the macomb food co-op: past, present & future mfc owner meeting april 23, 2015
TRANSCRIPT
THE MACOMB FOOD CO-OP:PAST, PRESENT & FUTUREMFC Owner MeetingApril 23, 2015
We’re Glad You’re Here!
Welcome Past: Where We’ve Been Present: Where We Are – and Where We
Aren’t Future: Where We’re Going and How We
Plan to Get There Your Questions
Past: Where We’ve Been – 1 Initial Discussions began in winter of 2009 Goal: Opening a Sustainable Retail Co-
operative Grocery Store Benefit Local Consumers Benefit Local Producers Benefit the Community and the Planet
Incorporation in May 2011 Food Co-op Initiative Grant
Marketing Analysis – feasible, suggests a 3000-4000 sq. ft. store
Financial Analysis – needs further refinement Suggests break-even in year 7, given projected loans
Internal Readiness
Past: Where We’ve Been - 2
Board Creation, Education and Development
Communication: Facebook, Website, Newsletter, Logo
Events: Fundraising and Owner Growth VISTA Workers Community Outreach Macomb Online Market
Present: Where We Are - 1
Macomb Food Co-op Organization: 4 Committees, 12 Volunteers
(6 directors) Owners: 370 Income: $97,306 Expenses: $33,587 Equity: $62,796 Debt: $0
Present: Where We Are - 2
Macomb Online Market (through 4/15/15) Organization: 1 VISTA (1.5 until April), 10-12
Volunteers, 20 Producers (13 active), free rent Revenues: $41,809 Expenses: $40,193
Cost of Goods Sold: $34,075 Sales Taxes: $468 Selling, General & Administrative: $5650
Operating Profit: $1616 Yet to be recouped of MFC’s Investment of
$4173: $2557 Cash Flow over past 12 months:
Average Monthly Revenues: $3116 Average Monthly Expenses: $2555 Average Monthly Profit: $561
Present: Where We Aren’t
Historical Development Model – open very small Run on a shoestring, expand when market warrants
Contemporary Development Model – open larger, more secure Phase 1 – Organizing: 0-300 owners
Develop core group, shared vision, asses initial feasibility, incorporate
Phase 2 – Feasibility/Planning: 300-800+ owners Determine full market and financial feasibility Grow ownership to 400-3000, owner equity to ~$100-300K Secure contingent lease on a building
Phase 3 – Implementation: 600-5000+ owners Conduct owner loan campaign, secure bank & other loans
OE: ~$120,000 OL: ~$350,000 BL: ~$360,000 O: ~$25,000 Hire staff, beginning with a project manager Site design, construction/rehab, install equipment Open full service store of ~ 3,000-4,000 sq. ft. or larger
The Present, Summary - 1
After 6 years of effort, the Macomb Food Co-op continues to grow at a slow to moderate pace. Ownership is approaching minimum number
needed to conduct an owner loan campaign. Many co-ops wait until they are 800-1200 owners
Owner equity is ~ 50% of what’s projected we need Projections assume large owner and commercial loans
that have an uncomfortably long break-even period Much work is needed to make faster progress
Amount of work exceeds what current number of volunteers can accomplish; more are needed
How well does the contemporary model fit our community?
The Present, Summary - 2
The Macomb Online Market has been a success Over $35,000 into local economy Producers are expanding, numbers are growing Is now in black; small operating profit projected VISTA position ends in August Free rent from MDTC for an undetermined period Market operation is beyond the scope of volunteers Projected operating profit is not adequate to fully
fund staffing needs, even with free rent Board wants to maintain capital for eventual store
Board Visioning Session of February 2015 Reaffirmed basic goals, added “accessible to all
income levels” as a core value Vision for a store consistent with Owner Survey
results
Future: Where We’re Going
Continue to operate Macomb Online Market Create a “mini-store” at current location; will
build further awareness of and interest in the co-op Large selection of bulk organic herbs and spices Moderate selection of bulk beans & grains,
mostly specialty items unavailable in Macomb Modest selection of specialty ethnic ingredients Local dairy products Local “Grab and Go” ready to eat foods
Continue efforts to create a small-medium store Refine data for financial pro-forma, business plan Significantly increase number of owners Update market feasibility analysis if needed
Future: How We’ll Get There
Hire two staff members: market/mini-store operation, future store planning 1 full time (35 hours/week), 1 part time (15 hours/week) $12/hour = $31,200 for one year With taxes, insurance, and job creation credit = $34,200 In order to preserve capital, will fund half from capital,
half from new funds Staff the Store! Campaign
If each owner contributes $50, we would raise $18,500 Encourage owners to purchase 1 or more additional
shares Expand volunteer involvement
Specific projects for the mini-store and the long-term Increase the number of committees
Conclusion
What We Need Complete your Staff the Store! pledge card Complete the Expression of Volunteer Interest
(on reverse) Submit in the enclosed envelope Encourage other owners to do so as well
Your Turn! – Questions and Answers Working together with continued and
expanded involvement, we can make a multi-faceted sustainable cooperative retail grocery store a reality here in Macomb
Thank you so much for your support!