The city of Chicago has a great
economical and cultural variety. These factors have
created definable trends in the food distribution system. These neighborhoods
are split
between racial lines and then economical differences. the food service
industry has in turn
adapted itself for its optimal profitability. Large food chains as
well as smaller ones and
indipendents had been moving away from the porrer neighborhoods, opting
for middle
and better neighborhoods.
Large chain stores have ignored
poorer neighborhoods such as Pilsen and CHA
neighborhoods in the near south side. in their place, independent stores
and small chains
have had to bring food and other neccessary products to these poorrer
comunities.
These independents and smaller
chain stores also participate for consumers in areas
where larger chains reside in. Offering competitive, if not, cheaper
prices, these stores have
begun to sprawl and offer comunities equal quality products as rthe
larger chains
Small chain stores are not as big economically or physically as large retailers. These chains sometimes rely on a supplyer which may mean larger prices for consumers. Usally starting small, as thse stores begin growing they are able to grasp better prices by buying at bulk rates. Some have become part of co-ops and others work hand in hand with supplyers in order to obtain better pricing for customers and convince them from shoping at larger retailers. Some have in fact acomplished to grow independently.
DELRAY FARMS (773)745-9600
A five year old chain which
began with one in Melrose Park, has had 15 stores but now only 10 remain.
Focused primarily at middle to lower middle class consumers, the chain
has 7 stores in predominantly Hispanic or mixed comunities and 3 in mainly
African-American comunities. Stores vary between 7,500 to 8,000 sq. ft.
Agricultural products are bought directly from midwest farms, except for
regional or exotic foods. Prices are very competitive with larger chains
due to direct purchasing of products.
Courtesy of Jose Cahn, Regional Mgr
BUTERA FOODS (773)583-8000
Butera is a chain that operates
10 stores in the Chicago area. Mostly concentrated in the far south, Butera
sells to mainly lower to middle class customers. With approximately 30,000
customers a week Butera is able to offer customers low prices for foods.
Expences are kept at a minimal by purchasing "semi" rates for products
from producers in the wid-west rather than buying train rates like larger
retailers who ship from farther distances.
Courtesy of Don, perishables Mgr. Store#86
Independents
In those areas where the larger chains have left, small indipendents store have come out. The owners of these stores mainly focus on the demand of the comunity., usally ethnic products.Variety and availability of products are not as vast as that of chain groceries. and usually because of volume sales and suplly cost, prices of products can be equal or more than chain stores.
Economy Food & Liquor (773)723-5100
This is a 30 year old store
that serves a completely African-American comunity. Its consumers are poor
to lower middle class. With only about 3000 sq. ft. it accomodates about
2,000 customers a week. Food products are mainly supplied through the South
Water Market and prices are roughly kept at an equal rate as large chains.
Frank's Foods (773)762-1875
Frank has owned two small
stores in mainly Hispanic comunities for approxamately 12 years each. He
serves lower middle to middle class customers, about 1,000+ customers a
week per store. His products mainly come from the South Water Market which
are then sold at Franks at same or slightly higher prices.
Courtesy of Frank , owner
Fine Fair Food & Liquors (773)521-7477
This west side store has been
serving customers for over 20 years. With products from South Water Market
and Dearborn Wholesale, it offers competetive prices to an average of 10,000
customers weekly in an African-American comunity in a 7000 sq ft store
that is planned for expansion.
IGA
IGA, Indipendent Grocers Alliance,
was founded in 1926. J. Frank Grimes, of Chicago, formed IGA to help
the independent grocers compete with larger chain stores. Along with his
parters, he developed a plan for independent retailers to come together
and capitalize on the strengths of chain stores. They developed a nationwide
network of wholesalers that work together to bring these grocers "chain-like"
advantages. Cost to the grocers and consumers would be less by buying larger
quantaties at a lower rate and less overhead cost on adverstisement.
Grocers who choose to join IGA remain independent businesses. IGA is one of the largest voluntary supermarket network, and those who join receive the opportunity to compete with large chain retailers.. The IGA concept launched 72 years ago is stronger than ever. And with its alliance of independent retailers working in tandem with their marketing and distribution company partners, IGA remains unique in the food industry.
IGA is 3,400 supermarkets strong, with sales of
more than $18 billion annually. IGA currently has operations in 47 of the
United States and 22 other countries, commonwealths and territories around
the world.
Centrella Groceries carry the
same idea as does IGA. Actually named Central Groceries, it is a co-op
of 150 shareholders (indipendent operators) in the Chicago area.
With the purpose of bringing
low cost quality products to its customers, Central Groceries deal directly
with farms. with no large overhead cost for advertisement, stores
may opt to follow sales agenda set by shareholdes or operate independently.
Ultimately bringing products at lower costs than larger chains is the focus
of this co-op.
Edmar Foods (312)666-3746
Though 20 years old and only
down to two stores, Edmar was once ten strong. Joining the co-op with Centrella
Groceries has enabled it regain customer loyalty. It serves middle to upper
middle class customers in two mixed comunities. Being able to save on cost
and advertisement, it offers very competetive pricing to about 14,000 customers
per store, even in the shadow of Dominik's at Cermak and Cicero.
Courtesy of Gyale, Book keeper/Mgr store#4
Certified Grocers is a private mid-west supplier to over 400 indipendent stores/chains with over 50 years in operation. Stores that are exclusively supplied by Certified Grocers retail under their independent name and the CERTI-SAVER logo. Member stores have the opprtunity to opperate independently or under Certified's sales agenda and save on advertisement cost under the CERTI-SAVER logo.
La Casa Del Pueblo
This single store in the heart
of pilsen has grown to a comparative size of a Jewel store all from a small
local store. With an increasing number of customers, presently about 30,000
weekly, it sells to poor up to middle class. Though ethnically born, it
serves about 70 percent Hispanics and 30 percent African-American. With
the absence of larger retail chains, a large portion of its customers travel
from the nearby CHA neighborhoods to find lower priced foods. With a high
volume of sales, "La Casa" always participates in the CERTI-SAVER's sales.
Courtesy
of Eladio, Store Mgr
Page by Joel Ambriz S.A. de
C.V.
05/02/99