Luke's Lobster Founders on Seafood During a Pandemic | How I Built This with Guy Raz | NPR

Transcript

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Summary

In this video, Guy Raz interviews Luke Holden and Ben Conniff, the co-founders of Luke's Lobster. They discuss how the company has been building resilience during the COVID-19 pandemic by pivoting their business strategy and focusing on direct-to-consumer sales. They also talk about the challenges they have faced, including the need to shut down their processing plant and furlough employees, and how they have worked to support their employees and the entire seafood supply chain.

Questions & Answers

Q: How has Luke's Lobster adapted to the challenges posed by the COVID-19 pandemic?

Luke's Lobster has made several adjustments to their business strategy to navigate the challenges of the pandemic. They have focused on direct-to-consumer sales by offering products through their website and partnering with grocery stores. They have also pivoted from selling to restaurants and food service providers to producing grocery-branded products and selling directly to consumers.

Q: How did Luke's Lobster handle the need to furlough employees?

Luke's Lobster acted quickly to furlough employees and ensure their financial stability. They moved all hourly employees to unemployment, knowing that there would be backlogs in the system. They also had personal conversations with each employee to explain the reasons behind the decisions and to provide support and transparency throughout the process.

Q: How has Luke's Lobster managed the seafood supply chain during the pandemic?

Luke's Lobster has had to adjust their seafood supply chain due to the decrease in restaurant sales and the disruption of the industry. They have worked closely with fishermen to ensure they can continue fishing and earn a living. They have also expanded their grocery-branded business to include a wider range of seafood products, allowing them to support the entire supply chain and create new revenue streams.

Q: How have Luke's Lobster's international locations in Japan and Taiwan been affected by the pandemic?

Luke's Lobster's locations in Japan and Taiwan have faced similar challenges to their U.S. locations. While they are open, they are highly dependent on international tourism, which has significantly decreased due to travel restrictions. This has resulted in lower sales and a need to adapt their operations to the current situation.

Q: How has Luke's Lobster approached sustainability in light of the pandemic?

Luke's Lobster is committed to sustainability and ensuring the long-term health of seafood populations. While there may be specific challenges or certification issues related to lobster sustainability, they have dedicated themselves to maintaining transparency and working closely with fishermen to support their livelihoods and promote sustainably caught seafood.

Q: How has Luke's Lobster expanded their business during the pandemic?

Luke's Lobster has expanded their direct-to-consumer e-commerce business, offering a wider range of seafood products for home cooking. They have also explored partnerships with grocery stores to increase their reach and distribution. By adapting their business model, they have been able to reach more customers and support the seafood industry.

Q: What have Luke and Ben learned about their own leadership during this challenging time?

Luke and Ben have learned the importance of transparency and purpose in their leadership. They have maintained open and honest communication with their team, ensuring that everyone understands the decision-making process and the rationale behind their actions. They have also reaffirmed their commitment to the core values of the business and the mission of creating a better world through sustainable seafood.

Q: How has the pandemic affected the sustainability certification of Maine lobster fisheries?

The Marine Stewardship Council (MSC) is planning to revoke Maine's lobster sustainability certification due to legal issues related to right whales. Luke's Lobster believes that this decision is not relevant to Maine fishermen and highlights the need for more specific and targeted certifications. They will continue to focus on the sustainability of their catch and communicate the actual situation to their customers.

Q: How has the pandemic affected Luke's Lobster's plans for expansion?

While the pandemic has created challenges for expansion, Luke's Lobster sees opportunities on the horizon. As the restaurant industry undergoes significant changes, there will be more real estate and market opportunities available. They will continue to adapt and grow, focusing on their core brand mission and expanding their reach through direct-to-consumer sales and new revenue streams.

Q: What are some key takeaways from Luke's Lobster's experience during the pandemic?

Luke's Lobster's experience during the pandemic highlights the importance of resilience, adaptability, and a strong team culture. They have successfully pivoted their business strategy, supported their employees and the seafood supply chain, and found innovative ways to continue serving their customers. They have learned the value of transparency, purpose-driven leadership, and a commitment to sustainability in navigating challenging times.