[RP TownTalk] Food Co-op?

Alan Thompson & Sarah Wayland twacks at his.com
Sat Apr 8 16:28:26 UTC 2006


While I wholeheartedly support having a food co-op in Town Center (I'd 
love it, honestly), I'm worried about its viability.

I've been involved with the grocery business (including a few co-ops) 
in various ways for much of my life, and the business is very 
competitive.  A simple example of this is that the prices we paid to 
buy food directly from a wholesaler in the Riverdale Buyer's Group were 
sometimes more expensive than we would pay for the exact same item at 
MOM.  Another example is that typical profit margins for corporate 
grocery stores are around one percent.

While a co-op doesn't have most of the labor costs that corporate 
stores do, I think the rental rates that Mr. Jemal wants to charge for 
space in Town Center might wipe out that advantage.

In addition,  I've heard some hints that Pete & Sons might be 
significantly expanding the offerings of Dumm's Corner, assuming the 
proposed Patriot Group project passes zoning requirements and is built. 
  A food co-op could compete with those plans.

I would imagine a good next step, if people are interested, would be to 
talk to people at Takoma Spring - Silver Spring and/or Glut and see 
whether the economics could work out.

I'm happy to share more of my experiences in the business if people are 
interested....

	Alan





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