August 25, 2016 — It was a steamy summer day in New York in 2009 when Luke Holden, an investment banker, had a craving for a lobster roll. Not just any lobster roll, though. He longed for the “fresh off the docks” taste he enjoyed growing up in Cape Elizabeth, Me.
After an exhaustive search on New York’s streets, he came up dissatisfied and disappointed.
“Every lobster was served over a white tablecloth, extremely expensive, drowning in mayo and diluted with celery,” he said. “I wondered why all the great chefs in this city had screwed this up so badly.”
So that year, Mr. Holden decided to open an authentic Maine lobster shack in Manhattan. To replicate that fresh taste that he remembered, he would need to oversee, track and, where possible, own every step in the process.
Today, he owns 19 Luke’s Lobster restaurants, two food trucks and a lobster tail cart in the United States, and five shacks in Japan.
He holds an ownership stake in a co-op of Maine fishermen, which allows him to track where and how the lobsters are caught, and control the quality, freshness and pricing. He also owns the processing plant, Cape Seafood, that packages and prepares the lobsters for his restaurants.
“We’re able to trace every pound of seafood we serve back to the harbor where it was sustainably caught and to support fishermen we know and trust,” Mr. Holden said. “There’s no middleman in that whole chain.”
This might seem obsessive. But in business, it’s called a vertical integration strategy.