Cubi Market Aims to Unlock Success in Curated Goods Pickup

West Michigan business adds indoor artisanal food and farmers' market shortly after opening stations with lockers

12/23/2021

Cubi Market, with two locations in West Michigan, is carving a niche for itself with locally produced goods that can be picked up in lockers.

Some enterprising food and technology pros in West Michigan are betting on a new channel in food retailing – or at least a new station. The team at Cubi Market, in Grand Rapids and Holland, Mich., opened pickup stations for locally produced foods and beverages in 2020, and added in-store markets in 2021.

The original concept behind Cubi Market was to offer pickup “cubbies” for online orders of foods produced by local farmers, growers, and artisanal food and drink makers in West Michigan, an agriculturally rich area of the state. “Cubi was born out of a few different things. We were looking at different ideas around a passion for small local food producers,” recalled Garrick Pohl, executive director. “We realized that they are pretty savvy marketers and optimized as small producers, and we decided that if we focused on sales and distribution for them, we could level the playing field with the same technologies that the big retailers have.”

Investing in temperature-regulated locker units that can be digitally unlocked by shoppers using their smartphones, Pohl and his team at Cubi Market opened “stations” in strategically located parts of Grand Rapids and Holland. “The model is curbside pickup but highly distributed throughout the community,” explained Pohl, whose background in logistics and technology includes work for Instacart in New York.

While convenience is provided through online ordering and on-site pickup, the startup differentiates itself with a curated assortment of items typically found at farmers’ markets. Pohl brought in longtime chef Paul Mixa as the culinary director, based on Mixa’s track record of building relationships with providers of locally sourced goods. “We work against two axes – one is convenience and one is curation. What Paul focuses on is knowing the merchants for curation,” said Pohl.

Mixa works with nearly 50 merchants within a 30- to 40-mile radius. “When I go out and visit some of the producers and farms, I look at their farming practices, get to know the producers and taste all of the products. We’re able to truly speak to the products we carry,” he said.

As Mixa helps local merchants expand their distribution beyond highly seasonal farmers’ markets that are a different kind of event-based experience, he seeks to offer a range of items throughout the year, from an artisanal Worcestershire sauce made from a food entrepreneur located next door to the Cubi Market location in Holland to larger legacy farms, meat processors and dairies in the area that have a loyal following. The market also offers ingredient meal kits from local restaurants and household and personal care items, among other goods.

Following the opening of the two pickup stations in Grand Rapids and Holland, Pohl and Mixa realized that there was an opportunity for a brick-and-mortar presence, too. Flipping the traditional model of adding curbside service to complement in-store shopping experiences, the Cubi marketplace was added after the locker stations were in place. “The store opening was a major investment at a time when we were like, ‘Can we afford to do both as a startup?’ but the store has brought in more customers that we may not have gotten initially online. There’s a whole base of people who are happy to come in the store, learn more about products and interact with us,” noted Pohl.

He added that the model, which combines locally produced items, convenient pickup and a small boutique-style marketplace, meets different and often simultaneous needs. “The variables all come together. When I go to our Grand Rapids station, for example, I might walk in to grab lunch, but I’m also learning something when I go there, and there might be vendors I can talk to. I may also start buying things for my grocery needs later in the week. Before I know it, I’ve purchased for three or four reasons,” he pointed out. “And I think we will see more of that.”

Added Mixa: “It saves time, too. It could take hours of time looking at labels to see how things are produced. We are able to take that time and give it back to you.”

As for the future of grocery, Pohl weighed in on the growing fusion of technology and local curation. “I think retail will be a lot more ambient in the future because of technology. Will people thinking about it in [grocery shopping] in the same transactional way?” he mused.

Mixa and Pohl recognize their part in a diversified omnichannel marketplace “Our goal is to put ourselves at different intersection points of the consumer. Maybe it’s where they work or spend free time,” said Pohl.

As the group plans to scale up for the future, envisioning more stations located near work and school campuses and neighborhoods, Pohl said that today’s more discerning consumers can help propel growth based on their needs and interests. “It’s not so much that we are on par with big-box stores – although there are some things that are more cost-effective here – but our shoppers think, “'If I am paying more anyway, why not pay for what comes local?'”