When the parent companies of Hughes and Ralphs, Quality Food Centers Inc. and Food 4 Less Holdings Inc., respectively, were acquired earlier this year in a two-part deal by Portland, Ore.-based Fred Meyer Inc., it created a chain of more than 800 stores in 14 states.

Meyer, already one of the largest food retailers in the country, converted the Hughes stores to Ralphs in a move to cut costs. As a result of the consolidation, there are now 380 Ralphs markets in Southern California.

Hughes manager Lee Ford, enormously popular in Malibu for keeping his market open during every emergency, sometimes powered only by a generator, is having some difficulty serving his customers.

“I don’t know him personally, but all the (former Hughes) managers I know by reputation as excellent,” said Ralphs spokesman Terry O’Neil. “They work real well with the community.”

O’Neil said that since the conversion of Hughes stores into Ralphs, Ralphs’ corporate offices have received “a lot” of calls from concerned Hughes customers, as company officials expected.

“Ralphs Grocery Co. understands it [the conversion] will create feelings of alienation and discomfort for loyal Hughes shoppers,” said O’Neil. “But we’ve done consumer studies and conducted focus groups to make changes as unobtrusive and easy as possible.”

What items Ralphs carries at its markets is dictated almost exclusively by what the main office determines all Ralphs markets should sell, so every Ralphs carries the same product selection, drawn from the Ralphs warehouse. If a product once carried by Hughes in Malibu is no longer available at Ralphs, that is because the item is not stocked at the Ralphs warehouse.

“The product mix at Ralphs stores is determined by corporate headquarters, based on [consumer] studies,” said O’Neil.

In contrast, Hughes had a more varied selection at each store, because individual stores were not subject to the same kind of centralized decision-making.

An individual Ralphs store is allowed some small changes in the product selection based on the demands of the community in which the store is located. The stores’ directors and department managers convey those demands to the main office.

“Store managers have the authority to call marketing to ask them to order an item,” said O’Neil. “If enough customers [from a particular store] ask for an item, it will be stocked.”

Ralphs also encourages its customers to call its toll-free number, 888-417-5556, to request an item not currently carried at their neighborhood market.

Since 1992, Meyer has focused on increasing sales of its private-label grocery items and plans to do the same with Ralphs stores, according to documents filed with the Security and Exchange Commission. Private-label items generally generate higher profit margins than national brand products. Ralphs already has a strong private-label program, with approximately 2,800 private-label products out of a total of 35,000 merchandise items.

Hughes’ reputation was, in large part, based on it providing among the widest and freshest variety of meat, seafood, produce, deli and bakery items, among the major supermarket chains.

O’Neil volunteered during the one interview granted for this story that Ralphs is buying from the same produce supplier from whom Hughes purchased. But O’Neil did not return several follow-up calls seeking comment on whether Ralphs purchases from the same meat and poultry suppliers.

Mike Osterman, owner of Pacific Coast Greens, said his fish supplier used to supply Hughes in Malibu as well, but the supplier lost the contract when the market became a Ralphs.

O’Neil said he did not know whether the volume of sales has fallen since Malibu’s Hughes became a Ralphs, but Osterman said his sales, before the road closure, had increased since the Hughes converted to Ralphs, although he declined to say by how much.

“I’ve tried to advocate for six years for people not to eat pesticides, hormones and chemicals,” said Osterman. “Now new people are coming to my store because their brand isn’t carried by Hughes anymore.”

As part of its marketing strategy, Ralphs emphasizes lower regular retail prices, according to an SEC filing. To increase store traffic, it offers double coupons and the “Ralphs Club Card,” which gives frequent shoppers discounts on selected items. The club card is designed to increase the frequency of store visits and the size of each transaction. The card also provides what Meyer describes in the SEC filing as “valuable information about consumer shopping habits.”

Among the major supermarkets in Los Angeles, Hughes was second only to Gelson’s in terms of customer service.

“Hughes was among the best-run supermarkets in California,” said O’Neil.

Hughes generally staffed each shift with a sufficient number of employees to readily help customers find an item, or to move them through the check-out line in near-record time. Lucky Stores and Vons Markets are considered the worst service-oriented and Ralphs is somewhere in the middle, said a source with close ties to the supermarket industry.

While customers at Ralphs in Malibu may feel that the market cut its staff, Ralphs did not lay off any former Hughes employees. But individual Ralphs stores may have fewer employees working during any given shift than Hughes would have had, said the source, who asked not to be identified.

While the conversion to Ralphs is official on the inside of the store, it is not on the outside. The big, blue sign there still says “Hughes.”

O’Neil said that’s because Ralphs wants to go about changing the signage “at a slower pace. We don’t want to drive customers away.”

Writer Robert A. Jones, of the Los Angeles Times, called the Ralphs-cum-Hughes’ sign strategy the “attack of the stealth Ralphs,” in a recent column.

In addition to the product selection at Ralphs, the store’s layout is also determined by the main office, in what it calls its “signature” style.

And what goes on which shelf is determined by “slotting fees,” the well-established practice in the supermarket industry of grocers charging manufacturers for shelf space. Companies commonly pay thousands of dollars to get a supermarket chain to stock its products or display them more prominently. Eye-level shelves are the most pricey.

“All major commercial chains participate in the process,” said Osterman. He said the amount paid depends on the item, but he has heard of a company that shelled out $100,000 to get a snack item on the shelves in a national chain.

“The real estate is very, very valuable,” said Osterman. “It involves kicking someone else off the shelf.” He also said that a company that intends to have a chain stock its products needs to have enough money behind it to advertise on television, have product demonstrations and give out coupons.

“If you’re just one guy with a single product, there’s no way you’re going to make it,” he said. “You need to get the food in people’s mouths through TV commercials, demos and coupons.”

About 60 merchants worried about their failing businesses, together with concerned residents, filled every available chair in City Hall’s largest conference room Friday afternoon at a meeting to coordinate efforts to open Pacific Coast Highway. The overflow crowd waited in the hall.

City Manager Harry Peacock took notes on a large whiteboard in an effort to keep the discussion organized, as representatives from Caltrans, Los Angeles County, the Chamber of Commerce and state legislators’ offices stood by to answer questions and listen to concerns.

John Daniels, owner of Hannah’s Cantina, the new restaurant on the former site of Kay & Dave’s, pointed out that a business backed by a large corporation could weather this kind of disaster more easily than the small businesses found throughout Malibu. Daniels urged officials to change the signs that said “Road Closed” at Topanga Canyon Road. “Why can’t you say it’s closed farther up, like at Big Rock?” Daniels said. Jim Lee of Caltrans said he would correct the signs immediately.

Daniels and others also complained that the media had been reporting the road was closed from Topanga to Las Flores and not reporting that local traffic was permitted to travel as far as Big Rock. The business owners asked that press releases be sent out to clarify the facts. They also wanted MTA to know buses coming from Santa Monica could go farther up the road and asked that shuttle service be provided for their employees who live beyond the slide and were dependent on public transportation. “Can we get the buses closer to Las Flores so our employees can get closer to their jobs?” asked Tony Koursaris, owner of Taverna Tony.

The shuttle idea failed to gain momentum. Some said it was not worth the effort since PCH would be open to foot traffic before 7 a.m. and after 7 p.m. until Caltrans began its work. After that, the road would be open. “We will definitely open two to three lanes for Fourth of July weekend, barring any new slide,” said Mike Miles of Caltrans. “It seemed that it was going to be open before the MTA could be put on line,” said Mayor Joan House. But it was decided that the buses could be directed to run farther up toward the closure.

The council voted to purchase a $350 sign that would let traffic know that businesses were open as far up as Moonshadows restaurant. “I was very pleased with the cooperation at that meeting.” said House. “I think it was a wonderful example of all agencies sitting down at the table and working together.”

“This was an extremely productive meeting. Everybody was participatory,” said Mary Lou Blackwood, Chamber of Commerce executive vice president. “The fact is that we were able to get the sign up in less than 24 hours.” With the county’s help, said Blackwood, MTA buses were running all the way up to the barrier by Saturday morning. “The lines of communication are open and it’s much better,” she said. “There’s a tremendous spirit of cooperativeness.”

By Tuesday, geologists for Caltrans and the city had good news for owners of the houses that were red-tagged during the slide. “We agreed that by Thursday morning, they’re going to have enough safety devices in that we’ll be able to pull those red tags off of the houses,” said Building and Safety Official Vic Peterson. Peterson said K-rail barriers, like those that run down the middle of freeways, and Conex boxes, which collect debris, will be put in place to keep rocks and dirt from sliding onto the road. Thursday is also the day city officials hope to reopen two or three lanes on PCH.

The sign at Moonshadows last week said it all — “This Sucks.” The fiasco at Las Flores has frayed nerves and ruined lives. Every business, worker and resident seems to have a horror story to tell. Even walking past the slide has been impossible. Locals and employees have been sent back or forced onto the beach where they brave high tides, rip rap and jagged sea walls.

“I saw this little, old lady with a cane climbing over the rocks,” said Christine Horvath at Duke’s. “It’s ridiculous.” Her co-workers tell of losing watches or wallets, ruining clothes and suffering cuts and bruises in an effort to get to their jobs.

Many say they normally enjoy a good relationship with law enforcement during times of trouble — but not now. “They’ve been so rude,” snapped Celone Fontaine. “They’re killing our business, messing with our livelihoods, and they’re giving us a hard time on top of it.”

On the other hand, one guard reportedly relented and permitted a judge to drive past the slide zone — a rock crashed into the side of the judge’s car.

Malibu florist Sara Fay not only lost business, but was given a trespassing ticket. “Every time I go on the beach, they give me a $50 citation,” she huffed. It can get worse than that. On Sunday, one man who defied authorities and walked past the slide was taken away in handcuffs.

The on-going aggravation and loss of income has sent even disaster veterans like Joie Cosentino over the edge. “I’m on the verge of tears all day long,” she said with watery eyes. “My employees have to eat, they have to pay their rent. What am I supposed to do — tell them to find other jobs?” For this longtime Malibu business owner, feelings of pride and joy have been replaced by anger, sadness and disgust. “I’m so sick,” she said. “If I had an offer on this place, I’d take it and get out of here.”

Cosentino isn’t the only one who’s seen her business go to pot. “I can show you my books,” said Eva of Malibu Classics. “I have nothing but zeros.” After a winter of road closures, local shops and eateries were looking forward to a busy summer to help recover at least part of their losses, but the slope failure at Las Flores could bury them.

Moonshadows, which just invested in a colorful, new paint job and brought in live music, has lost $60,000 and may be driven out of business altogether, owners said Saturday. Even though the slide was at Las Flores, motorists had been routinely turned away at Topanga and that was the standard operating procedure all year. The policy was changed over the weekend, after lobbying by city and Chamber of Commerce officials, and by Sunday, Moonshadows’ parking lot was filled with cars.

Financial woes stretch all the way to the county line. Restaurants from Cross Creek to Zuma say business has been down anywhere from 50 to 90 percent.

Sheriff’s deputies have also had a tough and frustrating time, pitted against angry residents who want entry and uncompromising Caltrans officials who fear falling rocks will lead to injuries and lawsuits. On Monday, arguments ensued when Caltrans refused to let mail trucks and other official vehicles through the slide zone — an area which amounts to the length of about eight beach cottages.

A few residents are considering a class action lawsuit against Caltrans, but wonder about their chances. “They say you can’t fight city hall,” says Jerry Green. “This is the government and the government can basically do whatever they want.”

In the meantime, the bulldozers, front-end loaders and excavators rumble and roar for a handful of diners at Duke’s. “I can’t get out,” someone shouted over his cell phone. “It’s gnarly.” A German tourist turned her back to the beach and watched the boulders come down like bowling balls. “Das ist schlimm — zehr schlimm.” (Translation: this is bad — really bad.) For visitors staying in Malibu, the slide doesn’t seem to matter. The surf is up, the sun is shining and the Corona is cool. But for residents, workers and business owners, it’s a different story — the road to paradise has become the highway to hell.

Moonshadows reopened for lunch and dinner as of Sunday, with live music scheduled from 2-6 p.m. weekends. Hours, 11 a.m.-9 p.m.

Landowners who once sold the Santa Monica Mountains Conservancy their rustic, undeveloped property off Malibu Canyon Road in a $3 million deal are back in possession of the land, after foreclosing on it last week. And taxpayers are out $1 million.

The conservancy’s purchasing arm, the Mountains Recreation and Conservation Authority, made a $1 million down payment on the entire tract of land off Piuma Road in January 1995, using funds from Proposition A, approved by voters in 1991 for parkland purchases. The state agency also issued a promissory note, due in January of this year, for $2 million, the balance of the purchase price.

Rather than pay the note when it became due, however, the conservancy reappraised the property as parkland for $1,800,000. The conservancy told the note holders that it would adhere only to the later appraisal and consequently would pay only the $800,000 difference over the down payment, plus interest.

The nine families who sold the land and held the promissory note during the conservancy’s possession refused the conservancy’s new purchase terms and initiated foreclosure proceedings in February. The families originally planned to build homes on their different parcels, and the property was initially appraised for the conservancy transaction according to its development potential. Appraising the property a second time as parkland substantially lowered its value.

Harry Dempster, one of the nine landowners, said the purchase terms were locked in at the time of the down payment and the conservancy should have honored those original terms.

For the conservancy “to have it for awhile, and then say, ‘Now we want to pay less,’ I don’t know what they’re thinking,” said Dempster. The land was offered at public auction last week, but no bids were made on it, so it was returned to the original landowners. The nine landowners also kept the $1 million in public money. “They thought they could bully us into taking less money,” said Dempster.

The property owners say they again plan to divide the five existing parcels into 10, on which they plan to build 10 homes. The conservancy opposed the development from the beginning, which was why the agency purchased the land in the first place. The property owners say they anticipate further opposition from the conservancy, and they plan legal action if the agency thwarts their development plans. Susan Shraibati, another landowner, said she has spoken with the conservative Pacific Legal Foundation about their case. The foundation is best known for its involvement in property rights cases. “They will step in if they won’t let us develop,” she said.

The conservancy did not return calls seeking comment.