Stephen Mugar
How does $900 start an empire and generation of philanthropy?
4 Remarkable Things about Stephen Mugar
Well educated and innovative for business
Paid back U.S. by serving State and Federal governments
Pay back to Universities
Looked to the future with the Armenian Assembly
Stephen Mugar, entrepreneur, innovative businessman and philanthropist founded the Star Market chain of grocery stores in the greater Boston area. He immigrated with his parents, Sarkis and Vosgitel, and his sisters from Kharpert in the Ottoman Empire (Turkey today) in 1906.
In 1916 Stephen’s father purchased the Star Market, a small grocery store in Watertown, Massachusetts for $900 and ran it with his son and three daughters. Even though he worked part-time at the store Stephen took night classes in finance and accounting after graduating from the Boston High School of Commerce. He also found a job selling Fuller brushes door to door to supplement the family income.
The Star Market in Newtonville, MA opened in 1930. - https://www.wgbh.org/news/2017/05/24/local-news/how-did-star-market-end-over-massachusetts-turnpike
When his father died Stephen took over the responsibility of running the market putting in 12 - 17 hour days. During the Great Depression in the 1930’s he placed a half-page ad in the Watertown newspaper announcing that during the 1932 “bank holiday” (when the federal government closed the banks to prevent a nationwide bankruptcy) Star Market would extend credit to its customers and cash their checks.
Two stores were opened in 1932 and 1937. “At that time grocery stores took their customers’ orders over the phone and then delivered the food to their homes. After experimenting for several years with self-service meat and produce departments in his stores Mr. Mugar opened Star’s first completely self-service modern supermarket in Newton, MA in 1948. In addition to his innovative food merchandizing Mr. Mugar established a profit-sharing plan for Star’s full and part-time employees in 1955. This was the first such plan to be instituted in New England in a grocery chain.” The Armenian Reporter newspaper 10-28-1982
Stephen Mugar (shortened from Mgrdichian) retired as Chairman of the Board of Star Markets in 1969 after merging with Brigham’s Ice Cream chain and the Jewel Tea Co. of Chicago, Il. He went on to own and develop over 4 million square feet of retail space in shopping centers.
The 60’s and 70’s were filled with many offers and opportunities to help both the federal and state governments with his vast business experience. On behalf of the U. S. State Department he toured Russia to study marketing techniques and food distribution. Later he served on an advisory committee to look at a proposal to modernize the Massachusetts state government. He was also on the Board of Directors of the U.S. Bicentennial Corporation which reported to the President on a site for a possible 1976 World’s Fair.
During the 1960’s Stephen Mugar donated millions of dollars to educational institutions in New England and abroad. The text of the plaque at the entrance to the Mugar Memorial Library at Boston University expresses both his gratitude to the United States and his love for his parents:
“In coming to America from Armenia, my parents opened the door of freedom to me. America’s public schools and libraries opened my eyes to the unlimited opportunities in this great land as well as to the privileges and obligations of citizenship. May this library serve over the years as a similar inspiration to all who use it. In memory of my father and mother, Sarkis and Vosgitel Mugar by their grateful son, Stephen Pabken Mugar.” The Armenian Reporter newspaper 10-28-82
Mr. Mugar also made contributions to all the major Armenian organizations. However, a new idea of Armenian Americans for the creation of an organization headquartered in Washington, DC to represent and promote Armenian interests caught his attention. He became its principal patron who not only spent his money but his time and hard work to ensure its acceptance and ultimately its success. In 1979 this organization aptly named The Armenian Assembly, sponsored a 78th birthday bash for Stephen for the sole purpose of presenting him with their first Distinguished Service Award. Mr. Henry Morgenthau III whose grandfather served as the American Ambassador to the Ottoman Empire from 1913-1916 and who was a friend to the Armenians presented the award.
Stephen Mugar married Marian Graves in the 1930’s and had two children. David is a businessman and philanthropist and Carolyn, an activist, founded the Armenia Tree Project. She is also the Executive director of Farm Aid.
Mr. Mugar was presented with many awards, honorary doctorates and was able to help many universities with his generous gifts. He was touched by his tributes and had this to say when he was presented with the Golden Door Award from the International Institute of Boston in 1973:
“How can you be a good American if you are not a good Armenian? I have always felt strongly that I must show my appreciation for all that has been done for us. That is why, when I had the good fortune to be successful in business,I wondered how I could repay my country for the opportunities it had afforded me and my people. I have always felt that I owed a great debt of gratitude to America. I bless the day we landed on Ellis Island.” Mirror Spectator 2-5-1983