Career
In 1978 Mackey and Lawson borrowed about $45,000 from family and friends and opened SaferWay, a small vegetarian natural foods store in an old house in Austin, its name a joke at the expense of Safeway. It was too small and too doctrinaire to make real money. In 1980 the pair merged it with Clarksville Natural Grocery, run by Craig Weller and Mark Skiles, and on September 20, 1980, the four of them opened the first Whole Foods Market in the 900 block of North Lamar Boulevard in Austin with a staff of 19. All four are recognized as co-founders. The store broke with health food orthodoxy by carrying meat, beer, coffee and a serious produce department, which is exactly what let it take customers from conventional supermarkets. On Memorial Day of 1981 a flood swept through the store, destroying the inventory and most of the equipment. The company carried no insurance and lost roughly $400,000. Customers and neighbors showed up unpaid to help the staff shovel out, creditors and suppliers granted time, and investors put in fresh money. Whole Foods reopened 28 days later, and Mackey afterward dated his stakeholder philosophy to that month.
Whole Foods Market went public on the Nasdaq on January 23, 1992 under the ticker WFM, raising about $23.4 million, and Mackey used the public currency to buy regional natural foods chains rather than build every store from scratch. Wellspring Grocery in North Carolina came in 1991, Bread & Circus in New England in 1992 for about $26.2 million, Mrs. Gooch's in Los Angeles in 1993 for about $56 million, Fresh Fields in 1996, Allegro Coffee in 1997, and Wild Oats Markets in 2007 for about $565 million. Throughout, he refused to fight conventional supermarkets on price, competing instead on quality standards, perishables, service and the experience of the store itself, and he later described his venture capital backers in his memoir as "hitchhikers with credit cards" who would help pay for gas only while the car was headed where they wanted to go. In a letter to team members dated November 2, 2006, he cut his own salary to $1 a year and gave up bonuses and stock grants permanently, pledged his remaining stock options to charity, and seeded a Global Team Member Emergency Fund. He shared the chief executive title with Walter Robb as co-CEO from 2010 until the end of 2016, then returned to sole CEO.
By 2017, with growth slowing and the activist investor Jana Partners pressing for a sale, Mackey went looking for a buyer he could live with. On June 16, 2017, Amazon agreed to acquire Whole Foods Market for $42 per share in cash, a transaction valued at approximately $13.7 billion including net debt. Whole Foods had more than 460 stores in the United States, Canada and the United Kingdom at the time, and the deal closed on August 28, 2017. Mackey stayed on as chief executive under Amazon and retired on September 1, 2022, 44 years after opening SaferWay, handing the company to Jason Buechel. He is now co-founder and chief executive of Love.Life, a health and wellness company whose flagship medical and wellness center opened in El Segundo, California in 2024.