BRAND SECRETS AND STRATEGIES

PODCAST #144

Hello and thank you for joining us today. This is the Brand Secrets and Strategies Podcast #144

Welcome to the Brand Secrets and Strategies podcast where the focus is on empowering brands and raising the bar.

I’m your host Dan Lohman. This weekly show is dedicated to getting your brand on the shelf and keeping it there.

Get ready to learn actionable insights and strategic solutions to grow your brand and save you valuable time and money.

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Dan : Welcome. On this podcast, we spend a lot of time talking about what makes natural, natural. What makes natural unique. At the heart of that are a couple of things. One, innovation, and two community. How we all work together to help support one another.

What's unique about today's story is we're not talking about a specific brand, like a package brand you'd see on a retailer shelf. Instead, we're talking about a retailer. A retail strategy that's somewhat revolutionary. And what I mean by that is that a strategy that aligns with the consumers that they sell.

Two, more importantly, what I'm getting at is a retailer that listens to the consumers around them. And providing the solutions and the products that they want to buy. The idea behind this is kind of revolutionary. Most traditional retail spends most of their time trying to sell us the stuff on their shelves rather than asking us what we want. Today's story is about a unique disruptive retailer, that is working hard to align local with food deserts, with people that need high-quality good food. What's unique about this story is that it's the interaction between not only the retailer but also the community that brings the product in. The community that shops the store, and their go-to-market strategy as a whole. You'll learn more about that in this interview, so you're going to want to stay tuned.

Before we go any further, I want to remind you that there's a free downloadable guide for you at the end of every episode. I always try to include one easy to download, quick to digest strategy that you can easily adopt and make your own. One that you can use to grow sustainable sales and compete more effectively with. Remember, the goal here is to get your product on more retailer shelves and into the hands of more shoppers. If you like the podcast, share with your friends, subscribe, and leave a review. I appreciate you for listening. Now here's Mike with Choice Markets. Mike, thanks for coming on today. Can you please start by telling us a little bit about yourself and your journey to Choice Market?

Mike : Yeah, yeah, for sure. Yeah. So Mike , founder, CEO at Choice. So for me, yeah, Choice is a culmination of life experiences. I grew up in the Philadelphia area where Wawa was a big influence for sure. They're one of the forefront leaders in convenience stores and was one of the big innovators at an early stage in terms of offering fresh food, utilizing technology such as their touchscreen ordering. And just really rethinking what a convenience store can be. So growing up outside Philly, that certainly was a big influence.

I'd probably say more so, the time I spent in Barcelona, in Europe, in general really. I would visit these small-format grocery stores that were 10,000, 15,000 square feet at most. Highly curated, really pretty much on every corner. And I found myself go into these stores almost every day honestly and grabbing four or five things. And that style shopping, that urban format appealed to me. So fast forward 10 years later, really always have an entrepreneurial itch, I guess you could say. And this idea and this concept of the convenience store and honestly what I perceived as a lack of innovation within that category or that vertical. Drove me to create Choice. And Choice is, it's a hybrid model. It's very much a grocery store. It's very much a convenience store, and it's very much a fast-casual or fine casual restaurant.

So this hybrid model is part of that kind of life journey and that experiences that I've had. But it's also in response to a lot of different changes that are happening both on the grocery side and the convenience store side. In general, folks are moving to cities. The grocery store as we know it, the 120,000 or 80,000 square foot grocery store just doesn't fit where consumers are going. 75% of millennials are living in cities. And A, it's tough to find that type of real estate. And B, that customer probably doesn't want to spend 45 minutes to an hour in a grocery store. They want to be in, they want to be out. They want to have prepared foods, they want to have groceries to supplement their meal for later, etc.

So we saw that happening. And also, just this fundamental lack of innovation within the convenience store space in terms of offering better for you products. Fresh, healthy, better options.

So all of those things kind of culminated into, to choice. So I sold my house, got a loan, and went after it. and opened our first location two years ago and have four more planned in Denver.

Dan : Four more planned. Cool. Yeah. This is inspiring. And the fact you sold your house. Man, you are all in. That's cool. Let me back up a little. Go ahead.

Mike : I equate it to that. Because it really, we did go all in. I think it's something worth, yeah. Anyhow, you're good to go.

Dan : No, no, I think that this is so cool. So let me back up a little bit. And we had a nice conversation before this. Let's talk a little bit about where you started, where you got going. I mean, for example, you worked in a Johns Manville, a mining supply chain. That kind of focus or in terms of moving products or let's say ingredients, etc., supplies into a business and around a business. And then you got into WhiteWave, you started learning about food. Can you talk a little bit about your experience at WhiteWave? And the reason I wanted to go back here, Mike, is because you were talking about your ability to understand food, understand the opportunity, and then be able to leverage those insights and how that helped inspire you to do what you're doing today.

Mike : Yeah, no doubt. For the past let's just say 10 years, I spent most of my career in the corporate professional world within, specifically within supply chain management and more specifically with the procurement realm. And certainly, honestly that was the impetus to decide to start Choice was as I said, fast forward 10 years later, I'm at WhiteWave and I was on the packaging side. So I work very closely with the brands on developing these new products, new product innovation. And we were targeting what we called away from home. But in general, that includes convenience stores, includes hotels, includes even airlines, etc. So this channel for sure, we kept creating these products that were specifically designed for convenience stores. One was Horizon Organic chocolate milk, protein plus those kinds. So it was protein-packed, a custom bottle, custom 12-ounce bottle. And great organic chocolate milk with added protein.

And what we found was a lot of the legacy, I call it legacy, but I think we all know what the convenience stores that we've all been to, or what I'm referring to. But the legacy chains didn't take to it. They didn't respond to it.

And that was just one product. We created a lot of different products for this channel. And it didn't seem like these folks were keen on bringing these types of products to market within their market, at least. So that was the point at which if they're not going to do it, if they're not going to innovate and respond to what is a wholesale shift towards healthier eating and more nutritious eating, then we'll give it a shot and do it ourselves.

Dan : I think that's great that you're able to see the opportunity. I've done some work for WhiteWave years ago, and a lot of great products. I love the fact that they were looking at the convenience store, that whole concept. The point being is that consumers, time-starved consumers want what they want. They want healthy, quality products and that someone wants to keep coming back to. But then they want to be able to get that product and get out, and not have in my words go on a scavenger hunt every time they go to the grocery store. And that's one of the biggest frustrations that I have. That's a reason I wanted to reach out to you. That and the fact that Bill Bishop had mentioned you and was talking about you.

But the point being is that I think that retail is broken. And what I mean by that, Mike is that there's an idea that retailers spend most of the time trying to sell us the stuff on their shelves rather than sell us the stuff we want. And what's cool about what you're doing is because you're selling us the stuff that we want to buy, and not trying to overly promote it or rely on outdated, antiquated systems to get people to buy stuff. You're giving people what they want, and they're going to pay what it's worth. Let's just say instead of saying a super-premium, premium price. They're going to pay what it's worth to get what they want, when they want, and how they want it. So when you're taking your supply chain background and then you're overlaying that with your understanding of food, etc., and you're building this into Choice Market, selling your home. I mean, hats off to you. In the back of my mind I'm thinking wow, you are all in. That's cool.

But what caused you to take that leap of faith? Because you are doing something that's extremely disruptive. I mean granted, Colorado's very progressive. But you're doing something very disruptive, and you're trying to carve out space where a lot of the big retailers normally would be trying to squash you. But yet you're in a space where I think it's you have that opportunity to grow, etc. Sort of like a bodega that you'd find in a Chicago, or New York, or some other big city. Great vibe by the way. So talk about what caused or what gave you the gut feelings, whatever you want to call it, we're taking a leap of faith like this made sense to you.

Mike : It certainly, anytime you start a business, any entrepreneur I have so much more respect for now that I'm three years into this. It's tough and it's hard, especially within the food. And especially within grocery to be profitable, to grow the business, to carve out your market share within what it combined between grocery convenience and fast-casual. We're operating in a $1.3 trillion market, which is dominated by a fairly few large players. So it certainly is scary.

But, I look at, and I go back to Wawa because I again, I grew up probably 15 minutes from their headquarters. So we were deep in Wawa country, and their business just thrived in terms of revenues. They started as a small market and a standalone market without the gas, and then they added gas. I've read at one point the average location, and they're a private company, so don't share any financial data. But this was cited I think in the Philadelphia Inquirer or something. But in general, they were doing $5 million per store excluding gas. And it's not hard to imagine if you'd been to a Wawa it's always packed. They have a loyal cult following.

So seeing that business model. And to be honest, the product and the food quality, it's good. It's certainly better than most convenience stores. But it's, at least in our market, it probably wouldn't move the needle I would say in terms of what people expect in Colorado, and there's organic and things of that nature. But it's convenient. It's 24/7, they utilize technology.

So I saw the model that they created and had confidence that if we could execute if we can do something similar in that same vein and create that trust with the customer. we're open late. We're always going to get a good product. And it's just that sense of reliability. That we could probably do something similar here in the Colorado market, and utilizing great Colorado brands that people already know, love and know.

So yeah, it's a long journey and it's certainly scary, but I had a lot of confidence that this idea and this concept had some runway, and it was just up for us to execute.

Dan : Well again, hats off to you. One of the episodes that I had a great conversation with Phil Lempert, the supermarket guru. And we were talking about a lot of what you're sharing here. And the point is this. I don't go to Whole Foods or some of the natural specialty stores because I need to buy groceries. I go there because it's theater, because it's community. And yet what you're sharing with us here today, thank you for doing that, is that you're talking about how it's an experience. It is theater, it is about coming in and building a community and being tied to something, rather than just being transactional when I go to a lot of retailers today. Which I think is really unfortunate. So instead of other retailers trying to continually require me as a customer. Here, you're creating a model where people want to belong. And I think that's what we as an industry need to be thinking about is how can we change the way we look at food, look at food retailing from being transactional, always trying to chase after, manipulate the customer, if you will. To buy the products that are in shelves, rather than try to build a loyal following around us. So I think you've got the right ingredients. And again, this is why I wanted to have you on the show.

So when you're talking about building theater, my words. When you're talking about building a community on your products, you mentioned local. So you feature a lot of local brands specifically?

Mike : Oh yeah. It's core to our business model is shortening the supply chain and really celebrating the great Colorado producers that are all throughout Denver, the Front Range in Boulder, and beyond over on the Western slope with, right now it's peach season and we're getting some amazing peaches that we use. We sell on the front of the house, but we also have a peach salad with a cheese. White balsamic vinegar, and greens that are grown a quarter-mile away at Altius Farms in a vertical farm.

So that's a great example of how our menu looks, but more generally how the store and overall business will operate. So we work with 100+ Colorado producers, both on the farm side, but also the proteins all come from river bear, which is Justin Brunson. He owns a couple of different restaurants and now a meat processing facility here. I've read outcomes from city bakery, we have three different bakeries that deliver to us daily. And that's by design. Whether we, if we decide to expand into other markets. San Francisco, wherever, L.A., Austin. Any of these markets, we'll create this micro and regional supply chain, and celebrate the great Austin producers.

So people may not know Choice per se, but when they walk in the door, they know that coffee, they know that bread, they immediately feel a sense of place. And I think it goes back to your point. It creates this immediate connection with the customer that, and to be frank, some credibility. It's like okay, yeah. I don't know Choice, but I know X, Y, Z coffee. I know X, Y, Z bread. So certainly, we want to create that connection with our customer. And we're leveraging technology. In many ways, not to reduce our labor, etc. It's really to reduce what we call non-value added activities such as checking somebody out or taking their order, these things that we can use technology and then provide a higher level of customer service on the floor. Talk to them about where the food's coming from, etc., and create that neighborhood market that they come back to pretty much every day. And it goes back to my time in Europe where again, at certain points I didn't know the folks at the market because I was in there every day. So yeah, certainly it's a big piece of what we're doing.

Dan : I think that's great. And for anyone who doesn't, I'm a Colorado native. Anyone who doesn't know, there's so many unique things that you've talked about that I think we gloss over a little bit.

On the Western slope, because of Colorado's rapidly changing climate in terms of it gets really cold at night, really warm during the day. The produce, the corn, the peaches, etc., are very sweet. There's a very different taste, texture, etc. To those products. And as a result, they're radically different than what you'd get grown in a field in the middle of a traditional farm out in the Eastern Plains, etc. And nothing against that. My point is that that flavor, that unique flavor is something to be savored. So when you're talking about local, you're not talking about local as in within a 12 state area. You're talking about local meaning in your backyard.

I love that. So I hope you're celebrating that specifically when you're talking about some of the products. and some of the other brands that I see on your shelf. I'm looking at your website. Again, tied closely to the Colorado community. And what's neat about that is people can go in and get the products or support the local community. And there's that know, like, and trust factor there as well. So I think you guys have got such a great recipe for success. How are things going in your first store?

Mike : Yeah. I mean, they're growing great. As I said, it's a tough business. And it's certainly when you're going against truly the largest companies in the world. I think the day we announced Choice, or that we opened Choice, I think Amazon announced their Amazon Go store. And it's like okay, great. This is the space they work in. so certainly when I initially told my wife, "Hey, I got a great idea. I want to sell the house, start a convenience store, quit my job. What do you think?" She thought I was crazy. And probably still does, but-

Dan : Well you're still married. That's a good thing.

Mike : Yeah. But, the idea that we're going to enter this space, which is few and far between do because it's so tough and the margins are so thin. It was a big leap. And certainly, for us, it's been a journey to get to where we're at now. But we're growing. And year, every year we're up 25% top-line revenue, we're profitable. So a lot is going in the right direction. And a lot of this has been organic growth. We don't do a whole lot of advertising beyond your traditional digital advertising and things of that nature. But it took longer I guess than I guess we initially planned in terms of the ramp-up. But we're at where we need to be and continue to grow. And that's I think the key point is I think this, September, we'll be up 20% over last September.

So in general, the first store is going great. There's a lot of learnings that we're going to apply it to the future locations. But as we scale, there's a lot of benefits to scale in this industry in terms of our purchasing and our costs of goods sold. That as we buy more, our costs go down pretty dramatically, especially within the grocery space. So we kind of have to scale in order to compete. So certainly, that's part of what we're doing over the next year, plus.

Dan : I remember when we were talking before, a previous phone call, I used to be a grocery manager and was thinking what in the heck, what were you thinking when you did this? I used to joke about the fact that I'd worked from four in the morning to about nine and night, but I only did it six days a week. So I feel for you. Yeah, I got Sundays off sometimes.

But the point being is that there is a lot of work, and it takes a lot of time and a lot of effort to build something like this, especially from scratch. So when you're building this whole platform, you're buying in local products. Are you able to get shipped directly from the local suppliers, or do you have to go through someone else? And the reason I'm asking that question is that adds a layer of complexity and a layer of cost.

Mike : Oh yeah, no doubt. And certainly leans on my previous experience with within the supply chain. We have a very complex supply chain. There's no doubt about it. But you kind of have to honestly to create, well we're creating. Which is again, shortening the supply chain and having direct shipments from these local providers. Because it's not just like we check the box and say, "Hey, we're local. Hey, give us all your Colorado products." We're out there at the farmer's markets. We're out there at these food shows and events meeting with these producers. And some of them, the first shelf they're on is at Choice. It could be a pretzel company. We brought in a coffee called Weirdo Coffee. The first year, we were the first shelf they were on. And it's these flavored coffees. So for a lot of the folks, they don't have that outlet anymore. I think Whole Foods and some of the larger company, larger grocers, it's really hard to get on the shelves now in terms of shelf resets, in terms of sampling and things of that nature. I think they've scaled that back pretty significantly from what I gather.

So these really small local brands, and honestly I equate Justin's out of Boulder. I think most people know Justin's at this point. The story that I was told was he went into the Boulder Whole Foods with literally a jar of peanut butter. Justin's on the side because his roommates kept stealing his peanut butter. And now we see what spawned out of that. So certainly, those folks, whether that story's true or not. I don't know. I heard it.

Dan : It is. he was on the podcast. He said exactly that. It's a great story. You have to go back and listen to it. I don't know the episode number off the top of my head, but no, absolutely. And yeah, I think it's great that you're doing that. Because to your point, the grocery business, natural retailers are starting to look at mainstream retailers and thinking this is the way we need to do this. And I'm going, "No, it's not." The notion that as a small disruptive brand, I've got to spend everything that ... it's estimated that 25% of gross sales go to trademarking and that includes getting onto a retailers shelf. And 70 to 90% of that's wasted. So why am I fighting so hard to get into a retailer that's going to have little or no foot traffic, and then yet I got to pay the same price to get in to that store as a Kroger, etc., where here you are making it easier for those brands to get their start and to get found.

So again, hats off to you. Because that's the way the model should work. That's what I loved about natural. And a lot of independents still do that. But as some of the independents become bigger chains, like a Whole Foods, etc., they go to that strategy that chokes the runaround. Yeah, it does. It does. And it limits the brand's ability to grow. And I think it's so unfortunate that they do that because they take away from yeah. And it's just natural brands are driving sales across every category and every channel. I'm sorry, go ahead.

Mike : Yeah. No, I 100% agree. It stymies innovation, right? Because if an entrepreneur or somebody with an idea, and I love food so much because all's you need is an idea and a kitchen, and you could overnight have something special. So for me, where that industry, I guess the big grocers are going is really unfortunate. I agree. And I think we want Choice to be that outlet. And with FedEx, and UPS, and like direct shipping. We even have products coming in from California where we went to natural food expo, we love this bone broth ramen, that it would be a perfect fit for us. So we're getting directions from them out in California.

But it's super easy because, in this day and age, it's actually quite easy to get a direct shipment. And certainly, there's some administrative costs and soft costs that are a little bit more expensive. But at the end of the day, the customer doesn't care about that. They care about great products that they want and love and that is, if you have them on their shelves. So the customer comes first. So yeah, certainly I agree that having that outlet for these young companies is certainly, we will always stay within that model and celebrate these great young companies.

Dan : I feel like we should be hearing an amen someplace. No, I agree with you completely because this is what I think is broken about food, about traditional CPG. Again, trying to sell some stuff that they think we want to buy versus paying attention to what we want. And again, it's about quality versus quantity. It's about the consumer that buys the product more so than how many dollars can extract other brands to promote something that they may or may not like. So I love that story.

Now when you're talking about building this out and getting the products on the shelf, how do you manage the shelf placement? How do you manage all that stuff? Because that's a whole nother conversation. You've got a limited amount of space. You're trying to procure a lot of great products your customers want. Do you ask them what they want to see? Is there a way for me as a customer to go in and say, "Here's what I wish you carried"?

Mike : Yeah. Yes, certainly. And it's a learning process. You start with what you start with, and then you lean on some of your suppliers in terms of top sellers, etc. But in general, our shelves have changed quite a bit in the past two years since we've been there. And it's based on, almost directly based on customer feedback. And for us, it's all about curation. We feel there's no need for 30 different types of pasta sauce. At the end of the day, there's a private label organic that people want to buy every day, four to five bucks range. We have a middle-range local, local option with Pasta Jay's and Spinellis. And then we have the premium organic eight, $9 pasta sauce.

And we find that that's what people want. When there's too many choices, too many options that it creates unease, it creates frustration. And ultimately it goes back to this big format grocery. So certainly, what we put on the shelves. Sometimes it works, sometimes it doesn't. And you learn. And what's nice about our model and with the future stores, it's very specific to the neighborhood. At the end of the day, we'll use data, we'll use demographics, we'll use everything that we have at our supposedly to determine what goes on the shelf. And our second location is in a lower-income neighborhood or a mixed-income neighborhood. And that location is going to have more private-label organics. It's going to have some conventional, it's going to have a dollar for a pound of rice. Even the menu is going to be slightly different. We're going to have $3 tacos, and bowls that are different from our central business district location. And certainly, that's by design. Because we want Choice to represent the neighborhood and certainly let the neighborhood decide what goes on the shelves, and not vice versa. So we're not creating a box where hey, if you don't fit in with what we consider to be good for you food, then tough. At the end of the day, not everybody can afford an all-organic budget. And we're very cognizant of that and certainly create a merchandising strategy around it.

Dan : So you don't stay up at night thinking, "Damn, I wish I could figure out a way to squeeze an extra 32 linear feet of Prego in there." Just kidding. But what are the frustrations? Again, going back to what we're talking about, the reason food costs so much in many cases is because of the inefficient supply chain. Because of all the extra fees that small brands have to pay, etc., etc., etc.. It's not that the food costs that horribly much more than mainstream food. It's that we add so many extra costs on top of it, that we price it out of reach. So what doing is you're removing a lot of those barriers to entry, and you're making it easier for these products to get on more store shelves.

So again, hats off. This is what the model should be. About asking people what they want and then just giving it to them. I know that sounds insane and radically weird or whatever, but that's really what it's about. It's about making and selling stuff and giving customers what they want.

So you're talking about organic and trying to make healthier food more affordable. When you're talking earlier, talking about food deserts and stuff like this. And this other store that you're building that is in a lower-income neighborhood, which by the way, I love the neighborhood. I'm looking forward to going to see your store when it opens. But what is that, you're talking about the $3 tacos and stuff. How are you going to help introduce healthy, nutritious foods, products to that neighborhood? What are you going to do to change the culture? Or are you just going to try to adapt to it? How does that work?

Mike : Yeah, it's certainly not an easy thing to do. At the end of the day, the cleaner the food, the more expensive it is. It's a very linear equation. But we think it's fundamentally an access issue. These kids, their families may or may not have a vehicle. And certainly hopping on the light rail to go grocery shopping is not the most ideal. So they'll do, the families will do maybe one trip to Walmart or Costco, etc., per week. And that is an inefficient model. And ultimately, they fill in the gaps with corner stores and other C-stores et., that serve just basically corn, soy, and other things in different forms. And it's for us, I think just fundamentally an access issue. At least that's what we hope and we think is that if these kids and these families are surrounded by produce and surrounded by fresh food at an early age, and can walk down the street and purchase these products without hopping on the light rail, etc. They may not buy it on any given day, but it's around them. It's surrounding them, and it's part of their community. And ultimately, will lead to better food education about what good food is and what it means to grow and eat great food.

So for, we're trying to thread a needle, and it's certainly not an easy needle to be the thread. But we're cognizant of the community. The reason we're doing the tacos because there's a very, we have the demographics of that neighborhood and there's been a very large Latin community. So the idea of adjusting, it's not like the whole menu is changing. But there's just, we recognize the need for a value-priced option. But it's still using antibiotic-free, nitrate-free proteins. But instead of using, we use flank steak at central business, our Broadway location. But this will be a cheaper cut, but still really high-quality beef. Our chicken will be antibiotic-free, nitrate-free. We'll use the chicken thigh instead of the breast to provide that value option.

So it's threading a needle, no doubt. And we'll learn quite a bit over the next year about what's working, what's not. But we're very cognizant of it and we understand that we have to adapt the model. And it's not adapt. I mean, it was really from day one, the plan was to enter these food deserts in these locations, and to meet the needs of the neighborhood. But we still have to create some level of consistency across the menu, etc., to get the economies of scale, etc., to be profitable and everything. But we will make these changes in terms of what goes on the shelf. And to a certain extent, what goes on the menu. I mean, certainly, we're not going to have a completely radically different menu at every location. But with this one for sure, we saw a need there. And we hope the community appreciates it. And they come to Choice and have that great fresh food option.

Dan : I think it's so critically important. One of the other things, I don't want to be so down on the industry. But one of the big failings I think that we have as an industry is we don't celebrate the quality of the food. Food is medicine. Food is life-giving, it's one of the most important things that we can do for our bodies. Eat healthily. And I share this example a lot and I'll share it again.

If I go eat the generic bread, then I am hungry immediately after. If I eat the best mainstream bread, then I may be satiated for a little while. If you are what you eat if you believe what you are what you eat. And then if I eat the organic bread, I may be satiated longer. If it provides the nutrients my body needs. The point is this.

Instead of talking about food as a commodity and how can we drive price and margin and all that other stuff at retail. Let's go back to what we've been talking about, Mike. In terms of sharing the value of the products, we're putting on the shelf. The food, quality, etc. Because at the end of the day, if I eat that organic bread in that example, I need to eat less of it. So instead of focusing on, well, here's a low for bread for 50 cents or whatever. Here's a loaf of bread for $2, or $5, or whatever it is. The differences are that I need less of it. I feel better about myself. I have more energy, I have more brainpower, more brain fuel, whatever you want to call it. But the point is, I've got the nutrients on my body to be successful, to thrive, etc. And then, to be able to understand and appreciate that. That's one of the things that I can transfer to others in my life.

On the podcast Mike, I've had a lot of great opportunities with organizations that focus on teaching kids about nutrition. About organizations that are trying to teach schools and then their families and their parents, etc., about the value of the stuff we're talking about.

So I think your model again, this is another reason why I want to talk to you. About bringing healthy quality food options to communities that desperately want something more than a bag of yellow puff stuff that is super, super cheap.

I make the comment a lot of times have you ever gotten a great deal on something that you didn't like, something that you didn't find the value in. And that's the conversation now. Instead, we're going to pay a premium for the products that we want. And I don't mean a premium as overpriced, but we're going to pay for what it's worth, and we're going to get the value out of it. And as a result, we're going to build a community around it. Again, I think you've got a home run.

And the other really exciting thing is the fact that you've got the ability, the flexibility to think about some of the different nuances within the market, that particular store. And if you can use different parts of the bird for different meals, etc.. I think that makes sense.

One of the things that we haven't talked about, you've talked about millennials a lot, and where they live, and how they shop, etc. Is when you're talking about the supply chain, a lot of people are very focused on reducing their carbon footprint. That's one thing that's great about natural. And they're very focused on their impact on the environment. So how do you celebrate that mission as you're communicating the value that you bring to the communities that you serve?

Mike : Yeah. It's again, fundamental to our business model is shortening the supply chain. And I think probably one of the best examples for us at least, and the one I just love so much is our greens. It comes from Altius Farms, which is a vertical farm. That's a quarter-mile away on Broadway, down in Denver. And to think how the current in most supply chains work, most of your greens are coming from California or Mexico. Traveling to Denver, 1,500 miles, etc. And it's mostly air, so you're shipping around the air in these plastic containers with greens that are made 1500 miles away. Talk about an impact on the environment. It's probably one of those, in terms of food, probably one of the biggest offenders I would say.

So the ability now to get those greens that A, tastes better. They can't be called organic because they're grown aeroponically, and they're not grown in the soil. But they're pesticide-free, non-GMO, everything. And they come a mile away or less than a mile away and have a three week, four-week shelf life.

That sums up in a nutshell, what we want to do and how we want to approach this model is to source as locally as possible. So you're shortening the supply chain and the transportation, and creating a ripple effect on the economy, the local economy. So it's a double-edged kind of sword. But in our eyes, it's both good in terms of the ability to support the local economy, to shorten the supply chain, to reduce our carbon footprint. All of our packaging is compostable or made of recycled resin.

So for us, it's core to the business. And as we look into our third location, it celebrates that even more. So we have supercharging for electric vehicles. We're going to have bike share, scooter share, all these different mobility sources that everybody's using today. Beyond the charging, we also have a solar canopy, etc. So for us, it's again, core to the business model. It's deeply ingrained in our culture to reduce our waste and to limit our overall impact.

Dan : I was just going to say that, don't forget about food wast. The amount of food that gets wasted. As a grocery manager, I can attest this, it's even worse today. The amount of food that gets thrown away, especially in the produce department or in the bakery or the whatever. It is staggering. If people saw what, it's thrown away out of the back of any store, any traditional store, they'd be absolutely shocked. And remember, you're paying for that in the form of higher prices on the stuff that you do buy. So if you can lower that.

And the other coal benefit is if you're talking about hydroponic farming, is that it's usually more nutrient-dense. Because if you can control all the growing conditions, kind of what we're going back to with Palisade of peaches, Olathe of corn, etc., or Palisade peaches, etc. Is you've got a very clean environment that's not tainted by all the pollutions that you'd find in a lot of urban areas, etc. And then on top of that, you've got those healthy growing conditions. Again, it's a very different flavor. So you're adding a unique product, the local. You're bringing that into your store. What are the things you doing to disrupt this industry that we haven't talked about?

Mike : I think, we just talked about waste, and that's a big thing for us is to completely try to get to zero waste now. Now, it's very, very difficult. But our model, what's great about our model is the organic produce that you again, the peaches or the heirloom tomatoes from Longmont. These are things that we not only sell on the front of the house, but we also use in our BLT and our sandwich on the back of the house. And you kind of have to. And I feel for these small format operators and the convenience stores that have tried to introduce produce because it's tough to abide by, you have to abide by the internal rules. And certainly, some of these folks can't get the velocities that they need to get through that case before it expires and thus leads to increased waste and ultimately an increased cost for the customer for sure.

So we feel that and see that, and that's why there's a lot of symmetry between what's in the front of the house and the back of the house. And we've been able to reduce our waste substantially as a result because we can use pretty much any perishable item that you see on the front of the house, on the back of the house. And then yeah, is there some waste? Maybe that grab and go item didn't sell all of it, but we're able to cut that waste from X to Z, X to Y or whatever.

So for us it, it's core and it's fundamental to our business. Certainly, that idea that food waste, it's an issue. And it's a large issue and I think you noted it, especially with large grocers, restaurants even. And there are some organizations that are trying to help reduce it, but it starts with the operator and creating a business plan and a strategy to be able to reduce it for sure.

Dan : As a grocery manager, I used to run a couple of restaurants in the store. And I remember that the rules were that we had to use a product that came in like a pureed tomato or whatever. Right? And I'm going, "That doesn't make sense. I've got a product on the floor that's perfectly good, but doesn't look as pretty as some of the other stuff? Let's use that." And by the way, it's coming in, it's local, etc. Why not? And the rules were the rules are at a lot of retailers, you can't do that. To me, that just doesn't make sense. So now we're going to throw it away. So we're going to compound the waste issue. And on top of that, it's perfectly good. There's nothing wrong with it. We can save money. We've already got it in the store. On and on and on.

So yeah, if people understood the complexities that we've added to something that should be simple. Again, giving people, asking people what they want, and giving it to them. God, what a concept. Thank you so much. Is there anything else that we haven't talked about that you'd like to share? And of course, we want to know how to get in touch with you. How do we learn more about Choice Market?

Mike : Yeah, yeah, sure. I think we did a great job covering our concept and what we're doing. We see a lot of runway for Choice, and we hope to be growing in Denver and other markets in the near future. Certainly, if you're interested in learning more, you can go to www.choicemarket.co. From there, you can check out our menu, you can order ahead, you can order delivery, you can order catering. We do have a lot of technology and opportunities to interact with the brand digitally. And then if you're in the Denver area, feel free, our first location is at 18th and Broadway in downtown Denver. And we have as I said, several others opening up around the metro area. So appreciate having us on and certainly the conversation.

Dan : Well, thank you for your time and thanks for making time for us, and for sharing this. And thank you for what you're doing. People like you that are changing the world, changing the way that we think about food, changing the way that we think about a go-to-market strategy. This is what we need to be focused on. And this is the core essence of what this show focuses on. Teaching brands how to not be a commodity. Teaching brands how to leverage the value that unique consumer they drive into a store when you're getting in traditional retail. But more importantly, teaching the brands how to align with that consumer, how to develop a community around the consumer that knows, likes, and trusts them, and wants their products. So thank you again for your time.

Mike : Yeah, sounds good. Thanks.

Dan : I'd like to thank Mike for coming on the podcast today and for sharing his insights. And for all that he's doing to support the communities around him, and all the local brands and everyone else. When an inspirational story, something that all retailers can learn from. How to better serve the community around them. I'll be sure to put a link to Choice Market in the podcast show notes and on the podcast webpage. Today's free downloadable guide is The Essential New Item Checklist, Your Recipe For Success. I thought that this would be a perfect downloadable guide because it helps the brands that are supporting Choice Market and other retailers compete more effectively. Helping their retail partners compete more effectively in the market against even the biggest retailers out there. You can instantly get this free downloadable guide on the podcast show notes, on the podcast webpage. You can get there by going to brandsecretsandstrategies.com/session144. Thank you for listening, and I look forward to seeing you in the next episode.

Choice Markets https://choicemarket.co

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