In Print » July 2010 » Features » Retailer Profile

Seven years after The Meat House opened its first location, the gourmet butcher concept is on track to have 38 locations by year’s end.

The Cary, N.C., location opened earlier this year. Jason Parent, pictured left, and Justin Rosberg, right, have been friends since their little league days. The duo opened their first store in 2003.

Inspired by the neighborhood butcher shop of yesteryear, Founding Partners Justin Rosberg and Jason Parent opened their first store, The Meat House, in Portsmouth, N.H. in 2003. Over the last seven years, the duo has refined their gourmet butcher concept, which is designed to have busy shoppers in and out within 10 minutes, with the fixings for a gourmet meal.

To date, the gourmet butcher shop concept has 11 company-owned stores and a growing number of franchises. Before the end of the year, The Meat House is on track to have 38 locations. About 14 franchises will open from Westlake, Texas, to Brookline, Mass., and in between. Forty franchises are forecasted to open next year.

Rosberg, who is the company’s CEO, said the retail concept’s growth has been “really consumer driven. Almost immediately after we opened in Portsmouth in 2003, we were asked if franchises were available.” Part of the reason, Rosberg explained, is its company stores in Maine and New Hampshire are located in areas frequented by tourists.

Originally the store’s product mix included meats, bread, deli, produce and cheese. “Since then our goal has been to increase the variety of product to increase the customer experience in the store,” Parent said.

A central part of that strategy has been upscaling the product mix. Nowadays, shoppers will find the best-selling marinated steak tips alongside 45-day, dry-aged prime beef, buffalo, alligator and ostrich meats and locally sourced items such as artisan breads, produce and specialty cheeses.

While meat is definitely the focus of The Meat House, the stores also carry a selection of frozen foods including Alexia potatoes and sweet potato fries and a selection of Cascadian Farms certified organic fruits. Other specialty foods include snacks such as a variety of Kettle Foods chips. Plus the stores feature a robust selection of sauces from nationally known specialty food brands such as Stonewall Kitchen, Stubb’s and Soy Vay.

Located in a 3,000- to 4,000-square-foot storefront, The Meat House offers premium meats as well as proprietary marinades, cheeses, produce, artisan breads, prepared side dishes, wines and beer. It’s small enough so that busy shoppers can be in-and-out within 10 minutes. Many of the meats and other specialty foods are sourced locally, noted Rosberg. “What we are selling in Costa Mesa, Calif., is different than what we are selling in York, Maine. A store manager can bring in products that his or her customers are looking for.” Chainwide, The Meat House is seeing increased demand for local and all-natural products, Parent and Rosberg said. “Our customers in every region are looking for locally grown food,” said Parent.

More and more consumers are concerned about the provenance of their food, and are quizzing the staff behind the counter. At The Meat House, all employees go through a five-week butchery training course, and they’re taught the stories behind the food as well. “We educate the staff and customers where everything is from,” Rosberg added. As part of their training, each staff member is trained by The Meat House’s Certified Wine Educator on the subject of wine pairing.

All employees undergo a 5-week butchery training class and are trained in how to pair wines with foods. Picture above are Mike Stremeckus, Meat House Team Member, Derek Wilkins, area developer – North Carolina, and Paul Casey, director of franchise operations. Derek Wilkins, area developer-North Carolina for The Meat House, assists customers with the wine selection. Where permitted, the stores sell up to 1,000 types of wine and microbrewed beers.

To a lesser degree, The Meat House is fielding inquiries for certified organic meats. With the downturn in the economy, Rosberg and Parent have noticed their customers are more frugal.

“The economy has affected people in different ways, depending on their situation. We’ve definitely noted they have traded down to us. Then there are people who are already shopping with us, who have traded down their purchases here in our stores,” said Rosberg.

Some fans of its best-selling marinated steak tips, which sell for $8.99 per pound, have traded down to marinated chicken, which sells for $4.99 per pound, Rosberg explained.

The stores sell USDA Choice prime beef, and the marinated chicken has always been all natural, but “it wasn’t something we’ve called out,” explained Parent. “With more and more customers asking for all-natural and organic meats, the poultry’s all natural status is clearly listed on the signage. Soon, all-natural pork will be added to the meat case.

While it is known for its high-quality meats, The Meat House prides itself on offering “unparalleled customer service and hospitality,” noted Rosberg. And now that it is franchising its concept, selecting the right business partner is key to maintaining consistency. Parent, said the store’s mission is —“to be excellent and consistent and customer-focused in everything we do.”

Franchises
Rosberg and Parent, who opened their first store after working in the restaurant industry, officially launched a franchise development program in February.

Already, The Meat House has territory agreements in place for more than 125 stores in 11 states, with another 100 stores in six other states currently under consideration. As part of its expansion program, The Meat House has committed to owning at least 20 percent of the total number stores.

Within the next year, The Meat House expects demand for its franchise model will catapult the brand’s annual revenue from $18 million to more than $100 million.

The Meat House’s area development program maintains strict qualifications for the selection of partners, and requires multi-unit franchise commitments. Area developers are required to open a minimum of four to eight stores in a period of four years. The company has also entered into several large-scale agreements, for between 12 to 35 stores, with experienced multi-unit operators and groups that have already demonstrated a proven track record in regional franchise development.

“The Meat House is dedicated to maintaining scalable growth with brand integrity and business excellence,” said The Meat House’s chief business development officer Tom Brown. “With that in mind, we will only enter into franchise agreements with completely committed, seasoned entrepreneurs and operators with demonstrated track records of success in restaurant operations or multi-unit franchise development.”

In addition to the store requirements, all area developers are required to carry a minimum financial net worth of $1.5 million and a liquidity of $500,000. The Meat House will offer support through all phases of business operations, including site selection, hiring, product purchasing and marketing.

For more information, visit www.themeathouse.com