The result was a culture both intellectually stimulating and unifying. "All those three-step things really do work," says Emberling, "but they also gave us a language to talk to each other. Everyone in the different businesses had the same vocabulary, which helped create the culture in the community as a whole."
Other factors also contributed to a common culture. The deli, for example, had long used distinctive lettering and cartoons on its signs and printed material. Following the formation of ZCoB, those design elements were standardized across the businesses to ensure they all had the same look and feel. "The more common themes you have throughout, the more effectively you can build the community," says Weinzweig. "We want to leave a lot of flexibility while providing enough structure for people to be successful. That way, the ZCoB doesn't become a collection of businesses that have nothing in common but ownership."
Much has changed at Zingerman's in 10 years. The company has been adding businesses at the rate of about one every 18 months, and the pace shows no signs of slackening. Altogether the businesses employ 334 people, up from about 125 in 1994, when the company consisted of just the deli and the bakery. With the new businesses have come new partners, new language, and new opportunities for employees, as well as energy, passion, and excitement that was missing a decade ago. That was, of course, what Weinzweig and Saginaw had in mind. A little more than halfway to 2009 it appears likely that the company will meet the goals laid out in its 1994 vision statement.
Yet for all the changes, what is most striking is how much Zingerman's has remained the same. It's still a local, independently owned business with extraordinarily close ties to Ann Arbor and its environs. Last year, on the 20th anniversary of the company's founding, 13 local not-for-profit organizations put up a giant plaque next to the Zingerman's Delicatessen saying, "Thank you for feeding, sheltering, educating, uplifting, and inspiring an entire community." One organization, Food Gatherers, was actually started by Zingerman's in 1988. "We don't like to advertise our work with nonprofits," says Saginaw, "but it's fair to say this would be a different community if we didn't do what we do."
Meanwhile, food critics keep raving about Zingerman's, and the raves are often for products and services coming from the new companies -- bread from the bakery, cream cheese from the creamery, and just about everything from the mail-order house. Both Zingerman's Bakehouse and Zingerman's Mail Order have received industry recognition.
Inside the company, questions about the future remain, but they seem to be manageable. "We've realized the value of living with ambiguity," says Emberling. "When something comes up, it's not always clear what the right answer is. You just have to go with the process and have faith. Mutual trust and respect play a big role. You have to operate in a world of integrity. There's a lot of integrity in this company at all levels -- from the financial statements to the croissants."
That integrity and resilience will surely be tested in the years to come. Although Zingerman's has always been profitable on an operating basis, its margins have been squeezed recently by, among other things, a change of management at the deli and the expense of launching the new businesses. "There's no reason we can't earn 10% profit before tax," says Ron Maurer, "but it won't be easy. The question is, How far can we go without damaging the culture?" Right now the company has a goal of donating at least 10% of its operating profit to charitable causes, which is laudable, but it can't help affecting financial performance.
Then there's the problem of generating the cash that will be needed to buy back the stock of departing partners. All the partners say that they're not going anytime soon, but the day will come. As for the founders, "currently, our exit strategy is to die," says Saginaw.
The company could, of course, be sold. Weinzweig notes that the Zingerman's brand could be very valuable if, say, a major grocery-store chain wanted to set up its own specialty-foods department or subsidiary. But he isn't interested in going that route. "People keep badgering me about an exit strategy," he says. "But I don't want to get out. We've been in business for 20 years, and I look forward to coming to work even more now than I did in the beginning. I'm having more fun, and I'm more at peace with the realities of life. So why should I leave?"
He pauses and flashes a lapsed-anarchist smile. "Success means you're going to have better problems," he says. "I'm very happy with the problems I have now."
Bo Burlingham is Inc's editor-at-large. He is also the author, with Jack Stack, of The Great Game of Business and A Stake in the Outcome.
History in the Baking
1982 Zingerman's Delicatessen offers "flavorful, traditionally made foods...in an entertaining, educational, and service-oriented setting"
1992 Zingerman's Bakehouse produces baked breads and pastries for the deli and other customers
1994 Zingerman's Training Inc. shares Zingerman's expertise in training, service, merchandising, specialty foods, and staff management with the public and ZCoB members
1996 Zingerman's Mail Order sends foods across the country and around the world
1998 Zingerman's Catering provides food for small parties and large events
1999 www.Zingermans.com allows customers to buy Zingerman's products on-line
2001 Zingerman's Creamery produces handcrafted fresh cheeses, gelato, and other dairy products for the deli and other customers
2004 Zingerman's Roadhouse features a menu of American regional cooking
TBA Mexican Restaurant (name and opening date not set)
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