It was 1980. Miguel González was working at a Garden Grove wire factory and his father was a dishwasher at the Biltmore Hotel when they decided to pool their money and invest in an apartment building. Instead, the real estate agent showed them a grocery store for sale called Northgate Market. The price had been drastically reduced, so Miguel and his father made an offer, and Northgate González Market was born.
Neither Miguel nor his father knew anything about running a grocery store, but today there are 40 Northgate Markets from Culver City to Chula Vista employing 5,500 people. And their success has not been solely monetary. In 2012, Michelle Obama visited their Inglewood market to highlight Northgate’s mission of bringing healthy food to underserved communities.
The beginning, however, was bumpy.
When they closed escrow on that first store, González’s father revealed he had spent a portion of his money on necessary home expenses and was now $7,000 short. Miguel attempted to borrow the money but was unable to get a loan; he was forced to use the money he’d set aside to get the business off the ground. When the store opened, he had a check for only $230.
“The previous owner cashed the check for me,” he explained, “and that’s how I started the business. We had no experience and no money left.”
The lack of funds forced them to keep the original name of the market, but González soon came to see this as a positive. “It was a good name for us because we came from the south and called the U.S. ‘North.’”
Focusing on a niche
González moved to the United States at age 17 from the Mexican state of Jalisco. While working at the wire factory, he bought a small shoe store in Norwalk.
“I called it a Mexican shoe store,” recalled González with a smile. “Because all the shoes were imported from Mexico.” Most of his customers were Latino.
He used the same marketing technique – focusing his attention on the Latino community and importing familiar products – at Northgate Market. The plan was so successful, he was able to open a second grocery store in Anaheim less than two years later.
In 1986, they opened a third Northgate Market in La Habra. Store No. 4 opened in Pico Rivera in 1988, and in 1990 they opened their third Anaheim store, along Harbor Boulevard.
“That was the store that really helped us grow,” said González. “It was very high volume. We got a loan for $200,000 and were able to pay it off in three months because the store was so profitable.”
When the first store opened, customers sought out items they couldn’t find elsewhere: fresh chilis, fresh cheese, carnitas, chicharrons and Mexican cookies. But it wasn’t just the familiar food that drew in Latino customers.
“They wanted to be treated in a different way,” explained González. “Many of them weren’t bilingual. They weren’t understood at Ralphs or Albertsons. Coming to us, we knew what they wanted and we could talk to them.”
González also saw that his customers had a need for services such as check cashing and money transfers.
“Quite a few of our customers worked in the fields and wanted to cash their checks but had no ID. We researched that and leased a space so we could do that. Now we have our own money transfer company. We were trying to provide everything they couldn’t get and a place where they felt at home.”
Today, the company’s focus is shifting.
“Immigration from Mexico is almost zero, so who are our customers?” González said. “They are still second- and third-generation Hispanics and also Anglos who are in love with Mexican food.”
Northgate Market now offers more prepared foods, such as marinated pre-cut meats for customers who don’t know how to prepare it themselves or who don’t have the time.
Northgate has been a family business since its inception. González, age 64, is the third oldest of 13 siblings. He is co-president of Northgate, sharing the title with his youngest brother, Oscar, 44. Currently, 12 of the 13 siblings work for Northgate, all receiving the same salary, no matter the position. In addition, there are 30 second-generation family members working at the markets and two third-generation: González’s teenage granddaughters.
Health, education and growth
González’s dream is to make Northgate the employer of choice in Southern California. “When people think about where to work, I want them to think of Northgate,” he said.
With this goal in mind, Northgate encourages education, health and growth for its employees. The company has opened clinics in the parking lots of its stores to offer free flu shots, vaccinations, and cancer and diabetic screenings to its employees and the community.
It’s Viva La Salud program has incorporated marketing to highlight healthy options. Colorful bilingual tags now point out healthy foods in the market and explain nutritional content. Events with health in mind are scheduled throughout the year, from cooking classes to help with understanding the Affordable Care Act.
Co-president Oscar González, who is on the board for USC’s Food Industry Management Program, has led the charge to provide educational opportunities to his workforce. Four years ago, he partnered with Cerritos College to offer free English classes and other college courses.
Miguel González said, “We tell our employees that we want to grow and we want to grow with our people, and the only way to be ready for that challenge is if they prepare better. My greatest satisfaction is when I see someone who started as a box person, and now they are a store director.”
Contact the writer: hskyler@ocregister.com
