Amid soaring meat prices, Zaycon offers deals on the go
Spokane company sells bulk products to customers who are willing to buy by the case — and take delivery from the back of a truck.
Seattle Times business reporter
A caravan of meat
Name: Zaycon Foods
Headquarters: Spokane Valley
Deals in: Chicken, beef, smoked bacon, sausage links, strawberries, turkey, others
Delivers in: Nearly 1,400 locations across 48 states
Source: Zaycon Foods
Some bulk buyers of fresh beef products, seeking relief from a big spike in meat prices, have found an alternative to Costco, with drive-through access instead of a crazy parking lot.
Dozens of cars queued up on Monday at Papa’s Tree Farm, nestled among orchards and cattle ranches in Maple Valley, to pick up 40-pound boxes of ground beef and 22-pound packages of ham from the back of a refrigerated truck owned by Zaycon Foods, of Spokane Valley.
Zaycon says the meats come fresh from the farm or the meat processor, and that the company keeps its costs low by purchasing in bulk and delivering directly to buyers in the parking lots of churches, bowling alleys and such.
At the Maple Valley farm, Zaycon was filling the orders of customers who had paid $3.99 a pound for ground beef and about $3.49 a pound for smoked ham. At a Safeway on Capitol Hill, lean ground beef of the same quality retailed between $5.49 and $6.49 per pound.
“I love it. I got their chicken a couple of months ago, and it was ‘wow,’ ” said Gina Santos, of Kent, who said she learned about the service online.
At the time, she was drawn in by the price — $1.89 a pound, she says, well below the $3.38 average urban retail price for boneless chicken breast reported by the U.S. government for February.
And the flavor was great, she said. On Monday, in her second Zaycon run, she was taking delivery of 40 pounds of ground beef to make hamburgers.
Zaycon, started in 2009, is a no-frills business. It calls itself “a weird company,” but “in a good way.”
“We work on very small margins, we don’t have locations, we don’t have a lot of overhead,” said CEO Mike Conrad.
Interested buyers enroll at the company’s website and pay online for an order, by the case only. The company sells chicken, beef and pork products, as well as strawberries, peaches and other agricultural products straight from the producer.
Then Zaycon’s fleet of 20 trucks spreads out, each following a route of scheduled “savings events” through several states. The driver arrives at the designated parking lot, spreads out yellow parking cones to create a path for the customers’ cars, and hands off the boxes while checking names on an iPad. The parking-lot owner gets a cut, in the form of a case of whatever Zaycon is delivering that day.
“Churches — they love it,” Conrad said.
Zaycon’s caravanlike business plan means that products are not all available on a whim: The company has two major chicken sales per year, for example. There are also two sales for beef, Conrad said.
The rhythm takes getting used to, Conrad acknowledges. “The first time people get 40 pounds,” he said. “The next time we see them they buy 80 pounds.”
Conrad said Zaycon now employs about 40 people, more than half of them truck drivers.
Some 325,000 customers have signed up with Zaycon, which from its Northwest roots has expanded to the rest of the West, and the Midwest, as well as Texas, Florida, Georgia and several other states.
The company doesn’t disclose revenues, but one measure of its business is this: In January and February, Zaycon sold more than 3 million pounds of chicken, Conrad said.
That growth comes at a time when meat prices are soaring to records, spurred by weather disruptions and high demand in Asia. In March, the retail price of fresh beef reached its highest level in nearly 27 years of records, averaging about $5.36 per pound, according to U.S. Department of Agriculture data.
It’s no wonder people are looking for a deal.
Kameron Pierce, of Auburn, was buying two entire applewood smoked hams at the Maple Valley event. He said he found out about Zaycon through his girlfriend’s father, who learned about the company at work. He said he likes the quality and the price.
“We feed like nine people at the house,” Pierce said. Buying this way, he added, “it’s not going to break the bank.”
Ángel González: 206-464-2250 or firstname.lastname@example.org. On Twitter: @gonzalezseattle