Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: https://read.dmtmag.com/i/485350
www.beveragedynamics.com March/April 2015 • Beverage Dynamics 25 [ RETAIL PROFILE ] M ore than 50 years in business, and 159 stores to date: that's where Spec's Wine, Spirits, & Finer Foods stands now. Perhaps the most surprising part about this suc- cessful family business is that only three people are operating at the helm of it. John and Lindy Rydman, along with their daughter, Lisa, oversee the Houston-based superstore chain, which has locations scattered widely across the state of Texas. The Rydmans' approach to business op- erations is relatively simple: there's no master expansion plan in place, yet the company has experienced rapid growth and plans to open at least four additional stores this year. Ultimately, the philosophy behind Spec's is to have a retail pres- ence in areas that make sense, to be the best wine and spirits retailer it can be and to continuously strive for improve- ment in every aspect of its business. Based on the success the company has experienced thus far, that strategy is working out unbelievably well. BUILDING A WINE AND SPIRIT EMPIRE So how exactly does a small family op- eration grow into such a large and profi t- able retail chain? The Spec's legacy stretches back to 1962 when Lindy's parents, Spec and Carolynn Jackson, opened their fi rst small liquor store. Spec had worked for a liquor distributor for nearly a decade before decid- ing to retreat from corporate life and launch into business for himself. The fi rst Spec's establishment was located in Houston, and it was a tiny, 1,000-square-foot store. The business eventually ex- panded, climbing to 26 locations before Spec began closing some of the least profi table stores. He ultimately whittled down the number of locations to seven in 1996, the same year that he passed away. Spec was succeeded in business by his daughter Lindy and her husband, John. Both of the Rydmans had worked in the family busi- ness for years, so the shift in leadership wasn't a huge transition for either of them. They also received support from their daughter, Lisa, who formally joined the company after graduating from college. The Rydman family was interested in growing the business and seeking out new store locations in up-and-coming neighborhoods. Over time, they eventually launched Spec's stores all across the state. Aside from two sets of twin stores that were purchased from the same company, no two Spec's locations are the same. The original location is gone, replaced by a large, 90,000-square- foot warehouse store that serves as the company's headquarters in Houston. Other stores are as small as 2,000 square feet, with wide size ranges in between. In addition to dramatically increasing the total number of stores in operation, the Rydmans also branched out to include new products. While wine, beer, and spirits continued to be the retailer's primary focus, the Rydmans introduced specialty food items and cigars into their product lines. Select locations were equipped with on-site kitch- ens, allowing the stores to offer party trays and catering menus. Ulti- mately, the Rydmans invested in opportunities that their customers were seeking in an attempt to offer better selection and service. "We don't have the same products in each store. Product se- lection is determined by market, store size, and customer requests," John explains. "We try to carry products that people are interested in trying, and we're con- stantly looking for new items to bring in." Many of those products are local. The Rydmans have always strived to support other like-minded small and family-operated businesses. If you browse through the store shelves at Spec's, you'll notice a lot of labels from independent wineries, and you can also purchase specialty food items from small family farms. It's important to the Rydmans to support their community in that way, and also to give relatively unknown businesses a chance to showcase their superior products. "Developing relationships with a lot of wineries and other small companies ultimately improves our business, but it also helps get them exposure," John says. "We want to help people get their good products sold. Family business is what this thing's all about." Such a diverse array of product offerings have distinguished Spec's from the competition. Currently, 11 Spec's locations feature kitchens, and 30 to 40 stores boast large walk-in humidors - al- though all stores sell tobacco products and snacks. Other product selections vary per location and include sandwiches, salsas, pastas, cheeses, caviar and candles. The Rydmans don't publicize profi t data, but report that despite their extensive additional product offerings, wine and liquor sales never dip below 80% of the company's total annual revenue. Texas regulations also allow Spec's to sell their products to select beverage permittees. In addition to their retail business, Spec's also BY MELISSA NIKSIC M A Spec-tacular History How One Family Business Took Texas by Storm