If you live in the mid- or upper Hudson Valley, you’re probably well aware (and maybe even a frequent customer) of Stewart’s Shops, a Capital Region-based company that does convenience stores quite differently. While you can walk into any location and pick up a bottle of water and a bag of chips for the road, at Stewart’s, you can also get award-winning ice cream by the scoop or pint; high-quality milk and farm-fresh eggs; coffee by the cup or one-pound bag of grounds; a slice of pizza, soup, a hot dog, or sandwich (all made by Stewart’s) to-go; and, at most spots, fill up your gas tank.
How did this local empire of hundreds of shops across New York and southern Vermont come to be? The story begins in 1945, when brothers Charles V. and Percy Dake purchased a small dairy and ice cream business in Ballston Spa called Stewart’s. Before buying, the Dake family had been producing Dake’s Delicious Ice Cream since 1921 and pasteurizing milk from area farms since 1935.
The acquisition of the dairy included licenses to sell milk in nearby towns, plus a freezer and hardening room for making ice cream. Shortly after the deal was complete, the storefront on Route 50 in Ballston Spa was reopened to sell ice cream and milk, and three additional locations were launched in Saratoga Springs, South Glens Falls, and Latham.
By 1975, Charlie and Bill Dake, the family’s second generation, had helped to expand Stewart’s Shops to 65 locations, which operated under three divisions: Stewart’s Ice Cream Shops, Stewart’s Soup ‘N Sandwich Shops, and Stewart’s Bread ‘N Butter Shops. The combined success of all three evolved into the convenience store concept that Stewart’s still follows.
Today, the family-owned business is thriving, with 360 shops currently open— and they’re not showing any signs of slowing down. (125 shops are located in the Hudson Valley, employing 1,822 locals.)
“We’re always trying to grow,” says Stewart’s Shops’ COO Chad Kiesow. This month, the company expects to close an acquisition of Jolley, a convenience chain based in Vermont. Once completed, the sale will add 45 stores in New York, Vermont, and New Hampshire that will slowly be integrated into the company and renamed.
Quality Is Key
Part of what sets Stewart’s apart from the average grab- and-go store is its “vertical integration” model. From a production and distribution center in Greenfield Center, a town just outside of Saratoga Springs, Stewart’s makes 75 percent of all items sold in its shops. The dairy products—milk, half and half, eggnog, and ice cream—make up a large portion. Working with 19 local farms, Stewart’s collects milk from its partners almost daily which it then brings to the manufacturing facility to test for bacteria and antibiotics (per the company, any milk containing either “won’t make it past the door”), pasteurize it, bottle it, and get it back out to the shops—all within 48 hours.
After it’s tested in the dairy facility, some cream and milk is transported down the hall to the ice cream factory, where it is pasteurized, homogenized, and turned into a base. From here, toppings and other ingredients are added to make one of over 60 flavors. According to Stewart’s, its ice cream has less air than most supermarket brands, resulting in a richer, creamier product.
Stewart’s also makes juices, teas, and cold coffee drinks called “Refreshers;” their own sodas in six flavors from root beer to classic cola; grab- and-go foods such as chili, meatballs, mac ‘n’ cheese, and chicken salad; chocolate and candies; loaves of bread; and baked muffins, donuts, and apple fritters. All of the above are produced at Stewart’s Shops’ kitchen in the Greenfield manufacturing center, which recently tripled in size to meet demand from customers.
By overseeing products from creation to sale, the company can ensure it is putting out quality goods. Take the ice cream as an example: the shops only carry Stewart’s brand because they know how it was made, what temperature it was stored at in the facility, and that it was brought to the shops on a temperature-controlled truck. While it may require some extra care and money, the quality of the product speaks for itself, often receiving high scores at both state-wide and nationwide competitions.
This year, Stewart’s brought home the New York State Fair’s “Best Milk in New York State” award for the third consecutive year, plus blue ribbons for its chocolate milk and other flavored milks. Additional awards were given to Stewart’s strawberry milk, mint cookie crumble ice cream, mango dragon fruit sherbet, French vanilla half and half, and more at the 2024 World Dairy Expo.
All in the Family
Not only is Stewart’s a family business (currently led by Gary Dake, a member of the third generation of Dakes to run the company), but it’s also employee owned. Through Stewart’s profit-sharing Employee Stock Ownership Program, shop partners own around 40 percent of the business—a number that will increase as the Dakes begin to sell more shares to Stewart’s employees. Thanks to this program, 199 retirees and current employees are millionaires.
Stewart’s makes 75 percent of all the items sold in its shops including over 60 flavors of their award-winning ice cream.
Beyond its commitment to employees, Stewart’s is driven by its dedication to community—“We Are Closer to You” is the company motto. Per Kiesow, “We take great pride in giving back, and we’re able to do so because our communities treat us so well. They see the strength of a family business and the character on which it’s run.” For the company, giving back takes several forms. In some instances, it means supporting local events— earlier this year, area shops donated supplies and helped scoop ice cream at the Lagrangeville elementary school’s field day.
It may also mean donating money to local organizations—Stewart’s Shops and the Dake family have an annual giving goal of $9 million, which is partly accomplished through the Holiday Match program. From Thanksgiving to Christmas Day, Stewart’s collects donations from their stores and matches the total customer contributions. Since it was founded in 1986, the program has raised over $38 million for non-profits— more than $2 million was raised in 2023 alone, with $746,447 going to Arts Mid-Hudson, Friends of the Newburgh Free Library, the Albany County Historical Association, Habitat for Humanity of Dutchess County, and more.
If you stop by a shop this season, you can help contribute to this year’s Holiday Match, stock up on Stewart’s house-made products, and say hello to a friendly face behind the counter. “We take pride in how close we are to our communities,” Kiesow says. “It’s heartwarming to hear our shop managers talk about their store and how intimately they know their customers, and it’s impressive how, in many ways, Stewart’s is woven into the fabric of some of these communities. It might sound cheesy, but it’s true.”
Related: The Hudson Valley Icebergs Inspire With Adaptive Ice Hockey in Saugerties
