Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, August 20, 1993 TAG: 9308200071
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
SOURCE: ALMENA HUGHES STAFF WRITER
DATELINE: LENGTH: Medium
The food-buying association's customers were considered Bohemian, buying in bulk what was considered health food - granola and tofu. The co-op's purpose was to save money for its members, rather than to turn a profit or act like a big business.
And no one expected the basement-based operation to last long. So some people may have been surprised when the Grandin Road store tallied its fiscal year recently and showed a $9,000 profit.
Now, granola is available from vending machines. A more diverse stream of customers regularly patronizes the Roanoke Natural Foods Co-Op store. After several stormy years operating in the red, the not-for-profit corporation is looking a lot more like bigger businesses, with an employee profit-sharing plan and capital improvements such as a new blue awning over the store it purchased in 1987.
It's more mainstream now, but in many ways also still a vanguard. Although there are buying clubs around, it's the only storefront food co-op in the Roanoke Valley and one of the area's few organic foods outlets.
It hopes to extend its pioneering tradition and become a model manager for small businesses in setting employee benefits. The co-op will offer its workers a version of the federal family and medical leave plan that on Aug. 5 became mandatory for much larger companies.
The co-op's manager, Elizabeth Wilson, will be the test case. She is expecting her first child at the end of this month and is getting a six-month maternity leave with six weeks paid at full salary.
With nine employees, the co-op is far below the 50-employee cut-off for similar benefits under the new federal law.
"I hope we can become a role model for other businesses to work with their employees," said Vice President Freeda Cathcart, "to show that for a small business it doesn't have to be an us-vs.-them type of thing."
The co-op's leave policy is new. So is the arrangement of its shelves, which have been moved according to a consultant's recommendations to display products better, stimulate impulse buying and create better continuity and flow. New, too, is the co-op's recent marketing survey to determine how best to serve customers.
But some things, like the mission to offer quality healthful foods and related products at a reasonable cost, haven't changed.
The store's products still include natural and organic foods. But there also are consignment crafts, natural cosmetics, clothing, jewelry, vitamins and related reading materials. A section near the front of the store is dedicated to over-the-counter holistic medicines and books.
"Education is one of our No. 1 goals," Wilson said. "We have a lot of handouts and free literature available, as well as knowledgeable people who can help you or at least put you on track to finding the information you're looking for.
"We take and make the time to spend with people to show them around and show them products."
She thinks that special service helps keep the co-op afloat despite competition from major supermarkets.
"We can't compete price-wise with Kroger," Wilson said. "They buy by the truckload; we buy by the case. But overall, we have lower mark-ups, and where you might pay 20 cents more for a bottle of water here, you might save a dollar by buying just a pinch of an herb or spice instead of a whole jar.
"We also have unusual items. And we spend a lot of time researching and tracking down things to meet people's special requests."
The co-op's approximately 2,100 members receive benefits ranging from discounts and bulk-buying price breaks to a bimonthly newsletter and camaraderie. Lifetime membership costs $50 and entitles the member to one voting share of stock. The fee also may be paid in six yearly installments of $10 each, which includes a processing charge. The store is open to non-members, who now account for half of its sales.
Discounts vary, according to whether the member volunteers at the store. Seniors, whether members or not, get daily discounts.
If sales continue to grow, as anticipated, more improvements are planned, including more storage bins, food coolers, checkout stands and a new floor.
by CNB