What is a food co-op?
A food co-op is basically a grocery store that is owned and operated by its members. Most food co-ops take a socially responsible approach to the food and products that they sell, offering local and/or organic options where possible alongside cost-effective alternatives. Cost-effectiveness is a key attribute of all food co-ops; using a co-operative work principle allows organizations to offer goods at substantially below the prices of all normal grocery stores. There are varying models for food co-ops, but typically they have a focus on community and reduced prices for owner-members. Many co-ops use member labor at varying levels. This allows co-ops to significantly reduce their operating costs (and pass on the savings to members) and at the same time encourages valuable sense of community.
How does a food co-op differ from a normal grocery store?
A normal grocery store is typically owned by an individual, a family, or a corporation. A co-op is owned by a group of people who live in a community or neighborhood. Co-op members all have equal stake in the store. All members invest a small amount of money in the co-op when they join, which is refundable if they decide to leave at some point in the future. Because of the unique way in which co-ops are funded and operated, they are generally able to offer goods at substantially lower prices than normal grocery stores. Food co-op's are generally concerned with community involvement and monetary savings for owner-members. Often, food co-operatives focus on organic or sustainable food practices at reasonable prices.
Why would one want to join a co-op rather than going to a normal grocery store?
There are several reasons someone might choose to join a co-op rather than going to a normal grocery store. It’s cheaper, for a start. Because of the unique way in which co-ops are funded and operated, they have much lower operating costs, and these savings are passed on to members in the form of lower prices. By joining a food co-op, you should be able to substantially lower your monthly grocery bill. Co-ops are generally also able to work with smaller, more local suppliers, giving members access to organic and local food that customers of local grocery stores wouldn’t be able to access. Greater choice at lower prices – that’s what makes a food co-op stand out.
At the same time, being a member of a food co-op gives you more say in decisions that strongly impact your life and food decisions. Every member has an equal say in the running of a co-op, and can vote on issues that are relevant to the running of the store and the organization, from food choices to physical changes to the store.
At the same time, being a member of a food co-op gives you more say in decisions that strongly impact your life and food decisions. Every member has an equal say in the running of a co-op, and can vote on issues that are relevant to the running of the store and the organization, from food choices to physical changes to the store.
What is the Bay Ridge Food Co-op?
We are a community organization starting a brand new food co-op to serve the residents of Bay Ridge and its surrounding areas in Brooklyn, New York. Everybody is welcome to join us in our effort to bring this valuable new resource to our neighborhood. Owned and operated by its members, the Bay Ridge Food Co-op will seek to provide quality, wholesome food and goods at the lowest practical cost. A food co-op in the Bay Ridge area will provide you with easy access to locally grown and organic foods, as well as a wider and more interesting range of delicious products than the options currently available in the neighborhood.
What have you achieved so far?
We have achieved quite a lot! We have incorporated as a cooperative business, and we have over 1,200 interested neighbors so far. We have spread the word about our organization throughout Bay Ridge and attracted the attention of local politicians and community leaders. In addition to attending and tabling at local events, we communicate every 2 weeks via newsletter with those who are interested in learning more about our progress. We have received 2 financial grants and continue to apply for more support. The official membership campaign began September 14 2009 and currently we have over 200 committed members.
Is the co-op open?
No, not just yet. The work involved requires a group of people work together on this for 12-18 more months before we open, according to our business plan. We have a variety of tasks ahead of us, especially getting the word out far and wide - to Bay Ridge certainly, but also to Dyker Heights, Sunset Park, Bensonhurst and Boro Park. The more people we get to join us in our effort, the sooner we can open our doors. And, of course, the more people who become actively involved, the easier the work will be!
Why have I been hearing about you for a year and you still haven't opened?
It takes time to get a business started, especially one on the scale that we are targeting. The folks who are starting this business are your neighbors. We are effectively donating our time while maintaining jobs, schoolwork, family responsibilities and other community obligations. There is a lot of work ahead of us, and we’re making sure to create a sustainable business model that can be a part of Bay Ridge for a long, long time. Our equity membership campaign has been launched so we are now beginning to collect capital dollars necessary to enter into a lease and acquire equipment and inventory. We are confident that this momentum will continue and bring us closer to opening the doors to the Bay Ridge Food Co-op very soon.
How are you trying to raise money?
Most of our revenue will come from member capitalization, member equity and member loans. Amuch smaller portion will come from some of our upcoming fundraisers. We also have an active Grants committee applying for funding from regional and national non-profit foundations.
Obviously, if you have any other ideas for raising capital, we would love to hear from you!
Obviously, if you have any other ideas for raising capital, we would love to hear from you!
Where will the co-op be?
Our plans are for the co-op to be located in Bay Ridge, preferably close to public transportation. The exact location will be determined based on the availability of properties that meet our space requirements.
How big do you think the store will be?
The size of the store will be determined by the number of members we will be supporting. Based on our current projection of 2,500 members, we will need approximately 3,000 square feet of retail space, with an equal amount of storage space. This is equivalent to about 3 typical Bay Ridge storefronts.
Do I have to be a Bay Ridge resident to join?
Absolutely not. We believe that the majority of our members will come from the Bay Ridge area, but we will also be encouraging residents from Dyker Heights, Sunset Park, Bath Beach, Bensonhurst and Boro Park (among other places) to join. Everybody is welcome.
How do I become a member?
By investing equity and committing to work a certain number of hours per month as we approach store opening. The equity share is $200 per person, can be paid in installments, and will be refundable if a member decides to leave the co-op. The number of hours that will be required is estimated at 4 per month, but the exact amount will be better known as we get closer to opening.
How much does it cost to be a member?
Based on our research and estimate of projected start-up costs, each member share will cost $200. We offer a variety of payment plans, as follows:
Payment in Full - $200 Single Payment.
Plan 1 - $50 Initial Payment, $50 each quarter thereafter until $200 is reached.
Plan 2 - $20 Initial Payment, $20 each month thereafter until $200 is reached.
Plan 3 - $10 Initial Payment, $10 each month thereafter until $200 is reached.
Online payments will be accepted. However, an additional processing fee must be added. Processing charges will not come out of the equity payment(s).
Payment in Full - $200 Single Payment.
Plan 1 - $50 Initial Payment, $50 each quarter thereafter until $200 is reached.
Plan 2 - $20 Initial Payment, $20 each month thereafter until $200 is reached.
Plan 3 - $10 Initial Payment, $10 each month thereafter until $200 is reached.
Online payments will be accepted. However, an additional processing fee must be added. Processing charges will not come out of the equity payment(s).
Do I have to pay a fee per household, or per person?
The fee is per adult member of the household, age 18 and older. Every adult in a household must participate as a member. The exception is when there are roommates who do not share food.
What is an equity payment?
The equity payment to the co-op is the cost per share for your ownership rights. The share gives you the right to vote on co-op business, makes you a partner in the business and of course, gives you the right to shop in the Bay Ridge Food Co-op.
Will I be able to get my $200 back if I need it?
Yes, although there will be no refunds until the co-op is up and running. All the equity will be in the shelving and refrigerator cases and checkout machines, etc.
Is there an additional annual fee?
There will be an administrative fee charged at some future point, but it is being waived for the first 500 people who join.
I can't afford to pay $200. Is there any way that I can still join the co-op?
The membership equity payment is a vital part of ensuring that we get to open the doors of the Bay Ridge Food Co-op. However, we recognize that in this period of economic uncertainty, some people are not in a position to pay right now. They are welcome to review the payment plan options and if none is suitable it may be in their best interest to wait to join when we open and the savings that are realized at that time will offset the equity payment.
We do have a reduced equity option for those who are on government-assisted programs. We are asking for a total of 50 equity to be paid over 4 years. You can join with a reduced equity option upon showing proof of eligibility. The documents accepted as proof of eligibility include Food Stamps, SSI, Medicaid, WIC, Family Health Plus, Section 8 Housing Subsidy, and the Advantage Program.
We do have a reduced equity option for those who are on government-assisted programs. We are asking for a total of 50 equity to be paid over 4 years. You can join with a reduced equity option upon showing proof of eligibility. The documents accepted as proof of eligibility include Food Stamps, SSI, Medicaid, WIC, Family Health Plus, Section 8 Housing Subsidy, and the Advantage Program.
If the Bay Ridge Food Co-op doesn't open, will I be able to get my money back?
Obviously, it is our belief that the Bay Ridge Food Co-op will open as planned, but there is always the possibility that members will make the decision further down the line not to continue forward. This is one key reason installment options for collecting equity payments are provided. We have some immediate capital requirements which are necessary to help us make the food co-op a reality, and initial payments will enable us to move forward. As a result, if we decided not to open, it is possible that not all this money would be reimbursed. However, it is likely that we will only get to asking for second, third and fourth payments when we have more certainty over the opening timeline.
If I make a first payment, and then decide that I don't want to be a part of the food co-op anymore, will I be able to get my money back?
Obviously, we would prefer you to keep your money with the co-op, as this will enable us to make further progress towards opening our doors. We have some immediate capital requirements which are necessary to help us make the food co-op a reality, and initial payments will enable us to move forward. As a result, if we decided not to open, it is possible that not all this money would be available for reimbursement. Once the food co-op’s doors have opened, all equity payments are refundable if the member decided to leave.
My son/daughter is 18. Do I have to pay for them too?
Our membership rules state that all adult members of a household must hold equity, and must take regular work shifts at the food co-op. For the purposes of the food co-op, a person is considered an adult on their 18th birthday.
I know that people have to work at some food co-ops. Will I have to work at the Bay Ridge Food Co-op?
The Bay Ridge Food Co-op seeks to provide easy access to locally grown and organic foods, all at a lower price than you would be able to get elsewhere. To achieve that, we all have to share in the work necessary to run the store. It is likely that you will be required to work one shift every month, and that this shift will be about four hours long (maybe less). We believe that this is an incredibly small commitment in return for access to great produce at markedly lower prices.
Does everybody in the house have to work?
As a principle, all adult household members will be required to work. There will be documented exceptions to this, such as those suffering from certain disabilities. All requests for exceptions will be considered on an individual basis by the Membership Committee. Please do remember, however, that one of primary ways a co-operative can provide members with groceries at a lower price than you would be able to get elsewhere because of the lower expenses that work shifts allow us to achieve. All of the savings are passed on to members, and as such, we ask that all members participate fully and honestly in the running of the organization.
I am disabled, and cannot work. Can I still join the food co-op?
As a principle, all adult household members will be required to work. We will accommodate and welcome those who are unable to work, or who can only do certain types of work due to limitations or disability.
I have a very busy job and cannot make the time to do a regular workshift? Can I still join the food co-op?
As a principle, all adult household members will be required to work. There will be documented exceptions to this, such as those suffering from certain disabilities. We recognize that in this day and age – especially in New York – everybody has busy lives. However, a cooperative can only provide members with groceries at a lower price than one would be able to get elsewhere because of the lower expenses that work shifts allow us to achieve. Shifts will be available evenings and weekends. We are confident that a short monthly workshift should not be onerous to even the busiest of New Yorkers! We will try hard to work with you to find some way for you to contribute your fair share.
What kind of jobs will I have to do?
There will be a wide variety of jobs that members will be given, from shelf-stacking, receiving inventory, and manning checkout desks to office administration and handling membership queries.
How often will I have to do a workshift?
Right now, we expect that members will have to work about 4 hours a month.
What happens if I miss a workshift?
We will cover this in depth as we get closer to opening. Members commit to contributing to the operation of the co-op; if members don’t show up for their shift, work does not get completed, just like any other job. But if you know in advance that you have to miss a shift, we would encourage you to find someone to cover by scheduling a shift swap. We will try to make scheduling as easy a process as possible.
Will there be any permanent staff at the food co-op?
Yes, permanent staff is necessary to keep some sort of continuity in the day-to-day operations of the co-op, but the number of paid employees will be kept to a minimum as most of the labor, stocking, cleaning, phone-answering etc. will be covered by members.
What kind of things will the food co-op sell?
The full range will obviously be decided closer to opening, but you can expect that the co-op will carry a full line of grocery items, produce, cheese, juices, grains, spices, vitamins, dairy products, poultry, meats, fish and vegan alternative, homeopathic remedies, and paper goods. The co-op will aim to support local farmers, and small independent producers. By building direct relationships with the people growing our food, we will be able to bring you the freshest, most flavorful produce available in our region at reasonable prices.
Will the food co-op just sell food?
Yes especially at first, however we will be attempting to offer as wide a range of goods as is possible in the space we move into.
Will you sell meat?
Yes, we will sell poultry, meat, fish as well as vegan alternatives.
Will you sell fish?
Yes.
Will you sell foods for specific dietary requirements e.g. kosher, halal, gluten-free etc?
Yes, we will aim to have alternatives to many familiar foods for people on specialty diets, people with food allergies, and people who need to change their diet for medical reasons.
If I can't do my entire weekly shopping there, why should I join?
We would hope that the majority of your shopping needs would be covered by the food co-op when we open. We also hope that we will have the ability to grow to a full size, fully stocked supermarket over time, and that we will then be able to address most, if not all, your buying needs.
Will I be able to get well-known brand name foods at the co-op?
You will likely see brands you know and already buy, as well as products from smaller, local and family-run producers.
Will you just be selling local and/or organic food at the co-op?
We expect to sell conventional items as well as local and organic. We will stress healthful foods.
What is the co-op's idea of 'local'?
In a city as large as New York, local is a larger area then in other parts of the country. We will likely consider local to be a 300 or 500 mile radius. The exact definition, however, will be decided by our membership.
How much cheaper than the average grocery store will the Bay Ridge Food Co-op be?
While we can't answer that with 100 per cent certainty, we expect that your grocery bill will be anywhere from 20-40 percent less than it is when you shop elsewhere.
Will everything be cheaper in the food co-op?
Generally, yes, because we will have much lower operating costs than most grocery stores, due to the unique way in which we are funded and operated. Some retailers will offer items at deep discount to get your attention and come in their store. It may be the case that a few items may be had at a lower price somewhere else for that or other reason, but overall we expect you will consistently be able to save by shopping at the co-op.
How can you be sure that your prices will be so low?
Based on research, business planning and careful financial modeling we know that the co-op, by not seeking a profit, but rather a markup sufficient to sustain and grow the business, and by benefitting from each member owner putting in some sweat equity, we will be able to allow you to save every week and bring healthy food to your family. We are also learning from existing cooperatives in New York and around the country that are indeed able to provide lower prices.
What other services for the community will the food co-op offer?
We will try to serve the community in many ways, but at this time are focusing on opening the co-op business. Immediately thereafter we will be looking to launch other community related activities that we determine are high priorities for our neighborhoods.
I heard that the Park Slope Food Coop is overcrowded and a bit of a battle ground. How will the Bay Ridge Food Co-op be different?
The PSFC is certainly popular. There are over 15,000 members and it can get crowded. It speaks to the savings available, the quality of the goods, and the success of a community-run supermarket. The Bay Ridge Food Co-op will not be that large (at first). We are looking for an appropriate size storefront with room to grow.
How do I get in touch with somebody from the co-op?
Visit the website to sign up for the newsletter. Come to a new member meeting at the library. Email info@foodcoopbayridge.com.
I would like to get involved in outreach, membership, marketing, IT etc, who do I contact?
Write to info@foodcoopbayridge.com and indicate your area of interest, the appropriate person will be in touch.
I tried to get involved in the food co-op a while ago, but nobody got in contact with me. Why not?
We are a startup organization of volunteers doing our best, and sometimes we get overwhelmed by the amount of work this effort requires. You can be assured that we are interested in your participation and perhaps, with you as part of us, we can reduce or eliminate that from happening in the future.
Where do your meetings take place?
They take place at a variety of places. New member meetings the Bay Ridge Library, located at 73rd St & Ridge. They take place the first Tuesday and Third Saturday of every month. General meetings are held at Bay Ridge Prep, located at 81st St & Ridge. Each committee has their own meetings that are convened in different places.
