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

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

Apple Street Market Q:Where does the community want to shop? Aldi + Kroger + Whole Foods + Farmer’s Market = APPLE STREET MARKET Whether you prefer the affordable prices of Aldi, or the organic selection of Whole Foods, Apple Street is here to serve you. Owner’s Presentation

Apple Street Market Q:Who is Apple Street? Co-Op Ownership Structure 3 board seats 1 board seat 1 board seat 2,000 16.6 FTE CUCI Community Owners Worker Owners $100 share $5,000 share $10 Subsidized Ownership Shares Provides guidance *FTE = Full Time Equivalent Employees available for those with financial need. and leadership $5000 paid through payroll deduction Owners receive select discounts and earn Vote for board seat after $ 500 pay-in patronage dividends in profitable years. Patronage dividends after complete pay-in Owner’s Presentation

Apple Street Market Q:Who is Apple Street? 2014 2015 Our community is growing everyday! Owner’s Presentation

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

Apple Street Market 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. Owner’s Presentation

Apple Street Market Q: What will we sell? (Flip card over for answer) Owner’s Presentation

Apple Street Market Q:What will we sell? Dry grocery Canned Goods Produce, Dairy Meat, Fish, Frozen Paper products Health & beauty Beer & wine Owner’s Presentation

Apple Street Market Q: What will prices be like? (Flip card over for answer) Owner’s Presentation

Apple Street Market Q:What will prices be like? In-House Value Generic Hearty Chicken Noodle Orange Juice $1.69 $1.89/Half-gallon In-House Label Value Generic Name Brands Tomato Soup and Organic Tomato Soup $.75 $.59 Private Nighttime Cold/Flu Saltines Local $2.69/12 Gel Caps $.99/1lb. . Name Brand Local/Organic Progresso Chicken Noodle Deeper Roots Coffee $2.50 $12/12oz. bag NyQuil Our Harvest Potatoes $6.79/16 Gel Caps $.99/lb. LaPreferida Refried Beans Clearly Organic $1.39 Whole Wheat Pasta $1.79 Tyson Chicken Breast $3.49/lb. Clearly Organic Butternut Squash Soup $2.59 **Prices are close estimates** Owner’s Presentation

, •฀UC฀Med฀Center฀is฀3.4฀miles฀away •฀Hamilton฀Ave:฀highly฀traveled฀commuter฀car •฀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฀12,650฀people Apple Street Market Q: How do we know we can be successful? Well-Traveled Location and bus route (86,831 in 48hrs!) with 43,000 people •฀ Northside’s many businesses and activities also attract potential consumers! Traffic study / March 2014 Owner’s Presentation

• With average sales, a store of 24,434sf • We are aiming to capture 37% of the $11.7M • With 10,000 sf of retail space and 5,000sf Apple Street Market 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, 1 Mile small markets etc. $11,708,000 estimated potential sales could theoretically be supported stocking area we feel confident we can become profitable even with conservative projected sales 1-mile trade gap analysis / March 2014 Owner’s Presentation

•Northside has diverse incomes •Selection, quality & price are Avg:฀$21,850 •Shoppers would have generic •Shoppers prefer bargain •Northside is low income Apple Street Market Q: How do we know we can be successful? We understand our customers $100,000+ Less than $10,000 $50,000- 9.6 12.3 $59,999 9.7 $10,000- $19,999 14.7 16.3 $40,000- $49,999 16.6 15.2 $20,000- $30,000- $29,999 $39,999 Misconception Reality center/warehouse and premium brands equally important Owner’s Presentation

•฀We฀know฀average฀income฀is฀a฀misleading฀metric •฀We฀know฀a฀successful฀neighborhood฀grocery Apple Street Market Q: How do we know we can be successful? •฀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 must serve 100% of shoppers - everyone Owner’s Presentation

Apple Street Market Q: How do we know we can be successful? 80% of Northside Residents shop at conventional grocery stores 83% use a car 57% said they would prefer to walk 83% said a neighborhood grocery is VERY IMPORTANT We’ve done 15% said SOMEWHAT IMPORTANT our research *1 in 4 Northside households represented So...98% think a neighborhood grocery in survey is IMPORTANT Northside Community Grocery Survey. Cincinnati Union Cooperative Initiative. Summer 2014. Owner’s Presentation

Apple Street Market Q: How do we know we can be successful? 47% spend $50-100 per week What does Northside spend 35% on Groceries? spend $100-200 per week 366 What people said determines where Merchandise QUALITY Northside Shops? 307 people said Merchandise SELECTION *1 in 4 Northside households represented in survey Northside Community Grocery Survey. Cincinnati Union Cooperative Initiative. Summer 2014. Owner’s Presentation

Apple Street Market 5 Year Plan Gross Profit Labor Admin Rent Depreciation Depreciation Gross Profit Labor Admin Rent 1500000 1180000 860000 $ 540000 220000 -100000 2015 2016 2017 2018 2019 Over the next five years, profits will increase faster than our expenses. Owner’s Presentation

Apple Street Market 5 Year Plan 150000 Principal Due Net Income Principal Due Net Income 120000 90000 $ 60000 30000 0 2015 2016 2017 2018 2019 30000 20000 10000 0 -10000 $ -20000 -30000 By conservative estimates -40000 we will become profitable -50000 Reserves by year four. -60000 See our website or call us for additional financial details. Owner’s Presentation

GM 3-6 months, Apple Street Market Q:What’s it cost to open the store? Start-Up Expense Cost Use $70,000 Cash Daily Operations Inventory $230,000 Initial Stocking of Shelves $ 1,500,000 to open $95,000 In case revenue projections initially Reserves lower than expected the store! Equipment $600,000 Refrigeration, Freezers, Shelves, POS System, etc. Leasehold $375,000 Renovating the Building Improvements Development $20,000 Professional Fees (lots of volunteers Consultation minimize costs) Marketing $15,000 Kick off opening of the store (3 mos.) Personnel $110,000 employees 1-2 months (1-3 mos.) Owner’s Presentation

3.5% interest loan Apple Street Market Q:How will we pay for it? Who? What? How? Grants, Free Labor, etc. Large Donor $200,000 Ex. Interact for Health, Organizations $100,000 earned HUD 108 funds. Community $150,000 1500 at $100 Owners $55,000 earned Individual Face-to-Face $150,000 Donors/Lenders $16,000 earned Cincinnati $1,000,000 Development Accessible after *Funds will be held in Contingent on Fund $150,000 in equity Escrow by CDF . community equity. *Funds will be returned $100,000 Contributed Tenant improvements by if not successful. Improvements building owner *Funds earned as of 1/30/14 Owner’s Presentation

Apple Street Market Q:What can the store look like? Before Would you believe this could be a great place to shop? Owner’s Presentation

Apple Street Market Q:What can the store look like? Possible Alterations New Entry Vestibule New Store Front Repair Parking Lot Landscaping Fencing Paint Trash Enclosure After A few repairs, a lot of paint, and we can have a welcoming neighborhood hub just off the beaten path. Owner’s Presentation

Apple Street Market Q:What can the store look like? Before Would you believe this could be a great place to shop? Owner’s Presentation

Apple Street Market Q:What can the store look like? Possible Alterations Dropped Ceiling Demo Vinyl Tile Removal Concrete Slab Polish Painting Lighting Insulation Shelving Equipment After Removing or replacing worn out materials will make the store feel brand new. Owner’s Presentation