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Erewhon, Inc.
Erewhon runs a small chain of high-end grocery stores in Los Angeles known for expensive, trendy health foods and a cult-like following.
Erewhon is a grocery store chain for people who treat food shopping like a luxury experience. It runs about ten stores in the Los Angeles area and sells fresh produce, prepared meals, wellness products, and its own line of branded goods. What makes it unusual is the price point and the vibe: shoppers pay famously high prices for things like raw vegan sushi, tonic smoothies, and a $20+ bottle of "Functional" water, and many of them seem happy to do it.
The business makes money the way any grocer does — selling food and household goods at a markup — but Erewhon's markup is far higher than a normal supermarket's. It attracts a customer base that includes celebrities, wellness influencers, and wealthy locals who want organic, exotic, and Instagram-worthy products. The company's private-label line, sold under the Erewhon name, is a big deal for margins: those house-brand items cost less to make and carry fatter profits than national brands. It also runs a membership program and a prepared-foods operation, where hot bars and smoothie counters turn a grocery run into a meal destination. Erewhon started in 1968 as a small natural-foods store in Boston, and the current LA-focused incarnation took shape after the current owners bought it in 2011. The chain has expanded carefully, opening new stores in affluent neighborhoods and turning each one into a local status symbol. Its reputation rests on curation and scarcity as much as on food: the stores are small, the product mix is tightly selected, and the experience is designed to feel exclusive. That gives it pricing power most grocery chains can only dream about.
The obvious risk is that this is a premium business tied to a wealthy, trend-driven customer base in one metro area. A normal grocery chain survives on thin margins and huge volumes; Erewhon survives on high prices and a loyal, image-conscious clientele. If the wellness trend cools or LA's affluent shoppers tighten their belts, the model is more exposed than a mainstream grocer's. For now, though, the formula works: it has built a brand strong enough that people line up to pay premium prices for groceries they could buy cheaper elsewhere, simply because it's Erewhon.
Saved answer · last researched 10 Nov 2026