Quality Foods humble beginnings were launched with an opportunity to take over an abandoned Super-Valu store in downtown Qualicum Beach. Ken Schley, John Briuolo and Noel Hayward had little money, and a lot of heart. The trio had hand-picked a tiny group of people from their grocery background to help them get started, primarily from their native Kootenay region. Locals were skeptical of this unlikely group that, as one longtime resident recalls, "looked more like rock musicians than business people". With newly cut styrofoam letters announcing Qualicum Foods on the building, and little more than the clothes on their backs, they set to work. Townspeople saw these incredibly hard working people pouring their hearts and souls into something that so far had only moderate success in their community.

"The guys" quickly won the hearts and steadfast loyalty of the townsfolk by providing a level of service far beyond what one would expect of a small town grocery store. They instilled in their people their simple yet powerful belief that every customer should have the best shopping experience possible, from the parking lot on the way in, to the time they unpack their groceries at home. "It wasn’t really rocket science," says Ken. "We had this drive to create something from scratch, make it grow, and make a life in the community at the same time." "We had the attitude that if we had to work like crazy to succeed, Qualicum Beach is the right place to do it."

It wasn’t long before the guys proved themselves to the naysayers, gained some credibility, and steadily became more financially solid with each passing fiscal year. Their business instincts were honed from real-life experience and found they had a flair for knowing what people really wanted, and often things shoppers didn't even know they wanted! When the opportunity to partner with Bruce Robertson of Robertson’s FoodMaster in nearby Parksville presented itself in 1986, the decision seemed straightforward.

And so the first Quality Foods store was born.

There is much colourful history of how these fellows added more stores, overcame obstacles, and grew steadily to their present roster of more than 530 people. They are quick to defer credit, however. "Whatever success we have had so far is because of the people we work with everyday," says Ken. "These people know that although price is important to customers, it’s the service that makes them stick with us over time. These people know how to keep our shoppers coming back, time after time."

"If we are proud of anything, it’s that over 70% of our people have been with us more than five years." One reason for QF’s having possibly the lowest employee turnover rate in the Canadian grocery industry is their social program. Better than average wages and a generous profit-sharing plan are an important part of the package, but QF employees will tell you that the sense of security that comes with being employed at Quality Foods goes beyond monetary rewards. All employees, part-time or otherwise (except students), receive a full benefit and pension package that is the envy of many industries.

The QF group is viewed with admiration and respect by all that come to know them. As one national manufacturer put it, "The QF guys have more heart, better relationships and get better results per capita by far than any other grocer in Canada, hands down. They are a pleasure to do business with, because they do what they say they will, and then some. It’s almost nostalgic that they could conceivably do business on a handshake and their word alone."

It’s that feet-on-the-ground mentality that carries over into all aspects of the business. It's a melding of old-fashioned business ethics and state-of the-art innovation. When it comes to technology, there is a distinct advantage to staying focused on what’s important. "We believe strongly that technology is crucial in today’s competitive marketplace," says Noel Hayward. "As long as we’re driving it, instead of the other way around, and it is used as a tool for innovation rather than a toy, we’ll keep finding ways to keep our shoppers excited about shopping with us."

This attitude comes through in every area of the business, including QualityFoods.com, where shoppers can purchase a full assortment of groceries from a computer anywhere in the world. "Naturally the online shopping is mostly used by our customers regionally, but we have orders come in for relatives from far and wide for friends, relatives and vacationers in the area." Noel adds that QF was the first grocer in Western Canada to offer online shopping back in 1997. They recognized the opportunities of the internet early on, and accurately predicted the strengths and pitfalls of online commerce. "Since the beginning, we have viewed web-based business as an extension of what we are already doing; an added service." As a result, QualityFoods.com has evolved into one of Canada's best example of how retailers can translate their core business to the web. "I would stack our system up against any grocery service out there."

Some other examples of using technology for innovative means can be found where it really counts; at the checkout. QF was the first Canadian grocery company to offer an electronic loyalty program called the Q-Card, and has since been mimicked in some form by nearly every major grocery company. "No one else could do it at the time, and it took them a few years to figure it out for them-selves," smiles Ken.

"Technology must be customer - focused, rather than simply making things easier for us," says Ken. "In fact we continually monitor our internal processes. We add functions that help us take care of our customers, and eliminate unnecessary or redundant steps. By being watchful of the processes and creating efficiency behind the scenes, we free up resources for the important things." The result is an infrastructure that is simultan-eously strong, resilient and flexible.

"By focusing on the right things, we have been able to grow in a purposeful, sustainable way," says Ken.

As Quality Foods grows, they also look for ways to become better citizens in their communities, their industry and even globally. "With our recycling program, over 1.5 million pounds of cardboard stays out of landfills each year," reports Noel. "This puts perspective on how we all can make a difference."

Beverage container recycling is also an important part of every BC grocery store. As a director with the Canadian Federation of Independent grocers (CFIG), Ken Schley was very involved in providing direction to the BC Beverage Container Stewardship Program.

Currently Ken lends his consider-able talents to the national grocery industry, having recently completed his tenure as Chair of the CFIG board. This important role has left many of his peers shaking their heads in amazement at his unorthodox, yet simple and focused approach to everyday matters. "If Ken goes by the book, he just picks out the parts that make good sense. Everything else is a distraction and confining," says one of his industry peers.

Since 1995, the industry has taken more notice of this little powerhouse of a company on Vancouver Island. QF has received dozens of national awards, including Master Merchandiser Platinum, Gold (three times), Independent Grocer of the Year in the Large and Medium store categories for the BC/Yukon and even the coveted National Gold at least three times.

While these awards are important recognition from the industry, John feels the real value lies in the sense of accomplishment for the QF people. "It's a real motivator to everyone when we win a national award," he says.

Aside from his partnership responsibilities, John manages the Qualicum Foods location in Qualicum Beach. It's not the stores original location, as the founding store was completely destroyed by fire on Nov. 11, 2002. "The store was closed in honour of Remembrance Day at the time, so thankfully no one was hurt," says John. "Going through the loss of the store was very, very tough for us partners, mostly because of how it might affect everyone in the store."

"Our first thought was to keep everyone working the same hours as they were before the fire," John says. "We were happy to have accomplished that."

"Our other concern was with the residents of Qualicum Beach. We had the only major grocery store in town, and most of our customers are elderly," says John. "They were very upset, and on top of it a trip to the store is a social outing for many people." So the company provided a free shuttle several times per day to the QF store in Parksville until a temporary store was created in a former lumberyard building. Additionally, they ramped up their internet shopping service with expanded delivery hours and no-fee shopping.

For their outstanding efforts in the face of adversity, Qualicum Foods received the Better Business Bureau Torch Award, and the Business of the Year from the local Chamber of Commerce.

In fact QF has been awarded Business of the Year at least once in each community. The partners, store managers, and people in the stores are especially proud when they receive these local awards and customer service awards because they come from the people whose opinion counts the most; their neighbours, coworkers, friends and families.

Despite adverse market conditions and intense competition, Quality Foods has posted double-digit growth for each of their first twenty years. This is not by accident; it's the result of more hard work and persistence than most people can imagine. As Ken humbly states, "If we've been fortunate enough to hit home runs, it's likely because we swung the bat about a zillion times. The odds are in our favour that some of them will connect."

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