Why are chain supermarkets personalized here?

stella · March 2008

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?

homeowner · March 2008

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.

stella · March 2008

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?

raw · March 2008

Good questions.

Can someone call the stores directly and get the answer to post here? (I'm too lazy to move at the moment).

brooklynjack · March 2008

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.

Why are chain supermarkets personalized here?

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