operations Report
By Tyler Kulp, Interim General Manager
We renewed our lease on Meade Street — how about them apples!?!
Thishas been an exciting and dynamic year at the East End Food Co-op. What better way to start off a new year than with a fresh approach to the hard work ahead, and a cleansing of the past? Leadership transition always brings challenges to an organization, but also opportunities. Our previous General Manager Maura Holliday resigned right as the calendar flipped to 2024. I would like to acknowledge Maura’s efforts on behalf of EEFC, particularly as our leader during the onset of the COVID-19 pandemic in March 2020. Navigating the ensuing few years was very difficult and no one could have predicted it when she was hired as GM in 2019. Thank you, Maura.
As our succession plan specifies, we transitioned to an interim manage-ment team comprised of the current management team (except for a manager still in their introductory “trial” period). We all continued our daily department work while also immediately beginning preparations for union contract negotiations with UE 667, representing the majority of our staff. After approximately six weeks of negotiations a new contract was successfully ratified and went into effect on March 13, 2024.
Our next major task was to focus on negotiating a lease extension with our current landlords, to secure our place at 7516 Meade Street for the near future. Knowing how much dedicated time and effort would need to be put into this project, our Board of Directors appointed me as Interim General Manager at the beginning of April 2024. Lease talks took place over several months and I was extremely pleased to announce to our staff, and to our membership, in the pages of the Co-operator, that we will be staying in our East End “home” until at least 1/31/29. We also were able to include, at our sole discretion, an option to renew for an additional five years, until 1/31/34, with terms already in place. I am very grateful to our IT manager Erin Myers, Finance manager Shawn McCullough, and to our real estate attorneys at Trellis Legal, for helping me strategize and negotiate this long-term deal for our
Co-op. I would also like to acknowledge our landlords, Ellsworth Equities, for their commitment to EEFC and a positive working relationship for years to come.
Signing our lease brought stability to our organization and a long runway in order to help put the future in to focus. Expansion, in whatever form it may take, remains very much important to our Board of Directors, and to myself. We now have more time to create a strategic vision for expansion, and more time to make it a reality. Owning our building is still very much a goal of ours, and we will work hard over the next several years to pursue that possibility and further control our future, on our terms.
Amidst everything previously mentioned we also realized several other accomplishments in 2024.
We purchased new fixtures in our Produce department: refrigerated “end caps” providing us with proper temperatures for some of our best-selling produce items like berries, and grapes. The move to refrigerated end caps has contributed to an approximate 40% reduction in our food waste from the previous furniture. This was our first significant investment in the department since the fall of 2017 and it is already paying off in more ways than one!
On July 3rd we re-opened our Café’s juice and smoothie bar, (with limited hours compared to pre-COVID). We hired and trained new staff to produce and stock more food in our grab ‘n go deli case. New vendor relationships allowed us to offer more outside produced foods, like the Café Spice meals, and Clara’s Kitchen breakfast burritos. In the 4th quarter alone (Apr-Jun ’24) Café sales increased by 24% over the prior year. This is merely the first step in the re-opening of our publicfacing prepared foods department. Soon after you read this we will be announcing more upcoming changes to better serve our members desires for in-house made sandwiches, wraps, salads, baked goods, and more!
Our marketing department led the redesign of our website, quietly at first but now we are promoting it in the Co-operator. The new look site is easier to navigate and much more visually appealing.
We have continued to increase our community events since the pandemic forced the closure of most gatherings. One of our most successful events to date is being held on 10/30, with local vendor YeGa Kimchi. Look for more fun and educational food events in 2025!
I have learned quite a bit this year, serving as your Interim General Manager, and I am very optimistic about our Co-op’s future. But that is not to say we can sit back and coast on our “good cooks” (sorry!). We need to buckle down and prepare for the four new grocery stores coming to our part of the city in 2025: Fresh International Market and Aldi (both in Rockwell Park), a new Giant Eagle Market District currently under construction on Penn Ave near Target, and Fresh Market (which will be taking over the former Whole Foods location on Center Ave) are all competing for this trade market’s dollars. High quality customer service, more focus on local vendors, a wider range of house-made foods, and rejuvenating our physical space in whatever ways we can, will allow us to weather the new competition and continue to serve our staff, our members, and our shoppers for years to come.
Thank you for your continued support of the East End Food Co-op and I look forward to seeing you in our aisles for many years to come!
Board Report
By Tom Pandaleon, Vice President
Where a Dollar Goes
Occupancy 3%
Greetings and best wishes to our East End Food Co-op members! You hold in your hands the 44th consecutive (presumably) annual report for our organization, of which you are a member/owner. Herein is a snapshot of your co-op as it enters 2025, with a focus on our operational and financial performance in the last year. The EEFC is showing a small profit this year, which marks an improvement from last year. It is also the first year where we reached $13 million in gross sales. We also must acknowledge our successful union contract negotiations this past March, in which our management and the UE667 agreed to a new three-year contract that provides significant wage and benefit increases.
The two primary areas that the board has focused on this year have been (1) the management transition after Maura Holliday’s resignation, and (2) oversight of the exploration of a significant potential satellite store site in the Uptown section of the city.
While that exploration has ultimately resulted in the board’s decision to turn down that opportunity, the knowledge and experience gained in the pursuit of that project further equip the board and management as we continue to search for the optimal expansion opportunity for our co-op.
As has been discussed over the years, our co-op needs more retail floor space. We are generating disproportionately high sales from limited space. Retail rules-ofthumb have us well outperforming the average sales in a space like ours. At a certain point, we will not be able to generate enough sales in the existing space to sustain our costs. While that point is not right around the corner, yet, it is imperative that we meet the challenge, and locate more space for our operation. All Other 2%
The difficulties that this and prior boards have confronted in exploring real estate opportunities in the last few years are those generated in the process of due diligence and risk assessment. Retail grocery is a competitive low-margin business. We don’t earn a lot on each product. Location, in the competitive grocery industry, is important. For EEFC, the location of its membership is important. How do we retain membership while moving somewhere else? How do we not cannibalize our existing membership in opening a satellite? Do we sustain sufficient sales during the initial year or two after a move?
The board’s new year will start off, after the onboarding of new board members, with deliberation on and passage of an updated strategic plan. As the competitive grocery market evolves in the Pittsburgh region, and as the real estate market moves forward, the EEFC is presented with very challenging circumstances. The board and management feel that with having stabilized our current lease situation, we are in a good position to assess that market and our future place in it and to prepare our business to identify and capitalize on emerging real estate and business opportunities.
By the time you are reading this, the board hopes to be announcing our choice of our next permanent General Manager. The EEFC reviewed over 100 applications for the position and conducted several interviews. The choice of a GM is key to the success of an operation. The GM helps set the tone and atmosphere of a workplace, and, in a co-op, must serve several constituencies, including employees and members. The choice of that person, who will serve our co-op for the foreseeable future, is a very important one.
Finally, it is a message that bears regular repeating — ours is a member-owned organization. This enterprise was created 40+ years ago by people seeking a greater say in their lives as consumers of food. It’s that simple. And for this grand cooperative experiment to continue, the EEFC relies on the support of its membersour patronage, our votes, our vigilance, our allegiance. The coming year, like the last one, and the one before that, will bring challenges — challenges to our cooperative business enterprise, and challenges to our cooperative community. Let’s hold it close, together.
Board Committees
Finance
The EEFC’s Finance Committee assists the board in monitoring its financial conditions, financial planning, and asset protection policies.
Board Perpetuation & Elections
BP&E exists to aid and advise the board of directors regarding recruitment for and administration of the yearly board election.
Member-Owner Participation
MOP enhances communication between the board and investigates venues for member participation in Coop initiatives.
Resilience
This committee exists to build resiliency through big-picture thinking on long-term changes.
Finance Report
By Shawn McCullough, Finance Manager
Sales By Department
Cafe/Deli 6%
Cheese 4%
Meat 5%
Produce 22%
Wellness 11%
Bulk 8%
Grocery 44%
We’re pleased to report that the Co-op had a small net income of $43,378. For FYE 2023, the Co-op had a net loss of ($156,142). For context, going back to 2000, the Co-op has had ten years of net losses versus fourteen years of net incomes. Contributing to the current year’s net income was the fact that Co-op had its best sales increase since 2014, when the Co-op had a sales increase of 10.3%. The approximate sales increase for the current year was 7%. Highlighting some of the sales increases within the various Co-op departments were Bread, Deli Cold, Bulk Herbs, Meat, Cheese, and Perishable; these departments saw sales increases of 27%, 24%, 18%, 17%, 11% and 10% respectively.
The Co-op’s year-end cash position also remained strong and consistent with prior year at approximately $1.81m. Current assets, of which cash is our largest component, remained consistent with prior year. Our current assets stood at approximately $2.4m for the fiscal year. Prior year’s current assets were approximately $2.3m. Our current ratio for the year was approximately 4.49; this means for every $1 of current liabilities that the Co-op had; the Co-op had $4.49 of current assets.
In terms of margin dollars, the Co-op realized approximately $4.8m margin dollars for 2024 vs. approximately $4.5m margin dollars for 2023. Gross margin slightly improved from 2024 to 36.9%. Gross margin for FYE 2023 was 36.7%.
Balance Sheets
Current Assets
Net Property & Equipment
Other Assets
Total Assets
Current Liabilities
Non-current Liabilities
Total Liabilities
Member Shares
Retained Earnings
Current Earnings
Total Members’ Equity
Total Liabilities & Members’ Equity
$2,358,618
$332,376 $304,813 $2,995,807
$525,447 $147,860 $673,307
Income/Expense Statements
$1,687,911 $591,211 $43,378 $2,322,500 $2,995,807 $2,279,324 $262,530 $274,368 $2,816,222 $429,527 $150,000 $579,527 $1,645,484 $747,353 ($156,142) $2,236,695 $2,816,222 2024 (Reviewed) 2023 (Reviewed)
Net Sales
Cost of Sales
Gross Profit
Personnel Expenses Operating Expenses
Operating Income
Other (Expenses) Income
Net (Loss) Income
$13,132,852 ($8,284,615) $4,848,237 ($3,219,255) ($1,692,735) ($63,753) $107,131 $43,378 $12,286,804 ($7,774,042) $4,512,762 ($3,106,197) ($1,632,158) ($225,593) $69,451 ($156,142) 2024 (Reviewed) 2023 (Reviewed)
Our Co-op has been member-owned for over 40 years, and now has more than 16,700 members. As a member-owner of our cooperative grocery store, you’ve chosen to invest in a community of people, ideals, and of course, wonderful food. You don’t just shop here – you own it!
16,727 Active Members
$7,748,476 Sales to Members
$25,222 In Member Discounts
537 New Members
59% Of Sales to Members
77 Refunds
Working At The Co-op
W
e negotiated a new contract with UE Local 667 which was ratified in March 2024. We now offer all entry-level positions a starting wage of $18.45 per hour, plus additional benefits that add to our previously established benefits package, including but not limited to; increased in-store discounts, additional bereavement leave, and paid parental leave. This increase represents a 47.6% increase in starting wages since the 2021 CBU contract (which had previously increased our starting wage to $12.50, followed by a mid-contract increase to $15.50). The average non-supervisory wage is now $18.94 per hour, a 16% increase over last fiscal year.
We now offer all entry-level positions a starting wage of $18.45 per hour.
25% staff discount paid time off paid holidays 4 for full & part time employees
our Customer Service
“Every time I shop at the Co-op, Dom goes above and beyond to provide information and customer service. Her attitude is positive and she is patient. Thank you!” –Makayla Jones
Register Round Up
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 three-month period. Register Round Up participants are invited to table at the Co-op to help raise awareness for their organization’s respective cause.
Food Bucks
Through a partnership with The Food Trust, a non-profit dedicated to ensuring everyone has access to nutritious, affordable food, shoppers who use SNAP will earn a $2 Food Buck coupon for every $5 they spend on fresh produce. Food Bucks can be used on a subsequent shopping trip for additional fresh produce.
Snap & Senior Discounts
East End Food Co-op accepts SNAP ACCESS. As a courtesy to seniors, anyone 62 or older receives a 5% discount on Tuesdays and Thursdays. All ACCESS card holders qualify for Food Bucks.
$29,220 In RX Redemptions 13.5% Of Total Sales to Senior & Low-Income Shoppers $93,696 Senior & Low-Income Discounts $48,825 Issued $33,051 Redeemed
Community Engagement
The Co-op hosted and/or participated in 73 classes, workshops, and other events. Highlights include:
Education
• Mottainai – Discover Japanese Thrift
• Mushroom Cultivation 101 With Steel City Spore
• Mother’s Day DIY Living Wreaths With Rust & Moss
• Community Cultures Presents Who’s Your Mother?
• Collaborative Wellness Painting With pAint No Stress
Outreach
• Legacy Arts Project’s Africana Wellness Conference
• VegFair and VegFest
• Greater Pittsburgh Regional Food Systems Summit
Social Media
• 9,776 Instagram Followers
• 12,347 Facebook Followers
Mottainai was a free event conducted in cooperation with the Japan-America Society of Pennsylvania, highlighting aspects of Japanese sustainability.
Pittsburgh Urban Farm Tour
The seventh annual Pittsburgh Urban Farm Tour, held on September 23, 2023, was an emphatic celebration of the city’s vibrant urban agriculture movement. This self-guided tour spanned the city, offering participants the chance to explore 14 remarkable urban farms. The event operated on a sliding scale admission, with proceeds benefiting the Urban Growers Scholarship Fund—a vital resource for local urban agriculturalists.
Urban Farms & Gardens Participated 11 $1,100 In Farm Honorariums
$3,342
Raised for the Urban Growers Scholarship Fund Sylvan of @homegrown_handgathered
Community Partners
One of the many benefits of Co-op membership is access to the Community Partners Program, which offers members exclusive discounts when they support participating local businesses. Community partners, in turn, receive promotional consideration on our website, social media, and on a dedicated bulletin board in the rear of the store.
We have 39 Community Partners (four are new this year).
Community Partners must be:
• Locally-owned businesses (no franchises)
• Be in line with our values
• Ideally represent a new or underserved category
We believe one of the most effective ways we support an ethical and resilient food infrastructure is by supporting our local suppliers, which we define as within 250 miles (excluding Canada).
YeGa Kimchi
YeGa Kimchi is locally made by a mom, not a corporation. Jeonghee’s products are made using the highestquality ingredients with no MSG, artificial seasonings, preservatives, or colorants. The offerings available at the Co-op are all vegan, too!
5 Miles from your Co-op
Prescription Foods
“I think the demand is there to grow [the business] but there’s something magical about small batch fermentation, and I love being so directly connected to the stores and customers who enjoy our products.”
–Meryem Mammedova, Owner
10 Miles from your Co-op
8.8% Of our Products are local 18.5% Of total sales are local $2,311,226 In local product sales
Primal Spirit Vegan Jerky
We have purposely chosen to sell meat alternative food and healthier products as an expression of our desire to act more harmoniously with the environment, and our fellow living beings.
66 Miles from your Co-op
Best Ever Granola
Best Ever Granola is local, woman-owned, gluten-free, and vegan. Sarah only uses high-quality, sustainable ingredients, and the only sweetener used is pure Pennsylvania maple syrup.
2.5 Miles from your Co-op
Kyle, the Zero Waste Wrangler
Sustainability
At the East End Food Co-op, we focus on sustainability and respect for the environment in everything we do.
Sourcing & Buying Practices
Our goal is to source goods that are produced using humane and ecologically sound methods that don’t exploit people, animals, or our environment. We prioritize local, organic, Non-GMO, fair trade, and cooperatively-produced items that are minimally processed and packaged in recyclable containers.
Eliminating Food Waste
Through our partnerships with organizations like 412 Food Rescue, each year we donate over 20,000 pounds of healthy, fresh food and redistribute it to those in need!
Recycling & Composting
EEFC is proud to work with Zero Waste Wrangler to amplify our sustainability efforts. Kyle Winkler’s passion for zero waste solutions helps the Co-op keep our glass and compostables out of landfills.
Bike Friendly Business
East End Food Co-op is one of 71 certified Bike Friendly Businesses in the state of Pennsylvania. We proudly offer expansive bike parking, loaner locks, and an indoor DIY repair station (located in the lobby of The Factory near the Penn Avenue entrance).
1,534 lbs of recycled glass
186,638 bags saved
50,479 lbs composted
*Reusable bag redemptions are up 7.87%. This is largely due to the City of Pittsburgh Prohibition on Use of Certain Bags and Checkout Bag Charge ordinance, which went into effect in October 2023.
East End Food Co-op exists to enhance physical and social health in our community. To these ends, we will create:
A an a dynamic community of happy healthy people to transform the future a and resilient food infrastructure member-owned business open to everyone