Growing for You Locally Grown Fruits and Vegetables Ethically - - PowerPoint PPT Presentation

Growing for You

Growing For You

Locally Grown Fruits and Vegetables

Ethically Raised and Quality Meat, Poultry and Seafood

A Variety of Other Tasty Organic and Locally Produced Foods

This Is Our Future

WHERE WE ARE NOW

Historical look at the YFC Financials Challenges and Solutions Current Organizational Structure and Opportunities

Yelm Food Co-op

An Historical Look at the Financials of our Great Store

A not so long time ago… In a town not so far away (unless you live in the Bald Hills)

a group of Jedis from the Yelm Chapter of Intergalactic Jedis set

• ut with a goal of bringing healthy,

local, food to the Yelm Community. In 2007 they opened Yelm’s first (and only) food cooperative appropriately named:

The Yelm Food Co-op

The interest is growing at Warp Speed

Annual Gross Sales 2007 Sales: $95,563 2008 Sales: $381,012 2009 Sales: $456,917 2010 Sales: $628,769 2011 Annualized Sales: $850,000 Total Membership 2007: 289 2008: 404 2009: 494 2010: 686 August 2011: 910

The Dark Side of Rapid Growth:

Operational Inefficiencies

Operational Inefficiencies

1) Declining Profit Margin (impacted by #2, 3, 5) 2) Understaffing (impacted by #1, 5) 3) In-store Working Member Training (impacted by #2, 5) 4) Customer Service (impacted by #2, 3, 5) 5) Lack of Operational Systems i.e. pricing structures,

• rdering timelines, delivery schedules (impacted by

#2, 3)

Operational Inefficiencies: Gross Profit Margin

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2007 2008 2009 2010 Annualized 2011

Profit and Profit Margin

Gross Sales Gross Profit Gross Profit Margin

Gross Profit Margin: A measure of how profitable a business is in its direct operations (Buying and Selling).

Operational Inefficiencies: Gross Profit Margin

YFC (2011 YTD) 20% YFC (2009 & 10) 27% Oly Co-op 28% Walmart 25% Safeway 27% Whole Foods 35%

Operational Inefficiencies: Solutions

1)Declining Profit Margin

2) Understaffing 3) In-store Working Member Training 4) Inconsistent Customer Service 5) Lack of Operational Systems (i.e. pricing structures,

• rdering timelines, delivery

schedules)

• Implementing the Point-of

Sale system

• Taking Consistent Inventory
• Creating clear ordering,

pricing, and intake systems

• Looking at each department

for waste and/or dead stock

Operational Inefficiencies: Solutions

1) Declining Profit Margin

2)Understaffing

3) In-store Working Member Training 4) Inconsistent Customer Service 5) Lack of Operational Systems (i.e. pricing structures,

• rdering timelines, delivery

schedules)

• Attracting more Working

Members to help in the store

• Expanding current staff roles

and hiring additional staff (limited by #1)

• Creating specific volunteer

jobs i.e. Wine Buyer; Tea Buyer; Coffee Buyer to assist in high impact areas

Operational Inefficiencies: Solutions

1) Declining Profit Margin 2) Understaffing

3)In-store Working Member Training

4) Inconsistent Customer Service 5) Lack of Operational Systems (i.e. pricing structures,

• rdering timelines, delivery

schedules)

• Developing a structured

training and shadowing program for all new Working Members

• Creating job descriptions and

consistent daily procedures for in-store WM to follow

Operational Inefficiencies: Solutions

1) Declining Profit Margin 2) Understaffing 3) In-store Working Member Training

4)Inconsistent Customer Service

5) Lack of Operational Systems (i.e. pricing structures,

• rdering timelines, delivery

schedules)

• Developing a structured

training and shadowing program for all new Working Members

• Creating job descriptions and

consistent daily procedures for in-store WM to follow

• Successfully Implementing

the Point-of-Sale system

Operational Inefficiencies: Solutions

1) Declining Profit Margin 2) Understaffing 3) In-store Working Member Training 4) Inconsistent Customer Service

5)Lack of Operational Systems (i.e. pricing structures, ordering timelines, delivery schedules)

• Building a knowledgeable

and dedicated team of staff and volunteers to identify, prioritize, and implement processes and procedures

YFC Organizational Chart

September 2011

Board of Directors Store Operations Committee Store Expansion Committee Store Management Buyer Shift Leader In-Store Working Members Education/Outreach Committee Finance Committee WM Buyers (volunteers) POS Coordinator Newsletter & Website

Direct Report and Communication Regular Communication

Board Recruitment Committee Strategic Task Teams

Store Operations Committee

September 2011

Reports to: Board of Directors Composition: Board Members; Store Staff; POS Coordinator; Other Working Members Chair: Aaron Rodriguez Looking for committee members: YES Primary Role: Develop; prioritize and guide the procedures of the current store location including the following:

• Clear store financial reporting
• Back office organization and systems
• Ordering; receiving and pricing strategies
• Customer Service expectations and tracking

The Store Operations Committee provides oversight of and assistance to store management and staff. This committee assists the Co-op organization in realizing efficiencies in the current store location in the areas identified above. This committee works closely with the Finance and Education/Outreach committees.

Store Expansion Committee

September 2011

Reports to: Board of Directors Composition: Board Members; Other Working Members; Yelm Community Members Chair: Tom Dewell Looking for committee members: YES Primary Role: Develop; prioritize and guide the procedures of expanding to a new store location including the following:

• Store Expansion business plan including market analysis and feasibility study
• Realistic Timeline for expansion
• Identify and contact potential investors for expansion

The Store Expansion Committee is focused on expanding the Co-op to a broader group of leaders in the Yelm Community that share the Co-ops vision of a central local and healthy food hub for the Yelm Community. This committee is responsible for crafting a comprehensive expansion strategy complete with the components identified above. This committee works closely with the Education/Outreach committee.

Education and Outreach Committee

September 2011

Reports to: Board of Directors Composition: Other Working Members; Yelm Community Members Chair: Andrea Levanti Looking for committee members: YES Primary Role: Develop interactive and educational initiatives to support the necessary outreach efforts

• f the Store Operations and Store Expansion Committees through the following:
• YFC Grapvine Newsletter and YFC website
• In-store awareness efforts such as the Gift of Gobble; and store expansion fund
• Development of partnerships with like-minded organizations
• Research of best practices in food co-ops and expansions as necessary

The Education and Outreach Committee serves to support and enhance the Yelm Food Co-op’s primary efforts of current store operations and expansion. Objectives are to connect current member-owners with the greater YFC vision and bring awareness of the Yelm Food Co-op to the Yelm Community. This committee works closely with the Store Operations and Store Expansion Committees.

Accomplishments this Year

1) Job Creation - Doubled our employee hours and added 2 new employees (Shift Leader and POS Coordinator) 2) Recognition - NVN (2 articles); Sustainable South Sound; Local Farmers 3) Strengthening Local Economy - purchasing from 3 Yelm area farms and about 10 other Yelm-area food processors 4) Providing organic, local produce to La Gitana 5) Strong Sales and Membership Growth 6) Implementing a point-of-sale system and 2 check-out stands 7) Expanded our products in the current store by adding higher shelving 8) The Grapevine newsletter!! 9) Wine!!!! 10)Created clear organizational structure and are recruiting committed leadership 11)Seriously focused on expanding the store and strengthening the Yelm Community

WHERE ARE WE HEADED?

Bigger Store and More Inventory Partnering with Local Growers and Ranchers as well as related vendors to create a unique shopping opportunity

New Store

• 1. Expanded size - 6,000 – 7,000 sq. ft.

1.

Administrative offices (800 sq. ft.)

2.

Warehouse (1,200 sq. ft.)

3.

Retail floor (4000 sq. ft.)

• 2. New products

1.

Larger wine department

2.

Coffee kiosk with seating area

3.

Deli

4.

Meat Department

Bigger Store = Better Shopping Experience

• More selection
• Easier shopping

and faster checkout

• Community

meeting place

Village Hub – Co-op complex

• 1. Co-op as anchor store
• 2. Complementary businesses
• 3. Courtyard area
• 4. Community kitchen
• 5. Farmer’s Market
• 6. Community Garden ?

Expanded Shopping Opportunities - Imagine

Local to Regional Secure Food Source

Pacific Northwest Western Washington Yelm/Rainier Area Store

Impact of Partnerships with Growers

• More organic

farmers with successful farms

• Year round local

quality produce and meat

• Sustainability in

times of infrastructure disruption

• Enhanced local

economy

STATE OF THE EXPANSION

Feasibility Study/Market Analysis Goals/Timeframe

Difference Between Feasibility Study and Market Analysis and what we get for $27,000

Market Analysis

• Determines size of trade

area for potential natural food market in Yelm area

• Evaluates
• Co-op share of this market
• Board and staff
• Competition
• Expansion sites
• Current facilities
• Develops sales forecasts

Financial Feasibility Study

• Produces
• Sources and use budget
• 10 year financial

performance projections

• Profit/Loss projections
• Balance sheet projections
• Cash flow and debt service

schedule

• Internal readiness

assessment

• Provides roadmap to

success

Fundraising Progress, New Strategy Needed

Raised to date: $1,300

• Phone campaign
• Notice in Grapevine
• Notices in Store

New Strategy

• Focus on Larger

Donors

• Larger Fundraisers
• Wine and cheese

fundraising –

• October 12

Property Search Progress

• Option 1: Find existing building ready to move into such

as Hertz, Parker Paint and the former QFC.

• Option 2: Build new structure on vacant land.
• We examined properties all over town and have settled on one on

Vancil Road.

Vancil Road Property Safeway Rite Aid Good Will

Goals

Year 1

• Quality Improvement Process implemented
• Funding Secured for expansion
• Property selected/purchased
• Building underway
• Farmers Market planning underway

Year 2

• Moved into new store
• Farmers market up and running

It all depends on you!

How You Can Help?

• Shop at YFC
• Bring your friends to YFC
• Volunteer in the store or for a committee
• Donate
• Learn more and share the excitement with our community

Talk with one of the YFC volunteers tonight or fill out a form found at the information table.

Questions and Answers

Thank you for supporting the Yelm Food Co-op and ensuring quality, locally grown food for all families in the future.