Annual Report
fiscal year: July 2022 - July 2023
community-owned since 1980 7516 Meade Street • 412.242.3598 • Pittsburgh, PA 15208 www.eastendfood.coop • @eastendfoodcoop
Photo by: Candace Davis
our history Since its humble beginnings in 1972, the East End Food Co-op has been a haven for Pittsburgh residents seeking organic, local, and fair-trade groceries. Over the years, it has grown and adapted, yet its commitment to providing high-quality, wholesome foods has remained unwavering. What started as a modest buying club in the basement of a building in Point Breeze has evolved into Pittsburgh’s premier destination for those who value fresh, natural, and ethically sourced products. The co-op’s journey from those early days in Garfield to its current status as a beloved institution has been empowered by the dedication of its member-owners. In 1985, when the Semple Street Food Co-operative Association in Oakland closed its doors, it encouraged its members to join the East End Food Co-op. This transition further solidified the co-op’s role as the city’s premier supplier of natural foods. The year 1986 saw the co-op move to its current location at “The Factory,” a decision driven by the community’s ever-growing demand for a broader selection of natural foods. As of 2023, while facing the challenges of a changing landscape, the East End Food Co-op remains dedicated to maintaining its legacy as a trusted source for wholesome groceries in Pittsburgh. It continues to adapt and grow, ensuring that the people of Pittsburgh have access to the highest quality foods, all while upholding the trust it has built over four decades.
Ends policy Statement East End Food Co-op exists to enhance physical and social health in our community. To these ends, we will create:
a sustainable member-owned business open to everyone an ethical and resilient food infrastructure a vibrant, dynamic community of happy healthy people a creative vision to transform the future
operations Report By Maura Holliday, General Manager
Another busy year has gone by at the co-op! This was undoubtedly going to be the first post-pandemic year that was going to be something close to normal, or at least that’s what we had hoped would be the case. We weren’t totally off base in our thinking, but we didn’t exactly achieve all of the goals we had hoped to for the year. Some of the challenges that we continued to face were the rising cost of goods due to inflation and continued supply chain interruptions, the latter luckily was mostly figured out by the time the fall and winter holidays arrived. We had one of our highest turkey sales since we began carrying them about 9 or 10 years ago and sold nearly 280 turkeys! With the return of Farmers Markets for the 2022 growing season, our produce department took an unexpected dip in sales that we hadn’t seen since the pandemic drastically increased our produce sales. Other unexpected challenges that were on trend with national trends were around hiring, especially in food service, which led to our café’s juice and smoothie bar and hot bar closing. Despite these challenges, we made lemonade with these lemons and used the time to re-imagine and grow our café’s grab-n-go recipes and offerings. Our café staff introduced grain bowls, pre-made salads, sandwiches, and pre-made juices, increasing our grab-n-go sales by 90.5% for the year! Our goal is to re-open in the first quarter of the upcoming calendar year and replace our former salad bar with a new grab-n-go case and a brand-new bakery case. We accomplished two of our renovation projects this year. There are now three new automatic doors in our store entrance, and we also remodeled our front-end seating area to create a more efficient workspace for our e-commerce orders and we moved our books up to the front of the store for better ease of shopping! Our biggest accomplishment this year was our mid-contract wage opener negotiation we had with our UE Local 667. We raised our starting wage to be $15/hour by the end of February and retroactively applied the wages to all hours worked beginning January 1, 2023. We’ll be meeting again this fiscal year to negotiate our labor contract, which expires in March of 2024. The work towards relocating our co-op’s storefront continued. After our letter of intent negotiations fell through last September, we, operations and the board, met to ensure that our site criteria were as up to date as needed and restarted the site search at the beginning of 2023. The search continues today and we have an updated financial pro forma that will help us to move quickly with negotiations when we find a location that is suitable for our co-op’s next 40 years.
where a dollar goes 4.5% .5%
2%
OPERATING
ADMINISTRATIVE
ALL OTHER
DEPRECIATION
25% PERSONNEL
A Look Ahead
2%
63% 3%
COST OF GOODS SOLD
OCCUPANCY
This year we are looking forward to revamping our produce department, a project that was planned to occur in the fall of 2023, but we are pushing back to the Spring/Summer of 2024. Contract negotiations with our UE Local 667, who represent much of our staff, will commence in the coming months, and will include an increase in our wages and a chance to revisit our contract. We also plan to begin rolling out a switch to patronage dividends, which will allow us to revamp our member-owner benefits offered and ensure the co-op’s financial future.
Board Report
By Tom Pandaleon, Vice President
Greetings to the East End Food Co-op community, and most importantly to our 16,000+ Members! The EEFC continues to adjust, successfully, to a post-pandemic (hopefully), post-inflationary (hopefully), higher interest-rate, increasingly crowded Pittsburgh grocery market. Your board of directors is pleased to share with you this review of our co-op’s achievements and financial performance for the fiscal year July 4, 2022 thru June 2, 2023, with some added Fall ’23 perspective. While we did show a loss for the year, more recent monthly store sales trends have been encouraging. There is no rest for the weary either, as our management and union head into a what is hoped will be a communitarian contract negotiation in early 2024, and we continue to pursue a viable relocation of our store. The board’s primary focus for the last two and a half years, as most members will know, has been to aid our management staff in securing that new location for our co-op. The discussions have centered recently around the particularities of two locations that gained our attention. Would the business thrive at each? Would our members support a physical move to one, which was within a mile, or the other, which was 5+ miles away? Having set down deep roots on Meade Street over the last 37 years, having occupied a unique spot where the communities of Wilkinsburg, Homewood, Point Breeze (North and South), and East End mix, what would we gain and what will we lose the wider we throw our real estate net? How do we best serve our members, current and future? In an increasingly crowded Pittsburgh grocery market, with large national chains such as Aldi’s, Whole Foods, and The Fresh Market expanding and/or moving into the neighborhood, what site will give EEFC the best odds of serving our members for another
37 years? That is the increasingly urgent question your board and management have been focused on trying to answer, and it is one we must answer soon. As a well-known politician, who shall go unnamed, once said, “It takes a village to raise a child.” It will likewise take a village to move our store successfully. When you get an email from EEFC, or read a flyer or something in the Cooperator that refers to “your” co-op or “our” co-op, what’s your first reaction? Do you inwardly affirm that relationship, that ownership, that allegiance to this institution? Do you feel invested in the future viability of the enterprise, or do you suspect that those words are just another attempt at down-home branding, a way to keep you on the hook, shopping here rather than there? The responses to the question will vary from member to member. Your board, predictably perhaps, is unequivocal in its commitment to the future of the EEFC. The search for a viable site is underway as this report goes to press, and some difficult choices may soon have to be made. We urge all our members to find the time and energy to join in the discussion. When the time comes, a significant portion of the capital necessary to relocate will be raised from the membership. We urge you to take the time to participate fully in the discussion so that when the choice of a location is finally made, we, as a community, see it through to a successful completion.
$7,364,132
$351,766 Member discounts
million & 60% sales to members
3.46% 512
active members
77
of sales to staff
net new members
16,270
refunds
$77,599
in staff discounts
584
new members
2% discount on all daily purchases 10% quarterly discount on one transaction save up to 20% on case quantities by placing special orders Discounts extended by other businesses through our community partners program Go green with e-receipts voting privileges in co-op elections the opportunity to run for the board access to the eefc federal credit union and more!
Finance Report
By Shawn McCullough, Finance Manager For FYE 2023; the co-op had a net loss of ($156,142). For FYE 2022, the co-op had net income of $335,663. Unfortunately, current year’s net loss ends a 5-year streak of having net income. The loss is also one of the larger net losses going back to FYE 2014 when the Co-op had a net loss of ($166,442). Contributing to the loss were the following factors which have been discussed among Co-op management as well as with the Financial Committee along with the BOD: (1) Ratcheting down of some café operations due to COVID considerations; (2) First quarter (July-Sept’22) sales being down approximately 6-7% from budget (3) Instituting a higher starting wage in February (but retroactive to January) in 2023. The co-op’s year-end cash position also remained very strong, but was lower than in prior year as the balance was approximately $1.83m. Current assets, of which cash is our largest component, continued to be strong but still lower than prior year. Our current assets stood at approximately $2.3m for the fiscal year. Prior year’s current assets were approximately $2.6m. Total sales decreased from prior year by approximately 4.5%. Current year sales declension was due in part by the fact that FYE 2022 was a 53-week fiscal year as opposed to a 52-week fiscal year. The co-op has 53-week fiscal year every 6 years. When normalized to a 52-week fiscal year comparison, the sales declension was approximately 2.8%. In terms of margin dollars, the co-op realized approximately $4.5m margin dollars for 2023 vs. approximately $4.9m margin dollars for 2022. Gross margin declined extremely in FYE 2023 to 36.7%. Gross margin for FYE 2022 was 38.3%.
sales by department
Balance sheets Year Ended ‘23
Year Ended ‘22
$2,279,324
$2,629,328
Current Assets
$262,530
$287,075
Net Property & Equipment
$274,368
$311,942
Other Assets
$2,816,222
$3,228,345
Total Assets
$429,527
$703,522
Current Liabilities
$150,000
$149,900
Non-current Liabilities
$579,527
$853,422
Total Liabilities
$1,645,484
$1,624,752
Member Shares
(Reviewed)
(Reviewed)
$747,353
$414,715
Retained Earnings
(-$156,142)
$335,456
Current Earnings
$2,236,695
$2,374,923
Total Members’ Equity
$2,816,222
$3,228,345
Total Liabilities & Members’ Equity
income/expense statements Year Ended ‘23
Year Ended ‘22
$12,286,804
$12,876,611
Net Sales
(-$7,774,042)
(-$7,940,783)
Cost of Sales
$4,512,762
$4,935,828
(-$3,106,197)
(-$3,317,331)
Personnel Expense
(-$1,632,158)
(-$1,697,985)
Operating Expense
(-$225,593)
(-$79,488)
Operating (Loss)/Income
$69,451
$415,151
Other (Expenses)/Income
(-$156,142)
$335,663
NET (LOSS) /INCOME
(Reviewed)
(Reviewed)
staf� milestones
20 years
5 years
5 staff with 20+ years
11 staff
2 years
12 staff between 5-9 years
between 10-19 years
20%
staff discount
paid time off
3
fully paid
quarterly
profit sharing
paid short-term holidays disability
76.8%
$16.45 / HR.
OF STAFF ARE
NON-SUPERVISORY AVERAGE WAGE
FULL-TIME
AVERAGE
6.8 STAFF
WERE
39
YEARS TENURE
INCREASED
STAFF TO $15/HR.
70%
OF OUR STAFF ARE MEMBERS OF UE LOCAL 667
46%
OF ELIGIBLE STAFF PARTICIPATE IN A SIMPLE IRA
starting wage progression
80%
OF INSURANCE PREMIUM IS PAID BY EEFC
$
78%
OF ELIGIBLE STAFF PARTICIPATE IN OUR INSURANCE PLAN
29%
OF ENROLLED STAFF OPT FOR COVERAGE FOR A FAMILY MEMBER
10
STAFF PROMOTED TO HIGHER LEVEL POSITIONS
1050 $ 900 $ 850 $
$
11
00
$
1250
1500
10' 12' 16' 18' 21' 23'
food bucks $35,831
$41,577
redeemed
rx redemption
$50,898
$132,485
issued
in senior & low-income discounts
Donations through our general donations fund:
38 organizations received
$17,557.29
In the form of gift cards, gift baskets, store products, or cash sponsorships.
Round register
The Co-op’s Register Round Up Program was established in April 2013. It gives shoppers the opportunity to round up their total at the register to the nearest dollar and give the difference to local non-profits that the Co-op has selected. Since its inception, Co-op shoppers have given back over $200,000 to area non-profits! Two recipients per quarter split the funds raised at the end of their threemonth period. Interested parties can find more information on our website at eastendfood.coop/register-round-up
$7,195.85 raised
For these 8 organizations
• Art in the Garden • Power • Feed the Hood • Tree Pittsburgh • Beverly’s Birthdays • Western Pennsylvania Diaper Bank • Deafstone Services inc. • Three Rivers Waterkeeper
Community partners About our community partner program:
The Community Partners program aims to provide Co-op members great benefits and, at the same time, to promote local businesses. Because we are committed to supporting our community, we truly value the partnerships we build through this program. Locally-owned businesses have a huge impact on the infrastructure of our regional economy and we firmly believe that we are all stronger together. Locally owned businesses offer discounts to East End Food Co-op members in exchange for being listed in our new member brochure and on our website. Because we are committed to bettering the local community, we truly value the partnerships we build through this program. Locally-owned businesses have a huge amount of impact on the infrastructure of our local economy and we firmly believe that we are all stronger together.
How we provide value to Community Partners • • • • • •
Do a feature in The Co-operator/e-news Host a Community Partner Expo at the store/allow for tabling Partner with them to host an event Feature on social media Have contests to encourage members to shop at Community Partner businesses Include Community Partners in member drive raffle prizes/promotions
Would you like to become a community partner?
Fill out our community partner form on our website, www.eastendfood.coop, and our community engagement coordinator will be in touch.
new partner spotlight Community Cultures provides in-person educational workshops and seasonal fermented products throughout the Pittsburgh, Pennsylvania region, as well as fermentation consultations and virtual classes. Our products use ingredients that are fresh, foraged and organically-grown when possible. Find our fermented sodas and other products at the Bloomfield Saturday Market in the summer, and sign up for our newsletter to learn about upcoming workshops!
community engagement Events between July 2022 - June 2023 • • • • • • • • • • • • •
Backyard Composting 101 with Carbon Compost Terrarium workshop Gathering at Penn Forest Burial Park Seed to table workshop with Royally Fit LLC Forest Bathing with Cloud Gate Clothing swap Houseplants 101: Repotting Forest Bathing with Cloud Gate Fermentation Series with Community Cultures: spring kimchi Fermentation Series with Community Cultures: Lacto-fermented pickles Body inclusive Yoga with All Bodies Welcome Co-op Crafts with Creative Reuse Houseplants 101: Carnivorous plants
Co-op Crafts w/ Creative Reuse
All Bodies Welcome Yoga w/ emily anderson
Fermentation Series w/ Community Cultures
Houseplants 101 Carnivorous plants
Food friend fridays
Catatoiulle Food Truck To encompass Mana is to move through the world with love, respect, and discernment. To put forth the best of who we are, even through adversity. I am Chetia Hurtt, more lovingly known as Chef Tia, private chef, caterer and owner of Mana Meals Catering LLC. I was born and raised in Pittsburgh and always had a creative side that needed an outlet, and food became just that. Inadvertently, cooking fell into my lap. I was working as (of all things) a debt collector in the early 90s, and suddenly I was told I was being laid off. At that time, I didn’t even know what being laid off meant, but I knew my career path at 23 would be different than I planned. College didn’t offer a course on what to do if you're laid off and fresh out of school. It got my wheels turning to figure out something I loved to do and could see myself doing for a long time. The opportunity to go to culinary school arose, and I jumped at the thought. For 20 years, I have worked in every aspect of commercial kitchens, banquet halls, and the like, from managing a local fish fry restaurant to owning a lucrative catering business in North Carolina. I picked up every trick of the trade and learned the small nuances that create a fantastic dining experience. Fortunately, the universe called me back to my hometown to continue the marathon. This time, I wanted to provide a more intimate and client-focused dining experience, creating dishes made with love, honor, and respect for fresh ingredients and inclusive menus for all palates. So I introduce Mana Meals Catering, food that feeds the soul. - The Cooperator, Aug/Sept 2023
Mana Meals Catering
Pittsburgh urban farm tour The 2022 Pittsburgh Urban Farm Tour, a self-guided exploration of urban farm sites, was a resounding success, showcasing the remarkable impact of urban farming within the local community. This event celebrated the vital work carried out by urban farmers, who play a crucial role in teaching community members how to grow food, remediating pollution, and ensuring access to fresh, local produce. Additionally, these urban farms contribute to the transformation of disinvested areas into productive and safe green spaces, profoundly influencing the urban environment and food system. The event’s overarching mission was to raise funds for the Urban Growers Scholarship Fund, which provides local farmers with essential resources for success. Attendees generously supported this endeavor through sliding-scale tickets, allowing everyone to contribute according to their means. The inclusion of free admission for children under 5 underscored the event’s commitment to accessibility. The 2022 Farm Tour featured 11 participating sites spread across various neighborhoods, such as Manchester, Perry South, the Hill District, Garfield, Beltzhoover, Mt. Washington, and Sheraden. The success of the tour was not only measured by its educational impact but also its fundraising capacity. An impressive $4,873 was raised during this event.
$ 1,100 in farm honorariums
11
urban farms & gardens participated
$ 4,873 raised for the urban growers scholarship fund
Participating sites Peace and friendship farm Sunny's community garden garfield community farm spork garden ballfield farm manchester food for the soul community garden freeman family farm and greenhouse mwanakuche community garden lots of price garden mt. washington community garden allendale acres
Lisa Freeman of Freeman Family Farm and Greenhouse with Pittsburgh Urban Farm Tour attendee Rosemary McShane
lovin' local $2,074,236
in local product sales
16.9%
8%
of total sales that are local
of all product sku's are local
1,883 lbs. of bulk honey
s
w
at 2,414 er m elon
14,763 gallons of milk
44,649 lbs. composted
149,643
bags saved
1,703 lbs.
of recycled glass
46,352 lbs.
Zero Waste Wrangler
of waste hauled by zero waste wrangle
EEFC is proud to work with Zero Waste Wrangler to amplify our sustainability efforts. Kyle Winkler is a former Recycling Supervisor for the City of Pittsburgh where he worked to support residential and commercial recycling. His passion for zero waste solutions has led him down many paths including wastewater treatment and compost tea blends for horticultural applications. His current project, Zero Waste Wrangler, includes small and medium scale commercial compostables collection, recycling and residential curbside services. Learn more at zerowastewrangler.com
volun ta and o ry pen mem
ber sh
ip
educat i trainin on, g, informa & tio n