Open Door Policy

Hall of Fame Inductee Norman Gustafson takes the “open door policy” one step further than many professionals in this industry — he extends his policy not just to his employees, but to the entire dealer community as well.

By Joseph Carbonara, Editor-in-Chief -- Foodservice Equipment & Supplies, 6/1/2007

Joseph Carbonara

As their career starts to mature, only a few people can actually say the mark they made on the industry was exactly what they hoped it would be. Norman "Gus" Gustafson, former owner of Ace Mart and recipient of FE&S' 2007 Hall of Fame Award, represents one of those rare people.

Gus prides himself on the fact that he operated with a true open door policy and sees that as his legacy to the industry. Of course, in this case, open door policy carries a slightly different definition than it might normally. Most people associate the notion of keeping an open door with a manager trying to cultivate a relaxed workplace atmosphere, one where employees freely interact with their supervisors. In Gus' case, though, his open door extended to the entire dealer community.

In 1975, Gus broke into the foodservice industry by purchasing Ace Mart from a fishing buddy for all of $20,000. He went on to make his bones in an industry segment that was not very well known or widely respected at the time. But Gus saw a future in the cash and carry side of the business. The guess here is that he was probably able to identify an opportunity that few recognized because he did not carry with him any preconceived notions that come about from prior industry experiences.

Gus worked tirelessly to get himself up to speed, attending industry events and shows accumulating as much information as possible. Doing so did not just expand Gus' knowledge base, it also grew Ace Mart's bottom line. When he first purchased the company, Ace Mart had annual revenues of $120,000 and within five years of Gus' leadership that amount exceeded $1 million. Today, Ace Mart posts annual sales in excess of $75 million.

One of Gus' legendary business practices was to rally his troops after the close of business each week and toss back a few beers on the company loading dock. "We would discuss business and sometimes we got some really good ideas," he recalled.

Gus would extend this approach to vendors calling on his fledgling dealership. "In those days we were beer drinkers because hard liquor was not available to us due to the cost," Gus said. "We would sit around the table in a local establishment and that worked well for us. You'd be surprised what happens when you change from a strictly business relationship in a store to a friendly relationship in a joint: It loosened things up and sometimes made it easier to get the job done."

While Ace Mart's fiscal success is something that still makes Gus proud, he's even more proud of his reputation as being someone who would open his doors to anyone in the industry. "I have always felt that if what we did was successful, and it was, we would help other people who would like to do the same thing," Gus said. "So if someone came along and wanted to know how we did business, we were happy to help them."

In doing so Gus shared lots of information with his industry peers, more than most dealers would be comfortable doing. "We would tell them what our gross profits were and our markups and all of that because that was not going to affect my business one way or another," he says. "Success breeds success. And if they were successful, then I was successful."

Judging by the many people who he has counseled over the years, it's easy to see that Gus has been successful in more ways than one.

Joseph M. Carbonara, Editor in Chief