Reser’s Fine Foods: From Potato Salad to a $2 Billion Empire
From humble beginnings selling potato salad to pay the bills,Reser’s Fine Foods has grown into a North American powerhouse. This is the story of a family business that mastered seasonal challenges, embraced innovation, and stayed true to its roots.
The Foundation: Mildred’s Kitchen
In 1950, Mildred Reser, a resourceful entrepreneur in rural Cornelius, Oregon, began selling her perfected potato salad recipe. This venture, initially named Mrs. Reser’s Salads, supplied local meat markets and eventually secured distribution in Safeway stores. Mildred’s creation wasn’t just a recipe; it was the cornerstone of a burgeoning enterprise.
Did You Know?
Mildred Reser’s original potato salad recipe is still a closely guarded secret, passed down through generations of the Reser family.
Transition and Expansion: Al Reser’s Vision
In 1960, Mildred’s son, Al reser, took the helm as president, transforming the company into Reser’s Fine Foods. Al recognized the need for a larger facility but lacked the necessary capital. His solution? Taking the company public, raising just over $200,000, which was instrumental in opening Reser’s 55,000-square-foot Beaverton facility in 1978.
Al also strategically diversified the product line to combat seasonal sales fluctuations. Potato salad, primarily a summer staple in the Pacific Northwest, needed complementary products to ensure year-round revenue. Sausages, tortillas, and other items were added to the Reser’s portfolio.
Pro Tip:
Diversifying your product line can definitely help mitigate the impact of seasonal sales slowdowns. Identify products that complement your core offerings and appeal to customers year-round.
Taking the Company Private Again
In 1986, al made a pivotal decision to take Reser’s private again, preventing an outside investor from gaining control. This move demonstrated the family’s commitment to maintaining their vision and values.
“[We] actually received some loans from customers, vendors, employees [and] a lot of family members to make that move,”
Mark Reser, Al’s son and the current CEO of reser’s Fine Foods
Mark Reser emphasized the strategic importance of this decision, noting that while the company was smaller at the time, it was a crucial step for long-term control and direction.
Mark Reser: From Truck Routes to CEO
Mark Reser, Al’s son, embodies the hands-on approach that defines Reser’s Fine Foods. He began working in the factory at a young age, gaining invaluable experience in all aspects of the business. His accounting degree provided a solid foundation for understanding the company’s financials.
After graduation, Mark spent two years driving a truck route for the company’s direct store delivery. This experience allowed him to connect directly with customers and gain a deep understanding of the product line.
I had my own little route,and [it was a] great way to learn the whole product line,to have that experience,the interaction with the customers.
Mark Reser, CEO of Reser’s Fine Foods
in 1990, Mark relocated to Corona, California, to manage a newly acquired company, and later led a larger operation in Topeka, Kansas. He returned to Oregon in 1998 as COO and became president in 2006.
Navigating Challenges and Sustaining Growth
Today, Reser’s Fine Foods boasts over 5,000 employees across North America and generates more than $2 billion in annual revenue. The company has experienced double-digit sales growth in each of the past five years.
Despite its success, Reser’s faces ongoing challenges, including commodity issues and labor shortages. Preparing for peak seasons, notably the period from Memorial Day through the fourth of July, remains a critical strategy.
We always stress that the 4th of July always comes on the 4th of July. It’s all about the planning up front. We did planning in the earlier years, but not as much as we’re doing today.
Mark Reser, CEO of Reser’s Fine Foods
innovation and Expansion
Reser’s continues to innovate to drive year-round sales.hot side dishes, popular during the fall and winter months, have become a key component of their strategy. The company’s product line now includes Main St Bistro,Stonemill Kitchens,Reser’s Foodservice,Fresh Creative Foods,St Clair Foods,Baja Café,and Don Pancho.
The Mexican food category, in particular, provides sales stability throughout the year.
The Strength of a Family Business
According to Mark Reser, the company’s success as a family business is rooted in shared goals and a unified vision for leadership and growth.
Our family’s aligned, and that’s so critical.They’re aligned on reinvestment, they’re aligned on the next generation, taking the business even further, and they’re aligned on the drive to continue to grow the business.
Mark Reser, CEO of Reser’s Fine Foods
mark’s nephew and oldest son are currently involved in the business, and he hopes to see more family members join in the future.
There’s a lot of learning that they have to do, but we do feel we’ve got some great, strong leaders coming up within the ranks, taking the business further. We want [Reser’s Fine Foods] to become a bigger part of the meal.
Mark Reser, CEO of Reser’s Fine Foods
Looking Ahead
Reser’s sees opportunities for growth in meal kit bundling, convenience stores, and snack-sized options. The company launches approximately 300 new items each year, many of which are custom-made for restaurant chains or private labels.
Mark reser emphasizes the importance of continuous innovation and avoiding complacency.
Don’t forget who pays the bills – it’s the customers. And don’t forget who does the heavy lifting. That’s your employees.Make sure you’re having fun and enjoying yourself. If you’re not, you’re in the wrong spot.
Mark Reser, CEO of Reser’s Fine Foods