Springfield Business Journal_2021-04-12

NEWS APRIL 12-18, 2021 $2.00 · SBJ.NET APRIL 12-18, 2021 · VOL. 41, NO. 38 40 YEARS • YOUR BUSINESS AUTHORITY in the Ozarks Grocers prepare for post-pandemic future by Mike Cullinan · mcullinan@sbj.net A newly released report finds $24 billion in COVID-19 pandemic-related costs by the U.S. food retail industry over the past year, and local grocery store representatives believe some investments are here to stay. The report by the Food Industry Association shared grocer actions amid the pandemic related to safety, work- force and technology spending. The trade association said roughly $12 billion of investments were for increases in payroll and incentive pay. Food retailers spent $3 bil- lion for cleaning and sanitation supplies, labor and other related expenses, and $1 billion for personal protective equipment, according to the report. Susie Farbin-Kawamoto, co-owner of MaMa Jean’s Natural Foods Market LLC, said the Springfield company has spent around $212,000 on pandemic-related expenses over the past year. Investments included plexiglass barriers, store signage noting social distanc- ing, face masks and a boost in the purchase and use of cleaning supplies, she said. Howev- er, the bulk of the investment total comprises around $200,000 worth of incentive pay dis- tributed over the past year to its 168 employ- ees. “We call it hazard pay, but it’s really an extra thank you pay,” Farbin-Kawamoto said. “That was an extra expense that we had.” Some of the hazard pay is connected to the stress related to enforcement of the city’s ongoing masking mandate, she said, adding face covering discussions with custom- ers have been the most stressful part of being a business owner over the past year. “You can’t win for losing when it comes to the mask top- ic,” she said. “If you enforce it, then you get called a Nazi and you get threatened to be sued. If you don’t enforce it, they get on your website and shame you. It’s been a rough one.” Carry on Even when the city eventually lifts the masking man- date, Farbin-Kawamoto said MaMa Jean’s em- ployees will continue to wear face coverings for the foreseeable future. However, it won’t be required of customers, she said. “We’re not going to deny them entry, but it’s still encouraged,” she said. Farbin-Kawamoto said the plexiglass barri- ers installed at the checkout stations last year were originally temporary measures. That’s no longer the case, she said. “Installing those shields at the register as a permanent fixture is definitely on the list of things we’re going to do this year,” she said, noting new ones for all three stores will be custom made for roughly $1,800. Hy-Vee Inc. spokesperson Christina Gayman said the Des Moines, Iowa-based company has provided face MCKENZIE ROBINSON AT YOUR SERVICE MaMa Jean’s employee Addie Jones prepares a curbside service order. Food retail industry invests $24B in response to COVID-19, report says See GROCERY on page 25 starting on page 9 Susie Farbin- Kawamoto : MaMa Jean’s plans to keep plexiglass barriers. by Mike Cullinan · mcullinan@sbj.net The owners of Springfield-based StepNpull struck a “wonderful” deal on national television. Investor Kevin O’Leary, aka Mr. Wonderful, agreed to inject $300,000 into the business for a 6% equity stake on the April 2 edition of ABC’s “Shark Tank.” StepNpull President and co-owner Mike Sewell, who pitched to celebrity investors on the show, actually re- ceived three offers during the episode – from O’Leary, Lori Greiner and Daymond John. O’Leary and John went back and forth, until O’Leary sweetened his offer at the last moment by lowering his previous equity stake bid to win Sewell’s approval. “Kevin, let’s do it,” Sewell finally responded. Sewell said April 7 he and fellow StepNpull owners Kelly Coddington and Ron Ely had to remain silent about the show’s outcome for a few months. He said disclosing See SHARKS on page 27 StepNpull reaches $300K deal on ‘Shark Tank’ Kevin O’Leary gains an equity stake in the Springfield company StepNpull is a patented hands-free door opener which sold roughly 350,000 units last year, an all-time high. SBJ FILE