They were probably at that point maybe, maybe doing 70 million.
Speaker AAnd we pushed it up between 125 million and 150 million.
Speaker AWe chopped $10 million in business in five days.
Speaker BAnd that 10 million ended up doubling your top line.
Speaker AYeah, it exploded.
Speaker BSuper pumped about our next guest, current president.
Speaker BAnd I just found out that he has about 24 hours left of that official role, but we'll get to that here shortly.
Speaker BBut current president of Kohl's Quality Foods, Tom Quinn.
Speaker BThe man has, you know, over four decades of experience in the food industry, but his current role is, you know, the acting president of Kohl's, Tom Quinn.
Speaker BWelcome to the podcast.
Speaker BIf you want to kick us off, we'd love to hear, you know, for our listeners, the story of Kohl's how it, how it was established.
Speaker BAnd then we'll get into some other things.
Speaker AGreat.
Speaker AThanks for the intro and appreciate this opportunity.
Speaker AThis is first one of these that I've done, so I'm actually looking forward to this simple.
Speaker AKohl's started in 1946, literally right after World War II.
Speaker ABut it was a fresh baked bakery.
Speaker AYou know, they made wedding cakes and bread, et cetera, and distributed to the local market in Muskegon, Michigan.
Speaker AAnd in 1971, Wes Devon, who had worked for bakery over in Detroit, moved his family to Grand Rapids, became a salesman for the Kohl's product, Fresh baked delivered every day.
Speaker AAnd he got tired of trucks being in ditches on winter days, having the inventory come back, it no longer can be sold.
Speaker AAnd the was killing him as far as his bottom line.
Speaker AHis best item outside of the wedding cakes, which don't actually help you keep make a living, was a garlic bread product.
Speaker ASo he designed and took a leap, bought the business from the Cole family, put in new equipment and froze a garlic bread loaf.
Speaker AAnd the original product is still on the shelf today, a one pound bread.
Speaker AKind of the rest is history.
Speaker AMy father at that time was owner of a grocery store chain of 12 locations in Western Michigan.
Speaker AAnd I remember when Wes came into the store to put it into the coffin cases, which don't exist much anymore either.
Speaker AEverything's in uprights and it slowly began to percolate.
Speaker AI think his first year he did like a million one.
Speaker AThe way that he developed the business was driving down I75 every three times a year with his family for trips.
Speaker ABut it stopped every client, potential client, on the way down.
Speaker ASo he became extremely powerful west, or should say east of the Mississippi.
Speaker AAnd then he sadly got Alzheimer's at a very Young age.
Speaker AAnd his son Scott then took it over.
Speaker AThat would have probably been in about 1988, 1989, that Scott took it over.
Speaker AAnd I had just exited my food brokers business.
Speaker AWe'll get into that a little bit later.
Speaker AAnd that's really how Kohl's took off.
Speaker AAnd they added Texas toast.
Speaker AThey added a mini bread, a one pound bread.
Speaker ADid business with Meer Spartan Publix Food Lion Gordon Food Service.
Speaker AThose were really the first ones that they got engaged with.
Speaker AAnd we have a much larger client list than that now.
Speaker ASadly, his father passed away and yes, Scott took over and was instrumental in the growth of the company over the course of the next 35 years.
Speaker AA lot of risk in a company this size, especially for an owner.
Speaker AAnd I've owned companies and it's just different if you.
Speaker AThe risk is your entire family.
Speaker ASo I give credit to Scott for hanging in as long as he did because this is not an easy business.
Speaker BTom, I want to.
Speaker BI want to back up because you.
Speaker BYou said something, but it kind of.
Speaker BIt clicked a little bit for me.
Speaker BBut you know, the innovator of frozen garlic bread.
Speaker BYou're working as a.
Speaker BA kid at this time at your family's grocery store.
Speaker BYour father started it and you have one of the.
Speaker BThe innovator of frozen bread, frozen garlic bread selling to you all and you're selling it to consumers in western Michigan.
Speaker BThat's accurate, correct?
Speaker ACorrect.
Speaker AFirst client they had was Spartan Store.
Speaker BWow.
Speaker BSo it's safe to say that pretty much without you Italians and.
Speaker BAnd families wouldn't know what to do on pasta night.
Speaker BIs that.
Speaker AExcept they were really good at making their own bread, put their own butter on it and their own special sauce.
Speaker ASo it was hard to break into that community, quite honestly.
Speaker AIt was the rest of the world.
Speaker ABut it became a.
Speaker AIt probably was one of the begins.
Speaker AThey literally invented it.
Speaker AHe is the reason that there is other frozen garlic bread companies in existence.
Speaker ANever been able to get him into the hall of fame.
Speaker AI'm not quite sure why, but he clearly was the guy who came up with the idea and made it work.
Speaker ASo his business was in Muskegon.
Speaker AThat was a little tricky.
Speaker AOne of the things that gets tricky there we really Half moon as far as your labor force.
Speaker AIt can't hire people from Lake Michigan because it's just fish.
Speaker ASo that's a tricky.
Speaker AIf he had to do it over again, he'd have looked for a facility probably somewhere along 80, 90 south of the Michigan border.
Speaker AWe have to go south two hours to get on a highway to get to clients other than Spartan, Nash now and Meijer.
Speaker AThose guys pick up and then Kroger division over in Detroit.
Speaker AOtherwise we are not exactly in the perfect location for a manufacturer of food.
Speaker ABut it worked.
Speaker BAnd as you're, you know, your, you know, growing up, experimenting in different career paths, jobs, was it always kind of in your head that you wanted to be a part of Kohl's or, you know, how did that?
Speaker BHow did that.
Speaker AYeah, that's funny too.
Speaker ASo I bought a broker's business at the age of 26, 27.
Speaker AIt was in.
Speaker ASo my first leaving the food business, I went in, when I say leaving the food business, leaving the retail end of it, I went in to work for Heinz Ketchup.
Speaker AMy background, and it's a, it's, it's critical piece of my background.
Speaker AAll the time I spent inside the stores made what I had to do for Heinz catch it very easy.
Speaker AI understood tags, I understood how the whole process worked.
Speaker AAnd after two years they brought me in and wanted me to run the region.
Speaker AAnd in that timeframe they wanted to move my, me and my family five times, once every two years, into markets like Walmart's area, Publix's area.
Speaker AI could stay the first two years in Michigan with Spartan, Nash and Meijer and then get a master's that they would pay for during that 10 year window.
Speaker AAnd then my reward was to be to land in Pittsburgh.
Speaker AI literally quit at the end of the meeting and said, absolutely no way I'm going to do that to my family.
Speaker AAnd so I'm out.
Speaker AAnd they thought I was joking.
Speaker ASo a week later, I was introduced to a gentleman who was in trouble with his brokerage business doing about 20 million in sales.
Speaker AAnd I said, I'll buy this thing, but you got to stay out of my way.
Speaker AAnd they'd become pretty inept of what they were doing.
Speaker AI went to my network that was a part of my family's network that owned other grocery stores.
Speaker AAnd the lines that we had were substantial.
Speaker ASo lenders, bagels, bagel waffles.
Speaker ABagel Waffles was a 10 share in the state of Michigan.
Speaker AThe damn facility was in Battle Creek.
Speaker ANine months later, we were a 60 share in the state of Michigan.
Speaker AIt wasn't rocket science.
Speaker AIt was just do your job Sunday raisins, orator potatoes, weight watchers, those were things that came out afterwards.
Speaker ASo then it.
Speaker AIn the year 1997, all the mergers were taking place in the broker's business.
Speaker AIt wasn't fun anymore.
Speaker AYou went from 5% commission to 3% commission over that time frame.
Speaker ASo you had to do a lot more volume to be able to manage your cash flow.
Speaker AAnd so I merged with another company.
Speaker AKnowing that I would exit six months later, I exited to go to work for Scott Deb, and they were doing about 20 million in sales.
Speaker AI was there for 10 years with another really, really smart guy named Bob Cronin, who's down in Florida.
Speaker AWe've been working together on and off most of our careers.
Speaker AWe know each other well.
Speaker AWe grew it to about 60 million.
Speaker AI was in the middle of bringing over a gentleman from Sparn stores, which I did, and two weeks later, Cronin and I were fired.
Speaker AWe don't know why.
Speaker ASo from there, I just went into consulting with a lot of companies and had a couple other side projects that I owned.
Speaker AAnd then Kohl's got into some pretty serious trouble.
Speaker AI got a phone call from Scott six and a half years ago.
Speaker AMight be the most alcohol I've ever drank in my life.
Speaker AAs we went after each other, I'm not gonna be honest with you.
Speaker AI was 50.
Speaker A50.
Speaker AI was like, yeah, I'm kind of okay if you go under.
Speaker ADoesn't matter.
Speaker ABut it was too.
Speaker AIt was personal for Cronin and I.
Speaker AI wouldn't do the deal if Cronin didn't come with.
Speaker AAnd he jumped on too.
Speaker AThey were probably at that point maybe.
Speaker AMaybe doing 70 million.
Speaker AAnd we pushed it up into a neighborhood between.
Speaker AI want to give you the exact number, but somewhere between 125 million and 150 million in six years.
Speaker AAnd Covid helped us.
Speaker AOkay.
Speaker ASo we had 7.78skus when I came in.
Speaker BSo you were with Kohl's in the late 80s?
Speaker AI was with Kohl's and the.
Speaker AFrom about 87 to about 97.
Speaker AAnd then that's when I exited, or I got exited.
Speaker ASo that's when we grew it the first time.
Speaker BSo you grow it.
Speaker BStill don't to this day.
Speaker BDon't know why you were pushed out.
Speaker ANever.
Speaker ANo clue other than that's just what the individual decided to do.
Speaker AAnd clearly Scott had to approve it.
Speaker BAnd what's your role at this time?
Speaker ASenior vice president of sales and marketing.
Speaker AWe didn't have.
Speaker AScott was kind of CEO and president, et cetera.
Speaker ASo I moved on then.
Speaker AThe business did quite well after my exit.
Speaker AThey did a lot of the stuff that.
Speaker AAnd I hate to say it this way, a lot of CFOs think the only way to success is to cut out all your expenses.
Speaker AThat's usually the way to kill yourself.
Speaker AAnd they didn't reinvest.
Speaker AThey got in trouble.
Speaker ASo when he.
Speaker AWe would not do the deal coming back to Kohl's unless we were given ownership.
Speaker AAnd he gave us ownership.
Speaker ANice pieces of ownership.
Speaker ANow we had something to bank because if we did sell it, we got paid.
Speaker AOkay.
Speaker AAnd the contracts were very firm that I couldn't get clipped.
Speaker AOkay.
Speaker ABecause I wasn't going to go through the same game.
Speaker ASo, yeah, we just put our heads down.
Speaker ASo we killed 65 SKU.
Speaker AWe have 22 now.
Speaker BAnd at the time you added, you know, a hundred.
Speaker AYeah, we got rid of all the.
Speaker BI love that you bring this up because I, I, you know, I feel like there's a lot of companies that dabble in different product lines instead of, you know, focusing on their wheelhouse.
Speaker BYou know, we had Yanni Huff Nagel with Lemon Perfect a few weeks ago, and they're maniacally focused on perfecting the best product.
Speaker BAnd it's the original product that they, they developed.
Speaker BYou all start growing in every different, you know, you know, on every different, you know, path.
Speaker BAnd you go, you come in and kill it.
Speaker BAnd this is when you come back.
Speaker BAnd you came back as president.
Speaker BCorrect?
Speaker ACorrect.
Speaker BSo you come back as president, cut out 60 plus product lines, and focus on what?
Speaker BWhat's your focus?
Speaker BYour bread and butter.
Speaker AYeah, we just.
Speaker AWe literally took the products that were doing 80% of our volume and sold more of it.
Speaker AIt wasn't rocket science.
Speaker ASo we didn't make any changes to the formulas.
Speaker AMajor client that we left.
Speaker AThe guy's still mad at me.
Speaker AI literally exited him in one phone call.
Speaker ASo Covid also, it's funny business.
Speaker AIt's simple business.
Speaker AYou order what you need, we get it delivered to you on hopefully the agreed upon day, and you pay me at the agreed upon price.
Speaker ASo we also exited a bunch of clients who were really bad at number three.
Speaker AI don't like to have to spend money, have a person on our staff chase money that is owed to us.
Speaker AThat's a complete waste of my time.
Speaker AI lose money on both sides.
Speaker AOne, to have to put somebody in charge of chasing it, and the other, the fact that you're not paying it to me, it's a waste of my time.
Speaker ASo we also exited 11, 12 clients within a week of the COVID thing.
Speaker BYou roll out these decisions relatively quickly when you come up very fast.
Speaker AThey weren't, hey, we got 30 days.
Speaker AIt was, no, we're Done.
Speaker AThe inventory you have is what you have.
Speaker AI'm not making it.
Speaker AI destroyed all the packaging for all the product.
Speaker AIt was just all in the way.
Speaker AWe weren't running efficient lines.
Speaker AOkay.
Speaker AWe were breaking into an eight hour shift four times and changing over.
Speaker ASo that means I actually get six hours of production.
Speaker AI need to be able to run that.
Speaker AIt's 7 hours and 45 minutes.
Speaker ASo got the labor against it, don't have the efficiencies, and you don't make any money that way.
Speaker AOnce the efficiencies hit, bottom line, explode.
Speaker AOkay?
Speaker AAnd this again, a lot of people know how to do this, okay?
Speaker AThe challenge you have with people is being firm with inefficient clients.
Speaker ASo when you're in trouble and you're looking for any volume, you can, you have a salesforce that's saying yes to everything.
Speaker AWell, can you make it in this size?
Speaker AYeah.
Speaker ACan you make it?
Speaker AYeah, we'll do it.
Speaker AIt just destroys your production efficiencies.
Speaker AAnd that's, that's where the money is.
Speaker BYou come in, you, you chop out product lines that aren't at $10 million.
Speaker AIn business in five days.
Speaker BAnd that 10 million ended up doubling your top line.
Speaker AYeah, it exploded.
Speaker BSo where, where is that learned?
Speaker BIs that, is that just through experience?
Speaker BIs.
Speaker BI mean, when you, when you say it, it sounds like it's common sense, but when you have all these moving pieces, I mean, you're the president of, of a $100 million company.
Speaker BYou walk in, you see the writing on the wall, you make these changes.
Speaker BBut is it, is it just eliminating distractions?
Speaker BLike what is, is it exactly what are you paying attention to?
Speaker AYeah, it's interesting.
Speaker ASo I was spoiled, okay?
Speaker AMurray Lender was a mentor.
Speaker AFred Meyer was a mentor.
Speaker AWilliam Lamoth from Kellogg, he was a mentor.
Speaker AObviously the guy bought the broker's business.
Speaker AWas.
Speaker AAnd my father.
Speaker AYou picked stuff up by accident.
Speaker AYou, you know, you've sat in enough meetings and you don't think you retained a lot.
Speaker AYou make a lot of notes.
Speaker ABut it's weird.
Speaker AYou'll be in an environment and it'll hit you that you've been in a conversation like this before.
Speaker AThat just is different with where we are now.
Speaker ASo it is when you talk to guys that are in production.
Speaker AAnd so I own your own grocery store is a production.
Speaker AIt's just different.
Speaker AYou're not making the inventory, but there's a production to the process.
Speaker ASo you learn an awful lot there.
Speaker AAnd the, you know, where you drive your volume.
Speaker AWhat skus what are your loss leaders.
Speaker AAll that stuff.
Speaker AAnd you take bits and pieces from all these guys that have been around you, and it.
Speaker AIt becomes clear, accidentally, almost, that this.
Speaker AThis gotta stop.
Speaker AThis has got to stop.
Speaker AThis has got to stop.
Speaker ASo.
Speaker ASo the main thing for me was I didn't really understand the production facility.
Speaker ASo I went down to the floor.
Speaker AI worked on the floor no less than one day a week for no less than six to eight hours right alongside the team, including Covid.
Speaker AAnd that's why I think, one, we didn't lose anybody during COVID I.
Speaker AE.
Speaker AThank God having passed away.
Speaker ABut I couldn't ask people to take risks that I wouldn't take myself.
Speaker AAnd I had Devin all over me on a consistent basis that I couldn't keep doing this.
Speaker AI said, it's just not how this is going to play out.
Speaker AUntil I understand what goes on down there, I can't fix it.
Speaker AOkay?
Speaker AAnd it was everywhere.
Speaker AJust I see stupid.
Speaker AOkay.
Speaker AI don't know.
Speaker AI didn't have any magic formula.
Speaker AI just started making changes.
Speaker AWe laid out the list and just started knocking them down.
Speaker AAnd it improved every step of it.
Speaker BSo you mentioned a few things, and I want to.
Speaker BI want to break these up.
Speaker BOne being, you know, the mentorship you mentioned, you rattled off a handful of mentors.
Speaker BI consider myself still a young professional.
Speaker BI'm aging in an industry where there's a lot of young professionals.
Speaker BBut one thing I've always realized is that historically, I've learned the hard way.
Speaker BAnd I could have avoided that if I had someone to lean on or a mentor to help guide me in the right direction.
Speaker BDid you actively seek that type of mentorship or how did that come about?
Speaker AGood question.
Speaker ASo Merrilander's business wasn't much.
Speaker AWe don't have a huge Jewish community in Western Michigan.
Speaker AWe became the number one per capita market in the United States for bagels consumption.
Speaker AIt's because I worked with Murray, with the key clients, Meyer and Spartan.
Speaker AKeep in mind, during my 10 years in my brokerage business, Meyer was adding 10 stores every year.
Speaker AAnd an absolutely spectacular operator.
Speaker AHighly ethical.
Speaker BAnd this is the retailer Meijer.
Speaker AYeah.
Speaker AYeah.
Speaker ASo I followed a lot of the.
Speaker AI didn't seek them, but by being successful with them, they embraced me.
Speaker AOkay.
Speaker AIt was more by accident than by design.
Speaker AOkay.
Speaker AAnd you don't know that it's happened until it's happened.
Speaker ABut Bill of let me come down once every quarter and go into his special marketing room where there would be at least 10 drafting tables and Walk to each table.
Speaker AI would spend five hours in the room.
Speaker ADidn't say much, just was allowed to listen.
Speaker AThat information I learned in those sessions was beyond a doctorate.
Speaker AIt was insane what I learned.
Speaker BAnd who was.
Speaker BWho was this gentleman that was mentoring you at the time?
Speaker ABill Lamoth.
Speaker AWilliam Lamoth was the CEO of Kellogg.
Speaker BAnd he's inviting you into their internal meetings as one of their partners.
Speaker AYep.
Speaker ABecause I was a broker selling their product.
Speaker ASo as I was exiting my business, they actually called.
Speaker AFunny story, I got a phone call.
Speaker ALenders got bought out by Kraft, so we lost a large amount of revenue.
Speaker AAnd I'm on my way back from my Detroit office, and I get a phone call from Mr.
Speaker ALamoe.
Speaker AAnd I pick it up, and he goes, how you doing?
Speaker AI said, I'm not having a good day, boss.
Speaker ALenders.
Speaker AI knew I was going to lose it when crap bought it.
Speaker AAnd he goes, well, I'm about to make your day better.
Speaker AYou've been asking me to give you Kellogg's cereal for five years, and I've ignored you.
Speaker ASo today is the day.
Speaker AAnd he gave us Kellogg's cereal.
Speaker AIt replaced all the revenue I'd lost an hour late earlier.
Speaker ASo you can't make that shit out.
Speaker BThat is incredible.
Speaker ASo we're very lucky.
Speaker ASo, you know.
Speaker AAnd then Fred Meyer was very helpful to me, even though my uncle at the time was the president of Sparn Stores.
Speaker AI wasn't, I would say, embraced right away by Meyer buyers because they thought, you know, I might share information with Sparn Stores, which wasn't the case.
Speaker AFred helped me there, made it clear that that's not the case.
Speaker AAnd the other.
Speaker AIt.
Speaker AIt.
Speaker AThey just happen you, if you work hard for them, they see and they hear you when you're negotiating what you'd like to do inside of the market as far as selling more of their product.
Speaker AI remember Mrs.
Speaker ASmith's pies, which was owned by Kellogg at the time.
Speaker AI had flew out to Pottstown, Pennsylvania, met with a young marketing guy.
Speaker AI suggested a different marketing program, half the cost.
Speaker AAnd we took Chef Pierre out of the market in western Michigan four months later.
Speaker ASo it's.
Speaker AIt's going to the right people coming in with the right plan, asking them to spend their money, and then executing to make sure that they got their money back.
Speaker AAnd that's how they pull you in.
Speaker AAnd I'll say pull you in.
Speaker AThat's when they trust you.
Speaker AOkay, I spent this money.
Speaker AI actually spent less.
Speaker AI'm getting more volume.
Speaker AThis is work now.
Speaker AYou're on a list of people they call and talk to about changes they want to make.
Speaker AOkay?
Speaker AI don't seek it.
Speaker AYou earn it, and you earn it, and you don't know you're earning it until it happens.
Speaker ASo, yeah, it.
Speaker AI was very, very fortunate to have very smart people around me, and that's not hard to do.
Speaker AOkay.
Speaker AI mean, I don't consider myself a genius.
Speaker AThe.
Speaker AThese people around me were critical to the success of the things that have allowed me to protect my family.
Speaker ABig deal.
Speaker BI feel like that's a very common theme when.
Speaker BWhen you're talking to successful, you know, whether entrepreneurs, executives, professionals in general, they.
Speaker BThey surround themselves with people who help elevate them to that next level.
Speaker BAnd.
Speaker BAnd, you know, if they do not, if they're bringing them down or weighing them down, they're cut out of their circle.
Speaker BSo, you know, I see that time and time again.
Speaker BI'm a big believer in, you know, networking and.
Speaker BAnd learning other people's stories, but it's fascinating to hear you say some of these things.
Speaker BYou know, you and I have gone back and forth and had some great conversations over the last couple of years, but, you know, to hear more details about, you know, your path to where you are right now is.
Speaker BI mean, it's impressive.
Speaker BWho is.
Speaker BWho's the most impactful mentor that.
Speaker BThat you've had in your career?
Speaker AMy parents.
Speaker AThey started from a really young age with me, so it's a common term that people hear, but my dad lived and breathed that, okay, that right is right even if nobody's doing it, and wrong is wrong even if everyone's doing it.
Speaker ASo that's a really good path.
Speaker AOkay, and so you already know the name of your company.
Speaker AI remember the first time we talked, and I said, well, veritas.
Speaker ALatin for the truth.
Speaker BYou're one of the first people that ever, ever knew that.
Speaker BI mean, it's a cold call, but you were one of the first people that ever knew that.
Speaker BI'm like, I'm.
Speaker BI'm staying in touch with this guy.
Speaker BWhether he gives me his business or not, I'm staying in touch with him.
Speaker BWhat's the biggest issue and what advice would you give to young professionals today?
Speaker ABiggest issue I see is they send an email and they think that that's going to somehow solve whatever issue you're going through.
Speaker AAnd.
Speaker AAnd I don't know what it is, why they're afraid to pick it up.
Speaker AYou cannot build a relationship with a client through text messages and emails.
Speaker AYou need to be on the phone with them.
Speaker AThey need to know who you are, and they need.
Speaker AAnd you need to know who they are.
Speaker AYou need to talk about their family.
Speaker AYou need them to ask about your family.
Speaker AAnd then now you got them.
Speaker ANow you're in a position where they begin to trust.
Speaker AProcess, okay?
Speaker ABut you learn so much more in a phone call than you do sending a note because you've asked a specific question.
Speaker AYou.
Speaker AIn a phone call, you move through additional opportunities for questions by accident.
Speaker ADoesn't happen in text messages, doesn't happen in emails.
Speaker ASo I don't know what it is that they're afraid of.
Speaker ABut the human contact is critical, and I see it going away.
Speaker AOkay.
Speaker ASo we used to, in our day, almost every day was a lunch with a client.
Speaker AOkay.
Speaker AAnd nobody does it anymore.
Speaker ASo many people work from home.
Speaker AAnd Covid did that too.
Speaker AMade it worse.
Speaker AOkay.
Speaker ASo you've really got to make a commitment.
Speaker AFor instance, I didn't have a huge relationship with Kroger when I came on board at Kohl's.
Speaker AI took the account over myself.
Speaker AWe only had two salespeople doing this.
Speaker BHow long ago is this?
Speaker AWhen I first came back to Kohl's, they had five or six of them.
Speaker ANone of them were very good.
Speaker ASo Bob Cronin and I took over all of our clients.
Speaker AUnited States.
Speaker AI took over Kroger, Meyer and Spar stores because I knew him.
Speaker AHe took care of Walmart, Publix, H E B, Winn, Dixie, etc.
Speaker AAnd I know that other companies that competed against this had 15, 16 guys out there doing that.
Speaker ASo we didn't talk.
Speaker AWe did talk to the buyers, by the way.
Speaker ARule number one, never go over a buyer's head.
Speaker AIf a buyer tells you that he's made a decision, you accept the decision.
Speaker AEven if you have a relationship that can change that decision.
Speaker AThat is a major no.
Speaker ANo.
Speaker BEven if you do, there's gonna be bad blood there.
Speaker ABad, bad blood.
Speaker BYeah.
Speaker BSo not recommended.
Speaker ABut in your case, with the business you're in, you guys are constantly on the phone and also doing emails because the business moves so fast.
Speaker AAnd Covid had to be a nightmare.
Speaker ASo we saw during COVID all kinds of new logistics companies come into play.
Speaker AYou would know all this.
Speaker AAnd then now we're seeing them all disappear.
Speaker AThey were not sustainable.
Speaker AAnd we had so many different logistics companies out there, and a lot of them needed to be there.
Speaker ABut now that everything's gone back to at least what we consider the new normal, they're gone.
Speaker AThey didn't have the bandwidth to stay in it against people who've been doing it a lot longer and a lot.
Speaker BBetter to that point.
Speaker BTom and this, this goes back to, you know, the relationship piece and putting your head down and doing the small things that are required for long term success.
Speaker BBut everyone flooding the industry, all the transportation companies, everyone was flooding the industry.
Speaker BTech, I mean, you name it, everyone was coming to transportation because it, it was exploding.
Speaker BBut they, you know, they did that as a transactional move.
Speaker BYou know, let's make a quick buck.
Speaker BIt's booming.
Speaker BBut they were not willing to make the phone calls or build their relationships, but ultimately had that long term success.
Speaker BBut you're exactly right.
Speaker AThe more you're in the business, the more fun it becomes.
Speaker AI've never really had a bad day in this business.
Speaker AI don't think I got fired up.
Speaker ADon't all that.
Speaker ABut even when you lose an opportunity with a client because somebody either had a better price or potentially a better product when I was back in the food brokerage business, I still laugh about it.
Speaker AEgo Waffle is still an 80 share in the United States.
Speaker APrivate label company cannot break into that product.
Speaker AIt's crazy.
Speaker ASo they dominate that.
Speaker AOkay.
Speaker AFor years.
Speaker BWhat do you think it is?
Speaker AIt's the quality of the quality of the product you can't get.
Speaker AThe price is right and the quality is at a high level.
Speaker AOkay.
Speaker AI mean, my grandkids love it every time I see it in there.
Speaker AIt's fun to open up a refrigerator or a cupboard and it's fun to go into grocery stores because at one point in my food burgers business, I had 400 SKUs inside of Mar stores.
Speaker ASo even today I have a, I say it a really, it's a habit I can't break.
Speaker AMy wife's laughs.
Speaker AThe minute we come through the door, I exit her.
Speaker AI start walking around the whole store.
Speaker AIf I see something that isn't even my product and it's not doesn't look right on the shelf, I have to stop and fix it.
Speaker AIt's a disease.
Speaker BI think that's ocd, which I also relate.
Speaker AYeah.
Speaker ABut that disease led me to.
Speaker AAnd there's a quick story, led me to meet Sam Walton through Fred Meyer in one of Fred's stores.
Speaker AI was cleaning up a honey aisle, a jar.
Speaker ANow they're all in plastic, fell and broken.
Speaker AIt's all over the shelves.
Speaker ANot my product.
Speaker BAnd are you an employee of Meijer at this time?
Speaker ANo, I'm a broker inside of his store on my hands and knees.
Speaker AAnd so Fred comes around the corner and says, sees me and says, what are you doing?
Speaker ASo I'm cleaning it up.
Speaker AHoney goes, well, that your product said, no, it's not my product, but look what it's done to the shelf.
Speaker ASo I already had a bucket of hot water and I was going to go clean that.
Speaker AHe grabs the bucket, is who Fred was.
Speaker AHe goes back, I'll take care of that.
Speaker AYou keep cleaning this.
Speaker AHe comes back with a fresh bucket of hot water.
Speaker ANow we're finishing, got it all cleaned up, dried off.
Speaker AAnd I'm having to do all the bottles myself because they also are all sticky.
Speaker AAnd I'm putting them back on the shelf.
Speaker AAnd around the corner comes a guy that I recognize right away.
Speaker ASam Walden.
Speaker AFred, I'll never forget it.
Speaker AAs calm as could be.
Speaker AHe goes, hey, Tom, have you ever met Fred Walton?
Speaker AAnd I'm like, no, Fred, how the hell would I.
Speaker ASam Walden.
Speaker AOkay, what are you doing to me?
Speaker ASo this gets crazy.
Speaker AHe asked me for my business card.
Speaker AI didn't call on Walmart for another seven years.
Speaker BWell, hold on, Tom, please tell me is because the initial buyer told you no, you want to go above him.
Speaker BPlease tell me that's not the case.
Speaker AYeah, no, I didn't go above him.
Speaker ASo this is when you say, did I go, no, I did not.
Speaker AWhat happened was he kept the car.
Speaker AAnd she says, there's somebody wants to come down and say hello to you.
Speaker AI'm like, I don't know anybody here.
Speaker AAnd she goes, well, you're about to know somebody in front.
Speaker AOr Sam walks through the door, says, hey, is this you?
Speaker AAnd you're with a different company now, but this is you, right?
Speaker AI said, it is.
Speaker BWhen's this?
Speaker AThis is 1995 maybe.
Speaker BAnd are you in Muskegon?
Speaker AYeah, yeah, it might have been in early 1990.
Speaker AIt might have been 91 or something.
Speaker ASo he comes in and he says.
Speaker AI said, well, how do you.
Speaker AWhat?
Speaker AHow do you keep the card?
Speaker AHe goes, anyone that Fred Meyer introduces me to.
Speaker AAnd I asked for a business card, which you gave me, which nobody carries those anymore either.
Speaker AI put them in a special file and I track if that.
Speaker AMy systems track if that person comes into my building.
Speaker AAnd since I was introduced to you by Fred Meyer, I'm down here to have a 15 minute conversation with you.
Speaker AWhat would you like to ask me?
Speaker AI'm like.
Speaker AI literally was like, what the hell's going on?
Speaker ASo we go out in to get a coffee.
Speaker AI don't drink it, you know, I get A tea and turned into an hour conversation.
Speaker AAnd it was fascinating to listen to him.
Speaker AAnd I never kind of lost the connection between him and Fred.
Speaker ASo Fred built this huge Frederick Meyer Gardens, which are top five in the nation here in Grand Rapids.
Speaker AI also donated quite a bit of money that rightfully so.
Speaker AAnd Sam's there.
Speaker AFred says, hey, do you remember meetings?
Speaker AAnd Sam goes, yeah, I do remember this kid.
Speaker AAnd my wife's standing there.
Speaker AMy wife happens to be way.
Speaker AI'm way overchecked immediately.
Speaker AHe just wants to talk to her.
Speaker AAnd that's okay, too.
Speaker BWhy not?
Speaker AIf you're out and about and you're in buildings, you meet people.
Speaker AOkay.
Speaker ACovid took that away, and now we're getting back to it.
Speaker AAnd by the way, there's also a major shift from the manufacturers were making the rules during COVID We're back to the retailers making the rules, and it's okay.
Speaker AWe just need the right blend.
Speaker AI think we've learned from each other during that process that we need each other.
Speaker ASo it's really important that we not argue anymore, I.
Speaker AE.
Speaker ATo be the lead dog.
Speaker AWhat's best for both of us, I think, is where we're landing.
Speaker AAnd it's.
Speaker AI think it's a big deal.
Speaker AI've not seen it this cooperative.
Speaker BAbsolutely.
Speaker BI think collaboration is something that's been missing in our industry as a whole, you know, for decades.
Speaker BI.
Speaker BI think I don't even know if it's really ever existed.
Speaker BI think we do start to see it now, especially with the.
Speaker BThe massive, you know, issues around fraud and.
Speaker BAnd theft and double brokering.
Speaker BBut, you know, the government.
Speaker BGovernment's not willing to do anything about it.
Speaker BWe have to collaborate as an industry to go and combat that and push for change, because, I mean, it's ruining relationships that are, you know, built over decades because you have these fraudulent actors infiltrating the industry and then, you know, just wreaking hell.
Speaker BAren't anything ever in.
Speaker AYeah, it's, you know, I think one of the notes you have in here, the AI thing, we've been.
Speaker AWe starting to fuss around with it.
Speaker AIt was going to be outside of my window, but I have a rule that I go in every day, twice a day, and go into it and.
Speaker AAnd test it to see what I learned.
Speaker AI'm fascinated by it.
Speaker AOkay.
Speaker AI'm also afraid of it in both measures.
Speaker AOkay.
Speaker AAnd I don't know what that could do to this industry as far as the direct communication.
Speaker AThe.
Speaker AIn your case, you know, we know when I get to some of your transportation things because you asked some good questions.
Speaker AAnd I know we're running out a bit of time.
Speaker AI've got a pretty hard stop at about 10:05.
Speaker ABut constant communication was critical to us during COVID from our transportation team.
Speaker AThe critical relationships that we had there turned into the same relationships that we had with our buyers.
Speaker AAnd the.
Speaker AWe left one of our clients.
Speaker AIt was in Silver Lake, in Spring Lake, down by Muskegon.
Speaker AAnd went with a larger one.
Speaker ADidn't really work.
Speaker ASo we went back.
Speaker AWe.
Speaker AWe made a mistake.
Speaker AWe admitted it.
Speaker AI'm good at that too.
Speaker AIf I made a mistake and it turns out bad, I don't have a problem saying I made a mistake.
Speaker AI'll change that mistake.
Speaker AAnd we became a lot more.
Speaker ABecame better communicators with each other about what we needed to know.
Speaker ASo I know that not every truck's going to arrive on time.
Speaker AIt's impossible.
Speaker AYou've been at docs me go out to a Meyer dock.
Speaker AIt's insane what's going on.
Speaker AOkay.
Speaker AAnd we need though people that let us know.
Speaker AAs long as we know prior to the client having to call me.
Speaker AI'm good.
Speaker AIf you're going to be late, you're going to be late.
Speaker AFine, I'll call and tell them.
Speaker AI'll tell the buyer.
Speaker AI'll tell the guys at the doc, depending who I'm talking to.
Speaker AAll we really need is the truth.
Speaker AOkay.
Speaker ASo what I don't like is hey, we're an hour away and it's 12 hours away.
Speaker AJust tell me the truth.
Speaker ABecause if I go tell them an hour and it's 12 and it doesn't look good for either of us.
Speaker BSo deliver issues over the phone.
Speaker AYep, it's.
Speaker AIt just gotta manage it.
Speaker ABut.
Speaker AAnd none of it is anyone's actual fault.
Speaker AI mean think about the snowstorms we get and then we get in hurricanes.
Speaker AI mean when that stuff goes on down in Florida, it's a 15 to 20 day window to even get close to back to normal.
Speaker AWe know the pain that is on the other side.
Speaker AWe would never have tried to take on transportation on our own.
Speaker AIt would.
Speaker AWe'd have failed in every way.
Speaker ASo that partner is critical to the relationship with our retailers.
Speaker AAnd once you find one that's good, it's hard to get pulled away.
Speaker ALike when we talked, it's like, yeah, I like you guys, but nothing's going wrong over here.
Speaker ABut you were always on a short list of if it did I enjoy.
Speaker AYou know, these guys sound like they got their act together, but it's.
Speaker AYou got, you had so many guys out there running around with like two or three reefer trucks that played themselves as big, but the minute our bandwidth hit it, the ceiling it.
Speaker AThey got run over.
Speaker AAnd then I'm out looking for somebody because he didn't tell me the truth about how many trucks he really had.
Speaker AOkay, so the.
Speaker AThat is, you know, when I talk about chasing money, you guys get hit with more fines at a doc that are typically, it's 50, 50.
Speaker AThey certainly aren't all your fault.
Speaker AYet sadly, the retailer many times lands it on your lap and then it has to be a conversation with us and it's.
Speaker AYou're stuck in the middle and it always seems to land incorrectly or inappropriately on your drivers.
Speaker AI've never thought it was a fair process.
Speaker AUltimately, either you or I pay for it.
Speaker AClient does.
Speaker AOkay, I don't have any of those clients anymore.
Speaker AWe, as far as who don't pay us on time, the agreed upon price.
Speaker AAnd it's critical.
Speaker AThe agreed upon timeline is no big deal anymore because you got enough cash flow.
Speaker ABut it's really critical that we know the whole process because in that there's by perfect example, if I send an email on this, there's 30 other emails trying to vet this.
Speaker AAnd by the time I'm at email 12, I'm lost.
Speaker AI don't know what we're talking about anymore.
Speaker AOkay.
Speaker ASo yeah, you, you make the world run all right.
Speaker AAnd the good ones need to be and are allowed to be highly successful.
Speaker AYou have multiple companies that we do business with that are highly successful.
Speaker AWe should be allowed to be highly successful as well.
Speaker AAnd you should be allowed to be as highly successful as well.
Speaker AThe more efficient that we become, the smarter that we become.
Speaker AThat's really where we made our extra money.
Speaker AWe didn't go out and take price increases.
Speaker AWe went out and became more efficient.
Speaker AThat's the same world you're living.
Speaker BWell, I think, I think it goes back to your dad's advice.
Speaker BYou're growing up just because, you know, just because one detail or one retailer is nickel and diming and creating a separate revenue stream on, on late fees and fines and otif you name it doesn't mean it's right for every retailer to do that.
Speaker BYou know, be that, you know, Kohl's, you know, being that standalone shipper who's doing things the right way with integrity, investing in people and relationships, you know, that pays dividends when, when, you know, situations like Covid happen.
Speaker BWhere these massive disruptors in the industry or, you know, the market tightens.
Speaker BI'm sure your.
Speaker BYour transportation partners aren't going anywhere and they're probably honoring their price, pricing or you're at least having conversation with it because they're willing to run through a wall because you guys treated them with respect and as a partner when.
Speaker BWhen things were easy and when things are tough.
Speaker BSo big change.
Speaker BYou got 24 hours.
Speaker BI know this.
Speaker BBerlani acquires Kohl's.
Speaker AWhat?
Speaker BWhat you.
Speaker BYou, you tell us.
Speaker BI know some details, but yeah, I've sold companies before.
Speaker ANothing like this.
Speaker AHad a very great team from KMPG that did the managing the process for us.
Speaker AI met some very, very, very bright people, two of which I've stayed connected to and will stay connected to.
Speaker AThe Scott decided he wanted to sell the business.
Speaker ATook over a year, had two or three suitors.
Speaker AIt came down to actually a separate private equity group.
Speaker AAnd I can say this since It's Public Knowledge E2P out of Chicago had already already owned Fulani.
Speaker AI say it wrong.
Speaker AEvery time I say it, they say it different.
Speaker AI tease them and call them fur boys.
Speaker AIt's easier.
Speaker AThey're good guy for listeners.
Speaker AReal quick.
Speaker BFerlani is what, Canadian based.
Speaker AA competitor out of Canada that also has a facility now in Milwaukee, Oak Creek, which used to be the Campioni company.
Speaker ASo E2P, who bought it with them, they are also highly successful company.
Speaker AThe care of things a little bit tricky on us.
Speaker ANot right now.
Speaker AIt's gone a little quiet.
Speaker ASo we're in pretty good shape there.
Speaker AThe they bought us officially.
Speaker AWe were purchased January 15th.
Speaker ASomewhere between January 15th and 20th, at least.
Speaker AThat's when the money hit the bank.
Speaker AOkay.
Speaker BThat's when it's official.
Speaker AI feel like that's when it's official, because you do.
Speaker AYou do sweat that last three or four days.
Speaker ASo they're very reputable client.
Speaker AThey have inventory.
Speaker AThey have product in the United States, along the East Coast.
Speaker AThey're in Toronto or Mississauga.
Speaker AMake a great product.
Speaker AThey control a lot of the private label that we didn't want in the East.
Speaker AWe never could get in because they were good at what they did.
Speaker AThey're also heavily involved in food service.
Speaker AThe some of the original family members of Fulani are still there and operating this merger right now.
Speaker AOur plan, we make a really high quality breadstick in North Liberty, Iowa.
Speaker AThey wanted that plant badly and the Muskegon plant came along with it.
Speaker ASo it just took time.
Speaker AI mean, you're on and you're off.
Speaker AYou're on, you're off.
Speaker AAnd sometimes it can get a little petty and not necessarily on both sides, but you start arguing over a million dollars.
Speaker AI found that to be ridiculous.
Speaker AUm, we, we paid the attorneys that much more money in the pissing match.
Speaker ADoesn't make sense.
Speaker AAnd the deal went down.
Speaker AI was transitioned for six months, four months.
Speaker APretty busy with what they needed from me last eight weeks.
Speaker ALike I mentioned, not much.
Speaker AI see that as being a highly, highly successful business.
Speaker AThe only people they compete against now are Pembridge Farm and in New York, also very good operators.
Speaker AIt allowed Scott Devin to do what he wanted to do with the revenue that he received.
Speaker AAnd I've never heard him so calm and happy on the phone as my last two or three conversations.
Speaker ASo a lot of stress builds up during this time frame and all of a sudden it's done.
Speaker AAnd it does take a while, but there is a physical response to your body, which I didn't see coming.
Speaker AA good one.
Speaker AOkay.
Speaker AWhere the worst thing I had to worry about this week was whether or not it was going to rain so I could stain my deck.
Speaker AThat's not a big deal.
Speaker ASo, yeah, the logistics of the United States, which we all know is very well done, has driven all the additional efficiencies.
Speaker AI mean, think about.
Speaker AI think about where we were 40 years ago, where I wrote an order by hand, I would fax it.
Speaker AI remember my first phone came in a pouch that was strapped to my shoulder.
Speaker AAnd the minute I was actually able to put it into my car, I found an additional three hours a day driving back and forth to Myers Barnstorms and became more and more efficient.
Speaker AAnd this little bad boy is the best invention in the world that makes one.
Speaker AThat thing makes money.
Speaker BIt's a cell phone.
Speaker BHe's referring to if.
Speaker BIf you're not watching.
Speaker AMy other advice to young people, if you ever become afraid of picking up a phone because you think it's a client that's mad you made the wrong decision, pick it up, take the hit, solve the problem, move on.
Speaker ADo not hide from clients.
Speaker AThey'll hang you.
Speaker BWell, they'll find someone that doesn't lie and someone that does have those tough conversations.
Speaker ASo just got to do it.
Speaker ASo that's kind of the.
Speaker AThe process.
Speaker AI'm.
Speaker AI think this is going to be very good for Kohl's.
Speaker AThey have a lot of money to invest into the facilities and make them more efficient.
Speaker AWe weren't.
Speaker AYou get to a certain point where we need another 50 million.
Speaker AAnd now that comes.
Speaker AThat lands on Scott Devon.
Speaker AOkay.
Speaker AAnd that's a big number.
Speaker AAll right.
Speaker AWhen you can exit it and not have to deal with it anymore.
Speaker ASo I tell them all the time, God bless you.
Speaker AYou worked your ass off for 35, 40 years, and you're dead.
Speaker AYou.
Speaker AYou brought your father's legacy to the forefront.
Speaker AYou did your job.
Speaker AYeah, I mean, that's really.
Speaker AThis is a simple business.
Speaker AI do not complicate this.
Speaker AI have a lot of smart people around me that help me with the.
Speaker AI don't want to do.
Speaker BThat's the name of the game right there around yourself.
Speaker BBut no, Tom, seriously, this is.
Speaker BThis is incredible.
Speaker BYou know, huge congratulations on the sale of.
Speaker BOf Kohl's.
Speaker BI know you've.
Speaker BYou've, you know, done wonders for the company as a whole, and you've dropped some serious knowledge bombs throughout.
Speaker BI could.
Speaker BI could talk to you for.
Speaker BFor three hours.
Speaker BI know you need to go, but you mentioned legacy.
Speaker BLast question I have for you.
Speaker BWhat do you want Tom Quinn's legacy to be?
Speaker AI don't even know what a legacy actually is.
Speaker AI mean, I.
Speaker AI look at guys like Al Kaline, the guys I watched growing up in the success.
Speaker AAll I simply did was my job.
Speaker AAnd I got.
Speaker AI caught breaks along the way with people who helped me.
Speaker AAnd I've done the same thing in my career.
Speaker AThe number of cards and letters that I have received from people in the organization thanking them for my mentorship and being open, that's my.
Speaker AThat's the thing I'm most proud of, that the people that I worked with found credibility in my knowledge, executed it made it better.
Speaker AAll I really did was keep.
Speaker AI said it before.
Speaker AAll I did is keep my head down.
Speaker AOkay.
Speaker AI don't let things distract me.
Speaker AI don't have time for it.
Speaker AI don't get into petty conversations.
Speaker ASo my legacy is that I helped others the way others helped me, and that's what I'm most happy about.
Speaker AAnd that's the fact that they qualified it with a written note.
Speaker AAlso something people don't do anymore.
Speaker AHandwritten.
Speaker AOkay.
Speaker BI got.
Speaker BI got you one of those.
Speaker BYeah.
Speaker AYes, you did.
Speaker ASo that's a big deal, too.
Speaker ASo, yeah, no real legacy.
Speaker ANow it turns into protection of the family down generationally.
Speaker AAnd to make sure that we don't make any mistakes there.
Speaker AI don't need a lot.
Speaker APretty simple process.
Speaker ASo it's funny, all my friends like, what sports car are you going to buy?
Speaker AI'm not buying a sports car.
Speaker AI've had those in the past.
Speaker AI don't get it.
Speaker AOkay.
Speaker AI just need a car that can get me to.
Speaker AMy dad used to say this, too, and so did Fred Meyer.
Speaker AHe drove Chevrolets.
Speaker AAnd I used to tease him.
Speaker AHe goes, tom, I've never had a car make me any money.
Speaker AIt takes me from a location where I go in and I make money, but it doesn't make me money.
Speaker AOkay, So I drive.
Speaker AI just drive.
Speaker ASimple stuff.
Speaker AOkay, well, travel a lot.
Speaker AI've been lucky enough to.
Speaker AI got a great network of good friends.
Speaker AAnd you're gonna spend a lot more time with them.
Speaker ANo real legacy.
Speaker AI just did my job, and it turned out okay.
Speaker AIt could have turned out wrong.
Speaker AOkay, so you just don't know.
Speaker AA lot of breaks come in at the end of these deals, and it, for a while, looked like it may not happen.
Speaker AAnd then some really smart people in other locations helping do the deal put it together.
Speaker AAnd one of them I'm actually talking to later today and going to go visit him.
Speaker AHe was a big part of it.
Speaker AAnd we brought in a temporary cfo.
Speaker AI should mention him, Rob Heitmeier.
Speaker AIf he had not come in as a consultant in this process, he.
Speaker AWe would not be where we are.
Speaker AAlong with Bob Cronick, those in Scott Devon.
Speaker AThose are the critical pieces to this whole thing.
Speaker AThat's where we're at.
Speaker BWell, Tom, I know you.
Speaker BYou have about 23 hours left until your.
Speaker BYour retirement as president, of course, Quality Foods.
Speaker BI know you're not.
Speaker BYou know, you're.
Speaker BYou're being humble about your legacy, but I think there's Me, plenty of people who have interacted with you myself, include that will sing your praises and be impacted because of you, your presence.
Speaker BBut I can't thank you enough.
Speaker AYou ever want to do it again, we can do it.
Speaker AOn another topic.
Speaker AI like this.
Speaker AThis is fun.