By CRISTINA JANNEY
Hays Post
The Rush County Grocery has become the latest grocery store to close in rural Kansas, leaving that county without a full-service grocery store.
Rush County becomes the eighth county in northwest Kansas to have some portion categorized as a food desert.
A food desert is an area defined by the United States Department of Agriculture as low income, based on poverty rates and area median income levels. It is also considered low access, an area where people live more than 10 miles from a grocery store in a rural area and more than one mile from a grocery store in an urban area.
The nearest full-service grocery store will now be in Hays, 24 miles away.
Henry Motniel, owner of the store, expressed concern for the community members who now have to travel for food, especially the elderly and people who do not have vehicles.
The state closed the store Aug. 30 for the non-payment of taxes.
Montiel took responsibility for the closure, but cited many pressures that have made owning and operating independent groceries in rural communities increasingly more difficult.
Increased competition from chain discount stores, inflation and lack of volume were all challenges, Montiel said.
Montiel had only owned the grocery store for a little more than a year, but had managed it for four years.
The community already had a Dollar General, and a Family Dollar opened within the last year in La Crosse.
"Those corporate businesses can order shiploads of products when us little mom and pops can only order $10,000 per week," Montiel said. "We're limited in what we can bring in."
The margin on groceries is narrow. Most groceries make their profit on volume, so Montiel said it can be challenging to do that in a community such as La Crosse, which has a population of only 1,266 people.
Large discount stores and grocery store chains can also negotiate better prices than independent groceries, also based on volume.
"It's frustrating, Montiel said of the corporate competition. "There's just enough pie to go around for everybody. ...
"Those corporate businesses don't help any local small-town owners. They're just moving in and pushing us out."
Montiel said he also struggled with cooler breakdowns. Most of his coolers were 30 years old. The store had several breakdowns in the four years he managed the store.
"One breakdown can put you upside down in a hurry," he said.
Finding capital was a challenge as well, Montiel said.
"It's a gamble for the banks because we are usually a break-even type of place," he said.
Full-service grocery stores also have high electric costs because of the coolers. The Rush County Grocery's electric bill was running $3,300 to $4,000 month. Montiel said he didn't have the capital to put in new coolers that would be more energy efficient.
John Girard, owner of Girard's IGA in Osborne, replaced his coolers and added roof-top solar panels in attempt to lower his cost. You can read more on his business in the Hays Post 2021 food desert story: In the land of plenty, food deserts prevalent in western Kansas.
Unlike discount stores, full-service grocery stores are affected more by spoilage because they carry fresh meat, produce, dairy and bread. They often make up for loses on fresh products with higher margins on packaged foods.
However, now many small community grocery stores are now competing against discount stores on those items.
Montiel said as inflation drove up the prices of perishables, the store lost more to spoilage while also facing higher wholesale prices.
Montiel said he was engaged in the community in ways corporate stores are not. He donated to local causes and often let hungry families charge food when they were down on their luck.
"I tried to help my community in any way I could," he said.
Rush County Economic Development Administrator Brad Penka said last week county officials are trying to find a new owner for the grocery store as soon as possible.
If interested in owning the grocery store, residents can call Rush County Economic Development at 785-222-2808.
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