Operators of a Chattanooga-based convenience store chain, despite losing its founder in November, saw an uptick in business in 2023 and are looking ahead to the new year as inflation continues to fall.
“The supply chain issue is better now. That was a major cause for inflation,” said Jay Chaudhari, a member of the family running Kanku’s. “Everything is starting to level out now.”
The local chain competes amid a growing convenience store environment in the Chattanooga area.
Knoxville-based Weigel’s recently opened its third and fourth stores in Chattanooga, with plans to build 10 to 15 in the region, according to company Chief Executive Bill Weigel.
(READ MORE: Weigel’s opens two more stores)
Also, 7-Eleven is putting more units in the Chattanooga market, having opened two this year with another under construction off Broad Street not far from the planned Lookouts minor league baseball stadium.
(READ MORE: 7-Eleven plans Broad Street store)
Vijay Chaudhari started Kanku’s in 1997, said cousin Jay Chaudhari by phone. The founder, who died in November at age 63, had moved from India to the United States at 25 and first settled in New Jersey, Chaudhari said.
Vijay Chaudhari moved to Chattanooga about a decade later after a friend, Harry Patel of the Harry’s convenience store chain, told him Tennessee was more economically friendly, Jay Chaudhari said.
“They grew up together in India,” he said. “He came down to work with Harry for a little while.”
In 1997, Vijay Chaudhari branched out and started his first Kanku’s on East Third Street near Erlanger, Jay Chaudhari said, noting the store was named after Vijay’s mother.
Through the years, seven or eight Kanku’s were opened and some were later sold to other partners, operating not just in Chattanooga but in North Georgia and South Pittsburg as well, Chaudhari said. His family continues to operate a handful of Kanku’s, he said.
Vijay was known as a people person, Chaudhari said.
“Everybody who came in got to know him personally,” he said. “Even 20 years later, if I’m at a store now, they’d come in and ask how Vijay was doing.”
Chaudhari said Vijay was involved in the communities where the stores operate.
“Eventually, the community got to know him,” he said. “That’s why Kanku’s is very successful in those areas because of relationships over time.”
Chaudhari said there’s still a store rule if someone walks in and wants food, they’ll give them something to eat.
“We’ll not let you go hungry,” he said.
Today, the family-operated business is eyeing more stores, Chaudhari said.
“If you’ve got a good location, we’d love to meet you,” he said. “We’re always looking to expand.”
Chandhari wouldn’t disclose annual revenues, but said he’s expecting 2023 to end up better than the prior year and he’s looking forward to 2024.
Gas prices are coming down, the economy didn’t take a big hit and, overall, the U.S. is doing better than the rest of the world, he said.
“I don’t see any reason (to be pessimistic) unless there’s a crash on Wall Street,” he said.
Weigel said earlier this week by phone Chattanooga has been “very good to us” since the company entered the market about 20 months ago.
He said each of its newest stores cost about $6 million.
“Construction prices have gone out of sight,” Weigel said. “I think it will fall back soon.”
Weigel said his company, too, continues to hunt for sites for future locations.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.