2021 Annual Report

Page 1

ANNUAL REPORT

0 2 1 2

June 29, 2020 - June 27, 2021


ends ends policy policy statement statement East End Food Co-op exists to enhance physical and social health in our community. To these ends, we will create:

stainable mem u s A ber everyone -ow o t ned business open brant, dynamic i v a com people y h t muni l ty of happy, hea An ethical a nd ure t resi c u r lient food infrast a creativ ev isio ure t u f n to transform the

rd of director a o b s Sam Applefield ‘21 President

Trevor Ring ‘23

Ariel Barlow ‘22 Vice President

Laura Valentine ‘22 Secretary

Marty Seltman ‘23

Amber Pertz Cafe Manager 2

Annual Report 2021

Eva Barinas ‘21

Jenise Brown ‘23

agement team man Maura Holliday General Manager

Tyler Kulp Produce Manager

Tom Pendeleon ‘22

eric cressley Front End Manager Shawn McCullough Finance Manager

Elly Helgen Marketing & Member Services Manager

Ian Ryan Grocery Manager

Erin Myers IT Manager

Jen Girty Human Resource Manager


President's President's Report Report by Sam Applefield, Board President

Board Members receive yearly stipend of $720

On behalf of the Board of Directors, I am pleased to share news and updates about our Co-op. The following information is from the fiscal year July 1, 2020 through June 30, 2021, with a few additional updates up to the time of writing (October 2021). This report has to start by acknowledging our extreme gratitude for the Co-op staff, who continue to show up and keep the store operating in the face of what is still an unprecedented public health crisis. They have shown an incredible amount of resilience, creativity, and adaptability, for which we are all very grateful. As we continue to navigate the unpredictable unfolding of the COVID-19 pandemic, the importance of resilient, regional food systems has come into stark relief. Accordingly, the Board has formed a Resilience Committee to assess our ability to respond to potential future shocks and provide recommendations for increasing resiliency throughout the Co-op. While the Co-op is already an important regional asset for local producers and consumers, we look forward to continuing to strengthen our role in the regional food system. An important next step in expanding our role in the regional food system is establishing a new, larger location for our store. Unfortunately, progress on this effort has been slower than we would have liked this past year. While we were hoping to announce a potential new location this summer, negotiations around a Letter of Intent have taken longer than expected. We are eager to share more information about this with the full membership of the Co-op and will do so as soon as we are able. This year, the Board has also worked to establish a greater culture of member engagement in the Coop’s governance. We opened participation on all Board committees to any Co-op member and were happy to see several members join committees. We will continue to promote this opportunity through the Co-operator and other outlets, and to explore other ways for members to become more involved in the governance of the Co-op. On a personal note, it is bittersweet to share that this will be my last annual report as President of the EEFC Board of Directors. I have learned a tremendous amount from my time on the Board and in my role as President, and am grateful for all the people I have gotten to know and work with at the Co-op. In reflecting on the past three years, I am most proud of the culture we have created on the Board, and the time and effort we put into making sure the Board operates in a way that reflects the Co-op’s values. For example, we established ground rules, processes to hold each other accountable, and regular check-ins to acknowledge that we all bring our full selves into this work. We respect differences of opinions and work through them together. I will miss being a part of this team, but know that we have built a strong foundation to help future Boards thrive.

Annual Report 2021

3


operations Report by Maura Holliday, General Manager

The 2021 Fiscal Year began on June 28, 2020, and at the time, we were still wading through the very challenging waters of the pandemic. Our hot bar and salad bar were still shut down, and we were working hard to get items in the grab n’ go case. We were making plans and buying bulk bins to get our Bulk Department back up and running in a safe manner. We were still mandated to meter customers and enforce the universal mask order. It feels like a decade ago rather than a little more than a year, and I know that our staff feels the same way. We were fortunate enough to begin the 2021 Fiscal Year with strong financials, allowing us to breathe just a little bit easier as we continued into the unknown. We had our Paycheck Protection Program loan in hand, allowing us to pay Appreciation Pay of $2.22/per hour from March 9, 2020, through May 2, 2021, and we never had to lay any of our staff off.

Despite the pandemic still raging on, somehow life and our co-op kept moving forward: our Bulk Department reset allowed sales to recover to a healthy level, we meandered our way through a very different holiday season with a need for smaller gatherings, and at the turn of the year, we were able to get our hot soups back on the menu served in individual containers for safety. In March, we began contract negotiations with our bargaining unit staff, represented by UE Local 667. This was my first contract negotiation as General Manager, and we had a great team to work with as we increased our starting wage from $11.00 to $12.50. Since becoming General Manager, I have been working to create a path for our co-op to get our starting wage up to $15/hour, and this contract negotiation was the first step. I knew when we went in that we wouldn’t be able to get there just yet, so the plan was to get us one step closer so that our next contract in March 2024 would get us to $15/hour (ahead of federal or state changes). We are adding higher-level positions to develop our staff ’s skillsets and increase their opportunities for more money and internal growth. This year we added in 7 new higher-level positions, and all were filled internally. We increased the Paid Time Off (PTO) accrual rate for our part-time staff to match that of our full-time staff and added in an increase of PTO at one’s 2nd anniversary. Our contract also resulted in the formation of our Diversity & Inclusion Committee — a long-time goal of mine — to help us create a work culture that is inclusive and respectful of all differences. Some of the areas we hope to focus on are our hiring process and internal support systems for staff. We have work to do, but I am hopeful that together we can accomplish great things. 4

Annual Report 2021


Our sales growth for the end of the fiscal year was nothing compared to the prior year, but when you compare yourself to unprecedented sales growth from a pandemic, you need to pat yourself on the back for doing as well as you did. Not every co-op was as lucky as we were, and it has not stopped us as we press on to find a larger and better-suited space in which our co-op can thrive. We are hopeful to have a site announcement in the coming months and look forward to engaging with member-owners as we navigate this huge change and work to find a healthy balance of meeting 15,000+ member-owners’ wants and needs.

The end goal is to find a home for our co-op that serves our staff and member-owners in ways that we are not currently able to and that we can enjoy for another 20 years! Last but certainly not least, I want to thank our staff. Our co-op would not run without you, and our member-owners would not have a store to find the great products we sell! Thank you for being here every day to open and close our doors. It has not been an easy year, and I appreciate every ounce of energy you have put into our co-op. To the grocery store and back.

Expansion Expansion report report by Francis Carter, Project Manager fcarter@eastendfood.coop

My name is Francis Carter, and I am East End Food Co-op’s new Project Manager and Capital Campaign Coordinator. As a fellow member-owner, I’m excited to work with the staff, volunteers, and Board as we move toward solidifying the final details of launching our Capital Campaign in support of store expansion. We are inching toward the expansion project’s final plans and asembling the financing package’s last details. Our ambitious goal is to raise $1.6 million in interestbearing preferred shares by the fall of 2022. As we look forward to making an official announcement next spring, EEFC member-owners will receive an invitation to attend our Capital Campaign Launch and learn about investment opportunities in your Co-op. Great things take time, and we are making sure we have all the pieces in place to reach our goal successfully and smoothly. We can achieve our goal of expanding the Co-op when we receive strong financial support from our member-owners. I have seen firsthand that a community that invests in itself has much more success, identity, health, and vitality than one that puts its money elsewhere. The East End Food Co-op is an excellent example of what a community can accomplish when we build commonwealth through community ownership. Your confidence in the Co-op is a big part of our success. If you are interested in greater detail, we will have several informational events coming up in the new year. And if you’re interested in volunteering for the Capital Campaign Team, you can reach out to our Board of Directors on our website or contact me directly. And be on the lookout for more information on our website’s upcoming Expansion Updates page and on social media. Annual Report 2021

5


Finance Finance Report Report

by Shawn McCullough, Finance Manager

Into FYE 2021, the Co-op still felt the residual effects of COVID. However, for this report, I’m going to more or less stick to the mundaneness of talking profit, sales growth, and margin. With the tax entries pending, the Co-op had an unadjusted net income of $5,234; if this number holds up after the tax entries, this would be the fourth straight year the Co-op had net income. The last time the Co-op had four consecutive years of net income was 2008-2011. For FYE 2021, the Co-op had not paid any profit-share as the gains were given out in the form of Hazard Pay to all employees, except for the General Manager. Total Hazard Pay given out during FYE 2021 totaled $168,017. The Co-op’s unadjusted (unaudited) net income for FYE 2021 was $5,234 vs. the prior year’s net income of $118,521. The Co-op’s year-end cash position is the strongest it’s been in the history of the Co-op. Our year-end cash balance was $2,119,768 compared to last year’s balance of $1,883,767. Current assets — of which cash is our largest component — continued to increase for the year. Current assets increased by $179,674. Our total members’ equity (essentially our net worth) increased by $61,934, or 3.3%. Total sales slightly declined over the prior year by -.03%. For the prior year, the sales growth was the best since 2015 and was driven by COVID. In terms of margin dollars, the Co-op realized $4,771,330 margin dollars for FYE 2021 vs. $4,513,587 margin dollars for FYE 2020. Gross margin remained extremely consistent in the midst of all that was going on: 38.8% margin for the current year vs. 38.3% in the prior year.

6

Annual Report 2021


Year Ended ‘21

Year Ended ‘20

$2,636,010

$2,450,780

Current Assets

$326,814

$382,354

Net Property & Equipment

$272,567

$248,619

Other Assets

$3,235,391

$3,081,753

Total Assets

$647.222

$557,725

Current Liabilities

$619,729

$619,729

Non-current Liabilities

$1,266,951

$1,177,454

Total Liabilities

$1,553,751

$1,497,051

Member Shares

$407,248

$288,727

Retained Earnings

$7,441

$118,521

Current Earnings

$1,968,440

$1,904,299

Total Members’ Equity

$3,235,391

$3,081,753

(Audited)

(Audited)

Total Liabilities & Members’ Equity

INCOME/EXPENSE STATEMENTS Year Ended ‘21

Year Ended ‘20

$12,310,937

$12,314,872

Net Sales

($-7,539,607)

($-7,601,285)

Cost of Sales

$4,771,330

$4,713,587

($-3,157,670)

($-3,031,773)

Personnel Expense

($-1,644,031)

($-1,558,289)

Operating Expense

($-30,371)

$123,525

Operating (Loss)/Income

$37,812

($-5,004)

Other (Expenses)/Income

$7,441

$118,521

NET (LOSS) /INCOME

(Audited)

(Audited)

Annual Report 2021

7


Local Vendors by Category Total Sales that are Local $2,365,152 % of Sales that are Local 19.29 % of Sales that are Local 9.84% of all product Stock Keeping Units (SKU) that are local. Local is defined as from within 250 miles of our store, including all of Pennsylvania, excluding Canada.

Bulk – 5 Frozen – 4 Grocery – 17 Health & Beauty – 10 Meat – 7 Perishable – 20 Produce – 21 Supplements – 5 Cheese - 9 Floral - 10

Membership 655 New Members

J 71 U L

A 48 U G

S 53 E P

O 61 C T

567 Net

N 50 D 40 J 78 A O E V N C

88 REFUNDS

F 49 M 44 A 55 M 48 J 58 P A U E A Y R B N R

*graph represents number of new members by month

$314,472

IN MEMBER DISCOUNTS 8

Annual Report 2021

57.86% OF SALES TO MEMBERS

$7.7 MILLION IN SALES TO MEMBERS

15,146 ACTIVE MEMBERS


3

Urban Urban Farm Farm Tour Tour

urban Farms & Gardens

153

Registrants

Raised

$1,437.50 july 2020 june 2021

The East End Food Co-op (EEFC), in collaboration with the Pittsburgh Food Policy Council (PFPC) and Pasa for Sustainable Agriculture, presented the fourth annual Pittsburgh Urban Farm Tour during Pennsylvania’s Urban Ag Week (July 20-26, 2020). Due to the state of the world at the time, we switched to a virtual format. Though we missed being able to visit farms in person, we appreciated the opportunity to capture a wider audience and offer urban ag education and information to many who may not have been able to attend in person. Generally, proceeds from ticket sales support honorariums for the participating farms and also go toward the Urban Growers Scholarship Fund. Given the virtual format, however, the Co-op simply donated the tour budget to the fund and as farm honorariums in lieu of ticket sales. Featured sites: Sol Patch Garden, Duquesne Community Victory Garden, Mwanakuche Community Garden

Community Partner Highlights: Farmer Incubator Program, The Hilltop Urban Farm; Master Composter Program, Grow Pittsburgh; Community Garden Sustainability Fund, Grow Pittsburgh and Western Pennsylvania Conservancy, sponsored in part by Allegheny County Economic Development; Adopt-A-Lot Program, City of Pittsburgh

Proceeds from the 2018 Pittsburgh Urban Farm Tour seeded the Urban Growers Scholarship Fund. The fund exists to help urban gardeners and farmers in Pittsburgh and Allegheny County access professional development opportunities, including training, conferences, and workshops. The PFPC Urban Ag Working Group administers the Urban Growers Scholarship Fund. Applicants may apply for scholarship funds through the Pittsburgh Food Policy Council website (www.pittsburghfoodpolicy.org). To ensure continued fundraising for the Urban Growers Scholarship Fund, the East End Food Co-op established a fundraiser: for every seed packet sold at the Co-op, we donate 25 cents to the scholarship fund.

Annual Report 2021

9


Donations donations Through our general donations fund, 38 organizations received $9,875.53 in the form of gift cards, gift baskets, store products, or cash sponsorships.

Co-op Community Fund Grants Register Round Up Recipients: Urban Growers Scholarship Fund, Pressley Ridge, Pasa Sustainable Agriculture, Co-op Community Fund, Casa San Jose, SETpoint, Civically Inc., The Legacy Arts Project, Pittsburgh Center for Creative Reuse, PennFuture, Jeremiah’s Place, and Our Clubhouse.

10

Annual Report 2021

The Cooperative Community Fund is an endowment sponsored by Twin Pines Cooperative Foundation wherein interest earned each year is donated to local nonprofts. Contributions to the EEFC fund are raised through our Register Round Up in October. The $750 grants are part of the “Give Where You Live” campaign. Our 2021 recipients were Grow Pittsburgh, Grounded Strategies, and the Pittsburgh Food Policy Council — organizations committed to the environtal and social health of the Pittsburgh community.


food food access access Senior & low income food bucks In January 2020, the East End Food Co-op launched Food Bucks after months of planning, staff training, and POS software upgrades. Food Bucks is possible through a partnership with The Food Trust, a non-profit dedicated to ensuring everyone has access to nutritious, affordable food. Shoppers who use SNAP earn a $2 Food Buck coupon for every $5 they spend on fresh produce, which they can use on a subsequent shopping trip for additional fresh produce. There is no enrollment or sign-up required.

104,448 Bags Saved Annual Report 2021

11


ty i n u m m o c e c n i s d e own

0 8 9 1 . e n o y r e v e open to every day.

BE SOCIAL WITH US

EastEndCoOp @eastendfoodcoop @EastEndCoop


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.