ASSION COALITION COMP
Bargain Grocery
Compassion Coalition
CO M M U N I T Y I M PA C T S T U DY BRCONSULTING A consulting firm based out of the Samuel Curtis Johnson School of Management at Cornell University
Compassion Coalition INNOVATE
Our Mission:
Compassion Coalition is a sustainable nonprofit where 96 cents of every
At Compassion Coalition, it is our mission to serve the
dollar donated goes to creating change in our community. This is possible
underprivileged, the needy, the poor, the afflicted and
due to our innovative model with our grocery store, Bargain Grocery.
those lacking opportunity and basic life necessities such
ASSESS
as affordable food, clothing, housing, transportation,
We are self-sustaining, with no ongoing government or private funding for operational costs. This allows us the ability to focus on the immediate needs of the community and serve non-profit agencies to help meet those needs.
PROCURE Our goal is to partner with local and national distributors to buy and obtain large product donations to distribute to those who need them most.
DISTRIBUTE The creation of innovative, community-based programming allows our products to go directly to those in need in our community.
employment and finances. We will work locally, regionally, nationally and globally as needed to accomplish our mission with partners in the public, private, and faith-based organizational communities.
Our Vision: We envision a world without poverty, without need, and without injustice. We will strive to promote and create a world of abundance, prosperity, full-life, opportunity, equality, justice and safety for all that we have the privilege of serving.
Compassion Coalition is a unique,
Our focus is on community-based giving,
innovative non-profit supported by
meeting needs as they arise, which varies each
Bargain Grocery, which is a social enterprise,
year as the needs of the community change.
benefitting the Central New York region.
Compassion Coalition has grown consistently and exponentially over the last
20+ years, giving over $20,000,000 in fair market value of product donations yearly to our communities, non-profit agencies, schools and emergency food workers.
We partner with our area’s non-profit agencies to help them succeed in meeting the needs of our community. Compassion Coalition has given more than $20 million in donated goods per year to over 350,000 individuals through our various programs, such as mattress giveaways, furniture, school supplies and snacks, and weekly food donations to various food pantries within our community and much more.
Bargain Grocery / Compassion Coalition
Equipped 2 Teach: CNY’s 1st Teacher Resource Store Our goal was simple: who knows the needs of students more than the
teachers who teach them daily? Through our innovative and self-sustaining funding, we are able to purchase much-needed basic school supplies and products. By joining forces with national corporate donors, Compassion Coalition’s: Equipped 2 Teach ensures that educational tools are enhancing the classroom and educational experience locally in CNY. The national average that teachers spend on their own classroom supplies is $498 per year, but when speaking with local teachers, we learned that the cost far exceeded that. In December 2017, Compassion Coalition launched Equipped 2 Teach: Teacher Resource Center, and has been serving 60 schools, and counting! This stylized store began at our original warehouse location at 506 Columbia Street, where it served our local teachers that are currently teaching in schools where 70% or higher of the student population receives free or reduced lunch. Teachers obtain much needed educational and classroom essentials with a value between $700-$1,000 in educational support to pass on to their students. As of June 2023, our Teacher Resource Center : Equipped 2 Teach is now embedded in each of the schools within the Utica City School District, Oneida City School District and Camden City School District and counting! This enables teachers to shop for their classroom needs, free of charge, right in each of their schools!
Community Giving Initiatives: Community based, Community driven and Community sustained Community needs change from year to year and Compassion Coalition’s goal is fluid giving. This is accomplished through our collaborative efforts with community leaders, agencies, schools and resource experts. Together, we strive to meet needs that would otherwise not be met. We believe that every community can care for itself. We have initiated our annual giving programs such as: Mattress giveaways, feeding programs, cold weather apparel, furniture and household items for apartments and access to hygiene products and cleaning supplies.
Bargain Grocery Shopping with a purpose for a purpose. We believe everyone should have access to healthy, affordable food for themselves and their families. Bargain Grocery’s innovative purpose was to serve those within a community’s food desert, while partnering with national and local vendors to purchase food that was overproduced and to receive donated products from companies. With those purchases and donations, Bargain Grocery is able to provide these products at a low cost. This idea — what Mike Servello, CEO & Founder, calls a “God-given idea,” — has changed the way West Utica has been able to access affordable, healthy food, as well as allowing Compassion Coalition to remain self-sustaining.
ASSION COALITION COMP
In the mid 2000’s when Compassion Coalition was launched, Bargain Grocery was an innovative way to allow Compassion Coalition to be self-sustaining, while providing food accessibility and food equality in a food desert. The proceeds of the store are re-invested into our local communities. Bargain Grocery also strives to eliminate food waste and discovered that 40% of all food in America is wasted each year. Perfectly good, edible food is thrown out due to aesthetic appeal, packaging issues, and misordering. Compassion Coalition has partnered with growers, distributors, and large corporate donors to bring food access to West Utica and beyond. By shopping at Bargain Grocery, you are working to not only combat food waste but also shopping for a cause, allowing Compassion Coalition to utilize the proceeds in donating more than $20 million in goods each year, serving more than 350,000 individuals yearly. Compassion Coalition believes no one agency can do the work for the community alone. Our goal is to extend the buying power of nonprofit partners throughout our communities. By partnering with us, we can reach more people, impact more communities and help corporate donors get their products where they need to go.
Bargain Grocery / Compassion Coalition
Important Articles
Hunter College Food Policy Center
WUTR Compassion Coalition
Fox News Interview with Pastor Mike Servello
Charity Navigator Awards Compassion Coalition 4 out of 4 Stars Rating.
WUTR The Compassion
MSNBC Compassion Coalition Helping Displaced Ukrainian Refugees
Progressive Grocer: Bargain
Grocery Sustains Communities in Empire State
WKTV - Utica 'store' offers free school supplies for teachers
Produce Business: Bargain
WKTV - Reopening of
Bargain Grocery Overview
WKTV Compassion Coalition sending relief to Kentucky Storm victims
Big Frog - Here's How Utica Teachers Can Get Free Supplies For The Classroom
Spectrum NY1 Spanish - Reports on Giveaway with
RIT - Selling Rescued Food at Discount Prices
Lite 98 - UTICA ORGANIZATION DISTRIBUTES FREE CLASSROOM SUPPLIES
Times Union Reporter Chris Churchill reports on Compassion Coalition's expansion in Troy NY
Oshwa - Awards Compassion Coalition “Oshwa 2019 Recycling Champion Award”
Overview of Compassion Coalition
Congresswoman Nydia Velazquez
Grocery – Feeding the Underserved with Compassion
Providing Assistance To Ukrainian Refugees
Coalition & Slavic Pentecostal Church donate to Ukraine
Innovative Resource Center allows teachers to shop for free
Scan QR Code to Read Articles or watch Video
CO M M U N I T Y I M PA C T S T U DY
Bargain Grocery
Compassion Coalition
BRCONSULTING A consulting firm based out of the Samuel Curtis Johnson School of Management at Cornell Bargain University Grocery / Compassion Coalition
Agenda Agenda Executive summary Current situation Business Model Community impact Next steps BRCONSULTING BRCONSULTING
Current Situation
curity issue was not addressed by Utica’s food donation and supply system rocery launched inGrocery 2002, selling discounted groceries in food desert regions and food using profits to fund Compassion Bargain Grocery hashas developed a abusiness to insecurity; this Bargain developed business toaddress address insecurity; this fitmodel that distributes charitable across Newmaximum Yorkcommunity can be scaled achieve maximum impactimpact model can donations betoscaled to Central achieve community
Our Recommendation Current Situation
cery should upon of differentiation and continue address food insecurity and related issues insecurity issueits waspoints not addressed by Utica’s food donation and supplyto system • Foodbuild • Bargain Grocery launched in 2002, selling discounted groceries in food desert regions and using profits to fund Compassion Coalition, a non-profit that distributes charitable donations across Central New York
Approach
Bargain Grocery Analysis
Compassion Coalition An
Our Recommendation usiness model food should banks build and upon its points Business Model Business Model Bargainto Grocery of differentiation and continue to address food insecurity and related issues online research and expert • Provides healthy, stigma-free food at • Uses profits generated by Bargai affordable prices reinvest in the local community Approach Bargain Grocery Analysis Compassion Coalition Analysis • Generates sufficient profit to support its own Community Impact mmunity impactbusiness via customer model to food banks and operations Business Model Business Model • Compare Provides healthy, stigma-free food at Uses profits generated by Bargain Grocery to nation pantries via online research and expert • • 600+ non-profits nterviews • Supports affordable prices reinvest in the local community interviews Community Impact • General donations sufficient profit to support its own • Generates operations community impact via customer • Customers spend less for more & enjoy the Community Impact • School supplies, reintegra o help expand partnerships with • Quantify nationally: survey and interviews • Supports 600+ non-profits resources, and refugee su service and variety offered grocers Community Impact • General donations responses spend less for more & enjoy the • School supplies, reintegration • Customers • Build case to help expand partnerships with• 526 survey
G BRCONSULTING
resources, and refugee support
service and variety offered • 526 survey responses
large-scale grocers
Executive summary
Current situation Executive summary
Current situation
Business model Business model
Community Impact Community Impact
Next steps Next steps
Bargain Grocery / Compassion Coalition
How can Bargain Grocery build the case that its business model generates greater social impact than the alternatives in order to create future partnerships that will allow it to address food insecurity on a greater scale?
BRCONSULTING
G
Food insecurity issues are left unaddressed with the current
21% Consumption Gap experienced by average food insecure person; standard and supply model Food insecurity issues aredonation left unaddressed with the current 40% Consumption Gap for severely food insecure people
standard donation and supply model
Food banks provide 14%Gap of experienced the food their average participant 21% Consumption by average food insecure person; requires; Gap forinsecurity severely food insecure people Free food 40% will Consumption not solve food Food banks provide 14% of the food their average participant requires; food will notneighborhoods solve food insecurity have no choice but to shop at bodegas, People inFree low-income
marts, and Family Dollar due to price & transportation barriers People in low-income neighborhoods have no choice but to shop at bodegas, minimarts, and Family Dollar due to price & transportation barriers
Executive summary
BRCONSULTING
Current situation Executive summary
Current situation
Business model Business model
Community Impact Community Impact
Next steps Next steps
Source: Taking Char Source: Taking Charge Mushroom Cloud
Bargain Grocery / Compassion Coalition
The Utica struggles withwith poverty andand needs more Thepopulation Utica population struggles poverty needs more 22,903 households support tosupport access 52% healthier and affordable essentials to access healthier and affordable essentials of Utica household* is low income
4,000
Median Income $38,080 22,903 households
52% of Utica household* is low income
3,000 4,000
2,000
Median Income $38,080
3,000
2,000
1,000
1,000
0
$0-$10k
0
$20k-$29k
$0-$10k
BRCONSULTING
BRCONSULTING
$20k-$29k
Executive summary
Executive summary
$40k-$49k
$40k-$49k
Current situation
Current situation
$60k-$74k $60k-$74k
Business model
Business model
$100k-$124k
$100k-$124k
Community Impact
Community Impact
$150k-$199k
Next steps
Next steps
$150k-$199k
Source: EASI/MRI Consumer Expenditure Data (SimplyAnalytics)
Source: EASI/MRI Consumer Expen
Source: EASI/MRI Consumer Expenditure Data (SimplyAnalytics)
Non-profit grocery stores upcycle food waste funds Non-profit grocery stores upcycle food waste andand useuse funds to to address challenges related to food insecurity address challenges related to food insecurity
G BRCONSULTING
6 6
Executive summary
Executive summary
Current situation
Current situation
Business model
Community Impact
Business model
Source: Bargain Grocery & Compassion Coalition
Next steps
Community Impact
Next steps
Source: Bargain Grocery & Compassion Coalition
Source: Bargain Gro
Bargain Grocery / Compassion Coalition
Bargain Grocery been able createsignificant significantimpact impactwithin within aa Bargain Grocery hashas been able toto create food desert region for over 20 years expands food desert region$100 for over 20 years monthly basket price (vs. $438 national average)
ng power
Low costimpact expands community purchasing power
$2.75M annual sales from 110K transactions ~1,330 households/week, ~5,800 households/month $100 monthly basket price (vs. $438 national average) 5.8%-25.7% Utica households impacted
$2.75M annual sales from 110K transactions Scalable community impact Refugees ~1,330make households/week, ~5,800 support up 25% of the households/month customer base 5.8%-25.7% Utica households impacted Refugee support multiple impact
up 25% of8x themore customer base per dollar with CC alon $20MRefugees annualmake donation: impact
Dollar to multiple impact
BRCONSULTING
BRCONSULTING
Executive summary
$20M annual donation: 8x more impact per dollar with CC alone
Current situation
Executive summary
Current situation
Business model
Business model
Community Impact
Community Impact
Next steps
Next steps
Source: Bargain Source: Bargain Grocery & Compassion Coalition Groc
Source: Bargain Grocery & Compassion Coalition
Communitygrocery grocerystores storesprovide provide better the Community bettersolutions solutionstotoaddress address the concerns of low-income customers w cost expands concerns of low-income customers $100 monthly basket price (vs. $438 national average)
chasing power
Food Bank / Food Pantry
Community Grocery Stores
$2.75M annual sales from 110K transactions Elevates stigma of being low-income and may Creates a more welcoming and inclusive able community impact ~1,330 households/week, ~5,800 households/month Stigma generate feelings of embarrassment; could environment for all customers, regardless of their discourage those in 5.8%-25.7% need from seeking help income level impacted Utica households
ugee support Personnel
Relies heavily on volunteers, making it vulnerable to staffing shortages or disruptions which can impact the ability to provide food assistance
ar to multiple impact Health & Wellbeing
TING BRCONSULTING
Provides jobs within the local community while
Refugees make up 25% of the customer base enabling self-sufficient operations
Sources food from local farmers and producers to support the economy and sustainable agriculture practices
$20M annual donation: 8x more impact per dollar with CC
Offers limited variety and nutritional value; does not promote a healthy diet
Executive summary Executive summary
Current situation Current situation
Prioritizes nutritious food options to promote healthy eating habits and improve public health outcomes
Business model Community ImpactCommunity Impact Next steps
Business model
Source: Professor Wessels expert interview; Food Bank News
Next steps Source: Ba Source: Professor Wessels expert interview; Food Bank News
Bargain Grocery / Compassion Coalition
t percentage of your groceries do you buy from Bargain Grocery?
How much do you typically spend on groceries p 160
Customers view Bargain Grocery as an alternative option in line Customers view Bargain Grocery as an alternative option in line 120 of a food bank or pantry with Aldi and Walmart instead with Aldi and Walmart instead of a food bank or pantry What percentage of your groceries do you buy from Bargain Grocery?
80
220
160
165
120
How much do you typically spend on groceries per visit?
40
110
20-39%
40-59%
60-79%
800
80-100%
55
BRCONSULTING
BRCONSULTING
Executive summary
Dairy
Current situation
Current situation
$
Flowers
Dairy
Executive summary
$60-$79
Customers spend less per visit for an equivalent amount of food than at a typical grocery store
Bargain Grocery customers look for...
Produce
$40-$59
Customers spend less per visit for an equivalent amou 0 than at a typical grocery store Less than $20 $20-$39 $40-$59 $60-$79 $80 or more
Bargain Grocery provides a higher percentage of food per customer than the average food bank
Produce
$20-$39
40
Grocery provides a higher percentage of food per 0 customer than the average food bank60-79% 0-19% 20-39% 40-59% 80-100%
Top items Bargain Grocery customers look for...
Less than $20
Business model
Business model
Flowers Community Impact
Community Impact
Next steps
Next steps Source: Customer Survey
Source: Customer Survey
Source: Customer Sur
What percentage of your groceries do you buy from Bargain Grocery?
19%
How much do you typically spend on grocerie 160
Bargain Groceryserves servesthree threesegments; segments; customers Bargain Grocery customersshop shopatatthe thestore store 120 service and variety that is not offered elsewhere for servicefor and variety that is not offered elsewhere 80
40
20-39%
40-59%
60-79%
0
80-100%
Service Sally
Feels welcomed and respected at Bargain Grocery
•
(18%)
Believes employees are friendly and sensitive to Produce their unique needs
BRCONSULTING NG
Executive summary
Shops solely at Bargain Grocery for food items
Current situation
Current situation
Business model
Business model
Source: Customer Survey - 526 Survey Responses
$60-$79
Bargain Beth
options offered and can always find what they want Dairy in stock
Executive summary
$40-$59
Customers spend less per visit (15%)for an equivalent am than at a typical grocery store
ms Bargain Grocery customers look• for... Enjoys the variety of •
$20-$39
Variety Victor
in Grocery provides a(67%) higher percentage of food per customer than the average food bank •
Less than $20
Community Impact
•
Satisfied with Bargain Grocery's affordable prices
•
Looks for fresh, healthy food that tastes good
Flowers
Next steps
Community Impact
Next steps
Source: Customer Survey
Source: Custome
Bargain Grocery / Compassion Coalition
stomer Demographics
Customer Loyalty
Bargain Grocery has built a loyal and diverse customer base which BargainAge Grocery has built a loyal and91% diverse customerhave basebeen which of respondents a custome allows for a sustainable and scalable business model allows0.1011 for a sustainable and scalableover business 1 year;model 55% more than 4 years 0.1775
Customer Demographics 0.2328 Under 20 20-29 0.2366 30-39 40-49 50-59 60-69 70 and older
48%ofof respondents travel morefor than 10 m 91% respondents have been a customer over year;store 55% more than 4 years visit1 the
0.2118 Age 0.1011 0.1775 0.2328
0.2366
0.1181 0.1277 0.1181
Under $20K $20K-$39K $40K-$59K $60K-$79K 0.1614 $80K-$99K $100K and over
48% of respondents travel more than 10 miles to visit 62%theofstore respondents were referred by a fri
0.2118
Income
ver
Customer Loyalty
family member Income
62% of respondents were referred by a friend or family member
0.2313 0.1181 0.1277
84% of respondents are familiar with 84% of respondents are familiar with Compassion Coalition initiatives
0.1181 0.2313
0.2434
0.1614
Compassion Coalition initiatives
0.2434
BRCONSULTING
BRCONSULTING
Executive summary
Current situation
Executive summary
Current situation
Business model
Business model
Community Impact
Community Impact
Next steps
Next steps
Source: Customer Survey
Source: Customer Sur
Source: Customer Survey - 526 Survey Responses
Customer Demographics
20
Client highlight the effects ripple effects created Client testimonials highlight the ripple created Age testimonials 91% of respondents have been a custo throughCoalition Compassion Coalition initiatives through Compassion initiatives over 1 year; 55% more than 4 years
0.1011
0.1775 0.2328
d older
$20K $39K $59K $79K $99K and over
Customer Loyalty
48% of respondents travel Reintegration and more than visit the store refugee support
0.2118
Partnership donations
Local schools
Partners with over 600 nonprofits across New York State
Supports more than 10,000 kids as a one-stop shop onsite at school
0.2366
Income
0.1277 say 0.1181 “Hundreds of groups 0.1181 they do the right thing but 0.2313 only CC reaches it. Their 0.1614works!” model 0.2434
BRCONSULTING ING
62% of respondents were referred by a family member
1,000+ ppl lined up on 3 “If CC is not doing this, I blocks when CC drove cannot imagine what it trailers of food and supplies would look like, CC is the for distribution only one with this scale.” 84% of respondents are familiar with
Compassion Coalition initiatives
Mike Ferraro, COO Utica City School District
Linda Laviolette, Former Employee of NYS Ag & Markets Executive summary
Executive summary
Provides furniture, bedding, personal hygiene products, clothing, food and jobs to refugees
Current situation
Current situation
Business model
Community Impact
Business model
Source: Linda Laviolette & Mike Ferraro expert interviews
Next steps
Community Impact
Source: Linda Laviolette & Mike Ferraro expert interviews Next steps
Source: Custo
Bargain Grocery / Compassion Coalition
Collection
Next Steps Next Steps ute survey in store to better reflect customer demographics and reduce bias from online population
1. Data Collection vey results and testimonials to deep-dive into service quality and product variety offered by Bargain r to maintain customer satisfaction levels (e.g., employee training program, add ethnic food aisle, et •
Distribute survey in store to better reflect customer demographics and reduce bias from online population
•
Use survey results and testimonials to deep-dive into service quality and product variety offered by Bargain Grocery in order to maintain customer satisfaction levels (e.g., employee training program, add ethnic food aisle, etc.)
nsion Plan 2. Expansion Plan
dings to support formation of crucial partnerships with nationwide suppliers •
Use findings to support formation of crucial partnerships with nationwide suppliers
other food desert regions for the opportunity to scale Assess other food desert regions for the opportunity to scale •
BRCONSULTING
Executive summary
Executive summary
BRCONSULTING
Current situation
Current situation
Business model
Business model
Community Impact
Community Impact
Next steps
Next steps
Utica residents need food, apparel, personal care Uticasupport residentsfor need support for food, apparel, products personal care products
Utica residents need support for food, apparel, personal care products
NSULTING
$5,535
$5,535
$1,262 $426 Personal care products
Apparel
Food at home
Source: EASI/MRI Consumer Expenditure Data (SimplyAnalytics)
Source: EASI/MRI Consumer Expenditure Data (SimplyAnalytics)
$1,262 $426
Bargain Grocery / Compassion Coalition
Utica has the highest refugee population Utica has the highest refugee population
9% 4%
Born in state Born in other state in the US Native but born outside the US Foreign born
20%
67%
BRCONSULTING BRCONSULTING
57% - U.S. Citizen 43% - Non U.S. Citizen
Utica’s population by year, age & sex pyramid Utica’s population by year, Age & gender pyramid AGE-SEX PYRAMID UTICA POPULATION
85+
62,000
75 - 84 65 - 74 55 - 64
59,000
45 - 54 35 - 44 25 - 34
56,000
20 - 24 15 - 19 53,000
10 - 14 5-9 0-4
50,000
Y2012
Y2014
BRCONSULTING
Y2016
Y2018
Y2020
Y2022
Y2024 Y2026 (Proj.)
- 5% in 10 years
-5000
-3750
-2500
-1250 Males
0
1250
2500
3750
5000
Females
Bargain Grocery / Compassion Coalition
Food Bank
Low-cost Grocery
Surplus food, sometime unhealthy food Solve hunger: Help to end hunger immediately
Nutritionally balanced food Solve food insecurity: provide consistent access to enough nutritious food to stay healthy Meal Gap
Income Gap HEALTH
ACCESSIBILITY SNAP (Supplemental Nutrition Assistant Program) provides nutrition benefits to supplement the food budget of needy families so they can purchase healthy food and move towards self-sufficiency COALITIONS FOR LONG-TERM CHANGE
BRCONSULTING
Use food to directly support programming designed to change outcomes for the target population, using the resources to support initiatives that will stabilize lives, leading to long-term reductions in food insecurity. For example: The food scholarship is an example. A food scholarship is an attempt to provide enough food assistance to enable students to complete certificate or degree programs,. by
BRCONSULTING
Team Team
RCONSULTING
Jake Shields MBA/MHA '23
Abraham (Ham)Lin MEM '23
Oanh (Emma) On MBA '24
Ruichao (Richard) Yuan MBA '24
Sean Glennon MBA '24
Alexa Parulan MBA '24
BR Consulting is a student-run management consulting firm based out of the Samuel Curtis Johnson School of Management at Cornell University. We provide real world consulting experiences for graduate level students across the various Cornell schools. We pull on university resources and industry contacts to provide comprehensive and implementable solutions.
CO M M U N I T Y I M PA C T S T U DY
Bargain Grocery
Compassion Coalition
BRCONSULTING (315) 266-0039 • www.distributehope.org • 178 Industrial Park Dr. Frankfort, NY 13340