Organic Growth

Richard's Foodporium owner John Rorer spent a bulk of 2011 dealing with several internal issues, but his biggest challenge in 2012 might be external.

That would come in the form of Trader Joe's, the chain of eclectic grocery stores with a natural and organic food focus. Rumors that Monrovia, Calif.-based Trader Joe's could expand to the Gulf Coast, have circulated for years. But Rorer thinks it could happen in 2012. Trader Joe's is run by a German family trust that also controls the Aldi supermarket chain, which recently expanded on the Gulf Coast.

Rorer says he will defend Sarasota-based Richard's Foodporium, a natural and specialty foods chain he bought in 1997, against any would-be competitors, especially Trader Joe's. Richard's has 13 corporate and three franchise-run stores in Florida, from Dunedin to Port Charlotte. There's also a franchised-run location in Flagler County.

“If and when they come in, we will have a strong buy local marketing campaign,” says Rorer. “We won't be shy about it.”

Rorer also hasn't been shy about updating and reshaping the internal workings of the firm. That front has several tentacles, beginning with new office and warehouse space.

The Richard's Foodporium parent company, with about $17 million in annual revenues, currently works out of a 5,000-square-foot warehouse-office flex space south of downtown Sarasota. But it outgrew the space several years ago, and executives and employees are working on top of each other, according to the July 15 Business Review cover story.

Rorer believes he solved the space problem by leasing a 22,000-square-foot facility on U.S. 301. The move will cost about $250,000. “This is a warehouse that will really position us for years to come.” Rorer says.

Rorer considered buying space. But with rents so low, he decided he didn't want to tie up financing on a building purchase.

Another key reshaping move for the firm came in leadership. Rorer recently hired a training and education director and a facilities manager who doubles as a loss prevention director. Those types of positions aren't normally created until a grocery store chain reaches 100 or locations, but Rorer says the need outweighs the cost.

The facilities manager/loss prevention director, for example, will help protect the firm against anything from employee theft and hurricanes to shoplifting and slip-and-fall injuries. Says Rorer: “I feel like he will end up paying for himself.”

A third big project Rorer plans for Richard's Foodporium in 2012 is an overhaul of the chain's point-of-sale system. The project, which will cost about $200,000, will put all the stores on the same system.

The company further intends to overhaul its software, including customer management and email accounts. Rorer hired Tampa-based Vertical IT for that project.

“I'm excited,” says Rorer. “For a small retail organization, we are pretty cutting edge.”