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October 5, 2009 Butchers on the block

A franchise of neighborhood butcher shops expands

Photo/Courtesy The Meat House Justin Rosberg, left, and Jason Parent are finding success in their revival of the neighborhood butcher shop

Retail naysayers take note: A couple of buddies from Marshwood High School in South Berwick are serving up healthy revenues alongside their displays of porterhouse, baby back ribs and roasts in their butcher shop franchise, The Meat House.

Justin Rosberg and Jason Parent revived the notion of the neighborhood butcher shop six years ago when the food-service industry veterans decided to strike out on their own. Today, The Meat House operates in 14 locations, including four in Maine, and reports upwards of $15 million in revenue, a number the pair expects will double annually over the next five years as 20 more franchises open within the next 18 months.

“We knew from our previous work experience that we could own and operate a food-based business with a lot of success,” says Parent, who grew up in South Berwick, not far from Rosberg’s home in Eliot. “We were both getting married, wanting children and we knew a restaurant with hours and demands wouldn’t be our number one choice. We were in that grind for 10 years.”

“So we took a retail model and brought it to the table,” says Rosberg. “The trend for 20 years had been away from the neighborhood butcher shop … they had all been gobbled up by supermarkets. We saw a huge niche for us to bring them back onto the map.”

The operation has been gaining attention, winning accolades from publications such as New Hampshire Magazine. Last week, the pair was featured on a Boston television news show offering tips and demonstrations for grilling at tailgate parties.

The first Meat House opened in Portsmouth in 2003, moving to Maine in 2004 when the pair opened a shop in York, followed by locations in Wells, Scarborough and South Portland. Potential sites in the Bangor and Augusta markets are being considered, says Parent.

Success, they say, lies in offering superior products at competitive prices with top-notch customer service. Their beef products are raised on a corn diet, free of hormones and antibiotics. Other meats and seafoods are held to similar standards, and Parent and Rosberg say they buy from local farmers whenever they can. Their shops stock a large selection of wines, cheeses and The Meat House marinades, and often contract with local bakeries for pastries. They also sell via their website and offer handy recipes, arranged by how much time the cook is willing to spend.

Rosberg says each shop manager has the authority to tailor offerings to the community he or she serves. That connection with the community is one of the founding principles of their operation, and charitable giving figures prominently in their business model. The company offers Cookouts for a Cause, a catered fundraiser to benefit nonprofits every month from April through October, and Operation: Thank You, which raises money for military chaplains to disburse to veterans’ families in need. “It’s a combination of business growth and community service,” Rosberg says. “One fulfills the other.”

The reach of that dynamic is growing. Of the 14 locations now operating, 11 are co-owned by Parent and Rosberg and three are franchises. Parent expects the bulk of the new shops will be franchises, with openings in Charlotte, N.C., and Costa Mesa, Calif., under way. The company typically looks for a region where household incomes exceed $100,000 with annual projected growth rates of 2%-4% for new locations, but Parent and Rosberg allow some leeway from the ideal, noting that some shops have done very well in less affluent communities.

The pair acknowledges an aggressive growth plan in an economy that has stymied most retail expansion is unusual. But so far, they haven’t had any trouble lining up interest or locations for The Meat House.

“I think it’s an indication of the need out there,” says Rosberg.

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