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 out 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

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

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, ordering timelines, delivery schedules (impacted by #2, 3)

Operational Inefficiencies: Gross Profit Margin Profit and Profit Margin $900,000 50% 45% $800,000 40% $700,000 35% $600,000 30% $500,000 Gross Sales 25% Gross Profit Gross Profit Margin $400,000 20% $300,000 15% $200,000 10% $100,000 5% $- 0% 2007 2008 2009 2010 Annualized 2011

Operational Inefficiencies: Gross Profit Margin Gross Profit Margin: A measure of how profitable a business is in its direct operations (Buying and Selling). YFC (2011 YTD) 20% YFC (2009 & 10) 27% Oly Co-op 28% Walmart 25% Safeway 27% Whole Foods 35%

Operational Inefficiencies: Solutions • Implementing the Point-of 1)Declining Profit Margin Sale system 2) Understaffing • Taking Consistent Inventory 3) In-store Working Member • Creating clear ordering, Training pricing, and intake systems 4) Inconsistent Customer • Looking at each department Service for waste and/or dead stock 5) Lack of Operational Systems (i.e. pricing structures, ordering timelines, delivery schedules)

Operational Inefficiencies: Solutions • Attracting more Working 1) Declining Profit Margin Members to help in the store 2)Understaffing • Expanding current staff roles 3) In-store Working Member and hiring additional staff Training (limited by #1) 4) Inconsistent Customer • Creating specific volunteer Service jobs i.e. Wine Buyer; Tea Buyer; Coffee Buyer to assist 5) Lack of Operational Systems in high impact areas (i.e. pricing structures, ordering timelines, delivery schedules)

Operational Inefficiencies: Solutions • Developing a structured 1) Declining Profit Margin training and shadowing 2) Understaffing program for all new Working Members 3)In-store Working Member Training • Creating job descriptions and consistent daily procedures 4) Inconsistent Customer for in-store WM to follow Service 5) Lack of Operational Systems (i.e. pricing structures, ordering timelines, delivery schedules)

Operational Inefficiencies: Solutions • Developing a structured 1) Declining Profit Margin training and shadowing 2) Understaffing program for all new Working 3) In-store Working Member Members Training • Creating job descriptions and consistent daily procedures 4)Inconsistent Customer for in-store WM to follow Service • Successfully Implementing 5) Lack of Operational Systems the Point-of-Sale system (i.e. pricing structures, ordering timelines, delivery schedules)

Operational Inefficiencies: Solutions • Building a knowledgeable 1) Declining Profit Margin and dedicated team of staff 2) Understaffing and volunteers to identify, 3) In-store Working Member prioritize, and implement Training processes and procedures 4) Inconsistent Customer Service 5)Lack of Operational Systems (i.e. pricing structures, ordering timelines, delivery schedules)

YFC Organizational Chart Board Recruitment Committee Board of Directors Finance Store Operations Education/Outreach Store Expansion Committee Committee Committee Committee Newsletter & Strategic Website Task Teams Store Buyer Management POS Coordinator Shift Leader In-Store Working WM Buyers Direct Report and Communication Members (volunteers) Regular Communication September 2011

Store Operations Committee 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. September 2011

Store Expansion Committee 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. September 2011

Education and Outreach Committee 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 of 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. September 2011

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. Administrative offices (800 sq. ft.) 1. Warehouse (1,200 sq. ft.) 2. Retail floor (4000 sq. ft.) 3. 2. New products Larger wine department 1. Coffee kiosk with seating area 2. Deli 3. Meat Department 4.

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