Whole Foods rents out space to 'Friends' in new 365 stores

By Tom Ryan

MAY 5, 2016

While smaller in size and less expensive than its parent's flagships, 365 by Whole Foods Market will also feature "Friends of 365" partnerships with small businesses that will operate independently inside each store.

At its first location to open May 25 in the Silver Lake neighborhood of Los Angeles, a New York-based vegan restaurant named CHLOE will open in a spot adjacent to the fresh produce section. Allegro Coffee Co. will serve coffee and beer at a separate venue while a personalized tea-making experience will be delivered by startup, teaBOT.

"We've really dedicated ourselves to partnering with like-minded companies that are doing new and interesting things in their respective field to bring a truly unique shopping experience that complements our thoughtfully curated selection of foods," said Jeff Turnas, president of 365 by Whole Foods Market, in a statement.

For its second location to open in July in Lake Oswego, OR, two Portland-based eateries — a plant-based burger concept and café and juice bar — will establish in-store shops.

Taste test at 365 by Whole Foods - Photo: Whole Foods

On the Friends of 365 website, applicants offering video submissions are told they "don't have to be food-related only" with images of women's dresses, yoga and cycling shown in addition to food and beverage offerings. The application process is closed but will open up again later this year.

Friends of 365 appears to be an extension of programs already tested at Whole Foods. At its Bowery store in lower Manhattan, food truck vendors from Smorgasburg, the popular Brooklyn flea market, occupied the shop's cafe a month at a time from late 2012 until 2014.

On its fourth-quarter conference call, Ken Meyer, EVP of operations, said 365 is allowing the retailer to aggressively test ideas.

"There's no culture. There's no legacy there to overcome," said Mr. Meyer. "So we can go radical on 365 stores and, assuming those are going to work as well as we think they do, they will serve to help accelerate transformation within the mother brand, Whole Foods Market."