Business
How second-generation owners of 99 Ranch are turning the Asian supermarket into a national powerhouse
For many Asian Americans across California, 99 Ranch is much more than just a grocery store. It’s a pilgrimage. When I was a child growing up in the San Fernando Valley in the 1990s, my Taiwanese parents would drive over an hour east to the San Gabriel Valley every single weekend just to shop at 99 Ranch.
They’d load up on squirming live shrimp, jadeite bundles of water spinach and fat, oblong lotus roots. For them, it was a refuge where they could indulge in the flavors of their native Taiwan. While there were plenty of Asian supermarkets to choose from in the ’90s, we always went to 99 Ranch because they had the largest and best selection of goods. Right before we hit the cashier, my brother and I would each get a singular pick of something sweet. I’d go for a Taiwanese-style flan. My brother liked the chocolate-filled koala-shaped cookies from Japan.
“I loved the White Rabbit candy,” says Jonson Chen, citing a sweet milk candy from Shanghai. Mustached with slicked-back hair, Chen is the chairman of 99 Ranch Market. I meet him and his sister, Alice Chen, the company’s chief executive, inside their newest store location in Eastvale, a 50,000-square-foot compound including a warehouse and a food hall that is set to open next month. The Chen siblings represent a new generation of leadership at the nearly 40-year-old grocery chain, helming its expansion across the United States.
The first 99 Ranch was opened in 1984 in Westminster by Jonson and Alice’s father, Roger Chen, a Taiwanese immigrant from the western city of Taichung. Headquartered in Buena Park with 58 stores in 11 states, it is now one of the largest Asian supermarket chains in America. While pan-Asian in its offerings, the company caters heavily to ethnically Chinese communities, whose preferences and cultural habits have shaped what they stock in their stores. The “ranch” in 99 Ranch means freshness (“as if straight from a ranch,” Alice says) and the “99,” in Mandarin Chinese pronounced jiu jiu, is a homophone for longevity. “The double meaning is 99%. It’s almost perfect, but not quite,” Alice, fresh-faced with a pristine white blouse, says. “We’re always trying to be better. It’s very Asian. No one is 100%.”
Like many children of the Chinese-speaking diaspora in California, Alice and Jonson grew up with fond memories of the grocery chain. But unlike the rest of us, they had a front-row seat. The siblings spent many weekends ensconced behind the customer service counter at the store “bored out of our minds,” Jonson jokes. But he still remembers with fondness the retrofitted pickup trucks with steel tanks that pulled up to his parents’ grocery stores in the early morning.
“You’d look inside and it would be dark. But it was full of catfish,” Jonson tells me. Back then, workers would drag the fish out with nets, plop them into a trash can, and wheel the trash can into the store, where the fish would be deposited into bubbling, iridescent fish tanks for customers to pick and choose from.
Live fish tanks are a distinct feature of Asian grocery stores — a guarantee of freshness and a prerequisite for many families who immigrated from countries where wet markets are staples. “There are hundreds of varieties of fish, but it was a matter of figuring out what was available live and what people wanted to see,” Jonson says.
On the logistics end, the company had to figure out a lot from scratch: how to transport live fish into the store, import food from Asia, and create a network of farms that could grow hard-to-find vegetables like water spinach and bitter melon that their consumers wanted and craved. “Initially it was just [Roger] calling up like random suppliers in Taiwan asking if they would ship to America,” Alice says.
They eventually figured it out: Today, most of the grocery chain’s produce is grown on specialty farms across the United States and Mexico. They have a network of over 7,000 employees — 82% of them bilingual — and a team of buyers keeping close tabs on what people are craving. These days, those trends include Filipino ingredients, skewers and spicy, tongue-numbing Sichuan flavors. “We are a part of the Asian community. We hire from the community. The customers are also the workers,” Jonson tells me.
Now, 99 Ranch was not the first Asian grocery store in Southern California. In the late ’70s, there were already a few in the San Gabriel Valley. But the chain stood out because of its expansion strategy. “They did their market research to determine where there were communities needing to be served,” says David R. Chan, a Los Angeles food blogger and retired tax lawyer who has eaten at thousands of Chinese restaurants in America since the 1950s.
The company’s third location at a Rowland Heights shopping plaza on Nogales Street, which opened in 1989, marked a turning point for the brand. Chan, who visited the supermarket when it first opened and in subsequent years, remembers a progressive increase of Chinese restaurants that popped up in the plaza and the surrounding neighborhood after the grocery store’s opening.
“Chen had a broader real estate vision to develop Asian shopping centers anchored by a supermarket, as opposed to merely operating a supermarket and perhaps adding additional locations,” Chan says. The eighth (though technically the seventh because they don’t count No. 4 — an unlucky number in Chinese culture) location in a former drive-in movie theater in San Gabriel, opened in 1991, became another anchor and is arguably the chain’s most iconic location today. “Back then, the areas of Arcadia, Alhambra, Rosemead, Temple City, San Gabriel were starting to be known as Little Taipei,” Jonson says. “That store was able to create a Chinese community.”
Today, Jonson focuses on the brand’s real estate expansion strategy, keeping close tabs on where Chinese-speaking communities are spreading across America. Since 2020, 99 Ranch has added seven new stores to the chain.
“99 Ranch Market is the gold standard for market research as to where Chinese communities are showing up. And this is not just in California, but all over the country,” says Chan, who keeps a database of Chinese restaurant openings all over the U.S.
As children, neither Jonson nor Alice anticipated taking over their dad’s company. Their father never pressured them to work for him, but always kept the door open in case they showed interest. They tell me that while they grew up with the grocery store, it took a while for them to realize just how big the brand had gotten. “We just told people he was in the import and export business,” Alice says. It wasn’t until Alice wrote a college thesis on the family company and had to interview her father that the penny dropped. “He just never shared anything with us prior,” she says.
Today, as the second-generation owners, Jonson and Alice’s job is to keep up with the evolution of Asian communities in America, which, they point out, have different shopping habits than previous generations. Generally speaking, there’s a greater demand for frozen products and prepared foods. There’s not as big of a demand for butchery; people today would rather have their meat pre-sliced and packaged.
Yet certain elements — like the live fish tanks — have stayed the same (though the retrofitted pickups have mostly been phased out; there are now dedicated live-haul trucks for the fish).
The siblings take me on a stroll through the aisles of the new Eastvale market, which opened in February this year. We walk up to a tank dedicated to just spot prawns — fat, reddish brown and almost translucent underneath the fluorescent overhead lights. Jonson notices me marveling at them. “They’re from Newport Beach’s Dory Fleet Fish Market. People will go there every Saturday morning. So you can go there and wait in line. They are usually sold out within the first hour,” he says. “Or you can just go to a 99 Ranch.”
Clarissa Wei is a writer and cookbook author. Her forthcoming book, “Made in Taiwan: Recipes and Stories From the Island Nation” (SS Element), will publish in the fall.
Business
Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns
The government of Albania has given preliminary approval to a plan proposed by Jared Kushner, Donald J. Trump’s son-in-law, to build a $1.4 billion luxury hotel complex on a small abandoned military base off the coast of Albania.
The project is one of several involving Mr. Trump and his extended family that directly involve foreign government entities that will be moving ahead even while Mr. Trump will be in charge of foreign policy related to these same nations.
The approval by Albania’s Strategic Investment Committee — which is led by Prime Minister Edi Rama — gives Mr. Kushner and his business partners the right to move ahead with accelerated negotiations to build the luxury resort on a 111-acre section of the 2.2-square-mile island of Sazan that will be connected by ferry to the mainland.
Mr. Kushner and the Albanian government did not respond Wednesday to requests for comment. But when previously asked about this project, both have said that the evaluation is not being influenced by Mr. Kushner’s ties to Mr. Trump or any effort to try to seek favors from the U.S. government.
“The fact that such a renowned American entrepreneur shows his interest on investing in Albania makes us very proud and happy,” a spokesman for Mr. Rama said last year in a statement to The New York Times when asked about the projects.
Mr. Kushner’s Affinity Partners, a private equity company backed with about $4.6 billion in money mostly from Saudi Arabia and other Middle East sovereign wealth funds, is pursuing the Albania project along with Asher Abehsera, a real-estate executive that Mr. Kushner has previously teamed up with to build projects in Brooklyn, N.Y.
The Albanian government, according to an official document recently posted online, will now work with their American partners to clear the proposed hotel site of any potential buried munitions and to examine any other environmental or legal concerns that need to be resolved before the project can move ahead.
The document, dated Dec. 30, notes that the government “has the right to revoke the decision,” depending on the final project negotiations.
Mr. Kushner’s firm has said the plan is to build a five-star “eco-resort community” on the island by turning a “former military base into a vibrant international destination for hospitality and wellness.”
Ivanka Trump, Mr. Trump’s daughter, has said she is helping with the project as well. “We will execute on it,” she said about the project, during a podcast last year.
This project is just one of two major real-estate deals that Mr. Kushner is pursuing along with Mr. Abehsera that involve foreign governments.
Separately, the partnership received preliminary approval last year to build a luxury hotel complex in Belgrade, Serbia, in the former ministry of defense building, which has sat empty for decades after it was bombed by NATO in 1999 during a war there.
Serbia and Albania have foreign policy matters pending with the United States, as both countries seek continued U.S. support for their long-stalled efforts to join the European Union, and officials in Washington are trying to convince Serbia to tighten ties with the United States, instead of Russia.
Virginia Canter, who served as White House ethics lawyer during the Obama and Clinton administrations and also an ethics adviser to the International Monetary Fund, said even if there was no attempt to gain influence with Mr. Trump, any government deal involving his family creates that impression.
“It all looks like favoritism, like they are providing access to Kushner because they want to be on the good side of Trump,” Ms. Canter said, now with State Democracy Defenders Fund, a group that tracks federal government corruption and ethics issues.
Business
Craft supplies retailer Joann declares bankruptcy for the second time in a year
The craft supplies and fabric retailer Joann filed for bankruptcy for the second time in less than a year, as the chain wrestles with declining sales and inventory shortages, the company said Wednesday.
The retailer emerged from a previous Chapter 11 bankruptcy process last April after eliminating $505 million in debt. Now, with $615 million in liabilities, the company will begin a court-supervised sale of its assets to repay creditors. The company owes an additional $133 million to its suppliers.
“We hope that this process enables us to find a path that would allow Joann to continue operating,” said interim Chief Executive Michael Prendergast in a statement. “The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”
Joann’s more than 800 stores and websites will remain open throughout the bankruptcy process, the company said, and employees will continue to receive pay and benefits. The Hudson, Ohio-based company was founded in 1943 and has stores in 49 states, including several in Southern California.
According to court documents, Joann began receiving unpredictable and inconsistent deliveries of yarn and sewing items from its suppliers, making it difficult to keep its shelves stocked. Joann’s suppliers also discontinued certain items the retailer relied on.
Along with the “unanticipated inventory challenges,” Joann and other retailers face pressure from inflation-wary consumers and interest rates that were for a time the highest in decades. The crafts supplier has also been hindered by competition from others in the space, including Michael’s, Etsy and Hobby Lobby, said Retail Wire Chief Executive Dominick Miserandino.
“It did not necessarily learn to evolve like its nearby competitors,” Miserandino said of Joann. “Not many people have heard of Joann in the way they’ve heard of Michael’s.”
Joann is not the first retailer to continue to struggle after going through bankruptcy. The party supply chain Party City announced last month it would be shutting down operations, after filing for and emerging from Chapter 11 bankruptcy in 2023.
Over the last two years, more than 60 companies have filed for bankruptcy for a second or third time, Bloomberg reported, based on information from BankruptcyData. That’s the most over a comparable period since 2020, when the COVID-19 pandemic kept shoppers home.
Discount chain Big Lots filed for bankruptcy last September, and the Container Store, a retailer offering storage and organization products, declared bankruptcy last month. Companies that rely heavily on brick-and-mortar locations are scrambling to keep up with online retailers and big-box chains. Fast-casual restaurants such as Red Lobster and Rubio’s Coastal Grill have also struggled.
High prices have prompted consumers to pull back on discretionary spending, while rising operating and labor costs put additional pressure on businesses, experts said. The U.S. annual inflation rate for 2024 was 2.9%, down from 3.4% in 2023. But inflation has been on the rise since September and remains above the Federal Reserve’s goal of 2%.
If a sale process for Joann is approved, Gordon Brothers Retail Partners would serve as the stalking-horse bidder and set the floor for the auction.
Business
U.S. Sues Southwest Airlines Over Chronic Delays
The federal government sued Southwest Airlines on Wednesday, accusing the airline of harming passengers who flew on two routes that were plagued by consistent delays in 2022.
In a lawsuit, the Transportation Department said it was seeking more than $2.1 million in civil penalties over the flights between airports in Chicago and Oakland, Calif., as well as Baltimore and Cleveland, that were chronically delayed over five months that year.
“Airlines have a legal obligation to ensure that their flight schedules provide travelers with realistic departure and arrival times,” the transportation secretary, Pete Buttigieg, said in a statement. “Today’s action sends a message to all airlines that the department is prepared to go to court in order to enforce passenger protections.”
Carriers are barred from operating unrealistic flight schedules, which the Transportation Department considers an unfair, deceptive and anticompetitive practice. A “chronically delayed” flight is defined as one that operates at least 10 times a month and is late by at least 30 minutes more than half the time.
In a statement, Southwest said it was “disappointed” that the department chose to sue over the flights that took place more than two years ago. The airline said it had operated 20 million flights since the Transportation Department enacted its policy against chronically delayed flights more than a decade ago, with no other violations.
“Any claim that these two flights represent an unrealistic schedule is simply not credible when compared with our performance over the past 15 years,” Southwest said.
Last year, Southwest canceled fewer than 1 percent of its flights, but more than 22 percent arrived at least 15 minutes later than scheduled, according to Cirium, an aviation data provider. Delta Air Lines, United Airlines, Alaska Airlines and American Airlines all had fewer such delays.
The lawsuit was filed in the United States District Court for the Northern District of California. In it, the government said that a Southwest flight from Chicago to Oakland arrived late 19 out of 25 trips in April 2022, with delays averaging more than an hour. The consistent delays continued through August of that year, averaging an hour or more. On another flight, between Baltimore and Cleveland, average delay times reached as high as 96 minutes per month during the same period. In a statement, the department said that Southwest, rather than poor weather or air traffic control, was responsible for more than 90 percent of the delays.
“Holding out these chronically delayed flights disregarded consumers’ need to have reliable information about the real arrival time of a flight and harmed thousands of passengers traveling on these Southwest flights by causing disruptions to travel plans or other plans,” the department said in the lawsuit.
The government said Southwest had violated federal rules 58 times in August 2022 after four months of consistent delays. Each violation faces a civil penalty of up to $37,377, or more than $2.1 million in total, according to the lawsuit.
The Transportation Department on Wednesday also said that it had penalized Frontier Airlines for chronically delayed flights, fining the airline $650,000. Half that amount was paid to the Treasury and the rest is slated to be forgiven if the airline has no more chronically delayed flights over the next three years.
This month, the department ordered JetBlue Airways to pay a $2 million fine for failing to address similarly delayed flights over a span of more than a year ending in November 2023, with half the money going to passengers affected by the delays.
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