Hello, Apple Street Market Owners! THANK YOU FOR YOUR SUPPORT! - - PowerPoint PPT Presentation

Hello, Apple Street Market Owners!

THANK YOU FOR YOUR SUPPORT!

Stay up to date with the Market at AppleStreetMarket.coop For questions or more info, contact Ellen Vera at 513-807-3898

Q:What is Apple Street Market?

Owned and directed by employees and the community (You!) but anyone can shop here – no membership required! Apple Street Market Owner’s Presentation

Q:Where does the community want to shop?

Whether you prefer the affordable prices of Aldi, or the organic selection

• f Whole Foods, Apple Street is here to serve you.

Aldi + Kroger + Whole Foods + Farmer’s Market = APPLE STREET MARKET

Apple Street Market Owner’s Presentation

Q:Who is Apple Street?

Co-Op Ownership Structure

$10 Subsidized Ownership Shares available for those with financial need. Owners receive select discounts and earn patronage dividends in profitable years. *FTE = Full Time Equivalent Employees $5000 paid through payroll deduction Vote for board seat after $ 500 pay-in Patronage dividends after complete pay-in

1 board seat 1 board seat 3 board seats CUCI 2,000 Community Owners $100 share 16.6 FTE Worker Owners $5,000 share

Provides guidance and leadership

Apple Street Market Owner’s Presentation

Q:Who is Apple Street?

Our community is growing everyday! 2015 2014

Apple Street Market Owner’s Presentation

Future home of Apple Street Market

Located in the heart of the neighborhood, central to many community institutions, and major crossroads. Apple Street Market Owner’s Presentation

Future home of Apple Street Market

Use of existing store infrastructure helps us save money . While these plans are not final, they show we can accomodate all departments. Apple Street Market Owner’s Presentation

Q: What will we sell?

(Flip card over for answer)

Apple Street Market Owner’s Presentation

Q:What will we sell?

Dry grocery Canned Goods Produce, Dairy Meat, Fish, Frozen Paper products Health & beauty Beer & wine

Apple Street Market Owner’s Presentation

Q: What will prices be like?

(Flip card over for answer)

Apple Street Market Owner’s Presentation

Q:What will prices be like?

Value Generic Private In-House Label Name Brands Local and Organic

Value Generic

Orange Juice $1.89/Half-gallon Tomato Soup $.59 Saltines $.99/1lb.

In-House

Hearty Chicken Noodle $1.69 Tomato Soup $.75 Nighttime Cold/Flu $2.69/12 Gel Caps .

Name Brand

Progresso Chicken Noodle $2.50 NyQuil $6.79/16 Gel Caps LaPreferida Refried Beans $1.39 Tyson Chicken Breast $3.49/lb.

Local/Organic

Deeper Roots Coffee $12/12oz. bag Our Harvest Potatoes $.99/lb. Clearly Organic Whole Wheat Pasta $1.79 Clearly Organic Butternut Squash Soup $2.59 **Prices are close estimates**

Apple Street Market Owner’s Presentation

Q: How do we know we can be successful?

• ฀Hamilton฀Ave:฀highly฀traveled฀commuter฀car

and bus route (86,831 in 48hrs!)

• ฀Easy฀access฀from฀interstate
• ฀Many฀regional฀bike฀routes฀pass฀through฀Northside
• ฀Cincinnati฀State฀is฀1.1฀miles฀away

,฀with฀13,000฀people

• ฀University฀of฀Cincinnati฀is฀2.6฀miles฀away

, with 43,000 people

• ฀UC฀Med฀Center฀is฀3.4฀miles฀away

,฀with฀12,650฀people

• ฀Northside’s many businesses and activities

also attract potential consumers!

Well-Traveled Location

Traffic study / March 2014

Apple Street Market Owner’s Presentation

Q: How do we know we can be successful?

Plenty of Demand

$19,000,000 Aggregate Demand for groceries based on existing population and income levels Purchases from other food sources Restaurants, convenience stores, small markets etc. $11,708,000 estimated potential sales

• We are aiming to capture 37% of the $11.7M
• With average sales, a store of 24,434sf

could theoretically be supported

• With 10,000 sf of retail space and 5,000sf

stocking area we feel confident we can become profitable even with conservative projected sales 1-mile trade gap analysis / March 2014

• 1 Mile

Apple Street Market Owner’s Presentation

12.3 14.7 16.6 15.2 16.3 9.7 9.6

Q: How do we know we can be successful?

Less than $10,000 $10,000- $19,999 $20,000- $29,999 $30,000- $39,999 $40,000- $49,999 $50,000- $59,999 $100,000+

Misconception Reality

Avg:฀$21,850

• Northside has diverse incomes
• Shoppers would have generic

and premium brands

• Selection, quality & price are

equally important

• Northside is low income
• Shoppers prefer bargain

center/warehouse

We understand our customers

Apple Street Market Owner’s Presentation

Q: How do we know we can be successful?

• ฀We฀know฀average฀income฀is฀a฀misleading฀metric
• ฀We฀know฀if฀we฀were฀a฀high-end฀store, we

would only get 35.6% of shoppers

• ฀If฀we฀were฀a฀budget฀store,฀we฀would฀only

attract 43.6% of shoppers

• ฀We฀know฀Northside฀has฀a฀diverse฀income

base - evenly distributed across income levels

• ฀We฀know฀a฀successful฀neighborhood฀grocery

must serve 100% of shoppers - everyone Apple Street Market Owner’s Presentation

Q: How do we know we can be successful?

*1 in 4 Northside households represented in survey

We’ve done

• ur research

80% 83% 57% 83% 15% So...98%

• f Northside Residents shop at

conventional grocery stores use a car said they would prefer to walk said a neighborhood grocery is VERY IMPORTANT said SOMEWHAT IMPORTANT think a neighborhood grocery is IMPORTANT

Northside Community Grocery Survey. Cincinnati Union Cooperative Initiative. Summer 2014.

Apple Street Market Owner’s Presentation

Q: How do we know we can be successful?

*1 in 4 Northside households represented in survey

What does Northside spend

• n Groceries?

What determines where Northside Shops?

47% 35% 366 307

spend $50-100 per week spend $100-200 per week people said Merchandise QUALITY people said Merchandise SELECTION

Northside Community Grocery Survey. Cincinnati Union Cooperative Initiative. Summer 2014.

Apple Street Market Owner’s Presentation

5 Year Plan

Over the next five years, profits will increase faster than our expenses.

• 100000

220000 540000 860000 1180000 1500000 Depreciation Rent Admin Labor Gross Profit

2019 2018 2017 2016 2015 Gross Profit Labor Admin Rent Depreciation

$

Apple Street Market Owner’s Presentation

5 Year Plan

See our website or call us for additional financial details.

By conservative estimates we will become profitable by year four.

30000 60000 90000 120000 150000 Principal Due Net Income

• 60000
• 50000
• 40000
• 30000
• 20000
• 10000

10000 20000 30000 Principal Due Reserves Net Income 2015 2016 2017 2018 2019

$ $

Apple Street Market Owner’s Presentation

Q:What’s it cost to open the store?

Cash Inventory Reserves Equipment Leasehold Improvements Development Consultation Marketing (3 mos.) Personnel (1-3 mos.)

$70,000

$230,000 $95,000 $600,000 $375,000 $20,000 $15,000 $110,000

Daily Operations Initial Stocking of Shelves In case revenue projections initially lower than expected Refrigeration, Freezers, Shelves, POS System, etc. Renovating the Building Professional Fees (lots of volunteers minimize costs) Kick off opening of the store GM 3-6 months, employees 1-2 months

Start-Up Expense Cost Use

$1,500,000

to open the store!

Apple Street Market Owner’s Presentation

Q:How will we pay for it?

Large Donor Organizations Community Owners Individual Donors/Lenders Cincinnati Development Fund Contributed Improvements

$200,000

$100,000 earned

$150,000

$55,000 earned

$150,000

$16,000 earned

$1,000,000

Accessible after $150,000 in equity

$100,000

Grants, Free Labor, etc.

• Ex. Interact for Health,

HUD 108 funds. 1500 at $100 Face-to-Face 3.5% interest loan Contingent on community equity. Tenant improvements by building owner

Who? What? How?

*Funds will be held in Escrow by CDF . *Funds will be returned if not successful. *Funds earned as of 1/30/14

Apple Street Market Owner’s Presentation

Q:What can the store look like?

Would you believe this could be a great place to shop?

Before

Apple Street Market Owner’s Presentation

Q:What can the store look like?

A few repairs, a lot of paint, and we can have a welcoming neighborhood hub just off the beaten path.

After

Possible Alterations

New Store Front Fencing Trash Enclosure Repair Parking Lot Paint New Entry Vestibule Landscaping

Apple Street Market Owner’s Presentation

Q:What can the store look like?

Would you believe this could be a great place to shop?

Before

Apple Street Market Owner’s Presentation

Q:What can the store look like?

Removing or replacing worn out materials will make the store feel brand new.

After

Possible Alterations

Dropped Ceiling Demo Vinyl Tile Removal Concrete Slab Polish Painting Lighting Insulation Shelving Equipment

Apple Street Market Owner’s Presentation

Apple Street Market

Increases nearby home values by 5-7%. Creates Good Jobs with upward mobility

What are the Economic Benefits of a Neighborhood Grocery? And since its a coop?

• 1. Healthy Foods Healthy Communities: The Social and Economic Impacts of Food Co-ops

http://strongertogether.coop/food-coops/food-co-op-impact-study/#sthash.k8F6fciw.dpuf)

For every dollar spent at a food co-op, $0.38 is reinvested in the local economy compared to $0.24 at conventional grocers.

2 1 http://www.icic.org/connection/blog-entry/blog-can-grocery-stores-serve-as-community-anchors

• 2. INITIATVE FOR COMPETITIVE INNER CITIES

Apple Street will start with 18 Full Time Equivalent Employees

Apple Street Market

http://www.icic.org/connection/blog-entry/blog-can-grocery-stores-serve-as-community-anchors

• 2. INITIATVE FOR COMPETITIVE INNER CITIES

Children living in neighbor- hoods with healthy food and safe play spaces are 56% less likely to be obese

What are the Health Benefits of a Neighborhood Grocery?

Adults with no supermarkets within a mile of their homes are 25% to 46% less likely to have a healthy diet

• 1. American Journal of Public Health

1 2 2

Increases Consumption of Fresh Fruits & Vegetables by as much as 32%

Q:How can you help?

Become an Owner Loaner! Our goal is to raise $150,000 in Owner Loans and Gifts

$1,000 -$10,000+ You฀pick฀your฀terms:฀0-3% Balloon repayments will be made at the end of the term including interest compounded annually Gifts can be as large or small as desired and can be tax deductible $134,000 Left to secure Apple Street Market Owner’s Presentation

Q:How can you help?

Introduce others to the benefits of a community and worker-owned grocery

Help us connect with

• ur next owner!

Apple Street Market Owner’s Presentation

Apple Street Market

Join us for Canvassing!

1

Saturday Feb 7th 3-5pm Saturday Feb 21st 10:30am-12:30pm Sunday March 15th 3-5pm Sat March 21st 10:30-11:30am

Apple Street Market

Donations

We are committed to income diversity in

• wnership - please consider donating to

the subsidized share program, administered by CAIN We also welcome loans and donations to

• help spread the word and increase

community ownership

• cover some start up costs

(remember- we don’t touch the ownership share money until we begin building the store!)

Apple Street Market

Events

The Littlefield

February is the month of the The Apple Street “Co-op”tail $1 goes to Apple Street for each sold. Try one tonight!

Apple Street Market

Events

Ruth’s Parkside Cafe

Sunday, March 8th 5-8pm a delicious

Mediterranean Buffet $30/per person

($20 to Apple Steet) See you there!

Apple Street Market

You don’t have to be Martha Stewart to have a house party...

What: Fun(d) Raising for Apple Street Where: your place ? When: Feb 2015 - March 31 Apple Street can provide:

• planning guide
• informational materials

and forms

• a volunteer to help out

and answer questions