For ten years, living in our first house, Market Basket was the only convenient supermarket. It’s a local, family-owned chain with the slogan “More For Your Dollar.” The way the store manager pronounced it, with his Boston accent, made it sound like the title of this post.
Although Market Basket’s prices are lower than elsewhere, we had some complaints, including consistently stale and sometimes spoiled food. Over the 15+ years since we moved, the chain has expanded and, we have been told, improved, especially since Arthur T. Demoulas became CEO in 2008. That must be true, because Consumer Reports now places Market Basket sixth in its supermarket ratings.
After decades of one faction of the family battling the other for control of the Market Basket chain, they have finally succeeded, and the non-union, multi-billion dollar business instantly began to fall apart. Why? Because the unprecedented thing about this crisis is that the employees, managers and hourly workers alike, are protesting for the return of the former CEO. Here’s some background from PRI’s The World, a radio show produced in Boston by WGBH.
The Market Basket in Somerville that’s featured in the story is where my friend Morris shops, or shopped, and having the place essentially shut down is big inconvenience for him.
The Arthur S. side of the family, now in control, is killing the golden goose — the goose that Artie T. made possible through his excellent management. This situation can’t go on for much longer, and whatever the outcome, it is destined to become a case study in every business school. If Arthur S., and the board of directors he controls, have any sense at all, they will accept Artie T’s offer to buy them out.
My hope is that Warren Buffett is going to step in and give Arthur T. the leverage he needs to push his cousin out the door.