Kenny Chapman breaks down how Trader Joe's runs 450+ stores on $10B annual revenue. The chain keeps 98% private label products to control quality, trains staff to know everything they sell, and maintains a fun culture that feels local even at scale. Small businesses can steal these moves.
Hey, my friend Kenny Chapman here, the blue collar coach, with a little message about business today. Now, you might be thinking, how am I gonna have a business lesson from a grocery chain, from a grocery store, from somebody that does things so differently than we do? Ah, but let me challenge you for a moment. So Trader Joe's, one of the fastest growing grocery chains in the country. Started by a couple brothers long time ago out in California. There are over 450 stores now and tapping 10 billion. That's be $10 billion a year in annualized revenue. So what can we learn in the blue collar space with our businesses from this chain? I just want you to think about four things today. So here we're in sunny Orlando, Florida, and so interesting things happen. Number one, they have fun. Their team members have fun. They're engaged. They enjoy what they're doing. They're dressed kind of all crazy. They have flowered shirts on. And different things, they ring bells and do different things and holler and help. And it's just, you can tell it's culture of fun that doesn't happen by accident. Think about your own company. Is it fun? Is it a fun culture? Now, some of the work that we do doesn't always, you know, equate to the most fun. But let me ask you, as the leader, are you fun? Right. So first thing, build your culture around fun. Because when team members are having a good time, they kick it up a notch for service, and they don't even realize it happens. Second thing, Trader Joe's does exceptionally well private labeling. Some statistics say up to 98% of the stuff that's in this store behind me is private label Trader Joe's. What does that mean? Well, one, they can control inventory a little bit better, they can control quality control a little bit better. But one of the biggest things is if Kenny wants to get that one special taco seasoning that he really likes, he's got to come to Trader Joe's. Now, translate to our businesses. What are you? Private labeling. If you can't get certain, you know, in our day now, a lot of things can be private labeled. So challenge your manufacturers, challenge your distributors, your whole, your wholesalers of what can be private labeled and when it can't, then create your own package. I don't care if you're selling the same water heater, the same electric panel, the same H vac system as everybody else in the marketplace, but you can make it yours based on how you package it, what the warranties are, what the guarantees are to where they've Got to come to you. Third thing they do exceptionally well is they have product knowledge that's off the charts, right? So they train their team. You know every store that they sell wine and beer in, I mean, they've got a pseudo sommelier in there. They, they like, they know their stuff. When we go in and say, hey, we're looking for this type of wine and that type of wine and this kind of price point, boom. Let me go here, let me show you this one. I tasted this one last week. They know their product. What about your team? Are you training them? Do they know the product inside and out or are they googling so they can tell the client, well, this is what the bells and whistles are about. That train on product knowledge, not just sales training. And really good things happen in your organization because product knowledge and expert status turns into sales. And last and certainly not least, this is a national chain, over 450 locations, but they feel local. When we walk into the Orlando store, it represents Orlando. It's fun, it's theme parks, it's. You can see the, the tropical trees and the things that represent Florida. When we go into the Denver store that they just opened, when we're back in Colorado, it's got mountain biking and hiking and skiing and fourteeners and all the things that represent Colorado. Go into one in Vegas, you're going to see slot machines, you're going to see Stu around Sin City, right? They get it when it comes to how to have a national organization. But it feels like the local corner grocery store that we all grew up with. For me, it was Bill's ag and I used to like to go see Bill at the store and here. If I lived here and we spent enough time, I would find my Bill in this store behind us. Take a few lessons from Trader Joe's of how we can implement these things. You don't have to agree with all of their business model or what they do, but what can it mean for you, your culture and your organization? I'm Kenny Chapman, the blue collar coach. Until we talk again, have a better than fantastic week and I'll see you real soon.
