In an industry often marked by consolidation and competition from national chains, Town & Country Foods, a Montana-based independent grocery store chain, stands out as a beacon of growth. The company has defied industry trends, expanding its footprint across the state while many competitors struggle.
Founded in 1966 by Andy Perlinski in Livingston, Montana, Town & Country Foods has a rich history rooted in the state.The company transitioned to 100 percent employee ownership in 2013, a pivotal moment that shaped its trajectory.
The chain’s success is a testament to its unique approach to grocery retail, which could offer valuable insights for other independent and regional grocers seeking to thrive in a competitive market.
Employee Ownership As A Catalyst For Growth
One of the cornerstones of Town & Country Foods’ success is its employee ownership model. Since 2013, the company has been entirely owned by its employees, fostering a strong sense of ownership and commitment among staff. This structure has proven to be a catalyst for growth, as employees are invested in the company’s success.
“Our employee owners are truly members of the communities they serve,” said Travis Frandsen, president of TNC Foods. “Our stores are not cookie-cutter versions with a corporate mentality; they are each unique and can change and adapt to the community needs. In fact, each store is encouraged to be unique and independent.”
A Hybrid Model That Resonates With Consumers
Town & Country Foods has carved out a niche by offering a hybrid grocery store model. The stores combine traditional grocery items with a wide selection of natural, organic and locally-sourced products. This approach has proven to be a winning formula, attracting a diverse customer base and driving sales.
“They carry the conventional item and departments you expect to find in grocery stores along with thousands of natural, organic and local items integrated into the aisles and throughout the store,” Frandsen said.
Fresh Departments As A Key Differentiator
The chain’s emphasis on fresh departments – including produce, dairy, meat, bakery and deli – has been instrumental in its success. By offering high-quality, fresh products, Town & Country Foods has established itself as a go-to destination for consumers seeking fresh, wholesome food.
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Community-Centric Approach Drives Loyalty
A key component of Town & Country Foods’ strategy is its commitment to the communities it serves. The company believes that by being an active and engaged member of the community, it can build strong customer relationships and foster loyalty.
Strategic Expansion Fueled by Opportunity
The company’s growth has been driven by a strategic approach to expansion. By identifying underserved markets and seizing opportunities when they arise, Town & Country Foods has been able to expand its footprint without compromising its core values.
“The company has grown from three stores in 2018 to the eight we currently operate today,” Frandsen said. “Most of this growth has been opportunistic, as we have been fortunate to take advantages of opportunities that have presented themselves in several communities in Montana such as in Dillon, Lewistown and Billings.”
Store Information And Growth
Town & Country Foods operates eight stores across Montana, including locations in Bozeman, Livingston, Belgrade, Dillon, Lewistown and Billings. The company’s newest store, located at 4585 Field St. in Bozeman, replaced the previous store on N. 19th Street.
“The replacement store of our original store…which opened in 1970 in Ferguson Farms, has been well received on the west side of Bozeman, which has seen incredible growth over the past five-plus years,” Frandsen said.
“This is our largest store at just under 35,000 square feet. We tried to keep an open and very shoppable store with…wider aisles to accommodate our customers.”
The company’s other stores range from 28,000-32,000 square feet; the N. 19th Street location that was replaced was 25,000 square feet. It closed its doors two weeks prior to the new store’s opening.
“Most [of ours] are considered small in the conventional grocery world, but one of our mottos is to ‘do more with less,’ and we focus on high sales per square foot in our stores,” Frandsen said.
Industry Implications
The success of Town & Country Foods offers valuable lessons for independent and regional grocery retailers. By highlighting its employee ownership, prioritizing fresh departments and building strong community ties, grocers can enhance their competitiveness and drive growth.
The Montana-based chain has carved out a successful niche in a competitive market. Their approach offers valuable insights for other independent and regional grocers seeking to thrive in today’s landscape.
