Bargain Grocery Compassion Coalition Cornell University Study

ASSION COALITION COMP

Bargain Grocery

Compassion Coalition

CO M M U N I T Y I M PA C T S T U DY BRCONSULTING A consulting firm based out of the Samuel Curtis Johnson School of Management at Cornell University

Compassion Coalition INNOVATE

Our Mission:

Compassion Coalition is a sustainable nonprofit where 96 cents of every

At Compassion Coalition, it is our mission to serve the

dollar donated goes to creating change in our community. This is possible

underprivileged, the needy, the poor, the afflicted and

due to our innovative model with our grocery store, Bargain Grocery.

those lacking opportunity and basic life necessities such

ASSESS

as affordable food, clothing, housing, transportation,

We are self-sustaining, with no ongoing government or private funding for operational costs. This allows us the ability to focus on the immediate needs of the community and serve non-profit agencies to help meet those needs.

PROCURE Our goal is to partner with local and national distributors to buy and obtain large product donations to distribute to those who need them most.

DISTRIBUTE The creation of innovative, community-based programming allows our products to go directly to those in need in our community.

employment and finances. We will work locally, regionally, nationally and globally as needed to accomplish our mission with partners in the public, private, and faith-based organizational communities.

Our Vision: We envision a world without poverty, without need, and without injustice. We will strive to promote and create a world of abundance, prosperity, full-life, opportunity, equality, justice and safety for all that we have the privilege of serving.

Compassion Coalition is a unique,

Our focus is on community-based giving,

innovative non-profit supported by

meeting needs as they arise, which varies each

Bargain Grocery, which is a social enterprise,

year as the needs of the community change.

benefitting the Central New York region.

Compassion Coalition has grown consistently and exponentially over the last

20+ years, giving over $20,000,000 in fair market value of product donations yearly to our communities, non-profit agencies, schools and emergency food workers.

We partner with our area’s non-profit agencies to help them succeed in meeting the needs of our community. Compassion Coalition has given more than $20 million in donated goods per year to over 350,000 individuals through our various programs, such as mattress giveaways, furniture, school supplies and snacks, and weekly food donations to various food pantries within our community and much more.

Bargain Grocery / Compassion Coalition

Equipped 2 Teach: CNY’s 1st Teacher Resource Store Our goal was simple: who knows the needs of students more than the

teachers who teach them daily? Through our innovative and self-sustaining funding, we are able to purchase much-needed basic school supplies and products. By joining forces with national corporate donors, Compassion Coalition’s: Equipped 2 Teach ensures that educational tools are enhancing the classroom and educational experience locally in CNY. The national average that teachers spend on their own classroom supplies is $498 per year, but when speaking with local teachers, we learned that the cost far exceeded that.

In December 2017, Compassion Coalition launched Equipped 2 Teach: Teacher Resource Center, and has been serving 60 schools, and counting! This stylized store began at our original warehouse location at 506 Columbia Street, where it served our local teachers that are currently teaching in schools where 70% or higher of the student population receives free or reduced lunch. Teachers obtain much needed educational and classroom essentials with a value between $700-$1,000 in educational support to pass on to their students.

As of June 2023, our Teacher Resource Center : Equipped 2 Teach is now embedded in each of the schools within the Utica City School District, Oneida City School District and Camden City School District and counting! This enables teachers to shop for their classroom needs, free of charge, right in each of their schools!

Community Giving Initiatives: Community based, Community driven and Community sustained Community needs change from year to year and Compassion Coalition’s goal is fluid giving. This is accomplished through our collaborative efforts with community leaders, agencies, schools and resource experts. Together, we strive to meet needs that would otherwise not be met. We believe that every community can care for itself. We have initiated our annual giving programs such as: Mattress giveaways, feeding programs, cold weather apparel, furniture and household items for apartments and access to hygiene products and cleaning supplies.

Bargain Grocery Shopping with a purpose for a purpose.

We believe everyone should have access to healthy, affordable food for themselves and their families.

Bargain Grocery’s innovative purpose was to serve those within a community’s food desert, while partnering with national and local vendors to purchase food that was overproduced and to receive donated products from companies. With those purchases and donations, Bargain Grocery is able to provide these products at a low cost. This idea — what Mike Servello, CEO & Founder, calls a “God-given idea,” — has changed the way West Utica has been able to access affordable, healthy food, as well as allowing Compassion Coalition to remain self-sustaining.

ASSION COALITION COMP

In the mid 2000’s when Compassion Coalition was launched, Bargain Grocery was an innovative way to allow Compassion Coalition to be self-sustaining, while providing food accessibility and food equality in a food desert. The proceeds of the store are re-invested into our local communities.

Bargain Grocery also strives to eliminate food waste and discovered that 40% of all food in America is wasted each year. Perfectly good, edible food is thrown out due to aesthetic appeal, packaging issues, and misordering. Compassion Coalition has partnered with growers, distributors, and large corporate donors to bring food access to West Utica and beyond. By shopping at Bargain Grocery, you are working to not only combat food waste but also shopping for a cause, allowing Compassion Coalition to utilize the proceeds in donating more than $20 million in goods each year, serving more than 350,000 individuals yearly.

Compassion Coalition believes no one agency can do the work for the community alone. Our goal is to extend the buying power of nonprofit partners throughout our communities. By partnering with us, we can reach more people, impact more communities and help corporate donors get their products where they need to go.

Bargain Grocery / Compassion Coalition

Important Articles

Hunter College Food Policy Center

WUTR Compassion Coalition

Fox News Interview with Pastor Mike Servello

Charity Navigator Awards Compassion Coalition 4 out of 4 Stars Rating.

WUTR The Compassion

MSNBC Compassion Coalition Helping Displaced Ukrainian Refugees

Progressive Grocer: Bargain

Grocery Sustains Communities in Empire State

WKTV - Utica 'store' offers free school supplies for teachers

Produce Business: Bargain

WKTV - Reopening of

Bargain Grocery Overview

WKTV Compassion Coalition sending relief to Kentucky Storm victims

Big Frog - Here's How Utica Teachers Can Get Free Supplies For The Classroom

Spectrum NY1 Spanish - Reports on Giveaway with

RIT - Selling Rescued Food at Discount Prices

Lite 98 - UTICA ORGANIZATION DISTRIBUTES FREE CLASSROOM SUPPLIES

Times Union Reporter Chris Churchill reports on Compassion Coalition's expansion in Troy NY

Oshwa - Awards Compassion Coalition “Oshwa 2019 Recycling Champion Award”

Overview of Compassion Coalition

Congresswoman Nydia Velazquez

Grocery – Feeding the Underserved with Compassion

Providing Assistance To Ukrainian Refugees

Coalition & Slavic Pentecostal Church donate to Ukraine

Innovative Resource Center allows teachers to shop for free

Scan QR Code to Read Articles or watch Video

CO M M U N I T Y I M PA C T S T U DY

Bargain Grocery

Compassion Coalition

BRCONSULTING A consulting firm based out of the Samuel Curtis Johnson School of Management at Cornell Bargain University Grocery / Compassion Coalition

Agenda Agenda Executive summary Current situation Business Model Community impact Next steps BRCONSULTING BRCONSULTING

Current Situation

curity issue was not addressed by Utica’s food donation and supply system rocery launched inGrocery 2002, selling discounted groceries in food desert regions and food using profits to fund Compassion Bargain Grocery hashas developed a abusiness to insecurity; this Bargain developed business toaddress address insecurity; this fitmodel that distributes charitable across Newmaximum Yorkcommunity can be scaled achieve maximum impactimpact model can donations betoscaled to Central achieve community

Our Recommendation Current Situation

cery should upon of differentiation and continue address food insecurity and related issues insecurity issueits waspoints not addressed

by Utica’s food donation and supplyto system • Foodbuild • Bargain Grocery launched in 2002, selling discounted groceries in food desert regions and using profits to fund Compassion Coalition, a non-profit that distributes charitable donations across Central New York

Approach

Bargain Grocery Analysis

Compassion Coalition An

Our Recommendation usiness model food should banks build and upon its points Business Model Business Model Bargainto Grocery of differentiation and continue to address food insecurity and related issues online research and expert • Provides healthy, stigma-free food at • Uses profits generated by Bargai affordable prices reinvest in the local community Approach Bargain Grocery Analysis Compassion Coalition Analysis • Generates sufficient profit to support its own Community Impact mmunity impactbusiness via customer model to food banks and operations Business Model Business Model • Compare Provides healthy, stigma-free food at Uses profits generated by Bargain Grocery to nation pantries via online research and expert • • 600+ non-profits nterviews • Supports affordable prices reinvest in the local community interviews Community Impact • General donations sufficient profit to support its own • Generates operations community impact via customer • Customers spend less for more & enjoy the Community Impact • School supplies, reintegra o help expand partnerships with • Quantify nationally: survey and interviews • Supports 600+ non-profits resources, and refugee su service and variety offered grocers Community Impact • General donations responses spend less for more & enjoy the • School supplies, reintegration • Customers • Build case to help expand partnerships with• 526 survey

G BRCONSULTING

resources, and refugee support

service and variety offered • 526 survey responses

large-scale grocers

Executive summary

Current situation Executive summary

Current situation

Business model Business model

Community Impact Community Impact

Next steps Next steps

Bargain Grocery / Compassion Coalition

How can Bargain Grocery build the case that its business model generates greater social impact than the alternatives in order to create future partnerships that will allow it to address food insecurity on a greater scale?

BRCONSULTING

G

Food insecurity issues are left unaddressed with the current

21% Consumption Gap experienced by average food insecure person; standard and supply model Food insecurity issues aredonation left unaddressed with the current 40% Consumption Gap for severely food insecure people

standard donation and supply model

Food banks provide 14%Gap of experienced the food their average participant 21% Consumption by average food insecure person; requires; Gap forinsecurity severely food insecure people Free food 40% will Consumption not solve food Food banks provide 14% of the food their average participant requires; food will notneighborhoods solve food insecurity have no choice but to shop at bodegas, People inFree low-income

marts, and Family Dollar due to price & transportation barriers People in low-income neighborhoods have no choice but to shop at bodegas, minimarts, and Family Dollar due to price & transportation barriers

Executive summary

BRCONSULTING

Current situation Executive summary

Current situation

Business model Business model

Community Impact Community Impact

Next steps Next steps

Source: Taking Char Source: Taking Charge Mushroom Cloud

Bargain Grocery / Compassion Coalition

The Utica struggles withwith poverty andand needs more Thepopulation Utica population struggles poverty needs more 22,903 households support tosupport access 52% healthier and affordable essentials to access healthier and affordable essentials of Utica household* is low income

4,000

Median Income $38,080 22,903 households

52% of Utica household* is low income

3,000 4,000

2,000

Median Income $38,080

3,000

2,000

1,000

1,000

0

$0-$10k

0

$20k-$29k

$0-$10k

BRCONSULTING

BRCONSULTING

$20k-$29k

Executive summary

Executive summary

$40k-$49k

$40k-$49k

Current situation

Current situation

$60k-$74k $60k-$74k

Business model

Business model

$100k-$124k

$100k-$124k

Community Impact

Community Impact

$150k-$199k

Next steps

Next steps

$150k-$199k

Source: EASI/MRI Consumer Expenditure Data (SimplyAnalytics)

Source: EASI/MRI Consumer Expen

Source: EASI/MRI Consumer Expenditure Data (SimplyAnalytics)

Non-profit grocery stores upcycle food waste funds Non-profit grocery stores upcycle food waste andand useuse funds to to address challenges related to food insecurity address challenges related to food insecurity

G BRCONSULTING

6 6

Executive summary

Executive summary

Current situation

Current situation

Business model

Community Impact

Business model

Source: Bargain Grocery & Compassion Coalition

Next steps

Community Impact

Next steps

Source: Bargain Grocery & Compassion Coalition

Source: Bargain Gro

Bargain Grocery / Compassion Coalition

Bargain Grocery been able createsignificant significantimpact impactwithin within aa Bargain Grocery hashas been able toto create food desert region for over 20 years expands food desert region$100 for over 20 years monthly basket price (vs. $438 national average)

ng power

Low costimpact expands community purchasing power

$2.75M annual sales from 110K transactions ~1,330 households/week, ~5,800 households/month $100 monthly basket price (vs. $438 national average) 5.8%-25.7% Utica households impacted

$2.75M annual sales from 110K transactions Scalable community impact Refugees ~1,330make households/week, ~5,800 support up 25% of the households/month customer base 5.8%-25.7% Utica households impacted Refugee support multiple impact

up 25% of8x themore customer base per dollar with CC alon $20MRefugees annualmake donation: impact

Dollar to multiple impact

BRCONSULTING

BRCONSULTING

Executive summary

$20M annual donation: 8x more impact per dollar with CC alone

Current situation

Executive summary

Current situation

Business model

Business model

Community Impact

Community Impact

Next steps

Next steps

Source: Bargain Source: Bargain Grocery & Compassion Coalition Groc

Source: Bargain Grocery & Compassion Coalition

Communitygrocery grocerystores storesprovide provide better the Community bettersolutions solutionstotoaddress address the concerns of low-income customers w cost expands concerns of low-income customers $100 monthly basket price (vs. $438 national average)

chasing power

Food Bank / Food Pantry

Community Grocery Stores

$2.75M annual sales from 110K transactions Elevates stigma of being low-income and may Creates a more welcoming and inclusive able community impact ~1,330 households/week, ~5,800 households/month Stigma generate feelings of embarrassment; could environment for all customers, regardless of their discourage those in 5.8%-25.7% need from seeking help income level impacted Utica households

ugee support Personnel

Relies heavily on volunteers, making it vulnerable to staffing shortages or disruptions which can impact the ability to provide food assistance

ar to multiple impact Health & Wellbeing

TING BRCONSULTING

Provides jobs within the local community while

Refugees make up 25% of the customer base enabling self-sufficient operations

Sources food from local farmers and producers to support the economy and sustainable agriculture practices

$20M annual donation: 8x more impact per dollar with CC

Offers limited variety and nutritional value; does not promote a healthy diet

Executive summary Executive summary

Current situation Current situation

Prioritizes nutritious food options to promote healthy eating habits and improve public health outcomes

Business model Community ImpactCommunity Impact Next steps

Business model

Source: Professor Wessels expert interview; Food Bank News

Next steps Source: Ba Source: Professor Wessels expert interview; Food Bank News

Bargain Grocery / Compassion Coalition

t percentage of your groceries do you buy from Bargain Grocery?

How much do you typically spend on groceries p 160

Customers view Bargain Grocery as an alternative option in line Customers view Bargain Grocery as an alternative option in line 120 of a food bank or pantry with Aldi and Walmart instead with Aldi and Walmart instead of a food bank or pantry What percentage of your groceries do you buy from Bargain Grocery?

80

220

160

165

120

How much do you typically spend on groceries per visit?

40

110

20-39%

40-59%

60-79%

800

80-100%

55

BRCONSULTING

BRCONSULTING

Executive summary

Dairy

Current situation

Current situation

$

Flowers

Dairy

Executive summary

$60-$79

Customers spend less per visit for an equivalent amount of food than at a typical grocery store

Bargain Grocery customers look for...

Produce

$40-$59

Customers spend less per visit for an equivalent amou 0 than at a typical grocery store Less than $20 $20-$39 $40-$59 $60-$79 $80 or more

Bargain Grocery provides a higher percentage of food per customer than the average food bank

Produce

$20-$39

40

Grocery provides a higher percentage of food per 0 customer than the average food bank60-79% 0-19% 20-39% 40-59% 80-100%

Top items Bargain Grocery customers look for...

Less than $20

Business model

Business model

Flowers Community Impact

Community Impact

Next steps

Next steps Source: Customer Survey

Source: Customer Survey

Source: Customer Sur

What percentage of your groceries do you buy from Bargain Grocery?

19%

How much do you typically spend on grocerie 160

Bargain Groceryserves servesthree threesegments; segments; customers Bargain Grocery customersshop shopatatthe thestore store 120 service and variety that is not offered elsewhere for servicefor and variety that is not offered elsewhere 80

40

20-39%

40-59%

60-79%

0

80-100%

Service Sally

Feels welcomed and respected at Bargain Grocery

•

(18%)

Believes employees are friendly and sensitive to Produce their unique needs

BRCONSULTING NG

Executive summary

Shops solely at Bargain Grocery for food items

Current situation

Current situation

Business model

Business model

Source: Customer Survey - 526 Survey Responses

$60-$79

Bargain Beth

options offered and can always find what they want Dairy in stock

Executive summary

$40-$59

Customers spend less per visit (15%)for an equivalent am than at a typical grocery store

ms Bargain Grocery customers look• for...

Enjoys the variety of •

$20-$39

Variety Victor

in Grocery provides a(67%) higher percentage of food per customer than the average food bank •

Less than $20

Community Impact

•

Satisfied with Bargain Grocery's affordable prices

•

Looks for fresh, healthy food that tastes good

Flowers

Next steps

Community Impact

Next steps

Source: Customer Survey

Source: Custome

Bargain Grocery / Compassion Coalition

stomer Demographics

Customer Loyalty

Bargain Grocery has built a loyal and diverse customer base which BargainAge Grocery has built a loyal and91% diverse customerhave basebeen which of respondents a custome allows for a sustainable and scalable business model allows0.1011 for a sustainable and scalableover business 1 year;model 55% more than 4 years 0.1775

Customer Demographics 0.2328 Under 20 20-29 0.2366 30-39 40-49 50-59 60-69 70 and older

48%ofof respondents travel morefor than 10 m 91% respondents have been a customer over year;store 55% more than 4 years visit1 the

0.2118 Age 0.1011 0.1775 0.2328

0.2366

0.1181 0.1277 0.1181

Under $20K $20K-$39K $40K-$59K $60K-$79K 0.1614 $80K-$99K $100K and over

48% of respondents travel more than 10 miles to visit 62%theofstore respondents were referred by a fri

0.2118

Income

ver

Customer Loyalty

family member Income

62% of respondents were referred by a friend or family member

0.2313 0.1181 0.1277

84% of respondents are familiar with 84% of respondents are familiar with Compassion Coalition initiatives

0.1181 0.2313

0.2434

0.1614

Compassion Coalition initiatives

0.2434

BRCONSULTING

BRCONSULTING

Executive summary

Current situation

Executive summary

Current situation

Business model

Business model

Community Impact

Community Impact

Next steps

Next steps

Source: Customer Survey

Source: Customer Sur

Source: Customer Survey - 526 Survey Responses

Customer Demographics

20

Client highlight the effects ripple effects created Client testimonials highlight the ripple created Age testimonials 91% of respondents have been a custo throughCoalition Compassion Coalition initiatives through Compassion initiatives over 1 year; 55% more than 4 years

0.1011

0.1775 0.2328

d older

$20K $39K $59K $79K $99K and over

Customer Loyalty

48% of respondents travel Reintegration and more than visit the store refugee support

0.2118

Partnership donations

Local schools

Partners with over 600 nonprofits across New York State

Supports more than 10,000 kids as a one-stop shop onsite at school

0.2366

Income

0.1277 say 0.1181 “Hundreds of groups 0.1181 they do the right thing but 0.2313 only CC reaches it. Their 0.1614works!” model 0.2434

BRCONSULTING ING

62% of respondents were referred by a family member

1,000+ ppl lined up on 3 “If CC is not doing this, I blocks when CC drove cannot imagine what it trailers of food and supplies would look like, CC is the for distribution only one with this scale.”

84% of respondents are familiar with

Compassion Coalition initiatives

Mike Ferraro, COO Utica City School District

Linda Laviolette, Former Employee of NYS Ag & Markets Executive summary

Executive summary

Provides furniture, bedding, personal hygiene products, clothing, food and jobs to refugees

Current situation

Current situation

Business model

Community Impact

Business model

Source: Linda Laviolette & Mike Ferraro expert interviews

Next steps

Community Impact

Source: Linda Laviolette & Mike Ferraro expert interviews Next steps

Source: Custo

Bargain Grocery / Compassion Coalition

Collection

Next Steps Next Steps ute survey in store to better reflect customer demographics and reduce bias from online population

1. Data Collection vey results and testimonials to deep-dive into service quality and product variety offered by Bargain r to maintain customer satisfaction levels (e.g., employee training program, add ethnic food aisle, et •

Distribute survey in store to better reflect customer demographics and reduce bias from online population

•

Use survey results and testimonials to deep-dive into service quality and product variety offered by Bargain Grocery in order to maintain customer satisfaction levels (e.g., employee training program, add ethnic food aisle, etc.)

nsion Plan 2. Expansion Plan

dings to support formation of crucial partnerships with nationwide suppliers •

Use findings to support formation of crucial partnerships with nationwide suppliers

other food desert regions for the opportunity to scale Assess other food desert regions for the opportunity to scale •

BRCONSULTING

Executive summary

Executive summary

BRCONSULTING

Current situation

Current situation

Business model

Business model

Community Impact

Community Impact

Next steps

Next steps

Utica residents need food, apparel, personal care Uticasupport residentsfor need support for food, apparel, products personal care products

Utica residents need support for food, apparel, personal care products

NSULTING

$5,535

$5,535

$1,262 $426 Personal care products

Apparel

Food at home

Source: EASI/MRI Consumer Expenditure Data (SimplyAnalytics)

Source: EASI/MRI Consumer Expenditure Data (SimplyAnalytics)

$1,262 $426

Bargain Grocery / Compassion Coalition

Utica has the highest refugee population Utica has the highest refugee population

9% 4%

Born in state Born in other state in the US Native but born outside the US Foreign born

20%

67%

BRCONSULTING BRCONSULTING

57% - U.S. Citizen 43% - Non U.S. Citizen

Utica’s population by year, age & sex pyramid Utica’s population by year, Age & gender pyramid AGE-SEX PYRAMID UTICA POPULATION

85+

62,000

75 - 84 65 - 74 55 - 64

59,000

45 - 54 35 - 44 25 - 34

56,000

20 - 24 15 - 19 53,000

10 - 14 5-9 0-4

50,000

Y2012

Y2014

BRCONSULTING

Y2016

Y2018

Y2020

Y2022

Y2024 Y2026 (Proj.)

- 5% in 10 years

-5000

-3750

-2500

-1250 Males

0

1250

2500

3750

5000

Females

Bargain Grocery / Compassion Coalition

Food Bank

Low-cost Grocery

Surplus food, sometime unhealthy food Solve hunger: Help to end hunger immediately

Nutritionally balanced food Solve food insecurity: provide consistent access to enough nutritious food to stay healthy Meal Gap

Income Gap HEALTH

ACCESSIBILITY SNAP (Supplemental Nutrition Assistant Program) provides nutrition benefits to supplement the food budget of needy families so they can purchase healthy food and move towards self-sufficiency COALITIONS FOR LONG-TERM CHANGE

BRCONSULTING

Use food to directly support programming designed to change outcomes for the target population, using the resources to support initiatives that will stabilize lives, leading to long-term reductions in food insecurity.

For example: The food scholarship is an example. A food scholarship is an attempt to provide enough food assistance to enable students to complete certificate or degree programs,. by

BRCONSULTING

Team Team

RCONSULTING

Jake Shields MBA/MHA '23

Abraham (Ham)Lin MEM '23

Oanh (Emma) On MBA '24

Ruichao (Richard) Yuan MBA '24

Sean Glennon MBA '24

Alexa Parulan MBA '24

BR Consulting is a student-run management consulting firm based out of the Samuel Curtis Johnson School of Management at Cornell University. We provide real world consulting experiences for graduate level students across the various Cornell schools.

We pull on university resources and industry contacts to provide comprehensive and implementable solutions.

CO M M U N I T Y I M PA C T S T U DY

Bargain Grocery

Compassion Coalition

BRCONSULTING (315) 266-0039 • www.distributehope.org • 178 Industrial Park Dr. Frankfort, NY 13340