Merger Madness – Local Grocer goes to the Dogs

300px-Hotdog-GTASA-frontContinuing its relentless program of expansion, the Evergreen Safeway is poised to occupy nearly half of Michael’s Hotdogs.

Negotiations between the supermarket giant and local entrepreneur Michael Schweibish have been proceeding quietly since December, and a formal agreement is expected by mid-April. “There are still a few details that need to be hammered out,” said Safeway spokeswoman Dawn Knotts, “but right now it looks like it’s going to happen.”

Determined to increase merchandise capacity but with little room to grow, Knotts said the grocery store will assume control of just under half of Schweibish’s mobile lunch wagon in a unique adaptation of cooperative-lease arrangements that have worked well for other metro-area supermarkets. “The partnership between a Safeway in Golden and Jaime Carrillo’s raspado cart has been mui bueno for everybody.”

The anticipated agreement will allow Schweibish to retain ownership of the familiar bright yellow van while giving Safeway unrestricted use of 10 square feet – about 42 percent – of the available retail space. Though Safeway had originally hoped to purchase the space, corporate negotiators balked when Schweibish tied the sale to proportional contributions to his van insurance. “When our accountants found out he bought his policy without calling Progressive to get free quotes, they totally freaked,” Knotts explained. “We think leasing is our best long-term option.”

Not physically attached to the existing store, the new floor space presents what Knotts calls a “total-service vacuum.”

“Just because the van is parked on the side of the road a hundred yards away doesn’t mean our customers shouldn’t enjoy the highest level of service and convenience.” By combining vision and creativity, Safeway’s retail development team plans to transform its share of the hotdog wagon into a comprehensive shopping unit. “After we install a checkout station, a customer service counter, a CoinStar machine and an ATM, we’ll still have well over 60 square inches of prime display area.” Marketing experts are currently studying high-turnover items with extremely small cross-sections. “Right now, we’re seeing a big potential in Slim Jims or Alligator Pops, but we haven’t ruled out string cheese or a limited selection of baguettes.”

“Of course, Michael insisted on a ‘no-compete’ clause,” Knotts continued. The clause prohibits Safeway from using the van to sell any product that comes in a bun or causes flatulent episodes. As quid pro quo, Schweibish agreed to not rent carpet shampooers after driving his portion of the store home each evening.

A 37-year Kittredge resident, Schweibish is guardedly optimistic about the deal. “I like the idea in principle, but they seem to think this van runs on friendly service and everyday low prices.” In fact, he points out, the vehicle functions on gasoline. “Every time I bring up the issue of kicking in some gas-bones, they change the subject. They’d better know that this one’s non-negotiable.” Another sticking point – use of the large sun-umbrellas stationed around the van – is quickly nearing resolution. “We’ve come up with a workable umbrella-allocation schedule,” Schweibish explained, “based on seasonal solar declination, sunspot activity models, statistical ozone depletion forecasts and the fact that they’re my umbrellas.”

After all the trifling and debate is done, Schweibish expects the new circumstances to be a change for the better. “When Safeway approached me last year,” he said, “it seemed like a good opportunity to change my focus, shake things up a bit.” A mobile hotdog vendor since 1987, Schweibish has tried to satisfy a broad range of lunch patrons by offering standard dogs with a choice of condiments, chili dogs, polish dogs and more, to say nothing of his wide selection of chips and soft drinks. “I was spread too thin. I was forgetting why I got into this business in the first place.”

By surrendering a large part of his workspace to Safeway, Schweibish believes he can rededicate himself to his signature product – the pure-beef, kosher-style frank on a steamed poppy seed bun. “The Chi-Town wurst has always been where my heart is, but, lately, I was just going through the motions. The 42 percent I’m giving to Safeway is 42 percent I can devote to my passion for genuine Chicago dogs” As part of his streamlined vision, he plans to carry only Coke and Diet Coke, and will no longer offer snacks other than plain, salted potato chips. “It’s really about getting back to my roots.”

dog