Appearing on TBPN, Erewhon’s chief growth officer Kabir Jain dissected its strategy.
Hub and spoke. Leveraging a Downtown LA kitchen, its prepared foods run on a commissary model, limiting expansion to within driving distance. Branching into Orange County, it’s opening in Costa Mesa next year while reopening Pacific Palisades and debuting in DTLA.
Members only. With Hailey Bieber’s top-grossing viral smoothie the exception, its cycling menu collabs are mainly a top-of-funnel marketing strategy to reach new customers. Paying for itself in a few monthly visits, its $100 membership boosts retention. Noting most customers are already signed up, Jain says the aspiration is a near 100% membership rate, akin to Costco.
Shelf speed. Providing curation-as-a-service, it kicked off the experiential grocery wave, reframing health shopping as luxury and inspiring debuts like Nude Miami. Embracing its role as a brand discovery platform, Erewhon reviews new products weekly rather than following standard six-month retail cycles — enabling young brands to hit shelves faster.
Takeaway: The combo of Erewhon’s commissary model, curated shelves, and “might as well” membership cost keeps consumers coming back.
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