Spring 2007 issue of Horizons

who are as concerned about quality as Kansas City Steak, and this dedication pays off. One client has named Kansas City Steak Vendor of the Year for three years, even though it only supplies product for 80 of 1,000 restaurants. Some competitors are willing to sell different levels of quality, but that is not Kansas City Steak’s philosophy. Kansas City Steak asks questions like “What are their concerns? How can we market for them? What additional services can we provide?” This philosophy of quality also is applied to developing new products. If there is no point of difference in the new product, it is dropped. The development team looks for differentiators such as whether the product is made with a higher quality of meat or if there are chemicals others use that Kansas City Steak can avoid. The answers to this type of question determine whether Kansas City Steak will develop and market a new product. “We try to be the best at whatever we get into. If we’re going to get involved, we have to provide marginal utility to beat the competition. Can we pack differently, add other services or provide something the competition isn’t? If not, we won’t bother,” explained Scavuzzo. Kansas City Steak’s best-selling catalogue product is filet mignon, which is an excellent example of the company’s unwavering commitment to quality. There are no pieces of fat or anything else left when eating a Kansas City Steak filet mignon. Other examples of quality are found in the best- selling QVC products, which include an American Heart Association-certified steak and the company’s eight different flavors of burgers. Whichever product customers purchase, they expect it to be top-of-the-line. This attention to quality extends beyond the products themselves to customer service and employees. Although a lot of mail order companies use call centers, Kansas City Steak does not. “We’d rather miss a call than have someone give a customer incorrect information,” said Scavuzzo. The Scavuzzo family recognizes that a company is only as good as its people and thus has a strong compensation and benefits program for employees. Most new employees come on the recommendation of current employees. “That way, we know they have the same work ethic and commitment to quality that we do,” said Scavuzzo. “All employees share a philosophy of teamwork, and this provides the basis for growth through great customer relationships and vendor partners.” Once employees are on the team, Kansas City Steak keeps them there. Communication between executives, managers and production lines is essential to this retention. Partnerships are another important ingredient in Kansas City Steak’s success. Henderson, Warren and Eckinger, which RubinBrown acquired in 2005, was a long-time partner with Kansas City Steak. Although National Beef required Kansas City Steak to move to its auditors in 1997, the company returned to HWE in 2004 and has strengthened its partnership with the transition to RubinBrown. Today, the accounting and consulting firm audits Kansas City Steak’s external financial statements and retirement plans, ensuring the company is compliant with all state and federal regulations. “When you are growing so fast, you must have

processes in line to handle that growth, and RubinBrown has been helpful in setting up processes that will help us as we move into the future.” What does the future hold for Kansas City Steak? The company’s challenge is to maintain quality in the face of rising costs. Its goal is to continue to provide added value to both individual and foodservice customers. Kansas City Steak is prepared to meet these challenges and continue to offer customers a standout product as it moves toward the century mark.

Edward Scavuzzo, president

Edward (Ed) Scavuzzo is the president of Kansas City Steak Company, founded by his family in 1932. The company began as a supplier of fine meats to Kansas City restaurants. Under Ed’s leadership, the company expanded in1984 to includeasuccessful consumermail- order division; more recently, the business has become a major presence in the e-commerce marketplace. Ed assumed his role as president of Kansas City Steak Company in 1995. Ed’s undergraduate studies in finance were completed at the University of Missouri-Columbia, and he holds an MBA from Kansas City’s Rockhurst University. Ed, his wife and their four children, make their home in the Kansas City area.

16 u summer 2007 issue