Brothers Rick (left) and Paul Ellingson have cultivated a corporate culture that reminds associates that they can make a difference and have fun while doing it.

“People know that we care and they must think we add value because they keep paying us,” says Paul Ellingson, president and CEO of Bargreen Ellingson. “If we are really successful, then they are a friend first and a customer second. And Rick and I are really blessed to have a lot of friends.”

Thanks to the many friendships it has developed along the way and its willingness to make new friends in new markets, the Tacoma, Wash.-based dealership has cultivated a pattern of aggressive yet sustainable growth that continues to propel the company even beyond the already high expectations of its owners, brothers Paul and Rick Ellingson, the dealership’s vice president. But it’s the Ellingson’s willingness to take the lessons their father, Byron, taught them in forming the foundation for this business and apply these principles in an era that’s decidedly different from when any of them first entered the business that has this dealership continually on an upswing. “There’s a lot of people that do not know their cost of doing business,” Rick says. “Over the years, the margins have remained the same but how we get there has changed.”

Bargreen Ellingson Corporate Chef Bob Mauer works with customers testing pieces of equipment or formulating new menus in the dealership’s Tacoma, Wash., theater-style test kitchen.

One reason that Bargreen Ellingson remains that kind of company is its willingness to continue to look inside its own walls for ways to function more efficiently and improve its customer experience. For example, as the foodservice industry struggled to meet top-line sales objectives during the aftermath of the Sept. 11, 2001, terrorist attacks, Bargreen Ellingson took a slightly different tact. According to both Paul and Rick, the company used the industrywide slow period to examine and refine many aspects of its operation, including the allocation of resources. The intent was to have Bargreen Ellingson ready to take off when the economic haze burned off the industry, so the company evaluated and repositioned personnel and invested heavily in other areas such as inventory management.

“We were not going to sit back and wait to go broke. So, we became very proactive,” Rick says.

With its enterprise growing, Bargreen Ellingson made asignificant investment in the company’s management team.Pictured here (from top to bottom) starting on the left are Tim Irey, vice president of sales; Ron Waddel, contract sales; Tom Murphy, vice president of operations; Kevin Harris, directorof purchasing; Craig Welborn, marketing manager; Rick Ellingson, vice president; David Ellingson, vice president of development; and PaulEllingson, president and CEO. Not pictured: Janet Hanks, director of accounting.

Indeed, the number of people the dealership employs is almost four times as big as it was when Bargreen Ellingson was first named Dealer of the Year some 17 years ago. Similarly, the number of branches the dealership operates has grown to 17 from just four.

“Back then we, meaning Paul, my father and I, were probably generating up to half of our sales,” Rick recalls. “Now, we’ve grown to the point where that would be statistically impossible.”

As it has bolstered its employee ranks, Bargreen Ellingson carefully did the same at the management level, investing in those strategic areas that will help the company maintain its track record for aggressive yet sustainable growth. “We generated a level of management that did not exist before,” Rick says.

The net result of this investment is a collection of long-term experience and expertise that clearly embraces, without reservation, Bargreen Ellingson’s passion for the foodservice industry and its customers. “Our group of managers and our general managers have got us to this level and they have set the standard for what we need to do to be successful moving forward,” David adds. “The company’s winning the Dealer of the Year Award validates all the work they have done and provides a road map of what to do moving forward.”

Of course, getting to this point did not come without its growing pains. “For a while there, I would come to work in the morning, and when I reached the back door I would put on my fireman’s hat because you never knew where the fires were that you had to put out,” Paul recalls. “And that became my job. The beauty of it now is that the people in the organization do such a good job that there are very few fires to put out. I get to come to work and enjoy it from a completely different perspective. It’s a nice feeling to know that if I drop dead tomorrow that place will continue to go on.”

As a result of this growth, the role Paul and Rick play in the business has evolved considerably. “We were out there pulling the wagon and now we are hanging on for dear life,” Paul jokes. “The staff have grown and done such a wonderful job that we are now behind them and supporting them. I used to be the hunter and in 1991 I was probably the company’s best salesman. I can’t say that today.

“I used to have a much bigger job than I have today,” Paul adds. “My job is to be head cheerleader and I enjoy it.”

While both Ellingsons acknowledge the changes in their roles, they both still seem to enjoy the business. “I used to spend 90 percent of my time with customers. Now, I only spend 50 percent of my time with customers,” Rick says. “I like the customer part the most and have some customers that I count as pretty good friends. I do like working with the employees, too. But I think winning at any level is what’s fun. I spend a good amount of my time on the phone and a fair amount laughing.”

Still, the dealership’s investment in people is a significant one that pays dividends for the dealership, its customers and the factories it represents. “The most expensive thing we do is field a sales force,” Rick says. “But doing so allows us to pioneer a product or a brand or develop a custom idea. Our guys know they just can’t show up and take orders. Our customers rely on us in the conceptual development phase.

“We were into consultative selling long before it was fashionable and that was my dad’s legacy to the business,” Rick adds. “Consultative selling has always been the mantra around here.”

Hard at work in the dealer’s Tacoma, Wash., theater-style test kitchen, Bargreen Ellingson Corporate Chef Bob Mauer (left) teams with Darrel Henrichs, executive chef at the soon-to-open Bungalow Grill to refine a few menu items for this Bend, Ore., restaurant.

Indeed, consultative selling does not come without a significant investment in the forms of education, training and the knowledge that one can gain only through experience. Bargreen Ellingson employees travel to NAFEM, FEDA, buying group and other industry events to keep up with the latest trends so they can bring these ideas to their customers, Rick says. “They rely on us to be their eyes and ears and the guys who can do that today are few and far between. That’s because the industry pays for transactions and not for relationships. Our top guys have customers that will call them for their ideas.”

Still, it’s the ideas that continue to propel the industry forward because they open the door to lasting relationships. “Our business is a fascinating business because you don’t just get to sell someone something one time, like a car or a pair of shoes,” Paul says. “You get to develop a relationship with them.

“When we go into a new market, Craig’s job is to promote the company,” Paul adds. Helping him do so is a graphic artist, and a web manager.

And, of course, the company invests a lot of time and effort in training all its employees. Sales associates start out working the front counter and then they spend about six weeks in the company’s Tacoma headquarters. There they learn about the dealership’s proprietary systems, get some additional product education and get some additional education in the areas of personal growth and time management. “It’s pretty comprehensive,” Rick says. “We do that after they have been with us for a couple of months because it’s at about that time they start to get scared because they realize how much they don’t know. We try to give them some more confidence and boost them up a bit before we send them back out there.”

This is an aspect of the business that Paul seemingly enjoys, too. “It’s always fun to catch the young employees when they realize there’s so much to this business that they will never know it all,” he says. “I have not learned it all in 38 years now. But when our new associates realize they don’t know it all, this means they are finally getting it.”

In addition to the intellectual barriers, younger associates entering the business have other obstacles to overcome. “The learning curve is hard anyway and some of the younger people are into instant gratification but this industry does not afford them that,” Rick says. “That’s going to be the challenge for this industry moving forward to challenge and retain people. Hopefully, David will be better suited for this than us old guys.”

As a reward to their associates’ efforts to get up to speed and building lasting customer relationships, Bargreen Ellingson likes to promote from within. “We’ll help them as much as they want,” Rick says. And this speaks to one aspect of their general operating philosophy. “What’s fun about this industry are the people,” he adds. “When you can go to work and be around people you like, it is not like going to work.”

To support the dealership’s investment in its sales force, Bargreen Ellingson made a space for a marketing manager in its executive ranks. In his role, Craig Welborn wears many hats such as serving as the company’s brand manager, coordinating tradeshow participation, and arranging special events at its many locations that develops sales collateral. A former designer of restaurants, Welborn uses his experience to see other marketing opportunities for Bargreen Ellingson, too. “These are all sales-related but they are not sales in the pure sense,” Paul says. “There’s a big difference between sales and marketing and most people don’t realize that.”

Another aspect that represents the investment Bargreen Ellingson made into its business and customer base are its theater-style test kitchens. The company operates two of them — one each in its Tacoma and Seattle locations — and plans to build another one in its Portland branch later this year. (See the tentative floorplan for the Portland theater below.)

“The marketplace has a need that did not exist 20 years ago,” Rick says. “That’s because back then it was commonplace for gas and electric companies to provide test kitchen space that allowed operators to test-drive specific pieces of equipment. These utility providers no longer offer such facilities.” Seeing this not as an opportunity but as their duty to help keep customers informed and move the industry forward, Bargreen Ellingson began designing and installing theater-style test kitchens in its showrooms.

“In the industry’s supply chain, it is our responsibility to do that,” Rick adds. “If you don’t add a whole lot of value, then you are not entitled to it. And the market will decide what’s valuable.”

The facilities feature full cooklines, prep areas, sculleries and state-of-the-art audio-visual equipment. If operators want to test different pieces of equipment side-by-side, they have that opportunity as the setup allows for the relatively easy rotation of pieces of equipment into and out of the cookline. “We had a customer who wanted to test different types of broilers. So, we brought in four different broilers and he brought in three types of meat and ran his own tests for two days,” Rick says. “He loved it and bought the most expensive broiler because it did make a difference. So when they get to use or test-drive the equipment, it makes selling the items so much easier.”

Indeed, these theater-style test kitchens represent one investment that continues to pay dividends. That’s because the idea behind launching these test kitchens supports Bargreen Ellingson’s approach to making the business fun and taking the drudgery out of purchasing a new piece of equipment, which many people describe as being as enjoyable as buying a new car. “We’ve had up to 60 people in there in one instance and just two or three in others working on a piece of equipment that does not show well in a catalog,” Rick says. “It takes the price discussion out of the equation. These theater test kitchens get used in many different ways but most of their value has been with end-user customers coming to test new types of equipment or new setups.”

As an extra-added home-court advantage, Bargreen Ellingson employs its own corporate chef, Bob Mauer. “When Bob gets people in there and they get to spend the day with him working on a piece of equipment, they tend to buy, and price tends to be at the bottom of their list,” Rick adds.

Beyond the actual testing of equipment and the bond that it creates between the dealer and its customers, there’s a certain serendipitous value to having people stroll through your showroom. For example, one customer used a test kitchen to train employees on how to make new menu items, Paul recalls. During a break, the chefs wandered through the showroom, which led to them buying some additional china for their stores.

Paul Ellingson (far left in the blue jacket) spends some time with a country club customer reviewing the plans for a work in progress.

Some dealers cast a weary eye toward internet distributors but in an odd twist, Paul seems to welcome the challenge they represent. “These guys force us to be better and to add value, otherwise we will be out of business,” he says. “And if we keep adding value, then we will keep attracting customers.”

Still, like other dealers with multi-unit operators as clients, Bargreen Ellingson has developed web sites for some chain customers, allowing individual stores to place their orders online. But unless the operators’ staff are properly trained on what to buy and how to place orders, this arrangement can prove frustrating and costly for both parties. And this is why many Bargreen Ellingson chain customers still phone in their orders.

When they do so, a person manning the call center pulls up a split screen. The one side of the screen carries a list of approved products and other pertinent information. The other side of the screen is where the person receiving the call enters the order.

Bargreen Ellingson’s growth has been both aggressive and very measured, which means the company does its homework before investing in a market or making an acquisition. And Rick points out the fact that their father, Byron, turned over a company on sound financial footing did not hurt the dealership’s ability to grow. “Early on, we wanted to grow geographically and through real estate,” Rick says. “And we did not have much so there was no way to go but up.”

Over the years, Bargreen Ellingson has purchased seven other dealerships, the most recent acquisition taking place last year when the company bought Hawaii-based American Hotel and Restaurant Supply. Rick describes these as mostly asset purchases that would hopefully introduce some new people to the business. “We did not need any more kitchen equipment,” he says. “What we need are good people that hopefully have a good market presence.”

In the case of American, similarly to other deals, Bargreen Ellingson seemed to have its wish come true. “When we bought American Hotel and Restaurant Supply last year, we were shocked at how good the people are,” Paul says. “They had momentum and critical mass, so they represented an opportunity to pick up some operational efficiencies. It was the biggest company we ever picked up. It really taught us some lessons.”

Once operating under the Bargreen Ellingson corporate banner, these dealerships, like American, become branches that function as sales organizations, generating individual profit and loss statements for each location. This philosophy impacts the way Bargreen Ellingson staffs each location. For example, functions such as purchasing and call center remain at the corporate level. In contrast, the individual branches will have staff dedicated to some light bookkeeping and following up on some collection issues. Inventory management is automatic as deliveries from the company’s distribution center in Tacoma arrive up to three times a week to replenish stock levels. This leaves the individual members of each branch free to do what they do best: care for customers.

“The branches are supposed to be lean, mean selling machines,” Rick says. “As a result, the general manager of one of our branches is really a sales manager. The store manager is the person that opens up the location, etc.” Of course, once a salesman, always a salesman, which explains why Rick spends a lot of time in the Portland branch as it’s the location where he still has a lot of customers.

As the enterprise has grown over the years, the manner in which the Ellingsons monitor the progress of each individual branch evolved. For example, there was a time when Rick would grab a sales associate at random and pull them into one of the company’s conference rooms to quiz them on developments from a recent customer call. In doing so, he might initiate a role-play to help teach the associate ways to better approach a difficult situation to help illustrate the value Bargreen Ellingson and its products bring to the table. Given the size of the business and his change in roles, doing so has become more of a challenge.

Now branch and sales management occurs at a slightly higher level. Each day, Rick and Paul receive a report that provides some high-level information about the performance of each branch, including how the location has done year-to-date and how it measures up against the same time from the previous year. They communicate with Tim Irey, the company’s sales manager, or one of the branch general managers. The size and distance the company covers make it a challenge for the Ellingsons to speak with and work with each individual sales rep on an ongoing basis. In talking with Paul and Rick, it does not take long to realize that one of their biggest concerns is figuring out a way to make sure the business’ entrepreneurial flame continues to burn brightly at the branch level. “Keeping excitement in the business will be the challenge, especially as we get more and more spread out,” Paul says.

It’s at that point that Bargreen Ellingson leverages its carefully crafted reputation for customer care and corporate culture to ensure a consistent and value-packed experience. “Customers never come here because we’re the cheapest. They know that we will deliver a job when we say we will and at the cost we quoted,” Rick says. “By virtue of the fact that we have a culture and are willing to be held accountable to it, I think customers respect that. Lots of people talk about adding value but we actually do it.”

The entrepreneurial spirit is one that’s seemingly rewarded in the Bargreen Ellingson environment. “A lot of that is driven by the customer,” Rick says. “We let the person who has the most contact with the customer drive the terms and conditions to make it happen.”

Paul agrees and adds, “You won’t find us having an employee manual because I don’t want one of our associates to have to turn to page 56 to handle a blender sale.”

This approach speaks to the way the company, from the top down, philosophically measures its progress. “I think when I feel the most success is when I do something that made a difference,” Paul says. “Money has never really been a motivator for me. When I take a customer and they become a friend, that’s being successful. You have to have a passion for this business and the money will follow.”

Although out of the business for years now, Byron’s philosophies still serve as fuel to the company’s entrepreneurial flame. “He used to note that our customers worked weird hours and thought it was appropriate for us to do so,” Rick says. “That was the way he differentiated himself.”

“My grandfather’s legacy consists of hard work and loyalty,” David adds. “I am proud that many of the values people compliment us for came from him. Most of our company values are a direct result of who my grandfather is and his value system.”

As a result, loyalty shapes the way Bargreen Ellingson structures its customer and supplier relationships. “We try to drive a hard bargain and remain loyal,” Paul says. “But loyalty is a two-way street and it has been hard in this business to be loyal. We try to instill loyalty into our relationships. We try to be loyal to our customers and hope that our good customers are loyal to us. We hope that value goes all the way up the chain.

“It’s something my dad taught me and I hope it’s something that I have taught my sons: Be loyal to those that are loyal to you,” Paul adds. “On the flip side, if they are not, then you have to do something about it. I have been known to take a stand that’s not popular. But if we are not being treated right, in those circumstances it is important to demonstrate leadership and to make hard sacrifices. It can cause unbelievable turmoil in the company.

“But if you don’t have integrity, what else do you have?” Paul asks. “The right-from-wrong aspect tied with loyalty tied with your own self-respect drive your integrity. The only thing you really own is your integrity. That’s all you can really create. Everything else is given to you. Your integrity is such a big part of who you are and what people believe you are.”

Going to work with family is both good and bad, Rick says. “We know each other too well sometimes. But there’s a level of trust and commitment that supersedes anything else. There’s certain strengths that complement each other’s weaknesses.”

Paul agrees, adding, “Having a routine life would drive me nuts. I can’t even drive to work the same way. That’s a way that my brother and I provide a good check and balance for one another. If one wanders off too far in one direction, the other is there to reel him back in.”

Plus, it does not hurt that the business continues to expand. “Because the business has always been in an aggressive growth mode, there’s always been plenty to do and we’ve been pretty motivated to do it,” Rick adds. “There’s never been any time to sit around and second-guess one another. Where I have seen family businesses struggle is where people are not busy enough. Then there’s some jealousy. It’s always been a pretty even deal in our case.”

While he may have the surname, David Ellingson (right) will have to earn his success in the business and, along with that, the respect of the dealership’s other associates and growing customer base.

“My uncle is very intelligent and loves to impart his knowledge,” David adds. “Sometimes, that’s frustrating to me, but it’s done to make me better. He encourages me to keep pushing to do things better. My father is a little more hands-off, but we do get into some interesting conversations. We are still family and respect each other as such.”

Much like his father, who held other positions prior to joining Bargreen Ellingson, David’s path into the business was not a direct one. “We never talked to the kids about going to work,” Paul recalls. “For example, when they were young we did not have them come down to the warehouse and unload china, like I did when I was growing up, to pick up a little money. We have encouraged all of our children to see what’s out in the world and who knows, they might find something else they have passion about.

“In David’s case, he went to work for Hobart for a couple of years before joining our company,” Paul continues. “I think they got their money’s worth out of him and he came to us a little wiser than he would have if he started in the warehouse.”

For his part, it seems as if David always kept his eye on the business, looking past other distractions and for a way back. “When I was young, I thought I was going to join the business. During college, I did go through a short stint where I thought I would be a banker,” David recalls.

It was a visit from a family friend and one of Paul’s and Rick’s peers during his college days that ultimately sealed David’s fate. “Ken Gill came to see me and set me straight,” David recalls with a smile. “He said, 'David, you are going into this business whether you like it or not. And, damn it, you are going to like it.’ It was a fun conversation. Ken was nice enough to help get me my first job at Hobart. Theoretically, from there I could not have chosen to come back to the business but it has been a lot of fun since then.”

While he may have the surname, both Paul and Rick agree that David will need to earn his success in the business and, along the way, the respect of Bargreen Ellingson’s growing customer and employee base. “He’s better educated and has a much better disposition than his father,” Paul says. “So, I think he’s going to be good if he likes it. If you want to enjoy anything, you have to have passion for it. I don’t get up not wanting to go to my job. If he’s got that kind of passion, then he’s certainly got the tools to do a better job than his old man. But if he does not have the passion, it will become so transparent. But if he has half as much fun as I have, he will have a good job.”

Rick agrees and adds, “Hopefully, he brings a renewed enthusiasm for this business. He grew up in a pretty passionate household for this business. And his two-and-a-half years at Hobart were valuable to us because he got to see other models of dealer-based distribution.”

For David to achieve success similar to that of his father and uncle, he will have to somewhat alter his approach. “It’s a different business than it was when Paul and I got started,” Rick says. “Then, you could lead by example. You just went out and did it and asked people to follow. It’s tougher now, just by virtue of the size of our business and the distance between locations. So, his model will have to be a little different if he’s going to continue to grow the business.”

Along those lines, Rick feels that embracing the notion of servant leadership will be the key to David earning the respect of the company’s employee base. In doing so, David will have to position himself as a leader that’s willing to do what it takes to ensure the various Bargreen Ellingson associates remain in a position to successfully serve customers. This is in stark contrast to the way Paul and Rick came up through the ranks by working shoulder to shoulder with the organization’s much smaller employee base. Given the size of Bargreen Ellingson, it is highly unlikely that even if David were successful in working in the field that he would get the widespread respect that it generated for Paul and Rick because it would be impossible for everyone to see it.

For his part, David seems to be onboard with the program and learning the lessons of his uncle and father. “The people at Hobart kept me excited and engaged and the same is true for the people at Bargreen Ellingson,” David says. “The people make this enjoyable and that face never changes. It’s not an easy business, but I hope I continue to have the ability to make this fun for the people around me.”

Spend some time at Bargreen Ellingson and it won’t be long before you get sucked into a conversation or debate on one foodservice industry issue or another. The Ellingsons and the entire management team reference many of their customers by first name, and can discuss the details of those ideas that have worked and others that have fallen short with equal attention to detail. It’s sort of like sitting in a clubhouse with a group of golfers who can recall every drive, putt and all shots in between from their just-finished round of 18 holes. For their part, it does not seem that anyone at Bargreen Ellingson would change the company’s clubhouse atmosphere even if they had the chance.

“When you get down to it, we are basically pots and pans salesmen but there’s a lot of people that would love to have my job,” Paul says fondly. “My attorney would love to have my job. Same for my dentist. They may have more money than I do, but they won’t have more fun.”

Rick agrees, adding, “No two days are alike. I don’t go there loving Fridays and hating Mondays. They are all so different. Some customers teach you humility while others teach you pride.”

Although the business may have changed in terms of size and scope, it’s the thrill of the hunt that keeps the people at Bargreen Ellingson coming to the office every morning. “There’s no other job like this,” Paul says. “If there’s one thing this business is about, it is people. You deal with all walks of life, all skill levels and all ethnic backgrounds. And you get to deal with entrepreneurs. You will see a couple that plan to throw their whole life’s savings into this restaurant — she knows how to cook and he knows how to tend bar. Sure sometimes you see them fail, but more often when they hit a home run, that’s really exciting. It’s fun to be a part of that. These guys are good, dear friends. And the people have been the most rewarding part.”

And from all indications, it seems as if Bargreen Ellingson will continue to reap the rewards of friendship for generations to come.