How A Restaurant Supply Website With A Quirky Name Created A Billionaire Family

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How A Restaurant Supply Website With A Quirky Name Created A Billionaire Family
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In 16 years at Forbes I've helped direct our coverage of everything from Asia to autos and healthcare to housing. Now I write about aerospace and defense. Send tips to jbogaisky[at]forbes.com

The Wizard’s Apprentices: Fred Clark says handing off Clark Associates to his son, CEO Gene Clark , and protégés like COO David Groff was the “hardest thing I ever did in my life.”Fred and Gene Clark have devoured a fifth of the $18 billion industry by following the Amazon playbook. Now they’ve cooked up a plan for greater growth.

“This was never a master plan,” says Fred, sitting in the bright, white-tiled breakroom at headquarters, a quarter-mile down the road from the nerve center in the elementary school. The all-important WebstaurantStore, for instance, began life as a summer project for Gene, a college student at the time, who snapped pictures of a few hundred products while home on break.

It has also invested heavily in building a lineup of private-label items, which now account for roughly 20% of its offerings. That includes basics like paper plates and frying pans but also cheap appliances like fridges, convection ovens and kegerators. There have been rumblings about equipment quality—leading to a reputation as “the disposable brand,” says Crystal Weaver, who owns coffee shops in Lancaster. “They don’t tend to last as long.

“A griddle. . . . Only so many places need that,” he says. “A mop bucket, boy, show me a commercial address that doesn’t use one of them.” Tourists began flocking to the Lancaster area in the 1970s to see the Amish, and they needed somewhere to eat. Large family-style restaurants sprang up in the area, and the Clarks developed a healthy business repairing and servicing their appliances.

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