John’s Grocery now four generations strong

Doug Alberhasky is proud to manage John’s Grocery — leading the family-owned store’s transformation in recent years through a remodeling, kitchen closure and numerous accolades — in a building that first existed as a grocery store in 1848.

The business, he said, is doing better financially than it has in years, and he’s excited to work alongside his son, JD, the same privilege he felt as a child and young adult when he watched his father and uncle run the store. Having just graduated from the University of Iowa, he foresees JD working as his right-hand man for 10-15 years before the father-son duo eventually swaps roles.

“It’s basically pride (and) family heritage,” he said. “I never put a whole bunch of pressure on him, just as my dad never put too much pressure on me.”

In 2001, Mr. Alberhasky said supermarket chain Hy-Vee announced it was going to open up a new location a block away with the sole intent of running John’s Grocery out of business. A meeting was held soon after between Northside Neighborhood Association businesses, where he thanked others for their support when he needed it most.

“I learned a long time ago I’m not doing this to make money,” he added. “It’s because it’s good for our community. You’re supposed to look out for your neighbors. The fact that we still do business the old-fashioned way is kind of rare, but I also think that is what endeared us to so many of our customers.”

175 years of history and shooting a movie

Founded just two years after the state of Iowa, John’s Grocery original owner Samuel Baker built a grocery store at 126 N. Gilbert St. He lived in the store for almost 40 years, dying one year after the store’s 401 E. Market St. addition was built, where the store stands today, and two years after Iowans first started facing alcohol prohibition laws.

"In 1857, Iowa City had three breweries and 40 bars for 7,000 people,” said Mr. Alberhasky.

“I figure about one-seventh of the town’s population in the 1850s-1860s was associated with brewing,” he added.

News of outlawing alcohol was met with rage and fury. Three breweries, collectively known as the German Beer Mafia, were disgusted by the new laws. Local businessmen running the breweries soon gathered with angry mobs. City police and prosecutors were stabbed in the leg, beaten and tarred, according to news reports at the time.

One of the local businessmen, later issued an arrest warrant but ultimately required to just pay a fine, was John J. Englert, the co-owner of Englert City Brewery and namesake of Englert Theatre. 

”We’re actually making a movie about this (time period), and we’re going to film a short eight-minute film on June 25,” Mr. Alberhasky said. 

All of the scenes in the short film will be filmed within eight blocks of John’s Grocery. Many of the actors and writers are from the surrounding Iowa City area.

Based on the amount of money raised, the state of Iowa tourism office said that it will match funds dollar for dollar. John’s Grocery is hoping to raise $500,000 in total and release the movie for showings to local breweries.

As the oldest continuing operating business in Iowa City, sometimes serving as an apartment building, saloon, barbershop, fire station or factory, John Alberhasky bought the business in 1948, about 15 years after federal prohibition was over and the chaos of previous decades subsided. 

“My uncle Tim was the fifth kid [in the family born],” he explained. “My grandpa had to do something because he wasn’t going to be able to make enough money. When the previous owner told John he should buy the business, he thought about that fifth mouth to feed.

“My dad was actually born when my grandpa was at war,” he continued. “My grandma, dad and oldest aunt took all the money that they had saved up from grandpa sending war bonds home and bought the store."

The grocery store has stayed in the family ever since, with JD set to be the fourth generation of Alberhaskys to run the business.

“In our family, as soon as you can see over the counter, you’re hired,” he said. “Grandpa and grandma basically worked in this business every single day until the early 1990s. They never completely retired. They just kind of phased out a little bit.”

Remodel, kitchen closure

Even for one of the city’s foremost institutions, changing with the times is still essential.

The store needed to undergo a major remodeling, due to having a floor three to four inches thick because it was uneven. The crew also insulated the basement to ensure the alcohol remains cool despite the temperature outside.

The layout of the store changed for the better visually, allowing customers to see the entire floor plan easier instead of walking down one long hallway, or “flying down the trench in the Death Star” like before, as Mr. Alberhasky puts it.

But the most difficult decision was closing the kitchen. Despite the quality of the food, the kitchen was no longer cost-effective to keep in business.

https://corridorbusiness.com/johns-grocery-closes-kitchen-will-expand-online-operations/

“We got voted best fried chicken in the state of Iowa in January 2022," said Mr. Alberhasky. “I closed the deli down a week after. Are you willing as a customer to spend one and a half times more for something handmade? Two times as much?”

He said in the last months of the kitchen’s operations, fryer oil alone went from $8 to $28 per five gallons. Once the city’s fire marshal said the business could no longer grandfather in a hood vent that had a fire suppression system in it, Mr. Alberhasky decided a $40,000-$60,000 replacement was not financially feasible long-term.

The room has since been converted to selling merchandise, hosting tastings and presentations.

“You can’t keep on a business model for nostalgia, and that’s why it was such a hard decision,” he said.

Impact on Iowa City

John’s Grocery, also known as Dirty John's to some, is an institution in Iowa City. 

“There used to be a junior high school right down the block, and kids would always come in over the noon hour and get penny candy,” said Mr. Alberhasky. “My grandma in this room started her deli making ham salad sandwiches because she got tired of seeing kids rot their teeth out. Fast forward to 1956 and we’ve got hundreds of kids coming in over the noon hour for lunch.” 

But, as the tale goes, a stack of magazines delivered from a truck was taken by two boys and shared with other students at school. The principal called Mr. Alberhasky’s grandpa, and the name Dirty John's stuck. 

John’s Grocery's presence has been felt throughout the city in the last 75 years, especially through the people-gathering events it hosts. In 1996, the business started IC Brew Fest, the oldest brew fest in Iowa, and one of several brewery festivals the store hosts each year.

A chance meeting with Matt Swift, a partner with BlackStone Restaurant and Reds Alehouse, changed the trajectory of the Iowa City restaurant scene forever.

“I took him some world class beers…and he was blown away,” said Mr. Alberhasky. “He said ‘well, what about Miller Lite, Bud Light and Coors Light?’ I said you don’t need that crap. He kind of ran with that.”

Because of the success of Reds Alehouse, which was under construction when they first met, Mr. Swift propelled his success to other restaurants by founding Big Grove Brewery and becoming a partner for 30hop, Pullman Bar & Diner, Mosley’s Barbecue and Provisions, and St. Burch Tavern, among others.

Staying in the family

When JD was a fifth grader, he helped work at SodaFest, the accompanying kid-friendly festival to the Northside Oktoberfest. 

“I had the general sales manager of one of our largest beer distributors filling in for one of his guys sampling soda, and he goes, ‘I never in my wildest dreams thought that I would be taking orders from a fifth grader.’”

Perhaps it’s not surprising JD has an entrepreneurial mindset, considering he was featured in John’s Grocery television ads from a young age, and would even get recognized from the ads locally.

Informal shadowing of the business and his father helped JD develop natural selling ability from a young age, too.

“He was so intent on selling Cub Scout popcorn to raise money to buy a Nintendo Wii,” he recalled. “This woman says, ‘Oh honey, I’d love to but I don’t have any money on me.’ With the skills of a trained assassin, he goes ‘Well, we've got an ATM right inside the back door.' That’s learning through osmosis, and that is what my dad and grandparent’s gift was to me.

“If there’s one secret to success, it’s learning by doing,” he added.

John’s Grocery celebrated its 75th anniversary under the Alberhasky family tree on May 31. The company partnered with 11 breweries and had food from Wilson’s Orchard & Farm, as well as live music courtesy of Iowa City band HomeBrewed, for the event.

“You can look at a lot of towns and see nothing but Walmarts, Dollar Generals and all these other places that don’t have any connection to history,” he said. "Would Iowa City be so unique if John’s, Pagliai’s, Hamburg Inn, or Bluebird weren’t here?”