Business Stories
In the day and age of hating businesses, I thought we should all share a story about a business that does things the right way. I live in an area where instead of being a food desert, we are in a food flood zone: Stop and Shop, Market 32, Price Chopper, Shaw's, Wegmans, Trader Joes, Whole Foods and 2 independent markets within 5 miles of my house. This isn't about any of them, this is about Market Basket, f/k/a DeMoulas markets, a local chain of 90 stores. The biggest one has a parking lot for 900+ cars. It is less crowded in the infield of the Kentucky Derby than this place on Saturday.
They are cheaper than the large national chains. Their food is better and their take out beats everywhere, especially on price. Their employees are beyond loyal (A supermarket with a 65 year history of profit sharing and still gives xmas bonuses every year, apparently means something) tey have little turnover (I have a 54 year old client who started there at 14 as a cashier and has never worked anywhere else). What is even more insane is that customers are devoted beyond reason..to a corporation.
10+ years ago it blew up. The Board of directores, who wanted to change the culture fired Arthus T. DeMoulas, the President, who wanted to keep things as is. His cousin, Arthur S. Led the firing. What happened next was insane. Approximately 90% of the employees walked out in support of the fired President. Then a customer boycott started and kept on going. Most stores were vacant for 2 months. Former customers would food shop elsehwhere go home, unpack the groceries, get back in the car, drive to market basket and tape the reciept to the window of the shuttered store.
Arthur T. now owns the whole thing, as a result of the above.
Popped in last night. Giant can of Maxwell House French roast $11 as opposed to $17 down the street, a sauage and pepper sub, a ham and cheese sub and a salad. $27.00. Nothing like a salad with walnuts, dried cranberries, spinach, gorgonzola and tomatoes.
No loyalty cards. No on-line shopping. No delivery. No website. Great product, smiling, helpful employees, lowest prices you can imagine.
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last commentP.s. the $27 included the $11 for coffe. Two footlong subs and a salad for 2, tasted great, $16.00
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I read about the story. At first 300 employees were protesting about policy changes. The boycott came after the company started firing the employees for striking. The main thing was when they started firing management a bunch of top level management said theyd quit if Arthur wasnt rehired. The company had scabs attacking striking workers. Eventually after store management in like 70 stores resigned. The company gave Arthur his job back. Its not the feel good story you make it out to be
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Reject - Shill review or club ad
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Well, the story around the Market Basket drama is not quite so simple. At the time his cousin owned more than 50% of the company and was accusing Arthur T. of financial mismanagement. Specifically, per the Boston Globe, Arthur T engaged in a considerable pattern of non-arm's length transactions with companies owned by his closest relations. This was all part of a long family squabble. Arthur T. was outraged about the 50.5% of the company inherited by his cousin, so he fought in court. He lost, so it was surmised that he was using a back door to divert company profits elsewhere to keep the other Demoulas from benefitting.
Then all hell broke loose and the drama ensued. Arthur T. was fired, hired back and eventually bought the 50.5% ownership interest for $1.5 billion. But Arthur T. was a weasel who tried to screw over his cousin before finally doing the right thing and buying him out.
But with that said, I agree that Arthur T. has been good to employees and provides a good product.
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