Pink Dot

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Pink Dot
Grocer
Industry Retail
Founded 1987 (Los Angeles, California)
Headquarters Los Angeles, California
Products Deli, frozen foods, general grocery, snacks, liquor
Website pinkdot.com

Pink Dot is a Los Angeles–based chain of grocery stores that is known for delivering items such as groceries, deli food, cigarettes,[1] and alcohol.[2] The store is open 365 days a year. Pink Dot is best known in Los Angeles and has appeared in several movies and television shows, including HBO's Entourage.[3]

History

Entrepreneur Bill Toro founded the chain in 1987 with the purchase of a single liquor store. His idea to create a delivery-based operation arose from numerous complaints he observed about the traffic in Los Angeles.[2] Pink Dot is a privately owned corporation with 70% ownership stake belonging to investors and Toro retaining the remaining 30% control.[2]

In 1996, Pink Dot was referred to as a rapidly expanding grocery delivery company in a Los Angeles Times story that noted the store guaranteed delivery in 30–45 minutes or less for a service charge of $3.50.[4] Orders were filled from five warehouses, "three of which opened in the last two months," with plans to open six more distribution centers by March including one in Orange County.[4] Company executives predicted home delivery would be a "big part of the changing face of retail".

As Pink Dot prepared to expand into Orange County, it phased out its signature polka-dotted, propeller-topped Volkswagen Beetle delivery cars after market tests showed that Orange County residents wanted their purchases delivered in more low-profile vehicles.[5]

Pink Dot has partnered with order takers, such as the now-defunct Kozmo.com, as a way to expand the product line into items such as Compact Discs and pharmaceuticals.[6] Kozmo.com was popular with party-goers and young families, but was unable to survive the bursting of the dot-com bubble. The brick and mortar business continued to flourish.[6] Many of the home delivery service companies flamed out after venture capital ran out in 2001.[7]

Late 2000s

In 2008, Pink Dot announced a partnership with Ford Motor Company and began using the Ford Transit Connect, a delivery system that Pink Dot president Sol Yamini said was "room service for your home".[3] Pink Dot's success has been credited to its niche business plan. As one restaurant analyst noted, "They don't have a whole lot of competition. Let's face it, 7-Eleven doesn't deliver."[2]

References

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  3. 3.0 3.1 Lua error in package.lua at line 80: module 'strict' not found.
  4. 4.0 4.1 George White SOUTHERN CALIFORNIA ENTERPRISE; Convenience Stores; Grocery Deliverers Find a Time-Strapped Audience page 1 August 21, 1996 Los Angeles Times
  5. Leslie Earnest O.C. Business Plus; HEARD ON THE BEAT / RETAIL; Pink Dot Dumps Its Funky Beetle July 7, 1999 Los Angeles Times
  6. 6.0 6.1 Lua error in package.lua at line 80: module 'strict' not found.
  7. Brent Hopkins Competitors: Online Grocery Service Webvan Expanded Too Quickly. Daily News (Los Angeles, California)July 10, 2001

External links