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Low Carb Supermarkets See
by Rich Timlen
As their shoppers shed the pounds, the owners of
supermarkets inspired by the Atkins diet craze are seeing their wallets get
fatter. So far, the new concept, low-carb stores have opened in San Ramon,
Lafayette, Fremont and San Leandro, CA, with another sprouting up in San Jose.
The company that’s growing the quickest is Castus Low Carb Superstores, which is
opening up locations in San Mateo and Pittsburg, CA, while working with
franchisees in more than a half-dozen other cities, including San Francisco.
The Golden State has seen the biggest increase in low carb stores, but there is
an estimated 200 of these concepts nationwide. Shoppers can choose from items
like porkrinds, cheesecake, candy bars and tortilla chips. The prices, however,
won’t be cheap. Cereals can cost up to $9, while pastas can range up to $7.
Throughout the San Francisco Bay area, the growth of these stores can be
credited to the founders of Castus Low Carb Superstores, Paul Chalupsky and Rich
Schott from San Jose. Schott dropped 100 pounds on a low-fat diet, but didn’t
like the results until he switched over the Atkins Diet. A year after he
competed in an ironman triathlon, he convinced Chalupsky to partner with him in
a health store and cafe in San Ramon called Greenbeanz.
While the store hit hard times, the low-carb lifestyle came back into the
mainstream. In October of 2000, their sales increased by five percent when they
dedicated an entire aisle to Atkins and started offering seminars. A little over
a year later, sales jumped a hefty 45 percent and the store went to offering
only low-carb products. The company finally changed its name to Castus Low Carb
Superstores. The success of Castus, along with the success of a slimming
waistline, prompted two of the stores customers to try their hand at opening low
carb supermarkets. Mike Hare, who trimmed off 100 pounds on the diet, opened a
store called Healthy Lifestyles. Now, he displays a pair of his 48-inch waist
pants behind the counter to make a statement to customers about the benefits of
the Atkins craze. Another customer opened an outlet store called Carb Cutters in
San Leandro, CA six months after the opening of Healthy Lifestyles.
Castus, by far the most successful chain in CA, is now offering an initial
franchise fee for $25,000 plus five percent gross income. After costs for
inventory, equipment, tenant improvements and working capital, the cost comes
out between $141,000 and $235,000. Leases are currently being worked on in San
Mateo and Pittsburg, while two franchises have already been sold in Eugene, OR.
The initial term of the franchise is for 10 years, with two five-year renewal
options. Castus is expecting to operate 5,000 franchises eventually, with plans
to manufacture a line of products.
Not only are low-carb stores popping up nationwide, but they’re products are
starting to creep into mainstream supermarkets. Safeway is planning to increase
its low-carb offerings throughout its stores. Even beer companies have jumped on
the bandwagon, with Michelob offering low-carb Ultra beer. Also, Russell Stover,
known for its boxed chocolates, is introducing a line of low-carb candies.
Industry experts expect the expansion of these stores to take off during the
coming year.
For more information, contact Rick Castus, Castus Low Carb Superstores, 9110B
Alcosta Boulevard, Suite 205; 925-560-9675, Fax 925-556-3339; Email:
rick@castus.net; Web site:
www.lowcarbsuperstores.com.
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