Tom Leonard, owner of Tom Leonard’s Farmer’s Market in Richmond, Virginia, learned many life lessons from his father, including how to succeed in the food business.
He said his father, the late Stew Leonard, had two rules, which literally were set in stone. “Rule one, the customer’s always right. Rule two, if they’re wrong, reread rule one.”
Leonard said his father bought a 10,000-pound piece of granite and had those words chiseled on the face of the stone, then had it placed – by a crane – at the front door of his store in Norwalk, Connecticut, Stew Leonard’s.
Leonard said his father told him that a customer who complains gives you a chance to improve.
“He said you can’t argue with a customer because even if you win the argument, you lose the customer. So, the customer’s always going to be right.”
He said his dad found success through that belief. Stew Leonard’s in May opened its eighth store, in Clifton, New Jersey. Leonard remains on the board of Stew Leonard’s, in addition to operating his own store in Richmond, which is now being led by his son, T.J.
His son became president of Tom Leonard’s Farmer’s Market in July of this year, “running the store and doing great,” Leonard said. “Time for the next generation.”
[RELATED: Son Of Tom Leonard’s Farmer’s Market Founder Named President]
Competitive challenges growing
Leonard said the industry is even more competitive than when his father took over the family dairy business.
“Razor-thin margins, prices skyrocketing, transportation problems, hiring people, insurance costs going crazy, interest rates up – when you look at all these obstacles, it’s really tough navigating through all this.
“The key to the whole thing is not to forget what the customers are coming to your business for. They’re coming to get better stuff and save money.”
Another piece of advice from his father came when a Whole Foods Market was built across the street from Tom Leonard’s, which had been open for just a couple of years. Leonard said he was worried about the future of his business and called his dad one night from his parking lot.
“I said, ‘Dad, I don’t know what to do. They’re getting ready to open this Whole Foods.’ And he said, ‘I can tell you exactly what to do. Turn around and face Tom Leonard’s. I want you to spend all your time making that store better. Forget about Whole Foods. Nobody can beat your store with you in the aisle.’”
Leonard said he stopped focusing on his competition, which also included several other large retailers, and worked to make his store the best it can be.
“Our sales are up 20 percent… I’ve got a good team here. We’re working really hard. Some of that is because prices are up, but we look at it more in tonnage. Are we moving the same amount of product as we did before?”
Leonard said he loves being in Virginia. He moved his family there after his mother-in-law became ill. During a visit from his parents, he said his dad suggested he build his own store in Richmond. Tom Leonard’s Farmer’s Market opened in 2004.
Leonard said being an independent grocer has many challenges, but the secret to dealing with them is through relationships with team members and suppliers.
With team members, he said they focus on retention. Part of that is being flexible with schedules.
“We have a person that just oversees that, to make sure that everybody is happy at the store. Because what the goal is, is a happy customer. You can’t have happy customers if you don’t have happy people … You’ve got to make the customers feel special and appreciated.”
On the supplier side, he said it is important to get to know your vendors. Tom Leonard’s buys direct from farmers, resulting in products that are four to five days fresher than what’s available in supermarkets, he said. And because they buy direct, they can offer lower prices.
Tom Leonard’s primarily offers fresh products – produce, meat, seafood – and a few center store items.
“They’re getting a better product and saving money,” he said. “Good stuff at a good price.”
Cultivating relationships with suppliers also is important. When the market was running out of Christmas trees one holiday season, Leonard said he called the owner of the supplier, Bottomley Farms in Wytheville, Virginia. Mitch Bottomley said they had finished cutting for the year, but he would send a crew out that day and have them cut 500 more trees to send over.
Although his store sells about 5,000 trees each year, Leonard said Mitch Bottomley is in the relationship for the long haul.
“That happened because it’s a long marriage or quick divorce. He’s looking at next year and the year after that and the year after that,” said Leonard, adding that he called Bottomley after the trees arrived and again thanked him.
“You’ve got to get to know your suppliers and visit with them. We’ve been doing that for a long time… You’d be surprised how few people do that.”
Giving back
Leonard said it is important to give back to the community, and one avenue of giving is through Tom Leonard’s Wishing Well program. Every two weeks, the store collects donations for a local charity – an organization within five miles of the store – and the company matches customer donations.
While several charities are featured throughout the year, veterans’ organizations hold a special place in the Leonards’ hearts.
“We’re thrilled to support our veterans,” Leonard said. “My wife works at the VA hospital. We’re thrilled and delighted every chance we have to promote another veterans’ charity on our Wishing Well. I’m grateful for their service, and we’re very happy to help them where we can.”
Although there are no plans for more Tom Leonard’s Farmer’s Market locations, there are plans to expand the Richmond store.
“The truth is, if you run one right, you don’t need two,” Leonard said.
He said he loves the food business and “wouldn’t know what else to do.”
“I love how it changes. I love working with the suppliers. I love working with the people in the store … I love talking to customers. Whatever I can do to make the store better, I do it. I love it. I love the constant improvement. I think it’s exciting.”
