, hottest item to hit the shelves. Trends these days tend to invade the market furiously yet fizzle almost as fast. Rosenhek recalls how echinacea, for instance, used to be so popular 10 years ago and now it’s not anymore. He also knows what the current stars are: “Glucosamine was not very well-known for a while and now it’s a top seller in our pharmacy. Vitamin D tablets also do very well. The same goes for fish oils – so much so that we carry about six different brands of it because people want them. If you come into this pharmacy and you want this particular brand, we’ll get it for you because I don’t have a problem ordering it for you. I don’t have a head office; I’ll get you whatever you want. And that’s what people like.”

Another transforming factor in the industry – also seen in other industries, for that matter – is the tendency towards customizing. “We’ve been doing more and more specialized ordering in the last 10 years,” says Rosenhek. That, of course becomes an advantage to him: “Customers will say ‘I go to my local drugstore and they won’t order it. I can’t get this there, can you get it for me?’”

Compounding is another area that has certainly been a cornerstone at Markie Pharmacy. Not only that, it has become a growth factor. “Especially in terms of topical hormones,” describes Rosenhek. “That’s an area that has mushroomed in the last 10 years. We used to prepare 10 topical hormone creams a month, while now we might do 20, 30 and up to 50 a day!”

Success might make some entrepreneurs greedy. Not Rosenhek, though. Many times he’s been asked about opening new locations, yet he’s never been tempted enough to give it a try. He loves his store, his staff (most of whom have been with him since he opened his doors in 1993) and his customers, and just couldn’t stand not giving them his undivided attention. “It’s a fun place to work,” he says. “You never know who’s going to walk in the front door; from movie stars, to models, to singers, to professors, to politicians, you just never know. I love working here. I go away for a few days’ vacation and after a few days I miss it. So here I am, 35 years working as a pharmacist and still enjoying it,” beams Rosenhek.

He knows he could maybe update the store a little bit, especially since that swanky new Four Seasons Private Residences is being built a few steps away. However, being at such a prime location does have its disadvantages (aside from skyrocketing rent, of course). Companies will offer to make his pharmacy over…for hundreds of thousands of dollars! “I’m sure they do lovely work,” Rosenhek says, “but how much am I going to need to sell to make that four or five hundred thousand dollars? I don’t think customers are going to buy more just because the floor is sparkling. They’re buying more because of what’s on the shelf and how they’re treated.” A very straightforward answer from a pharmacist who still believes in old-fashioned – and much needed – honesty, hard work and treating people the way they want to be treated. With a smile and good, professional service.

Strength in numbers

Health First Network has proven to be a powerful tool for independent retailers looking to thrive in an ever-changing market.

By Carlos Weigle  •  Photography by Dean Sanderson

A highly competitive market usually makes business owners overcautious and even a little paranoid. Other stores are often perceived as the enemies and there’s no room for collaboration. That’s why, especially at times like these, it’s important to remember there’s always strength in numbers. Buying groups are clear examples of that.

Eleven years ago a group of Canadian independent health food stores came to that same realization and decided to form what was then called United Health Merchants. The idea behind it was to provide its members with a buying power they wouldn’t otherwise have, making them competitive against large store chains that could obviously negotiate the best prices due to the volume of their sales.

The idea has proven to be a very good one, indeed. In 2004 the organization was rebranded as Health First Network. By 2006, it had 70 members representing 96 stores, and it currently boasts 81 members and 111 stores.

Buying power

David Freeman has been working with Health First Network as its CEO, since 2006. He admits he wasn’t that familiar with the natural health industry, yet he had experienced the power of buying groups firsthand. “I came from the grocery and office product sectors,” he says, “and I worked with a number of buying groups. In particular, in the office product industry, where everything is very commoditized, I watched independent stores almost get wiped off the map unless they were part of a buying group.”

That experience certainly gave him clarity as to what he, the board of directors, and membership could achieve with Health First Network. “When I joined,” he remembers, “We had two things in mind:  that this was certainly a growth industry with ongoing potential, and that the notion of independent stores joining a buying group and collaborating, would be a key success factor.” A lot can change in five years, especially in rapidly evolving times such as these; has Freeman’s opinion changed since? “No, I still see both notions holding true.”

What has changed, then? The organization was restructured to accommodate its growing numbers, for starters. During his first one-and-a-half years at its helm, Freeman helped turn it into a more formal organization, one with offices, employees, and five-year plans. The motivation behind the changes were clear: “Our board, staff and members agreed that we wanted to be a leading retail entity in Canada and that we thought there was an opportunity for us to revolutionize many retailing aspects in our industry.”

In concrete terms, what has that meant? As Freeman describes it, “First of all, we completely overhauled every existing program we had. We went from four flyers a year to six and we’re now planning to move to 12. We completely changed the format, the content, the branding for our programs. We went from no consumer promotions to running regular, national consumer promotions, in many cases, leading-edge ones.”

Taking it online

Online presence is, of course, a key ingredient in the organization’s transformation. As part of its e-marketing program, Health First Network now provides members with their very own websites. Even though they all have a similar look, each member can customize it so that it showcases news and events that are relevant for their stores. Other elements of the e-marketing program are a database with customer contact information and issuing regular newsletters.

Social media is the next step. However, Health First Network prides itself on not rushing into things and getting it right before launching a new initiative. “We advance one step at a time,” says Freeman. “In terms of social media, that means we first built the base platform and now we’re in a position to expand on that.”

Even though technology is undoubtedly taking over pretty much every aspect of the marketing world, stores still find old-fashioned flyers do get their message across. Flyers are also customizable: the store’s name appears prominently on top, “and each member gets to pick whether they want their flyers in French or English, if they want an eight-page supplement or a 12-page supplement and food flyer,” according to Freeman.

In terms of promotions, the organization has given away cars, created in-store contests and championed fundraisers for Vitamin Angels – an organization that provides vital nutrients to close to a million undernourished children – every year.

Pick the right ones

Choosing the right partners is fundamental to creating a strong organization. In the case of Health First Network, there are criteria in place to ensure members are independent, key stores that won’t compete against each other. As Freeman explains it, “our current membership is primarily made up of destination stores, leading stores in any market.” He adds that “We offer our members an exclusive geographical territory. So if the territory is open, and you are the leading store or you’re striving to be the leading store, we’re talking to you.”

Does Freeman foresee a reduction in terms of independent stores that currently populate the market? “I absolutely agree that industries consolidate over time and that the larger, more competitive players have a significant advantage,” he says. Yet he also points out that “my sense of the natural health and organics industry is that it’s only ever grown. This is an industry that has really not had a major setback or decline. Right now there are more independent health food stores than 10 years ago.”

Why the need to belong to a group such as Health First Network, then? Freeman explains it: “I’ve brought in some members, and vendors have said, ‘Why would that store or chain join a group? They don’t need to.’ I respond that they don’t need to join today; they’re looking down the line, they’re looking forward into the future and saying, ‘Some day, it’s going to be very helpful for me to be part of a larger group.’ ”

By the rules?

Consolidation and economic downturns are not the only factors affecting the industry. In fact, new regulations have also been changing the face of the market since 2004. Freeman believes in the importance of having clear rules, without failing to acknowledge some of the difficulties they have created: “We separate the notion of regulations from how they’ve been implemented. Overall, we are in support of some form of regulation. Yes, it costs money for folks to align with them. Yes, there’s work involved. Yes, lines get drawn that we may or may not like. However, if we look at our customers, it’s good to have regulations that say, you can trust what this product is claiming and you can trust what’s in the bottle. That’s why we’re supportive of regulations, partly because we think it will reassure customers, and partly because there are players in our market who probably shouldn’t be there.”

Have there been bumps in the road, though? Freeman certainly believes so. “‘Could the regulations have been better implemented?’ Sure. ‘Have there been problems?’ Absolutely. ‘Are we happy with everything that has happened, or is happening in the rollout?’ No. Yet we’re trying to positively contribute to a good outcome and we do believe that regulations are here to stay and can have benefits if done right.”

Have the regulations, as many claim, limited the amount and kind of products retailers can offer their customers? Yes. Yet again, that can present both disadvantages and advantages to consumers. “There is room in this industry to reduce some SKUs and there’s still an opportunity for customers to have a broad array of alternatives to choose from,” says Freeman. “Products have been removed from the market and others may exit.” What’s the downside, then? According to him, “innovation has slowed because vendors and manufacturers are focusing on and complying with the current regulations and trying to figure out what the future regulations will be.”

Looking forward

The future seems bright, though. “I think, in the longer term, we will return to the kind of innovation we have seen in the past,” predicts Freeman, “we’re just trying to get the ground rules sorted out right now. I’m aware that not all of our members agree with that stance, yet as an organization we are not out fighting the regulations and forecasting the demise of the industry.”

Consumers are also not what they used to be. “I absolutely think that there’s a higher, ongoing growth in concern amongst consumers about health,” says Freeman. “Nowadays there’s a health section in every major newspaper. There’s an increased interest in natural health and organic products, partly because we’ve got an aging population and partly because we’ve got more knowledgeable consumers. A growing section of the market is younger adults, first-time parents who are saying, ‘Hey, it may have been okay for me to eat bologna, it’s not for my kid. My parents took me to fast-food restaurants, yet I am not taking mine.’ They’re very interested in organics and nutrition, and the driver is their child in the home.”

Health First Network offers retailers help in navigating this ever-growing and changing market by providing them with the negotiating power of a buying group, by supporting their efforts with a well-oiled, reliable marketing machine, and through the organization’s private label product family.

Again, caution, has proven to be Health First Network’s best advisor. Even though its brand is slowly growing, Freeman emphasizes it’s not their goal to become a dominant force in the market. As he explains it, “we’re just trying to keep our stores competitive; we launch products either in categories that are highly commoditized – and where a value, private label would be helpful – or where we aren’t able to buy competitively and having a private label as part of the mix helps our stores in those categories.” He adds that “we’re not in the business of making products, we’re in the business of retailing, this is a ‘sidebar’ for us. So, at best, we’re always going to be a step, or two, behind the market’s innovation.”

Transparency is also key in Health First Network’s success. There’s only one initiation and one monthly fee, no hidden costs, which gives members access to all of their services. Some retailers might still question the advantages of joining a buying group. It is certainly an important decision which depends on each retailer’s individual case.

It’s extremely hard to remain competitive in a market dominated by big players, dwindling disposable income and changing rules. As in every aspect of life, there’s strength in numbers and Health First Network is certainly a testament to that.

A Natural Success

How Nature’s Emporium went from a 5,000 square foot store to becoming one of North America’s largest natural and organic retailers

By Carlos Weigle

Photography by Julie Broadbent

There is something awe inspiring about turning a 5,000 square foot store into a retail space 10 times that size and surviving the experience. Then again, if the owners are the D’Addario family, failure is not an option.

The first visionary was Angelo D’Addario, who tapped into the bulk foods trend in the early ’80s and opened a store in Pickering (PGA Foods), soon to be followed by another two in North Toronto.

The family-owned company continued to grow by following a very simple rule: giving customers what they wanted. At that time, that meant increasing the offering of natural products. However, very few can escape a deep economic recession unscathed and the one that plagued the early ’90s hit the D’Addarios hard, forcing them to close their Toronto locations.

Then fate showed its ugly side when a fire destroyed their flagship store in Pickering. That series of very unfortunate events could have had a devastating effect, forcing them out of the business and making them look elsewhere for business ventures. As it turns out, it had the opposite effect. “While we were waiting for the insurance papers to clear, a space became available in Newmarket. That’s when we started talking about rebuilding,” recalls Teresa who, along with her father-in-law, Angelo, and her brother-in-law, Joe, founded Nature’s Emporium in 1993.

Opening a new store under a new name gave them the chance to have a slightly different profile, one that accompanied the times. The experience they accumulated, on the other hand, allowed them to tap into some tried-and-true strategies while avoiding some of their mistakes.

Even though the 5,000 square foot store initially featured a large bulk food section, refrigerated products and two aisles dedicated to natural food products, this time around it also included “a nice aisle of supplements.”

Product selection and variety is key in making any business succeed, they say. “We had really good relationships with suppliers, so we could bring in small units versus large cases, to try out new products when customers requested them,” explains Teresa.

Personalized, knowledgeable customer service is what makes customers come back, according to the D’Addarios. That was very clear to them right from the start. As Teresa puts it: “With all the competition around, we just started working harder on bringing in what customers wanted and focusing on customer service. We’ve always been very hands-on, and I think people like that.”

The other key aspect to any successful business is, of course, the ability to adapt. That factor has also been a constant on Nature’s Emporium’s shelves. Within the first few years in operation, the bulk segment of their business shrunk to 40 per cent of their revenues, supplements grew to 25 per cent, and the balance was refrigerated products and HABA (health and beauty aids). Nowadays, supplements still account for 25 per cent of the revenues, but grocery has grown to 25 per cent, fresh produce to 15 per cent, HABA is 7 per cent and bulk foods only amount to 5 per cent. These figures alone showcase their ability to change with the times, as the market requires. “Currently the fresh produce is the fastest-growing department,” says Joe.

The produce department’s success is largely attributed to Joe Tavernese, who joined the team as a partner in 2009. Says D’Addario: “He gets up bright and early every morning to personally inspect and buy all the produce we sell. He has been a major factor in our amazing growth. His brother, Cosimo, has also joined us. He has an accounting degree and runs our office.”

The changing times also brought new ways to communicate with their customers. In that respect, Nature’s Emporium embraced the online experience to great results. Not only do they have a very comprehensive website, they also have a strong social media presence on Facebook, Twitter, YouTube, blogs and forums. Everything is done in-house by a team of three, led by media director, Andrew Muto.

The reasoning behind the social media expansion is quite clear to Joe: “We already have the baby boomers in our store, we need to reach a younger audience.” The efforts are certainly paying off. Joe says it’s common to have people come in talking about something they saw or read on one of their social media platforms. Some of their videos have had between 5,000 and 10,000 views on YouTube, which is remarkable.

Young blood is also making an appearance behind the counters and in the offices. Joe’s oldest son is almost a full-time employee, while two of Guy and Teresa’s kids have also embraced the family business. “My dad would be proud,” expresses Joe. “His legacy lives on.”

Without a doubt, the first few years are key in any business, and they can break even accomplished and well-respected business people. Teresa notes that “it took about three years for us to see if the store was going somewhere or not. Then, the pace started picking up and everything shifted.” Indeed, according to Joe, “every year has been a record one since we opened in 1993. I’d say we average about a 20 per cent growth, year over year.”

The continuous change in product selection, with the increase in natural grocery products and supplements, made an expansion imperative. Luckily, they first managed to expand the store to 15,000 square feet (in 2002) and then to 20,000 square feet (in 2006).  As Teresa explains it, “there was so much demand for variety from our customers that we couldn’t address because we didn’t have the space. The expansions provided a great opportunity for us to create a full-service natural market.”

The first expansion allowed them to focus more on groceries (which became 40 per cent of the store’s revenues), the addition of a natural café/juice bar, and the expansion of the HABA section from 15 to 32 feet of wall space. The second expansion, on the other hand, meant even more dedicated space for supplements, as well as the addition of homeopathic remedies, including professional lines.

Even so, those expansions involved, as much as possible, calculated risks. Now, more than doubling your store area … Well, that’s a different beast altogether, one that can easily get out of control and run any successful business to the ground.  Still, Joe sees the experience in a different light: “It was the easiest expansion we’ve ever done. It just made sense and came to be naturally. We’re also better prepared now, since we have a team of people to help us out and not everything depends on us.”

Opportunity knocked on the D’Addarios door – literally. It so happened that Weston Produce, a large independent grocery store that was Nature’s Emporium’s neighbour decided to close their location in 2009. Despite having a large-enough space already, the company still found itself pressed for room. There are always new products coming into the market, be it organic produce, prepared foods or supplements.

However, the idea wasn’t an easy sell: the jump from having a 20,000 square foot store to one that measured 50,000 square feet would certainly make anyone pause. In spite of that, expanding had become increasingly alluring and, in the end, temptation was too great and they gave in.

The decision wasn’t abrupt, and expanding into the new space wasn’t either. In fact, the planning process took over a year. There was too much to consider, from product variety to changing almost every aspect of their business. Construction then took a few more months, until everything was finally ready.

With the expanded space came also better lighting and design overall, as well as the opportunity to offer products such as raw food, and expand already existing products such as artisan cheeses. It also allowed the owners to turn a 3,000 square foot mezzanine into a community room. As Joe explains it, “it holds up to 200 people, and its primary focus is teaching and education. We’ll even have a kitchen where we can teach people how to cook holistically.” They’re also building a naturopathic clinic, so that Nature’s Emporium becomes “a truly holistic experience.”

The result is twofold. First, it turned Nature’s Emporium into one of North America’s largest natural and organic stores and, second, it proved once again that, despite economic downturns such as the one experienced in the last few years, the public’s appetite for living a healthier, more balanced life is almost limitless. If anyone ever thought the natural products industry was merely a fad, success stories such as this one clearly show it’s not. Moreover, it signals a bright future for those who invest in the business. At least for those who do it as well as the D’Addario family.

The store as village square

The six Nature’s Fare stores in B.C. have become hubs of community support, learning and sustainability

By Lynne Shuttleworth

Photography by Lorrie Jane Arnott

With every retailer, from corner stores to superstores, selling natural products these days, integrated health retailers need ways to differentiate themselves in order to become indispensible to their customers.

Nature’s Fare in B.C. is one retailer that has positioned itself as an important part of community life. Its strategy entails selling exactly what people are looking for—as well as becoming a hub for learning, charity, environmental initiatives and support of local producers and businesses. In essence, each Nature’s Fare location has taken on the feel of a historic village square.

“Our customers want more than a store, and we want to be more than a store. We want to be really active in our community, and work on giving back to the people that shop with us,” says Alexa Monahan, director of marketing.

Monahan is the 29-year-old daughter of Rick Monahan, who started the business back in 1982 by opening a health food store in Victoria. Nature’s Fare now has six stores in B.C., with the newest one in Langley.

Recession-proof

Monahan maintains that Nature’s Fare’s community activism is what helped the retailer make it through the recent recession without any scars.

“We were affected really slightly, if at all,” she says. “So we felt very lucky about that. Our shoppers are people who chose to forgo other things in their lives when they found themselves with not as much money. Their health and the health of their family is a priority for them.”

Nature’s Fare stays tight with its customers by offering them products and services that fit their lifestyles and values.

“We’re very active in donations and community events like Bike to Work Week,” Monahan explains. “We walk the walk, and talk the talk. Our customers are looking for organics, and we offer only 100 per cent organic produce. We’ve seen significant growth there. And people are looking for local produce; they want the farm-to-table experience, so we buy from local people as much as possible.”

As far as what products are most popular, Monahan reports that sales in the gluten-free category are increasing. As well, vitamins and supplements are big sellers, including those that address the issues of stress, anti-aging, cholesterol and weight loss.

Events for everyone

Being a community hub also means hosting events for customers and local residents. “We’ve shifted to a lot of in-store events,” Monahan says. “We bring in different speakers and host a ton of different educational events—customers can come in for free, and experts in the field come in and talk. Customers respond really well to this.”

This is part of the Nature’s Fare mission to connect with the customer at a personal level. “What sets us apart is customer service and creating that sense of community,” she says. “We want to make a strong connection to our customers by providing value-added services that you won’t find at mass market stores.”

Of course, in order to provide this top-level service, staff needs to be very well trained. And this is something Nature’s Fare is

known for.

“We make sure all our staff are very knowledgeable,” Monahan states. “We have an extensive training program. For example, everyone knows what gluten-free means. When anyone comes in our store, they know they’re going to get the best service.”

No revolving doors

The employees of Nature’s Fare tend to stick around for a long time. That’s because they know they’re appreciated. “We’re a very fair company,” Monahan says.  “We pay a good wage, give bonuses, provide staff incentives, and pay for staff education. We give staff gift certificates so they’re being recognized for doing a good job. We help them when they need it, and let them know we’re always here for them. We make staff feel important and that they’re valuable, contributing members of the team. Everyone has an equal right to be heard and give their opinion.”

To keep the connection with customers strong, Nature’s Fare goes above and beyond, even sending out Christmas cards with gift certificates in them, as well as  offering a loyalty program. “We make an effort to get to know our customers, and make them feel special,” Monahan says. “We have amazing staff. They’re very passionate. They take extra time to listen to people’s stories. They genuinely want to help them. That’s why we have such a loyal customer base.”

Catering to the needs of customers also includes helping them eat well during their busy days. To that end, Nature’s Fare has opened full-service delis in each of its stores. There’s a kitchen at head office where a chef and culinary team prepare meals from local and organic ingredients, and these are shipped by truck to the deli counters of all six store locations. Sandwiches and wraps are made right in the delis.

“People are looking for a healthy place to eat, with healthy convenience food,” says Monahan. “That’s why our sales are growing. We make the majority of everything in our delis ourselves.”

Healthy convenience

The delis serve a wide variety of entrées, which you can take out or eat in the store. Monahan notes that the “lunch crowd” is growing.

“We have quite a few items,” she says, listing two soups every day and hot lunch specials that include butter chicken, daal, veggie curry, turkey stew, lasagna, moussaka, wraps and fresh salads including bean, cabbage and green salads.

As for whether Nature’s Fare will be opening more stores that draw in the community, Monahan says this will happen, but not any time soon.

“I see us expanding in the future. However, we definitely don’t want to rush into opening new stores,” she affirms. “It has to be the right time and place. We don’t want to aggressively expand. We’ll open one store every few years. That gives us time to put a lot of attention into the new store, to make sure our systems are in place, and get our training up to date. We don’t want to spread our resources too thin. We need to give the new store a lot of support and make sure it’s up and running before we open another new one.”

Knowing the niche

It’s not the goal of Nature’s Fare to be another Whole Foods. “We don’t want to be the biggest,” Monahan says. “Our stores are a bit smaller. They’re cozy. We’ve found our niche.”

After all, there’s a built-in limitation to how big the stores can actually be. Monahan explains: “We’re really strict on the products we carry—only the best quality. There’s a massive list of ingredients that are banned from our stores. To get bigger would be difficult because we limit what we sell. We need to feel comfortable eating these things on a daily basis.”

In keeping with the philosophy of slow expansion, the biggest project recently has been renovating and expanding an existing store: the 11,000-square foot Vernon store. “We opened a new fresh food section and a deli seating area. And we gave the whole store a facelift,” Monahan says.

Nature’s Fare has been working to establish itself on the lower mainland of B.C. “We were a relatively unknown brand and company down there. We’re creating a strong image for ourselves and a good customer following, with great staff. It’s been really fun and very challenging.”

New generation

Although Rick Monahan has officially stepped back from the daily operation of the company, he’s still “very much involved as a mentor,” the younger Monahan maintains. She works closely with general manager Shaun Daniels, and her younger sister, Claire, is also part of the family business. They both benefitted from their father’s expertise.

“Dad was a smart businessman and a brilliant accountant,” Monahansays. “He taught us business sense and financial information.”

For her part, she’s helping to bring some new perspectives to the business. “We try and come up with some new ideas, such as integrating social media and other things our generation finds important,” she says.

Energy-saving efforts

Keeping active with “green” initiatives is something Nature’s Fare shines at doing. For example, the company has been putting a lot of effort into sustainability. Last year it had B.C. Hydro do an energy assessment in all the stores, and became a certified climate-smart business.

“We’ve implemented energy-saving measures across the board,” Monahan says. “We’ve updated our refrigeration units, and installed new lighting and low-flow toilets in all the stores. We’re doing different things that lessen our environmental impact. This is a really big thing for us.”

Employees have completely accepted these green initiatives. They receive healthy living incentives and are encouraged to ride their bikes to work.

At head office, Monahan says, it’s “a really fun work environment. Everyone brings their dogs to work. It’s really casual. We have an open-door office policy.”

Whatever way you look at it, Nature’s Fare seems to be on the leading edge of integrated health retail, serving as a great example of how to connect with and serve the community.

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.