Co-op Idea Continued…
Decatur Metro | July 28, 2008OK, since I let this conversation trail off before I could reply, I’m starting a new post.
First off, thanks to everyone for all the feedback. Both believers and doubters comments are valued. Actually its the doubters I really want to hear from. If we were all just a bunch of believers, we’d just nod ourselves into blind consensus.
I reiterate that I believe a downtown grocery that was both practical (“less hemp soap”) and fresh could be a real asset to the community.
My personal unpolished vision would include a focus on fresh meat and produce, along with all the essential grocery store products…though my thought would be to generally steer clear of the big name brands and take more of a “Whole Foods” approach…lots of organic brands…greater focus on local. I believe prices could be kept relatively low, since a co-op doesn’t need to turn a profit (this is something I need to investigate further). If there really is a widespread desire in town for this sort of establishment and we did things correctly and inline with the desires of the public, I don’t think we’d have to worry about Kroger or YDFM. (what IS up with that worsening chemical smell at YDFM?!)
If it was indeed a co-op, it could either be patron or employee-owned. If it was patron-owned, members would get a small discount off purchases and would be encouraged to volunteer at the store (receiving store credit for hours worked).
Obviously I really don’t have much clue what I’m talking about (except from what I read in this great little manual: How to Start a Food Co-op). We’d need people like Decaturmom’s friend and those with grocery store experience to even determine if such a concept is possible here. But like I said before, a successful co-op downtown would not only provide a great service to the community, but also create a great gathering/meeting place for members/non-members alike.
As for next steps, here’s what the Cooperative Grocer’s Information Network says are the first two steps to creating a co-op…
- Gather background: get information, identify needs, convene a core group of interested individuals.
- Organize: Hold a meeting of potential members to discuss needs and options. Select a steering committee to coordinate the group.
However, there’s no way I’ll personally be able to push this initiative forward until at least 2009. If we want progress before then, someone else will need to lead the charge. If you choose to do so, I guarantee you’ll have my complete backing. If not, watch for me to bring this up again come January.
Again, yes! I can’t lead the charge but count me in as someone who would join and try to help as much as possible. I would be interested in a place where I could buy vegetarian options (tofu, fake meat products, maybe a deli or hot bar with veg options), fresh/local/organic produce, alternative/organic/natural toiletries and cleaning products such as seventh generation and tom’s of maine, and a bulk section for nuts/grains, etc.
I think the key is to start out very small and build up from there. I shopped weekly at an awesome place in Takoma Park, MD, the Decatur equivalent to DC, and they started out really small and now have moved up to a beautiful and sizable co-op. I think you will find the shoppers: I wonder more about the location, with parking or not. Please keep this dream alive and someone start a website, maybe to start organizing this?
Yeah, WPMOM…I ALMOST mentioned parking in the above post, but then held back for the moment. That’s a battle for another day…don’t want to get ahead of ourselves. But agreed…location/parking will be a key consideration down the road.
Thanks for your input and interest. When the time comes…a website/blog is a great idea!
Okay one more comment. If anyone is wondering, the two fantastic co-ops I have used regularly, the one in Takoma Park, MD and the one in Minneapolis, MN each have as their current membership price, a capital investment per family/household of $100, with payment plans available. Not sure if this is of interest, but it might get the wheels turning as to how the start up financing occurs. Maybe do a survey to find out how many people would consider joining at this level?
The links:
TPSS: http://www.tpss.coop/Membership.html
Eastside (Mpls): http://www.eastsidefood.coop/retailer/store_templates/ret_custom_page.asp?storeID=4BDBCB19C9F6461490FDC3F35FB2A851
My husband and I would definitely be interested. Also good to look at is Sevananda. Obviously large at this point, but gives an idea of local pricing.
http://www.sevananda.coop/retailer/store_templates/ret_custom_page4.asp?storeID=C5G13S77A6GB8P0JT1P2Q4XBHR8BFXX2
You should all stop in Sawicki’s at 250 Ponce http://www.sawickismeatseafoodandmore.com/, she has a great selection of fresh fish and good cuts of meats. She has become our “local butcher” and has great advice as to what is good, fresh, and available. She will also filet, cut, or prepare your fish/meat selection any way you like. She is also beginning to carry some local produce and have a booth at the Morningside Farmers Market.
Actually ate at Sawicki’s yesterday Kyle. Excellent roast beef sandwich! And the ginger molasses cookie was to die for!
This idea isn’t meant to compete with Lynne unless she has plans to greatly expand into a much more expansive store in the near future. If that were the case, we might need to reconsider.
If this idea were to ever happen, we’d certainly be conscious of other Decatur businesses…especially since it would be community-owned.
I am already a member at Sevananda, though if there were a co-op in downtown Decatur I’d check it out. But honestly, as money has become tighter and groceries everywhere more expensive, I’m down to buying just a few specific things at Sev. For example, they carry a good bit of local organic produce, and I buy it whenever possible, but honestly, it is quite a bit pricier, and often prohibitively so, than the organics at YDFM. Walkability would be a nice thing, but it’s not like Sev is terribly far out of the way, and I’m near or in L5P at least once a week anyway.
Anyway, it’s a great concept, but almost everyone I know is very concerned about the rising cost of groceries, and I would be concerned about the feasability of another grocery type store downtown, what with DFM, Sev, Whole Paycheck, etc. not too far away.
Just call me Susie Buzzkill.
Decatur Mom I see your point about pricing, as money is tight for everyone for sure. I still think it would be a success. I guess I would rather have the option to spend slightly more for the opportunity to buy all the things I want in one place, than drive to Kroger for some things and Whole Foods for others and maybe the Farmer’s mkt or Sev or Trader Joes for others.
I’m a single parent so time is money for me, I guess is what I’m saying. If there were a co-op, not only could I save time and gas money by having one destination a week instead of three, but I would be much happier for not spending so much psychic energy shopping and driving around town which I personally really really don’t like to do, especially with my preschooler in tow. We’d much rather be at the library or playground! Anyhow, that is my two cents.
Ok, I’ll be the one to be the doubter.
While I have no specific background in grocery business, I do have an extensive business background with entrepreneurial ventures as well as big corporate, uh, nightmares.
I believe that making a coop prove-in financially would be tough at best. Grocery margins are very slim, (why they sell beach chairs and cosmetics) & competition is fierce. Just look at the number of players in our small area. Further– let’s keep in mind that consumers often do something different than what they say they’ll do. When $$ is tight– or just feels that way– they often opt for the cheapest option. I suspect that if you got on the inside of any of the boutique grocers in our area, you’d learn that they are struggling.
IMHO, we would have a higher likelihood of success and our resources would be better used by working with the existing businesses in place today.
An example might be working with Sawacki’s to expand. She has the some of the needed suppliers in place, the beginnings of location and the local knowledge and industry-specific experience to pull it off.
Another alternative might be to work with Kroger to change their offerings. I would hope that they realize that they’re missing out on a significant market segment by ignoring the neighborhood’s preferences. If they don’t, I’m sure the right people could get exec. mgmts’ ear. Influencing them must consist not of emotional and social-conscience pleas but hard demographic and economic data that shows them how any change that we ask for will result in cold, hard profits.
Here’s a example nearby of how local influence can work: In the late 90’s there was a loud battle in Emory village when the “baby Kroger” ( who’s offerings were fairly neighborhood-sensitive) moved out and CVS leased the space. After some unflattering press, lots of neighborhood screaming and organization, CVS agreed to carry much more food and even enticed Shield’s meat market to open a small space co-lo’d with them (with wine and veggies). They’re still there and making it work.
I’m not suggesting that we take a combative approach, but a conversation would be a good place to start. And look at that big, vacant side parking lot. I see an opportunity for them to make that productive.
Please let’s remember— at the end of the day, a business, a nonprofit or other type of hybrid venture needs to cover its costs and recoup its investment– somehow. That’s always the hard part.
I guess it all depends on what the focus of the endeavor is and obviously financial viability is a probably the most important key. As for the local competitors, I don’t see Whole Foods as competitor for example because for this working parent it is too far away to make a quick run to for groceries.
I know it is pie in the sky perhaps and this may cause some eyerolling, but being a vegetarian and environmentalist and someone who would like to support local and organic food offerings and the community itself, I don’t see going to a meat store that adds in veggies on the side or going to a big corporate store who adds in some organic items as offering the same benefit to me. The concept is what could generate excitement. I know it opens pandora’s box to suggest so, but some people would want to shop at a co-op for the ethics of its offerings as much as for the price. (The same reason that I don’t shop at Walmart, even when I’m broke and they have the lowest price). It is something that would fit my belief system more, and would be something that I would love to explain to my daughter. I think these kinds of choices matter. Again, that’s just me, and why I have loved the co-ops in other communities. For me it is a different shopping experience from anything else.
I am definitely in agreement with you as to the reasons for supporting a co-op, WPMom. However, you can find those principles in action at Sevananda just a few miles away. They definitely walk their talk as far as the products they offer and the local causes they support. I am no expert on their workings, but I have been a member there for about seven years, and I know just from their monthly newsletters that keeping the store going is no easy feat – and they’ve been around for what, 25 or 30 years already. I can’t see another similar co-op making it here in Decatur with Sevananda so close by.
Good fresh food, a topic everyone can appreciate! Sevananda looks very similar to the Middlebury Natural Foods Co-op (MNFC) that I joined last year in Middlebury Vermont. Sevananda started in 1974 and MNFC in 1976. If the idea gets started in Decatur to form your own local co-op, I suggest checking out how others got started and what incentives they have for producers and members. Middlebury Natural Foods Co-op’s site is http://www.middleburycoop.com and membership is $20/year like Sevananda (or MNFC Co-op Partners buy 15 shares at once for $300). Membership also allows you to receive discounts on products and services at participating local businesses, which I think is a smart incentive to join! And by being a Co-op Advantage member, they can offer month-long sales on a variety of popular products. (The Life Grocery & Cafe in Marietta GA is also a member.) Check out “Eat Local America” at http://www.eatlocalamerica.coop/ and also the map of the National Cooperative Grocers Association’s member stores at http://www.ncga.coop/member-stores. Co-ops are a lot of work but the strong relationships that develop between the co-op and the local producers are terrificly important to both. MNFC actively promotes local “producers of the month” and also hosts annual truckload sales one day in September. I think perhaps the ever-popular Vermont Fresh Network (http://www.vermontfresh.net/) is similar to West Georgia and East Alabama’s Farmer’s Fresh Food Network.
Okay, last comment, I promise! I will support whatever anyone attempts to do. I will say though, that maybe its because I am a single working parent, but I just don’t have time to drive to Sevananda, try to get into their little parking lot and back out again, nor do I have time to drive all the way to Whole Foods in midtown, and I even find the big farmer’s mkt kind of a hassle b/c it is always so crowded. Besides all the ethical concerns I have already expressed, I just don’t have that many hours in the day to run my errands and fulfill all my obligations. A small convenient, well-stocked co-op in my local community would fit the bill (the same reason I continue to go to the little Kroger even though the Big Kroger on Moreland is so much better stocked). I’m hearing lots of negatives from this board though, so maybe I’m in the minority. Ah well, I can dream….
I lied: one more thing. Didn’t this conversation start in a previous post about walkability scores of communities? I guess that is one more issue I have with the idea that Sevananda is just a few miles away. I am looking for something here in City of Decatur, so if I wanted to, I could stroll over on Saturday morning with my kid, pick up some healthy food in a relaxed atmosphere and eat an organic apple together on the way home-quality time all around. Okay, now I’m done!
Don’t worry WPMOM…I specifically asked for negative responses. And I’m grateful for each of them. If you look back to the original post you’ll see much more positive feedback. As runswithdogs pointed out, a grocery store is one of the hardest operations to manage and keep in the black. But even with all the other places people could go, I think there’s enough of a niche to at least float the idea. A store like this would put Decatur’s reputation for being fiercely loyal to local shops/businesses to the test. Because the owner wouldn’t just be one or two locals, but (theoretically) hundreds…including perhaps yourself.
That combined with location and quality is how I still see it as possible. Thanks for all your support.
It has been implied above but, to emphasize an important point, any retailer (whether “for profit” or “not for profit”) who hopes to survive must turn a profit. Remember that the opposite of a profit is a loss and, with too many years of losses, any business will fail. What “not for profit” really means is that the profits of the business are not subject to taxes (do I see a left-wing tax avoidance scheme at work here?).
A great example of a successful not for profit coop is one of my favorite stores, REI. In 2007 they generated a little more than $41 million in profits, the bulk of which were returned to members in dividends (I’m happy to be a member!). By the way, the CEO of REI earned $1.753 million in 2007. She did a great job and I’m glad she was paid for it. Here are the details: http://www.rei.com/pdf/aboutrei/2007_ProxyData-REI_Final.pdf