Parker's Food Connection

 Business Plan - November 2003

Executive Summary

The Food Connection (TFC) will be a food cooperative for the members of the Parker community.  The goal of TFC is to have the cooperative be accepted and embraced by the Parker community, become self-sustaining, and to offer a learning experience to all participants.  The hope is to also document the process of starting a business.  The TFC is being created by Erica Campbell and Lily Perkins-High with the support of the Francis W. Parker Charter Essential School administration. 

 

Business Direction

The main business of The Food Connection is to start a food cooperative for the Parker community.  There will be access to wholesale, organic food, clothing apparel, vitamins, and paper goods through the cooperative.  Campbell and Perkins-High will primarily run the TFC.  As progress is made in the establishment of the business, volunteers will assist in unloading and breaking down the deliveries, as well as aiding in the orders. 

 

The founders of the TFC began the cooperative to learn more about business development.  Their hope was to become part of the business world, with the understanding of what it takes to create a business, and furthermore, what it takes to sustain one.  Through documentation of the process, the founders and potential participants will leave not only a functional business but also a guide for future entrepreneurs.  They plan to supply the Parker community with organic products at affordable prices. The success of the cooperative will provide the school with access to healthy food and an opportunity to for Parker families to connect and form relationships with each other. 

 

Vision and Mission Statements

The vision of The Food Connection is to provide the Parker community with a connection to its food, its health, and its community.

 

The mission of The Food Connection is to create a community run, school based, business which offers the Parker public an alternative  to conventional food and merchandise by providing access to wholesale, organic food and other products.   The hope is to use the Co-op as means to educate the community about healthy eating and living, while providing an outlet for community growth.  Through documentation of the process, members will leave not only a functional business but also a guide for future entrepreneurs.  

        

 

Goals and Objectives

The Food Connection hopes to be ready in November.  Prior to the first order, there will be meetings to allow new members to understand what the Co-op will be like, as well as become acquainted with food cooperatives.  

 

TFC will create a web page that will aid in recruiting new members, educating members about current activities, and act as a resource for all.  The web page is currently running, but we hope to develop it further. 

 

It is a hope of TFC to form a partnership with the Wellness program.  By developing a partnership with Wellness, the students of the Francis W. Parker Charter Essential School will be educated about the importance of eating and living healthy lives, and TFC will achieve recognition.      

 

Company Overview

The Food Connection is currently operated by the two staff members, Campbell and Perkins-High.  The girls are in their sophomore year at the Francis W. Parker Charter Essential School.  Erica Campbell, of Sterling, has an organic garden that she and her family work in, as well as a small organic orchard.  Erica is an active member of Amnesty International, a human rights group.  She is involved with protecting human rights, such as promoting fair trade products.  She is also a member of Oxfam America where she promotes the importance of world hunger.  Erica's family has been involved with her local food co-op, the Chocksett Food Co-op for two years, and she has been attending their meetings to learn more about the business.

 

Lily Perkins-High, of Harvard, works at The Food Project.  The mission of The Food Project is to create personal and social change through sustainable agriculture.  Lily works in fields year round, from planting the seedlings to harvesting the crops, Lily has learned the whole process.  Lily is very familiar with the importance of organic living as her family raises their own meat for harvest. 

 

As progress is made on the Co-op and new members join, the jobs will be assigned and many people, as part of a cooperative, will be responsible for parts of running the business.  The jobs will be treasurer, book keeper, job coordinator, order coordinator, new member contact, website updater, distribution coordinator, distribution team, pre-invoicer, and outreach and publicity team.    

 

 

Business Stage and History

The business has its key employees but is in need of more student, parent, and teacher volunteers.  A request for more volunteers will be submitted in the fall of 2003. The space that will be used is the cafeteria but supplies needed for distribution are yet to be purchased. The application for service to the supplier has been sent but we are still waiting for a response.  The Parker cafeteria will be used as a space.

 

Financial Status

Initial costs have not yet been determined; they shouldn't exceed $200. Costs for expanding the co op rely on the profits we make from a surcharge of 2% which will go to the Co-op for things such as expansion, and other supplies.  A grant for the amount of $200 will be requested from the PEF, Parker Essential Fund.  If granted, this money will be used to buy supplies for breaking down the loads, as well as publicizing the new business to the Parker community. 

 

Management Team and Key Personal

The main management team is Erica Campbell, and Lily Perkins- High.  Advisors of the Co-op will be Martha McLure, Mary-Ann Gapinski, Teri Schrader, Pat Tuzzolo, and Sharon Briggs.   

 

Services

The products that the TFC provides are dry goods, clothing apparel, vitamins, and paper products. Potential customers are any Parker families. The benefit of buying from a Co-op is that people are able to buy in bulk, the food is often discounted, and some food is organically grown to supports local farms. The products will be purchased once a month.

 

Product Description and Specifications

The Food Connection offers the option of healthy, organic food to all its members.  By being in a buying coop, its members have access to food at a lower cost than they would usually have at supermarkets or specialty stores.  Any member of the Parker community interested in receiving healthy food, while supporting Parker and meeting other members of the community, would be interested in joining the coop.

 

The Food Connection is unique at Parker because it is the only Co-op available to Parker families that is based at school.  Its convenience is imperative to its success; members can pick up and work at the Co-op while driving carpool or doing volunteer hours.  Because the coop is based at Parker; the coop is accessible to all its members. 

 

The Co-op is run by students and members of the Parker community, which makes the coop more conscious of the needs of Co-op members. 

 

While some Parker families might prefer to shop at a supermarket because it takes less time and there is no need to volunteer; members of The Food Connection have access to healthy food at low prices and have the opportunity to meet other Parker families through the cooperative.

 

The Parker community needs a food Co-op and the idea of a food Co-op would be received warmly by the Parker community because there are so many health conscious families at Parker. 

 

Product Costing

            All products distributed by The Food Connection will be provided by United Northeast, a supplier for many of the food Co-ops in Massachusetts.  The partnership with United Northeast ensures products consistently to all the members of The Food Connection.  Members will pick up the Co-op products during carpool.  Expenses of United Northeast are covered by a 2% additional charge to every order.

 

Competitor’s Products

With the recent craze over organic living, people have encouraged their grocery stores to provide organic foods and other products that coincide with their lifestyle.  From free range eggs and meats to whole grained cereals, to the ever so popular soy meats, people have options to eat healthy and organically if they choose.  However, the price of eating healthy does not come cheap.  The Food Connection offers wholesale items, which allows the customer to pay less per unit than they would in a supermarket.

 

The products will be distributed at the Francis W. Parker Charter Essential School; therefore people will be able pick up their orders at a convenient site.  If time permits, the orders will be available at afternoon car pool.  Therefore, no extra transportation will be necessary. 

 

Marketing & Business Opportunities

The Parker community is home to individuals seeking healthy, organic, low-priced food, and currently, the community does not actively seek out an alternative to supermarkets.  A food co-op would be ideal for the Parker community.  Though members will need to make a commitment to the Co-op, the benefit will be worth it.  A further advantage to the Food Connection is that the cooperative is a non-profit run by volunteers, so all additional charges will help to support the co-op. 

 

Competition

Offering wholesale and organic food and other products requires a community instead of a major corporation.  Most corporations lack, not the know how, but the connection between the buyer and the supplier. Three types of agencies control the market. One is Cooperatives, like the Food Connection, the other two are:

 

Leading Supermarkets - has stores in all areas to ensure market superiority.  It provides food for the majority of the American population.  It has the power in location, providing goods in all areas. 

 

Health Food Stores - has stores in some areas.  Due to small orders and need for profit; it charges greater prices than most supermarkets.  It has an increasing popularity among the American, and more specifically Massachusetts, population.  

 

Strengths and Weaknesses

 

	Strengths	Weaknesses
Leading Supermarket	1. Location 2. Low Price	1. Low organic supply 2. Produce not consistently fresh
Health Food Store	1. High selection of organic food	1. High Prices 2. Not easily accessible to all
The Food Connection	1. Large Selection of organic, and wholesale food, vitamins, and apparel 2. Affordable prices	1. Usually, forced to buy in bulk

 

Customer Profile

The Food Connections' customers are people who want a community based food service.  They are of all incomes and lifestyles that are brought together by the common desire to live healthy lives.  The customers are parents, students and faculty of Francis W. Parker Charter Essential School.  They are of all ages, races, political parties, and religions.

 

The Marketing Objectives

The Food Connections' marketing objectives are to:

- To become self-sustaining;

- To broaden their market to sell produce, and other foods that need refrigeration;

- To become respected and embraced by the Parker community;

- To leave behind a documentation of how to start a business for future entrepreneurs ;

- To provide the Parker community with wholesale, organic food, apparel, vitamins and house hold items.

 

Market Strategy

The Food Connection will work towards it marketing objectives by taking an active role in the Parker community and attending necessary meetings to strive towards our vision and mission.  The Food Connection will vigorously reach out towards the community by being at events like curriculum night and the Parker Road Race to publicize the Co-op to the community.  E-mails will be sent out providing information on the status of the Co-op.  Folders will be made with information for new members and members of the community interested in joining the coop.  There will be an information bulletin board set up in the lobby with details about food cooperative activities.

 Target Market & Segments

A food co-op would ideally fit the needs of the Parker community because the Francis W. Parker Charter Essential School is home to many food conscious families.  A successful food co-op would work to bring families from different areas together on the same premise.

Promotion & Advertising

The Food Connection will promote its activities through bi-weekly e-mails to those interested; by having a website that will provide information on food co-op’s, how to join The Food Connection, and other useful information.  The Food Connection will be present at large school related activities, such as Curriculum night, to be available for information.   A logo, colors, and font will be created to help people identify The Food Connection and its literature.

 

Operational Budget

A grant will be requested from the Parker Essential Fund for two-hundred dollars.  The money will support the publicity and outreach of the Parker Food Connection and will assist in raising interest in the Parker community.