South Philly Food Co-op & Kensington Community Food Co-op

South Philly Food Co-op& Kensington Community Food Co-op Katy Travaline Exploring Cooperatives: Economic Democracy and Community Development in Pennsylvania and Wisconsin Wednesday, June 13, 2012 Philadelphia, PA

Lehigh Avenue → Girard Avenue, • Delaware Avenue → American Street

Lombard St. → Oregon Ave., • 26th St. → Front St.

Mission • To open a member-owned cooperative grocery store in the Kensington area that will provide healthy, quality food, products and services to its members and the community. • To open a member-owned, co-operative grocery store that makes good food available at a fair price to all residents of South Philadelphia, while empowering the local community through sustainable practices, food-centric education, outreach, and community building.

Historical Overview • Lena Helen • 2008 • Civic association • Positive response • Steering committee • Outreach and survey • Feasibility study • 2010 • Membership recruitment • Incorporated • Buyer’s Club • Allison Fritz • 2010 • Civic assoc., comm. mtg • Positive response • Steering, legal/finance, and outreach committees • Outreach and survey • Studied co-ops, market study • 2011 • Community forum (March) • Incorporated (May) • Membership drive (June) • Elected first board of directors Weaver’s Way Co-op, Food Co-op Initiative, Keystone Development Corp., NKCDC, LISC

OngoingOutreach Albert Yee kcfoodcoop.com tabling at events targeted email messages websites community meeting house parties facebook newsletters

225 goal • organizing stage → planning stage • Site search committee • Fundraising coordinator • Member recruitment • 248 members • 250 goal • organizing stage → feasibility stage • Real Estate Committee • Product Sourcing Committee • Loan Committee • Member recruitment • 260 members

Structure and Functions • ‘Centralized Cooperative’ • ‘Consumer Cooperative’ • Membership • one-time investment of $200 per household • installments • refundable • nontransferable • own a share of the business • one vote

Governance Structure • Board of Directors • President, Vice President, Secretary, Treasurer, and 4 Directors-at-Large • Committees • Membership and Outreach, Planning and Finance, Buyer's Club, Market Place • General manager • Board of Directors • President, Vice President, Secretary, Treasurer, and 7 Directors-at-Large • Committees • Bookkeeping/Administration, Financial Planning, Grants, IT, Leadership, Legal, Marketing and Communications, Membership, Operations, and Programs and Events • General manager

Membership Participation • Serve on & vote for the board • Attend meetings & vote • semi-annual member meetings • Serve on committee

Why Join? • Pre-existing interest • Positive experiences • Founding member • Expedite the process • Participation in a local community-building effort

Member Benefits(now) • Shop Local Program • Buyer's Club • Influence • Shop South Philly Program • Educational classes, workshops • Influence

Member Benefits(then) • Discounts and pre-determined benefits • Potential yearly rebates • Continued power • Voting • Serving • Open to public • Working members?

Volunteering Albert Yee • Buyer’s Club 2x month • Event tabling • Hosting dinner parties • Packaging food 1x month • Board and committees • Volunteer coordinator • Membership recruitment • Fundraising events • Referring new members • Board and committees • Partnerships with local civic associations or non-profits “we’ve got this” &“we need help”

Costs • Market and feasibility studies • tens of thousands $$$$ • A building • Construction • Equipment • Supplies • General manager

Economics and Politics • USDA $ → Rural Co-ops • Small Business Association • technical assistance to all small businesses except co-ops • Banks hesitant to lend to co-ops • Incorporation ≠ 501(c)(3) charitable status • Local friendly financing institutions • The Reinvestment Fund • Philadelphia Industrial Development Corporation (PIDC) • Philadelphia-area Cooperative Alliance (PACA)

Economics and Politics • Economic crisis • Alternative business models • Doubling – regionally and nationally • 2012 International Year of Cooperatives • National Cooperative Development Act • “underserved areas” • “contention on the margins of the polity to participation within it” • …on their own…

Financing • Membership investments • Fund-raisers hosted by local businesses • Scholarships • Food stands * certification Dept Health • Greensgrow • Norris Square, Palmer Park • Buyer’s Club • Common Market & Lancaster Farm Fresh • Member investments • Fundraising • Happy Hours • Garden Tours • Energy Co-op Partnership • Fair Food Partnership • Tax-deductable donation Albert Yee *outreach and member recruitment tools* and funding sources

“Co-operation among Co-operatives” • Weaver’s Way Food Co-op, Food Cooperative Initiative, South Philly Food Co-op, Philadelphia-area Cooperative Alliance (PACA), Mid Atlantic Food Co-op Alliance • Keystone Development Corporation, NKCDC, LISC • Greensgrow Farmers Market, Food Trust, Common Market, Lancaster Farm Fresh , local businesses • Weaver’s Way Food Co-op, Food Co-op Initiative, Kensington Community Food Co-op, Energy C-op, Mid Atlantic Food Co-op Alliance • Keystone Development Corporation • Fair Food, local businesses • Cooperative Grocers’ Information Network and CDS Consulting Co-op

Philadelphia • Long history of alternative food practices and advocacy • a strong culture of food enthusiasts • urban agriculture • food co-op communities • Three recent expansions

South Philadelphia • Rich food culture • Italian Market • 1862, South Philadelphia was home to Philadelphia's first consumer-owned grocery store • The Union Cooperative no. 1 • 900 block of Federal Street.

The Neighborhoods • Large areas • Many very diverse neighborhoods • Redevelopment • Transitioning

Power and Privilege Asymmetries • Risk reflecting and reinforcing the power and privilege asymmetries of the conventional food system and society-at-large • Both KCFC and SPFC • low-income and minority residents • are well aware of the socioeconomic divide • need to focus on opening a successful business

Power and Privilege Asymmetries • SPFC: • intensive outreach and education efforts, • exploring ways to more effectively recruit • SPFC & KCFC: • guided by the Food Co-op Initiative • hosted recruitment training workshop to learn how to talk about and recruit for the Co-op and how to overcome people’s barriers to joining

Power and Privilege Asymmetries • KCFC • Healthy Cart Program (Department of Public Health ) • business and food safety training • electronic benefit transfer (EBT) machines • VISA debit fees for six months • Developing a program • Burlington Food Co-op’s Food For All Program • Mariposa Food Co-op • “stand-in equity” • “a ton of work to do”

“Concern for the Community” • For all residents • Profits back into the community • Attracting and promoting businesses • Community activities

“building a democratic association of people” • community problem-solving • small-scale locally oriented organization • the social processes of communities • Democratic rights and responsibilities • Scaling up democratic practices

Conclusion • Driving forces • Market failure • Economic crisis • Cooperative advocacy • Favorable public policy • “Co-operation among Co-operatives” • Supporting federal legislation • Democratic at micro- and macro-scale? • Balance: Inclusion & Economics

Thank You Questions?

South Philly Food Co-op & Kensington Community Food Co-op