GROWTH FOR THE SAKE OF…? by Bobby Sullivan
Annual Meeting 2015 - GM Report
2014 was the year we proved to ourselves and to Asheville that we are not only here to stay, we are a serious force in this town. After a decade of pretty dramatic highs and lows, we experienced an encroachment of stores that could have given us an even more serious hit than Greenlife, which almost put us out of business after they opened in 2004. Thankfully, since then we have firmly established our own, finishing that decade with glorious results, culminating in our certification as a Living Wage employer. This is very significant considering we are the smallest grocery store in Asheville and we now pay the most to entry level staff. It’s also significant in that our mission statement actually states that “We are committed to use profits… to provide a livable wage to our employees.” As a point of reference, I made $5.25 an hour when I worked in the produce department in 1997 and that position now pays well over double that amount - $11.85! From 2013 to 2014 as you know, we experienced what was dubbed “Asheville’s grocery invasion” by the local press, yet our sales kept increasing, although our growth percentage diminished a bit. That said, we experienced rapid growth for three solid years and double digit growth is hard to maintain year after year, without significant renovations or an expansion. This year’s growth is actually better than last year’s so far and what makes that particularly satisfying is that we budgeted for flat sales. This will hopefully give us the opportunity to stay in step with a dramatic living wage increase of 65¢/hr., which would make our entry level wage $12.50. Following our first ever financial audit by Wegner CPA’s in 2013 which came out clean, our finances are in top order, with assets of well over $1 million and our property completely paid off. And our balance sheet doesn’t even include the actual value of our property. It’s valued at the price we paid, so we are now in a great position to purchase the property next door and to begin planning the next two decades of expansion and business development. This includes our current focus on training our staff for bigger and better services and planning on having a wider influence in Asheville in general. I hope you know that as part of a national co-op, of which I am now on the board of directors, our finances are monitored regularly as a safeguard. All the co-ops in this organization share a joint liability, so it is in all our best interests that things don’t go wrong with individual co-ops. That also means both the store and the board of directors have a lot of resources at our disposal operationally, professionally and financially. And with membership in the national co-op comes shared buying power, which makes us a strong competitor in our highly saturated market. In fact, our little store has better buying
power than Earth Fare, a chain with 30-odd stores and a much larger format. OPERATIONAL RESULTS As of the end of 2014, ownership levels are soaring! We are now experiencing increases that are setting new records at almost 40% over the same period last year, giving us over 2000 owners. We also have a new worker owner program, with new jobs emailed out regularly, as there is a new focus on complementing the work that the staff does, rather than replacing it. This is actually in compliance with our union guidelines and also helped to create an additional paid position, where that worker owner not only now makes a wage, they also get a better discount. Another positive trend I can report is that the sales of local products is also up almost 40% and we now have well over one thousand local products in the store on a regular basis. Probably the most significant victory, which I would say is a culmination of all that I’ve already reported, is that the weekly sales record we achieved in 2014 has already been surpassed twice this year. Once it happened in March because of the truck load sale we did and the other time it happened was last month, because of our 5%-off-on-the-5th day and our sales at the Spring LEAF Festival. Other sales stats are as follows:
Department Sales Growth in 2014
Sub-Department Sales Growth in 2014
Growth continued from page 1
All this leads me to my big question for you – growth for the sake of what, exactly? What is your main goal for our growth? As our managers and I currently dissect a book called the Good Jobs Strategy by Zeynep Ton, an MIT professor at the Sloan School of Management, we want to make the FBFC a place worthy of our long standing employees like Roz & Ellie, Karen and Michael, Joy and Lola, and of course all the other outstanding newer staff members. I want us to be Asheville’s banner employer. I also want us to help preserve the things I loved about Asheville when my family and I moved here 20 years ago – small businesses working together and innovating in ways that are both good for this community and good for the planet. Here are a few bits of wisdom I’d like to share that are helping us focus our efforts. They come from the Zingerman’s model of management. They are a worker co-op in Ann Arbor and we have been using their ideas within our organization for a couple years now:
Bee Keeping & Leadership
1. The Leaders Don’t Make the Raw Material 2. Good Beekeeping Means That Everyone Wins 3. Exploitation May Get Short-Term Results, But in the End it Isn’t Sustainable 4. Working Together Means Working Better 5. If We Fight With the Workers, We Get Stung 6. If We Fight Harder, It Even Gets Worse 7. If We Spray the Workers to Stop Them, We Only Get Momentary Relief 8. You Can’t Make the Bees Do Anything The following list is especially good for considering how we will manage an expansion:
12 Natural Laws of Business
1. An inspiring, strategically sound vision leads the way to greatness (especially if we write it down!). 2. We need to give customers really compelling reasons to buy from us. 3. Without good finance, we fail. 4. We do our best work when we are part of a really great team. 5. If we want the staff to give great service to customers, the leaders have to give great service to staff. 6. If we want great performance from our staff, we have to give them clear expectations and training tools. 7. Successful businesses do the things that others know they should do… but generally don’t. 8. To get to greatness we’ve got to keep getting better, all the time! 9. Success means we get better problems. 10. Whatever our strengths are, they will likely lead straight to our weaknesses. 11. It generally takes a lot longer to make something great happen than we think. 12. Great organizations are appreciative, & the people in them have more fun. Forgive me if I’m wrong, but it feels to me like grassroots approaches like these have been diminishing with Asheville’s growing tourist economy. That is why our opportunity is so unique. We have a structure that can help us do something that is what most local people are really hoping for – thousands of local people (our owners) helping to co-create an ever expanding and sustainable local economy. Co-ops are uniquely positioned to do this, as they are designed to keep the
money here in our local economy, which then multiplies the dollars as they continue to circulate. In the end though, I work for you – our owners – through the board of directors, so I’m open to all the input you may have on what this really means. That’s why we have breakout groups scheduled today. As far as the expansion goes, we are talking about a development that could encompass a plot that is over two acres, right here in downtown Asheville - from the corner of Hilliard all the way up to City Bakery. We’ve so far hired a local firm, Civil Design Concepts, to do a feasibility study which will give us multiple scenarios to consider, including not developing the whole thing, but just expanding our current store. Regardless, parking is a huge concern and would need to be addressed even for our current size. Civil Design Concepts will also give us a determination of our return on investment and the best-use of the land in this area, while utilizing local resources for cost efficiency. We hoped to be able to share their results at this meeting, but their timeline was pushed back because they recently moved their offices from Swannanoa River Road to Patton Avenue, here in downtown. That said, once we get the results, we will schedule another community input meeting like the one we just had on the Spring Equinox this year. Leading up to hiring them for help in determining engineering potential, we spent a lot of money getting two market studies done in 2009 & 2013 to help us understand the financial potential of our location, based on demographics and current grocery offerings in our market area. This type of study focuses on our specific industry and is a very important step in vetting any location and/or store size. Here are the details we have thus far: the proposed store would be a little over 4-times our current size, which would still be considered “small” by industry standards – which in my mind means manageable. The bigger picture could, if we so choose, incorporate a mixed-use facility including offices, other retail storefronts, a green space, community space, increased parking and affordable housing, among other possibilities. A very real concern for some, is that this scenario would also likely need to include a space for various income-level housing structures, so we are looking at options. The bottom line is that for a big project like this to succeed, which includes affordable housing and the rest of the “bigger picture,” which we received from input at the March meeting, we would likely need to subsidize it with a higher end housing model. The good news is that if we went in this direction, the site is so big, it’s possible to do multiple ventures without degrading the integrity of the grass roots nature of our co-op. Regardless, whichever path we choose, we will make sure to see whether or not the market can bear what we propose to bring to fruition. I think it’s most important to point out at this time that nothing is decided yet, as ALL we are currently engaged in is researching the suggestions made at the last community input meeting and seeing how we can make it all happen. We are happy to answer any questions and concerns you may have, and we will be transparent throughout the entire process. We ask you to be open minded to various creative scenarios and as a reminder, we will have another community input meeting when we know more. Don’t forget that our board of directors represents you. Any concerns or questions you may have after this meeting can be sent to their email address at any time. It is board@frenchbroadfood.coop. That goes directly to them and I don’t have access to it, in case you need confidentiality. You can also reach me at our info email address: info@ frenchbroadfood.coop.
21-Day Water Challenge by Rosemary Fletcher
Are you ready to take one small baby-step that will improve your overall health? OK, let’s do it together! I CHALLENGE YOU TO DRINK ONE HALF-GALLON OF WATER FOR 21 DAYS STRAIGHT! Why water? Because drinking water is BIG! Water improves digestion, absorption, circulation, weight control, creation of saliva, transportation of nutrients, and maintenance of body temperature. These things keep us from getting sick, and help us get well after we already are, regardless of the illness. Drinking water helps maintain the balance of body fluids. We are composed of a majority of water. When we are born, we are made of 85% water. As we age, we lose water through urinating, sweating and even breathing. If we don’t replace this water, we get wrinkles, dry up, become stiff, and attract a host of health problems. We end our lives closer to a 55% water level. Would you rather have your skin be as soft and smooth as a baby’s bottom, or as rough and wrinkly as grandpa’s chin? Here’s how to take my challenge: 1) Select a container. It’s up to you whether its glass, plastic or other, just make it hold a half gallon of water. 2) Every morning fill up your container with water. Choose whatever kind of water that you think is purest. (It’s best not to use tap water for this challenge). 3) Drink it for 21 days in a row. Drink most of it in the morning before breakfast, so that you don’t forget, or have to run to the bathroom all night. Take your container to work with you if you need to. Drink it all before going to bed every night. Mark the days off on a calendar as you progress. (If you skip 3 days in a row, or fail to drink it all, then you must start all over at day one, so be consistent). Call a friend or family member and challenge them to do this with you. Pass my challenge on to your pals. I DARE YOU! (I raise my glass of water in a toast to you! ) HERE’S HOPING THAT YOU WILL LOOK AND FEEL SO MUCH BETTER IN 21 DAYS, THAT YOU WILL KEEP DOING THIS … FOREVER!
FBFC Wednesday Tailgate Market News As summer rolls in, so does the bounty of fresh local produce. Here’s what you can expect at the market in July and August: tomatoes, peppers, eggplant, cucumbers, summer squash, beans, okra, tomatillos, sweet corn, potatoes, onions, leeks, garlic, carrots, beets, greens, cabbage, fennel, melons, blackberries, and more! We all know that the fresher the produce, the tastier and more nutritious. Additionally, your local growers can harvest your fruits and vegetables at their ideal maturity, since they don’t have far to go. Biting into a vine-ripened tomato at the beginning of summer is like tasting a tomato for the first time. Beulah Farm is now offering whole chickens - free range, no hormones, no antibiotics - as well as their usual grassfed beef, lamb, goat, and pork. Dave Cowart of Dave’s Raw Honey has been busy as a bee harvesting a new crop of honey, so also look out for this season’s mountain wildflower honey. On July 15th from 2-6, we will have a summer food tasting and book signing with local nutritionist Denise Barratt. Denise is the author of Farm Fresh Nutrition: Eating Green and Clean. Supporting Your Local Economy. Her book features seasonal recipes and menu ideas, farmers’ market shopping lists, and stories of local farmers and food heroes. You can also find other seasonal recipes on her website and blog at www.vineripenutrition.com. Meet one of our many dedicated vendors: Chris Parker of Asheville Fungi sets up at the market each week with culinary and medicinal mushrooms, as well as mushroom-growing supplies. Asheville Fungi is a sterile lab, spawn room, grow room and retail mycological supply store all in one. They utilize waste stream resources from local businesses to grow delectable mushrooms. Such items include spent brewery and distillery grain, spent coffee grounds, used paper products, sawdust, and wood chips. Chris Parker is a self taught mycologist that began cultivating mushrooms at the age of 16. Since this humble beginning, Chris has continuously expanded his knowledge of mycology, giving him nearly 20 years of experience. He continues to be a teacher and mentor to many folks who are interested in and share his passion for growing mushrooms for food, medicine and profit. We look forward to seeing you each Wednesday, 2-6 pm at 76 Biltmore Ave.! EBT/Credit/Debit welcome. Parking across the street at Aloft Hotel, first hour free. Like us on Facebook! www.facebook.com/pages/French-Broad-Food-Co-op-Wednesday-Tailgate-Market
10% Off in July!
Come to FBFC to get 10% off this Local Flower Essence Line and come to the Intro to Flower Essences with Lorin Purifoy. July 19th at 1:30
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We guarantee our owners and customers friendly, courteous, professional service. We guarantee 100% satisfaction on all merchandise. Any cashier may refund the full purchase price with a receipt within 30 days of purchase. Customers seeking a refund without a receipt will be issued store credit or exchange. We guarantee accurate prices, weights, measures, and counts on all products. We guarantee that the Co-op will absorb the loss resulting from a product that was accidentally broken by a customer in the store. We guarantee that our staff members will escort all customers to the location of a product they have requested. Cashiers who cannot leave the front of the store for security reasons will either offer to call for assistance or direct the customer to the desired product. We guarantee that we will go to great lengths to ensure that our customers leave satisfied. We guarantee that all advertising is factual and that we will make every effort to have sufficient supply of the product to meet customer demand. We will strive to make the Co-op a friendly atmosphere for all. We will not make excuses. So, we will “Acknowledge the complaint,” “Sincerely apologize,” and “Fix it!” We will strive to answer any ringing phone after no more than 3 rings. If a call goes to voicemail during business hours, we will strive to return it the same day. After hours voicemail messages are returned on the next business day.
Welcome Summer!
A sweltering summer so far! I so love this time of year when the green is abundant, rivers are cool, and the garden is prolific! Here at the Co-op, we are finally underway with our Health and Beauty Care reset. There will be chaos in the coming weeks, but we will ultimately be able to serve you better with a better layout, signage, and new products! It is a lot of work, but already it has created tons of space! We can’t wait til it is completed. With this heat brings many fungal issues and skin rashes. At least 20 of you a week are needing help with the southern damp heat symptoms, so I will include a couple of my favorite recipes to aid in what I call “Swamp Booty” Rosemary Gladstar’s Antifungal Powder 1/2 cup white clay or arrowroot powder 1 Tbsp. chaparral powder 1 Tbsp. black walnut hull powder 1 tsp. organically cultivated goldenseal powder 1 tsp. tea tree essential oil Combine the powders together. Add tea tree oil and blend together well. Let dry uncovered. Apply to feet, under ta-tas, groin area, or other damp areas. Basil-Mint Cooler In a 4 oz. spray bottle, place 2 tsp. vodka along with 20 drops of peppermint, 10 drops of sweet basil, and 10 drops of lime essential oils. Fill bottle with distilled water and shake well. To cool down, place in fridge and mist for a cool down in the heat. For those of you who frequent area farmers markets or have your own garden, this is the time of abundant fresh food. Here are a couple of recipes to inspire: Fruit Kimchi from Sandor Katz timeframe: 1 week 1 quart 1/4 pineapple 2 plums, pitted 2 pears, cored 1 apple, cored 1 small bunch grapes, stemmed 1/2 cup cashews (or other nuts) 2 tsp. sea salt juice of 1 lemon 1 small bunch cilantro
1-2 fresh jalapeno peppers, finely chopped 1-2 hot red chilies, fresh or dried 1 leek or onion, chopped fine 3-4 cloves garlic 3 Tbsp. grated ginger Chop fruit into bite sized pieces, leave grapes whole. Add nuts and mix well. Add salt, lemon, spices and mix well. Stuff into a clean quart jar and make sure brine rises above the fruit mixture. Weigh down with stone and ferment for 5-7 days, tasting regularly until desired flavor is reached. This will taste more alcoholic the longer you ferment, so be aware. You can also add other fruit of your choice...play with what is in season. A raw chutney from Bridgette Mars Rawsome! 1 cup fresh spearmint, chopped and without stems 1 medium onion, chopped 4 Tbsp. lime juice 2 dates, soaked for 20 minutes Combine all ingredients in a food processor until a chunky consistency is reached. Enjoy with Indian food, on crackers, etc. Don’t forget your pets this time of year. Many of our four legged friends suffer from hot spots, rashes, and bug bites. We even have local options for you! One is M&J Dog Essentials whose line includes a Purely Clean conditioning shampoo and a Freshenup Coat Tonic. This company is Blue Ridge Naturally Certified, as well as produced locally, many of the plants are sourced locally, and is a natural and ph balanced product with no synthetic fragrances, parabens, sulfates, or other nasties. Warhorse Soaps also have a new and delicious pet shampoo and conditioner, so when your dog tramples through the river or the garden beds, you can clean ‘em up local! Keep an eye out for some new hemp accessories! We were able to by some products from Ecolution...a now defunct hemp clothing and accessory line that has been a long time favorite here at the co-op. Hemp fabric lasts forever and only softens and improves with age. I have some napkins from this company that are 10+ years old and soft as silk! Please continue to let us know what other products you’d like to see here. And here is hoping the rest of your summer is full of cool breezes, good food, and much laughter! Melissa HBC Manager
NEW LOCAL Warhorse Soaps from Tryon with coconut, castor, avocado, almond, and raw sunflower oils
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Summer in the city! The hotter it gets, the more it makes sense to stock up on cold composed salads from the Deli Section. Why turn on the stove at all? The perennial favorite Summer salad Alpha-Omega is full of a well-balanced mix of flavors and best of all – eaten cold! Many more delicious cold options, too! We have our own special-recipe Pimento Cheese, our cooling Balsamic Beet Salad, and lots more. For those who want hot food, why not get it in the morning while it’s cooler out? Our new breakfast menu was put together specially for us by the fine folks at the Green Opportunities Kitchen-Ready program, and features their scratch-made biscuits, Hickory Nut Gap Pork Breakfast Sausage, and more. Get it early, though – the lunch menu comes out around 11AM. Remember, for cook-out season, we’ve got lots of local meats, including the lowest price in town on Hickory Nut Gap ground beef, and soon, chicken from Burnsville’s Happy Hens and Highlands. Fire up the grill!
DELI
Get Your Grill On! FBFC has what you need to get Grillin’!
FBFC CALENDAR OF EVENTS
www.frenchbroadfood.coop • 90 Biltmore Ave. • Downtown Asheville • 828.255.7650