Alexander Mizan: Tell me a little about your background and what motivated you to start a food distribution business.
Kostas Vitakis: I am the son of Greek immigrants. My father had a restaurant in the Inland Empire and I worked with him when I was young. I could see that there was a business opportunity in supplying all the small Greek-owned restaurants in Southern California. I later went to college to study Agricultural Business. In 2001, after graduating, I moved to Arizona and started a produce distribution business. I thought that because there was no competition there, I would do well. However, the concentration of customers in Phoenix was not sufficient to sustain and I decided to start again in the area that I knew well.
AM: So you moved back to Southern California and you started Vitco?
KV: Yes. And we have been growing ever since. We started with a line of a few hundred products in the dry goods section and now we have thousands of products.
AM: How did you get your first customers?
KV: My first customers were independent Greek-owned restaurants. A very important factor in getting Vitco off the ground was the fact that I was Greek-American and I spoke Greek well. The owners could trust me and they were willing to help me by giving me business if I were to provide great service at competitive prices.
AM: It sounds like you being part of the Greek-American community was important in getting your business off the ground
KV: Indeed. I don't think I would have been able to establish a foothold if I was not part of the community. The owners of Greek restaurants supported me. I mean, this was not charity but there was an embedded level of trust that comes by being of Greek heritage…
AM: Where is the business now?
KV: Right now, we are rapidly growing. We have a good customer base and we are proud we can supply it with consistent service, top-notch product quality and unparalleled customer service. We recently made a large investment in a new expanded refrigeration system. Although we always carried frozen, the expansion allows us to increase our frozen offerings, and now, a full dairy line, which we didn't have before. We have a 50,000 sq ft. warehouse and we are continuously investing in new technology. In the next few weeks, we are planning to launch a new computer program that will allow our customers to select and buy online. We believe that will save them time and allow us to remain competitive by increasing productivity and efficiencies in the supply chain.
AM: Talking with you, it sounds like the economy is thriving… How do you feel about government policies with regards to the economy and what are your plans for the business?
KV: We are always looking to expand. We are currently seeing organic growth in the double-digits.
We are always on the lookout for business alliances or fold-ins that combine efficiencies, and grow our geographical sales reach. As far as the economy goes, the government needs to support policies that are pro-business. It is small business that is the driver in creating jobs and economic growth in this country and the government (both local and Federal) needs to encourage investment, not penalize it by leveraging high fees and taxes.
AM: Are you involved in politics?
KV: I have always been interested in history and politics. Unfortunately, being a new father to a 6-month old daughter, Aspasia, and running a business does not allow me much time for pursuing such interests at the time.