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Why are chain supermarkets personalized here?
I wasn't sure how to word the subject line, but I hope you will know what I'm talking about in here. There's a Keyfood supermarket on Flatbush, near blockbuster/grand army plaza that is called something like "Jo, patricia and John's Keyfood". This weekend, I noticed a "Steve's C-Town" in the neighborhood. I am wondering why these usually chained supermarkets are personalized in this neighborhood. Does anyone have any idea?
I think its because they are franchised and not corporate owned stores. If I recall correctly C-Town is like a co-op where you agree to stock the generic brand of the co-op and they use the purchasing power derived from the economies of scale to get deals on all of the name-brand items.
Thanks for the explanation. I am curious why I have never seen a "Steve's Taco Bell" or such. Those are franchised stores, as well, aren't they? Also, I have only ever seen these supermarkets in this neighborhood. Do they have them elsewhere?
Good questions. Can someone call the stores directly and get the answer to post here? (I'm too lazy to move at the moment).I blame such comments on beer.
Â© karlthedruid 2007
C-Town, Key Food and Shop Rite is another are not franchises, they are members of a coop which is a different business relationship. A franchise has a relationship with the franchisor to whom they pay a fee to use the name and agree to often buy certain items from the franchiseor and usually pay a percentage of sales. The Freanchiseor calls all the shots With the C-Town and and Key Food the the supermarkets are owned by the individuals and they all are members of a cooperative that is a not for profit and they band together for group purchasing and advertising. The cooperators call the shots and only pay enough for administration.