Indy Fresh Market faces hurdles after opening to fanfare

Darian Benson

Last September, Indy Fresh Market opened its doors with significant financial backing and fanfare centered around the idea of a locally Black-owned grocery store in a food desert in Arlington Woods on the east side.

But nearly a year later, problems are mounting. Michael McFarland and Marckus Williams, the two local entrepreneurs who were running the store under what was described last fall as a rent-to-own arrangement, no longer manage the store. They did not respond to requests for interviews.

Reaction on social media from customers has been mixed at best, with many going online to complain that the prices are too high for the quality of the groceries and the financial means of many of the people living in the area.

Bloomington-based Cook Medical and Goodwill of Central and Southern Indiana — two of the partners behind the store — told Mirror Indy they bit off more than they could chew and are making adjustments to try to make the grocery store successful. Officials at Cook and Goodwill said they are thankful for the work McFarland and Williams did, but that managing a store the size of Indy Fresh Market was harder than anticipated.

“I think probably what all of us underestimated was the complexity of running a significant grocery store,” said Pete Yonkman, president of Cook Medical.

Opening a store in a food desert

The idea for the grocery store was born from a partnership between the two organizations.

Cook Medical and Goodwill partnered to open a service center at 38th Street and Sheridan Avenue in 2022 similar to a facility they previously opened in Bloomington that manufactures medical devices. Through the partnership, employees receive Goodwill’s wraparound services such as professional development and housing support.

Yonkman said that’s when they learned the eastside neighborhood was a food desert and met McFarland and Williams, who were running a small convenience store in the area.

“We thought maybe we could partner with them to build this grocery store on our site,” Yonkman said. “We spent about three years planning for the grocery store.”

During that time, McFarland and Williams went through training, including classes through Martin University. The group also worked with an outside consultant to build a supply chain. The goal was for McFarland and Williams to manage the store and eventually take over ownership through a rent-to-own model.

A study from the Indiana University Public Policy Institute estimated the store would bring more than $11 million to the Marion County economy.

But after Indy Fresh Market opened, Yonkman said it became clear that running a grocery store was harder than anticipated.

“Michael and Marcus, they had maybe managed a few people,” Yonkman said. “Now we’re talking about managing 40 to 50 people, a very complex supply chain and all those issues that come with that.”

In February, Yonkman said Goodwill took over operations to stabilize the store.

Now the store’s employees are considered Goodwill employees, said Grady McGee, senior director of contract manufacturing at Goodwill.

McGee, who also oversees Indy Fresh Market, said the employees received a pay raise, health benefits and access to Goodwill services.

Yonkman said it’s still unclear if Indy Fresh Market will be successful.

“We have to see if we can get it there and if the community will embrace it, whether we can get the pricing right, and all those things,” Yonkman said.

Neighbors say prices are too high

While the opening of the store was met with praise, social media reviews quickly turned negative after the store opened. People have complained about high prices, not enough variety in selection and poor quality produce.

Vicky Edwards lives in Oaklandon, but told Mirror Indy she made the drive to Indy Fresh Market a few times to support what she thought was a Black-owned grocery store.

“We need that in the community, you want to help your own people,” Edwards said. “I wanted to patronize the business because I wanted to help it along the way to get it up and going.”

But she said she’s not sure she will support the business now that it’s not going to become locally Black-owned. She said the food quality isn’t worth her time and money. She doesn’t think the produce and meat, especially, are high enough quality for the price.

“I want my money to be well spent and I want quality,” Edwards said “I don’t have money to just give away.”

Unlike grocery chains who can buy goods directly from a manufacturer, independent grocers use a broker. So grocers like Indy Fresh Market don’t have as much buying power, said McGee with Goodwill.

“So by the time we get those goods back to the grocery store, they are significantly higher than if you would go to Meijer and that’s just to pay for the broker fees,” McGee said.

Even though Goodwill now manages Indy Fresh Market, McGee says the store is still focused on the community. McGee says the organization has worked to cut prices on items and wants to get to know and work with customers to ensure items they want are stocked. He said one thing that makes Indy Fresh Market different from chain competitors is the lack of a self checkout.

“Although our prices are slightly higher, what we’re going to pride ourselves on is that community interaction, that family environment, that sense of belonging,” McGee said. “You want people to know you and know the things that you’re looking for, and that is the experience that I guarantee you you’re not going to find at a different location.”

‘We need to keep this in the community’

One neighborhood advocate hopes customers will give the grocery store another chance, saying the market makes it easier for residents to access healthy food.

Talia Shivers has lived in the Arlington Woods area for nearly 25 years. She’s seen several grocery stores leave the area, so she was excited when she heard about plans for Indy Fresh Market.

Shivers is also the Arlington Woods Neighborhood Association president. She understands why some choose not to, or can’t, support the store.

“There are people on fixed incomes and things like that, where, yeah, I’m not going to support this just for the sake of supporting it, because I can’t afford to, because I need to make my money stretch,” Shivers said.

Shivers doesn’t want the market to close.

“We need to keep this in the community,” Shivers said. “We need this. We will be a food desert again if it goes away. I don’t want that.”

A correction was made on Sept. 5, 2024: A previous version of this story stated Cook Medical is based in Indianapolis. The company is based in Bloomington.

Mirror Indy reporter Darian Benson covers east Indianapolis. Contact her at 317-397-7262 or darian.benson@mirrorindy.org. Follow her on X @HelloImDarian.