A 100-percent employee-owned company, Bowling Green, Kentucky-based Houchens Food Group (HFG) operates in the grocery, convenience, hardware and restaurant industries. It has more than 400 locations across 15 states, including Kentucky, Indiana, Ohio, Tennessee and Alabama.
HFG is a subsidiary of Houchens Industries Inc., one of the largest and most diversified wholly-owned S Corp employee stock ownership plan (ESOP) companies in the United States.
Greg Rush was promoted to president of HFG last December. His retail experience began at age 15 with a local independent grocer. While attending Western Kentucky University, he worked full time in Dollar General’s Scottsville, Kentucky, distribution center and interned with various departments. Upon graduation, he joined the internal audit department before transitioning into merchandising, where he led sourcing and category management for numerous departments.
In 2009, he joined HFG as a convenience category manager and has served in roles of increasing responsibility, most recently as CMO and VP of merchandising since 2021.
In May, Associated Wholesale Grocers Inc. elected Rush to fill an open position on its board of directors.
Rush also is involved with several professional and charitable organizations. He has been a board member of Alliance Retail Group since 2018, serving as its chairman since December 2022. He also is on the board of IGA Inc. In 2024, he joined the boards of Houchens Food Group and Feeders Pet Supply.
Rush also serves on the boards for the Tennessee Grocers & Convenience Store Association and the Boys and Girls Club of Bowling Green and was president of the Kentucky Area Council for the Boys & Girls Clubs of America.
The Shelby Report of the Southeast recently spoke with Rush on how the company’s stores leverage its ESOP model and technology to stand out.
Beyond financial incentives, what’s the most impactful way the ESOP model changes day-to-day decisions at the store level?
The ESOP affects daily decisions by shifting employee focus from “what’s easiest for me” to “what benefits the business most.”
This shows up in everyday actions such as managing inventory to reduce shrink, ensuring product quality and going the extra mile for a customer. This applies equally to all our stores, including those in Kentucky.
Everyone knows that the company’s success benefits them and their co-workers, which is ownership in action. At our core, we have five rules, and one of them is to protect the brand. With the ESOP, that rule is personal because it’s our company and our business. Every decision we make now isn’t just for the company’s future – it’s for our own.
How does Houchens empower each store to reflect its community and avoid a “one-size-fits-all” model?
We believe in being the Hometown Store. While we have more than 400 retail locations across 15 states, 105 of which are presently in Kentucky, we give significant local autonomy to protect that feeling. Each store can curate products, displays and events that fit their community, such as highlighting local honey or barbecue sauces.
Our managers live in the communities they serve, so they know what matters locally. We give them the tools to bring that to life. Social media has also been a great vehicle for our stores to connect with their communities and share their unique product offerings and personalities.
What’s the single most critical technology investment for a grocer today? How does Houchens ensure technology enhances the customer experience instead of replacing human interaction?
The most impactful technology investment is in systems that accelerate shopping and enhance personalization, such as integrated loyalty apps and real-time inventory tracking.
Yet, technology should never substitute the warm greeting, engaging conversation or the sense of belonging provided by an excellent store team.
We prioritize tools that free our associates to interact with customers more deeply. We refuse to adopt technology that hinders genuine human connection.
What are the key design principles that define a new Houchens store? What does the store of the future look like from your viewpoint?
Our non-negotiables are clear sight lines, easy navigation and abundant fresh departments in produce, meat and foodservice. The spaces must also be inviting for discovery, encouraging a “treasure hunt,” with expanded kitchens and delis or a corner for local products.
The store of the future will still be rooted in fresh food and personal service, but it will also be more flexible in its footprint, with technology embedded in ways that feel natural and non-intrusive. We’re designing for a “Shop Your Way” experience, whether in person, online or a mix of both.
Besides the financial benefits of the ESOP, what non-financial program is most effective at fostering shared ownership and pride among employees?
I am most proud of our culture of community giving. Every store can support local causes that matter to its teams and customers, from sponsoring a little league team to helping a local cause.
When employee-owners see the direct impact their store can have, it reinforces that they aren’t just working for a company; they’re building something valuable for their neighbors. Shared ownership and outcomes reinforce our drive to invest in our communities.
What is Houchens’ “greenest” or most innovative initiative?
Our investment in sustainability is tied to technology. We’ve installed electronic shelf labels in over 40 grocery locations, which significantly reduces the amount of paper used for signs. These labels last for 10 years, eliminating the need for weekly paper tag changes.
We’ve also switched to LED lighting and added cooler doors to our cases in grocery stores to increase energy efficiency.
How is Houchens marketing to and earning the loyalty of younger Kentuckians who grew up with online and big box stores?
We meet customers where they are, whether through mobile ordering, third-party delivery platforms, social media, or in-store events that feel like experiences. Community and supportive engagement are key to staying connected.
Our fastest-growing segment is third-party delivery, which saw sales grow by over 61 percent last quarter. It’s a testament to the fact that there’s a different mindset for shopping today, and we continue to adapt to that continual growth.
With Kroger and Walmart in Kentucky, what’s the biggest misconception rivals have about Houchens?
Some competitors underestimate the power of being local and employee owned. We may not have the national scale of Kroger or Walmart, but we have the ability to adapt quickly and the commitment of a team that is literally invested in the outcome. That combination is hard to match.
With supply chain issues and inflation, what’s a “secret weapon” Houchens uses to maintain product availability and manage pricing?
Our diversity of formats and sourcing relationships are a significant advantage. We operate multiple banners and have long-standing ties with regional suppliers. We can often pivot quickly to alternative products without sacrificing quality.
For example, when a wholesale supplier was hit by a cyberattack, we could quickly pivot to an alternative supplier. This is more difficult for national chains that rely on their own supply chain.
We saw this during the COVID-19 pandemic when we had product on our shelves due to our flexibility, while some larger competitors had holes in their assortment.
What do you hope will be the defining legacy of Houchens in Kentucky? Is it about being the largest, most profitable, or something else entirely?
Since 1917, Houchens’ legacy has been Kentucky’s most respected and community-driven retailer. That legacy endures today and defines our purpose for the future.
If people reflect and say, “Houchens strengthened my town, provided my neighbors with meaningful jobs and acted with integrity,” that will matter more than any ranking. We will have fulfilled our mission of proudly empowering employee-owners, serving customers and supporting communities.
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