Attention members running for the 5 open seats to the BriarPatch Board of Directors:
Thank you for your commitment to our co-op by deciding to run for the BriarPatch Board of Directors. I would appreciate a response to the following questions. Thank you in advance for participating in this wonderful free speech medium.
How much time do you expect to devote to your job as board member?
Would you support the idea that the Finance Manager report directly to the Board or to the General manager?
What relevant experience do you bring with you to the Briarpatch?
How do you see the financial picture and how would you improve access to financial records?
As a board member, would you exercise your review authority for financial accountability?
Employee relations: what creative ways can we use to improve employee practices? How should Briarpatch handle grievances with employees?
Do you support "for cause" versus "at will" employment policies?
What process or system would you advocate in order to hear agenda items in a timely and orderly fashion?
How would you guarantee efficient follow-through on owner-member concerns?
Whose views do board members represent, your own or owner-members based on polled info?
How would you deal with the situation in which there is a consistent majority-minority alignment of board members?
How do we involve owner-members in board meetings?
What new changes would you bring to the board and the Briarpatch?
Kim Koons
Tuesday, April 8, 2008
Disappointment with BRIARPATCH CO-OP NEWS & REVIEW, APRIL/MAY 2008
It was most disappointing to read the BriarPatch financial statements as published in BRIARPATCH CO-OP NEWS & REVIEW, APRIL/MAY 2008. This letter is to advise you that I absolve myself of any responsibility for publishing this information. This is a particularly sensitive area since the business environment in the post-Sarbanes-Oxley era is fraught with the possibility of organizational liabilities and lawsuits. In the past, I have offered to review the format and content of the financial statements. My offer to participate in a reviews prior to publication have been ignored. My professional background as a chief financial officer and as a university accounting professor qualifies me for this task. It is requested that the following items in the published financial statements be changed: * The financial statements say "Fiscal Year Ending 12/31/2007." A minor correction here would be to say "For the Calendar Year Ended December 31, 2007." More importantly what should also be added is: "UNAUDITED" or "NOT AUDITED." * On page 8, there is a line labeled "OPERATING INCOME -527,648.53" This is unnecessarily misleading. There was no operating income. A more accurate statement would be "OPERATING LOSS $527,648.53. There is also a line at the bottom of the Profit and Loss Statement that says "NET INCOME -878,605.40" There was no net income. A better statement should have been "NET LOSS $878,605.40. The fact is that these statements are published for the owner-members and are available for the general public, many of whom are uninformed readers of financial statements. There is a duty to be unambiguous. * On the same page as the financial statement there is a narrative text that says, "The preliminary results for 2007 show a loss of $877,750 and the capital assets of about $3.2 million." Why is there a reference to an income statement item and to a balance sheet item that has no relevance to each other? This is a rambling non-sequitur that can only serve to confuse the reader. Furthermore, the $877,750 loss for the year is the same concept on the same page shown as the bottom line in the Profit and Loss Statement as $878,605.40. * If there is an income statement and there is a balance sheet shouldn't there also be a statement of cash flow? * It is my recommendation that the Board of Directors direct the General Manager to correct these financial statements and redistribute them with an appropriate explanation. Respectfully, Arthur J. Katz, Ph.D.Member of the Board of Directors of BriarPatch Co-op
Tuesday, March 18, 2008
Hello friends,
I would like to post the letter from the BriarPatch Co-op General Manager, Paul Harton that was sent out to owner-members by mail in early March 2008. While I may not agree with his views entirely, I believe the letter expresses a desire to pull together as a community. It also clearly states a response by management to some of the ideas and opinions posted at friendsofbriarpatch.blog.com.
Paul Harton does not philosophically believe blogs are the best format for communication, but has given me permission to post the letter on my own behalf. Lets keep the spirit of willingness to listen and learn from others alive.
Kim Koons
February 29, 2008
Dear BriarPatch Owner-member,
Lately a lot of people have been asking me how BriarPatch is doing in our new store, and I’d like to give you, our owner-members, an update.
There’s a lot of great news:
• In the nine months since moving, we’ve heard an outpouring of enthusiasm for the new store, especially for our two new departments, the deli and Meat/Poultry/Seafood Department.
• Since the new store opening we’ve welcomed 1,000 new and renewing owner-member households — growing from 2,500 to 3,500 active owner-member households.
• Our sales have doubled from those in the old store. More people buying more organic and natural foods means less chemical pesticides used, which is better for people, animals, and the environment.
• We received the Grass Valley/Nevada County Chamber of Commerce 2007 Business of the Year Award.
• In our new store we employ twice the number of people with jobs that provide fair wages, health insurance, a generous vacation and sick leave program, discounts on purchases, options for dental and vision insurance, and more.
• We’ve provided, with our Community Room, a very low-cost meeting and class space for over 25 different local organizations, including ten groups that hold their regular monthly meetings here.
• We recently donated a $750 prize we received from the National Cooperative Grocers Association, for coupon redemption, to the Food Bank of Nevada County, and will be donating a $250 prize to Interfaith Food Ministry.
• We’re working with the local chapter of the California Native Plant Society to establish a native plant demonstration garden in and around our stormwater retention basin. Planting has begun, and work will continue through the winter and spring.
• We’re awaiting — and fully expected to receive —U.S. Green Building Council LEED (Leadership in Energy and Environmental Design) green building certification.
As you can see, our new store has already had some great results for our owner-members and for the entire community.
Financial Situation
How is the store doing financially so far? Pretty much as we expected and budgeted for. The cost of the new store/expansion was incredibly close to the original forecast by our cooperative consultants, only 1.75% over budget. This result is excellent, and somewhat unheard of in construction. It can be attributed to the professionalism of our contractor, Tru-Line Builders, architect Jeff Gold, and the good communication we established with these local professionals.
Also as projected and planned for by our Board and management, we operated at a loss for 2007, which is commonplace for a business opening a new store, paying for the expansion, and growing its customer base all at the same time. Our sales so far are 20% higher than our original projections — good news. Our expenses are also higher than expected, however; in particular our costs for utilities and upkeep, employee health insurance, and employee discounts. To reach profitability, we are working to cut expenses and increase sales. We’ve increased the efficiency and profitability of our meat and deli departments, are refining staff needs, and expanding our catering. We need to increase our sales by just 4% to be cash positive. The management is very focused on financial conditions, and we expect to see a transition to a positive cash flow this spring.
You can help in at least two ways:
1. Shop at BriarPatch a bit more. If each of us buys just a few more groceries here each week, it will make a big difference.
2. Tell your friends about BriarPatch, or even better, bring them in for lunch or dinner and introduce them to the store. We are offering a great new incentive for people to join the co-op: new members receive our 2008 “New Member Savings” coupons for 14 different FREE natural and organic products, worth a total of up to $50. If you’re with your friend when they join, you also get a coupon savings book. There’s no limit to the number of free items you can get while coupon books last.
I’d also like to take this opportunity to address some concerns that have been raised.
Adjusting to Change
Our new expanded store is, needless to say, very different from the old store. It’s not as easy for employees to get to know all of their co-workers, let alone the many new shoppers attracted to this spacious, beautiful store. Some feel nostalgic for the old store, despite the space restrictions we experienced there. This is understandable. I ask everyone to move forward with BriarPatch and to bring their good energy to making this bigger store a better store.
Prices
We want you to know that BriarPatch did not change our pricing structure when we moved to the new store. Any price increases that have been made are due to higher costs from our suppliers. There are various reasons for increases, but a major one is the higher price of gas. Our pricing is very straightforward, based on our product costs. In the surveys we’ve taken, we find that BriarPatch’s prices are lower overall than nearly all of the other local grocery stores surveyed, for the same products.
It’s true that our newer, larger space allows us to carry more products that customers have requested and some of these are “gourmet” and more expensive. At the same time, we have instituted a Basic Buy Program and will continue to refine it to make BriarPatch affordable to all members of the community. We invite you to pick up a copy of our new handout on “8 Ways to Save at BriarPatch” the next time you’re in the store (or see these tips at www.briarpatch.coop).
Financial Information
Our cooperative business is open in conveying financial information to the Board of Directors and to our owner-members, in ways that would not be allowed in any other private business. BriarPatch’s finances are, and have been for many years, reviewed monthly by a Finance Committee consisting of managers and Board representatives. A finance report is on the agenda at monthly Board meetings. Finance statements are included in our newsletter. Additional financial information may be inspected by Board Directors upon request, and Directors have been given all the financial information they’ve requested to date. For privacy and security reasons, personnel and owner-member personal information (such as social security numbers, addresses, and phone numbers), is obviously kept secure, which means that Directors and others are given printed financial data rather than unlimited on-line access. Any other policy would create legal liability. There has never been a case of any financial records being withheld from any of the Directors, owner-members, or staff. If anything, through the openness of our policies we run the risk of providing access to our finances to our competitors, or data to those who would misinterpret or misstate it.
In fall of 2007, shortly after the new store’s opening, BriarPatch’s Board passed a resolution to conduct a financial audit for 2009, with an option to audit 2008 if the funds were available. This was a purely economic decision, based on the availability of funds and the priority of meeting the financial needs of the new business, including staff wage concerns. In November 2007 the Board adopted a proposed audit of the 2008 financial records to allay concerns that an audit was being postponed or denied. This was never the case, the original schedule was a product of economics and priorities.
I can assure you that in the last 18 months, thanks to the diligent work of our Finance Department staff, headed up by Finance Director Mark Warner, CPA, we have implemented modern financial systems that are appropriate for a business of our size. We have an excellent Finance Department team of four, and I have the greatest respect for the integrity of each of these hard-working employees.
Employee Satisfaction
To assess overall job satisfaction at BriarPatch, a survey was taken in January and February by Carolee Coulter, an independent consultant who came highly recommended from other co-op grocers across the country. The results of the survey, just received, showed that employee satisfaction at BriarPatch is quite high. Survey results will be published in the next newsletter and will be available to all our staff. While we are very pleased with the level of satisfaction, we will use this information to work toward even greater employee satisfaction in future years.
A Board Compensation Committee recently compared BriarPatch workers’ wages with wages at comparable jobs in our community, and with other West Coast co-ops. The committee found that BriarPatch’s wages in non-management jobs were quite competitive. On the other hand, we are a bit below when comparing managers’ wages, and we thank our hard working managers for their understanding and dedication to BriarPatch. In addition to wages, we offer a generous package of benefits, including health, dental, and vision insurance, employee discounts, paid time off and sick leave, IRA, massages, and chiropractic care.
Our Personnel Policy was updated last year, including the policy regarding termination, and it is followed carefully; employees are terminated for either misconduct or well documented work performance problems. A recent newspaper “Other Voices” letter implied that 17 workers left their jobs here in a single month. Unfortunately, the writer left out the fact that almost all of these employees left for personal plans such as returning to school, or they were experienced workers who were on a temporary basis from the start.
Our Human Resources Manager, Heather Wright, would be happy share more detailed information with owner-members.
Owner-member Participation
Your involvement in BriarPatch is important. You can be more involved in these ways:
• Shop and eat at BriarPatch (even more!).
• Bring friends here, and tell them what you love about BriarPatch.
• Give us suggestions on how we can better serve you; our suggestion box and forms are at the Customer Service window.
• Keep informed: 1. Read our newsletter and biweekly email messages (join the email list at the Customer Service window). 2. Check out our front bulletin board when you’re in the store. 3. Attend Board meetings.
• Vote in Board of Directors and other decision-making elections, or run for the Board.
• Volunteer in the store.
I believe we are all proud of this co-op, and thank you for being part of it. I like to think of this new store as a garden. We’ve worked hard to dig the garden bed, prepare the soil, and plant the seeds. We’re now ready to grow, blossom, and bear fruit. Please keep your sun shining on us, and the results will be bountiful for many seasons to come.
If you have any questions about BriarPatch operations, please feel free to call me at 272-1549 or send me an e-mail at paul@briarpatch.coop.
Sincerely,
Paul Harton
General Manager
P.S. Elections for five seats on our Board of Directors will be held from May 1 to May 15 this year. This is an important election, as the Board will be steering our co-op into the future. Please join us to come meet the candidates at our Candidate Forums in our Community Room on Wednesday, April 9 at 6:00 p.m. and Saturday, April 19 at 11:00 a.m. And please exercise your right to vote between May 1 and May 15, 2008.
I would like to post the letter from the BriarPatch Co-op General Manager, Paul Harton that was sent out to owner-members by mail in early March 2008. While I may not agree with his views entirely, I believe the letter expresses a desire to pull together as a community. It also clearly states a response by management to some of the ideas and opinions posted at friendsofbriarpatch.blog.com.
Paul Harton does not philosophically believe blogs are the best format for communication, but has given me permission to post the letter on my own behalf. Lets keep the spirit of willingness to listen and learn from others alive.
Kim Koons
February 29, 2008
Dear BriarPatch Owner-member,
Lately a lot of people have been asking me how BriarPatch is doing in our new store, and I’d like to give you, our owner-members, an update.
There’s a lot of great news:
• In the nine months since moving, we’ve heard an outpouring of enthusiasm for the new store, especially for our two new departments, the deli and Meat/Poultry/Seafood Department.
• Since the new store opening we’ve welcomed 1,000 new and renewing owner-member households — growing from 2,500 to 3,500 active owner-member households.
• Our sales have doubled from those in the old store. More people buying more organic and natural foods means less chemical pesticides used, which is better for people, animals, and the environment.
• We received the Grass Valley/Nevada County Chamber of Commerce 2007 Business of the Year Award.
• In our new store we employ twice the number of people with jobs that provide fair wages, health insurance, a generous vacation and sick leave program, discounts on purchases, options for dental and vision insurance, and more.
• We’ve provided, with our Community Room, a very low-cost meeting and class space for over 25 different local organizations, including ten groups that hold their regular monthly meetings here.
• We recently donated a $750 prize we received from the National Cooperative Grocers Association, for coupon redemption, to the Food Bank of Nevada County, and will be donating a $250 prize to Interfaith Food Ministry.
• We’re working with the local chapter of the California Native Plant Society to establish a native plant demonstration garden in and around our stormwater retention basin. Planting has begun, and work will continue through the winter and spring.
• We’re awaiting — and fully expected to receive —U.S. Green Building Council LEED (Leadership in Energy and Environmental Design) green building certification.
As you can see, our new store has already had some great results for our owner-members and for the entire community.
Financial Situation
How is the store doing financially so far? Pretty much as we expected and budgeted for. The cost of the new store/expansion was incredibly close to the original forecast by our cooperative consultants, only 1.75% over budget. This result is excellent, and somewhat unheard of in construction. It can be attributed to the professionalism of our contractor, Tru-Line Builders, architect Jeff Gold, and the good communication we established with these local professionals.
Also as projected and planned for by our Board and management, we operated at a loss for 2007, which is commonplace for a business opening a new store, paying for the expansion, and growing its customer base all at the same time. Our sales so far are 20% higher than our original projections — good news. Our expenses are also higher than expected, however; in particular our costs for utilities and upkeep, employee health insurance, and employee discounts. To reach profitability, we are working to cut expenses and increase sales. We’ve increased the efficiency and profitability of our meat and deli departments, are refining staff needs, and expanding our catering. We need to increase our sales by just 4% to be cash positive. The management is very focused on financial conditions, and we expect to see a transition to a positive cash flow this spring.
You can help in at least two ways:
1. Shop at BriarPatch a bit more. If each of us buys just a few more groceries here each week, it will make a big difference.
2. Tell your friends about BriarPatch, or even better, bring them in for lunch or dinner and introduce them to the store. We are offering a great new incentive for people to join the co-op: new members receive our 2008 “New Member Savings” coupons for 14 different FREE natural and organic products, worth a total of up to $50. If you’re with your friend when they join, you also get a coupon savings book. There’s no limit to the number of free items you can get while coupon books last.
I’d also like to take this opportunity to address some concerns that have been raised.
Adjusting to Change
Our new expanded store is, needless to say, very different from the old store. It’s not as easy for employees to get to know all of their co-workers, let alone the many new shoppers attracted to this spacious, beautiful store. Some feel nostalgic for the old store, despite the space restrictions we experienced there. This is understandable. I ask everyone to move forward with BriarPatch and to bring their good energy to making this bigger store a better store.
Prices
We want you to know that BriarPatch did not change our pricing structure when we moved to the new store. Any price increases that have been made are due to higher costs from our suppliers. There are various reasons for increases, but a major one is the higher price of gas. Our pricing is very straightforward, based on our product costs. In the surveys we’ve taken, we find that BriarPatch’s prices are lower overall than nearly all of the other local grocery stores surveyed, for the same products.
It’s true that our newer, larger space allows us to carry more products that customers have requested and some of these are “gourmet” and more expensive. At the same time, we have instituted a Basic Buy Program and will continue to refine it to make BriarPatch affordable to all members of the community. We invite you to pick up a copy of our new handout on “8 Ways to Save at BriarPatch” the next time you’re in the store (or see these tips at www.briarpatch.coop).
Financial Information
Our cooperative business is open in conveying financial information to the Board of Directors and to our owner-members, in ways that would not be allowed in any other private business. BriarPatch’s finances are, and have been for many years, reviewed monthly by a Finance Committee consisting of managers and Board representatives. A finance report is on the agenda at monthly Board meetings. Finance statements are included in our newsletter. Additional financial information may be inspected by Board Directors upon request, and Directors have been given all the financial information they’ve requested to date. For privacy and security reasons, personnel and owner-member personal information (such as social security numbers, addresses, and phone numbers), is obviously kept secure, which means that Directors and others are given printed financial data rather than unlimited on-line access. Any other policy would create legal liability. There has never been a case of any financial records being withheld from any of the Directors, owner-members, or staff. If anything, through the openness of our policies we run the risk of providing access to our finances to our competitors, or data to those who would misinterpret or misstate it.
In fall of 2007, shortly after the new store’s opening, BriarPatch’s Board passed a resolution to conduct a financial audit for 2009, with an option to audit 2008 if the funds were available. This was a purely economic decision, based on the availability of funds and the priority of meeting the financial needs of the new business, including staff wage concerns. In November 2007 the Board adopted a proposed audit of the 2008 financial records to allay concerns that an audit was being postponed or denied. This was never the case, the original schedule was a product of economics and priorities.
I can assure you that in the last 18 months, thanks to the diligent work of our Finance Department staff, headed up by Finance Director Mark Warner, CPA, we have implemented modern financial systems that are appropriate for a business of our size. We have an excellent Finance Department team of four, and I have the greatest respect for the integrity of each of these hard-working employees.
Employee Satisfaction
To assess overall job satisfaction at BriarPatch, a survey was taken in January and February by Carolee Coulter, an independent consultant who came highly recommended from other co-op grocers across the country. The results of the survey, just received, showed that employee satisfaction at BriarPatch is quite high. Survey results will be published in the next newsletter and will be available to all our staff. While we are very pleased with the level of satisfaction, we will use this information to work toward even greater employee satisfaction in future years.
A Board Compensation Committee recently compared BriarPatch workers’ wages with wages at comparable jobs in our community, and with other West Coast co-ops. The committee found that BriarPatch’s wages in non-management jobs were quite competitive. On the other hand, we are a bit below when comparing managers’ wages, and we thank our hard working managers for their understanding and dedication to BriarPatch. In addition to wages, we offer a generous package of benefits, including health, dental, and vision insurance, employee discounts, paid time off and sick leave, IRA, massages, and chiropractic care.
Our Personnel Policy was updated last year, including the policy regarding termination, and it is followed carefully; employees are terminated for either misconduct or well documented work performance problems. A recent newspaper “Other Voices” letter implied that 17 workers left their jobs here in a single month. Unfortunately, the writer left out the fact that almost all of these employees left for personal plans such as returning to school, or they were experienced workers who were on a temporary basis from the start.
Our Human Resources Manager, Heather Wright, would be happy share more detailed information with owner-members.
Owner-member Participation
Your involvement in BriarPatch is important. You can be more involved in these ways:
• Shop and eat at BriarPatch (even more!).
• Bring friends here, and tell them what you love about BriarPatch.
• Give us suggestions on how we can better serve you; our suggestion box and forms are at the Customer Service window.
• Keep informed: 1. Read our newsletter and biweekly email messages (join the email list at the Customer Service window). 2. Check out our front bulletin board when you’re in the store. 3. Attend Board meetings.
• Vote in Board of Directors and other decision-making elections, or run for the Board.
• Volunteer in the store.
I believe we are all proud of this co-op, and thank you for being part of it. I like to think of this new store as a garden. We’ve worked hard to dig the garden bed, prepare the soil, and plant the seeds. We’re now ready to grow, blossom, and bear fruit. Please keep your sun shining on us, and the results will be bountiful for many seasons to come.
If you have any questions about BriarPatch operations, please feel free to call me at 272-1549 or send me an e-mail at paul@briarpatch.coop.
Sincerely,
Paul Harton
General Manager
P.S. Elections for five seats on our Board of Directors will be held from May 1 to May 15 this year. This is an important election, as the Board will be steering our co-op into the future. Please join us to come meet the candidates at our Candidate Forums in our Community Room on Wednesday, April 9 at 6:00 p.m. and Saturday, April 19 at 11:00 a.m. And please exercise your right to vote between May 1 and May 15, 2008.
Saturday, March 15, 2008
Where have all our buddies gone?
Where have all our buddies gone?
Many people discuss the issues of financial stability of the Briarpatch: will it outlive the doom of impending national economic disaster, can it pay off its huge debt, etc.? Perhaps the deeper core issue the loss of many of the old customer base that sustained the Briarpatch’s success for 34 years. No one expected a mass exodus of the regular folks previously considered the mainstays of our favorite local co-op. The anticipation of plenty of parking, wider aisles and more stuff to buy was positive and high, the opening party in June looked like an indication of success and so many people praised the benefits of a new deli. What happened? Why are owner-members, even a few Briarpatch founders, shopping at the Sierra College Drive store less or not at all?
When I ask friends what keeps them away from the new green organic paradise, answers fall into specific categories:
- The prices are too high
- Authoritarian management practices as well as a resentment of that misplaced guy from Safeway, of all places.
- Too many of our staff friends have been fired and we hear many stories of harassment by management.The new store location is too far away now .A sense that we don’t belong there anymore.
- Theories of “ethnic purging”, yuppification, the image is too corporate, the social experience of shopping at the Briarpatch has disappeared.
- Theories of corporate takeovers including rumors of Whole Foods buying us out soon
- Just plain dissatisfaction with the newness of it all. Remember those wonderful aromas of those smaller health food stores, many of which are still functioning: Corners of the Mouth in Mendocino, Tahoe Natural Foods at the Y, Natural Selections and even the Joerschke store?
- Too much stuff from China, GMO’s, water from Finland. A few members are offended by the fancier products on the shelves.
I still buy groceries at the Briarpatch. I like the new ambiance. The river running along the concrete floor is pleasant and I enjoy the larger selection of goodies. But, I shop at the BP less often because of the lack of cooperative management practices. I feel sad that Anje and Scot no longer brighten up the day with a hug or a howdy and I resent the physical assault by a manager upon an existing employee. I feel uncomfortable with the fact that he still works there knowing that, if the tables were turned, a physically violent employee would have been fired on the spot. But, I hope that my work with the Friends will bring about a change of this dictatorial style of management.
The Briarpatch is a cooperative and a democratic opportunity unlike privately owned establishments. However, few owner members vote during Board of Directors Elections. Out of over 3000 member households,generally only 160 vote each election. Those statistics are sad,indeed. If you are feeling dissatisfaction with the way things aregoing, you can change the constituents of the Board of Directors to a more owner-friendly group this May. Democracy is a participatory institution and I urge you to research the issues and ABOVE ALL, VOTE!!!
Also, we do need the Briarpatch to survive financially while we work out the kinks. I urge you to continue to shop there and to voice your praises and your concerns loudly. Also, though board meetings can be frustrating due to the lack of cross-talk, you can still exercise your cooperative democratic freedoms by speaking out at the Public Comment times. And, we are more likely to see changes become realities if we ARE the change rather than if we abandon the ship.
I have done a survey of the price issue by skulking around all 4 healthfood stores and the SPD to see if the perception of higher costing goods at the Briarpatch is accurate. Sometimes, bright and shiny stores convey a sense of expensiveness rather than the actuality of higher prices. Below, you will see that, in general, NaturalSelections wins the prize for lower prices, but not always. For those of you who feel that shopping at Grocery Outlet gives you huge savings, please check out the origins of their produce, the freshness dates of pre-packaged foods and even their management practices. Certainly, the owner of California Organics has a reputation of archaic management practices and pays employees very low wages with no question of definitely firing them “at will”.
I hope this article stimulates much discussion. I am positive we can find solutions to the above problems as the democratic cooperative that we are.
Cecilie Hooper
All products are organic except Way Yum Sushi.
L/G Brown Rice Bulk Walnuts Way Yum Sushi Smith Cabernet
BPatch $1.34/lb $10.05/lb $5.75/5 oz. any type $15.39
Cal Org $1.59/lb $--- $ ---- $13.99
SPD $--- ----- $5 / 5 oz. any type $14.99
Nat. Vly $1.34 $10.38 $5 / 5 oz, any type -------
Nat. Sel $1.29 $9.45 $5 non-fish, $12.55 $5.50 w/ fish
Green Forest T/P Tomatoes Bananas
BP $1.49 on sale $2.79 / lb $.99C/Org $ ----- $1.89 $.89
SPD $1.79 not on sale $3.39 $.99
Nat Va $ --- $3.21 $.99
Nat Sel $1.69 “ $2.45 $1.05
Many people discuss the issues of financial stability of the Briarpatch: will it outlive the doom of impending national economic disaster, can it pay off its huge debt, etc.? Perhaps the deeper core issue the loss of many of the old customer base that sustained the Briarpatch’s success for 34 years. No one expected a mass exodus of the regular folks previously considered the mainstays of our favorite local co-op. The anticipation of plenty of parking, wider aisles and more stuff to buy was positive and high, the opening party in June looked like an indication of success and so many people praised the benefits of a new deli. What happened? Why are owner-members, even a few Briarpatch founders, shopping at the Sierra College Drive store less or not at all?
When I ask friends what keeps them away from the new green organic paradise, answers fall into specific categories:
- The prices are too high
- Authoritarian management practices as well as a resentment of that misplaced guy from Safeway, of all places.
- Too many of our staff friends have been fired and we hear many stories of harassment by management.The new store location is too far away now .A sense that we don’t belong there anymore.
- Theories of “ethnic purging”, yuppification, the image is too corporate, the social experience of shopping at the Briarpatch has disappeared.
- Theories of corporate takeovers including rumors of Whole Foods buying us out soon
- Just plain dissatisfaction with the newness of it all. Remember those wonderful aromas of those smaller health food stores, many of which are still functioning: Corners of the Mouth in Mendocino, Tahoe Natural Foods at the Y, Natural Selections and even the Joerschke store?
- Too much stuff from China, GMO’s, water from Finland. A few members are offended by the fancier products on the shelves.
I still buy groceries at the Briarpatch. I like the new ambiance. The river running along the concrete floor is pleasant and I enjoy the larger selection of goodies. But, I shop at the BP less often because of the lack of cooperative management practices. I feel sad that Anje and Scot no longer brighten up the day with a hug or a howdy and I resent the physical assault by a manager upon an existing employee. I feel uncomfortable with the fact that he still works there knowing that, if the tables were turned, a physically violent employee would have been fired on the spot. But, I hope that my work with the Friends will bring about a change of this dictatorial style of management.
The Briarpatch is a cooperative and a democratic opportunity unlike privately owned establishments. However, few owner members vote during Board of Directors Elections. Out of over 3000 member households,generally only 160 vote each election. Those statistics are sad,indeed. If you are feeling dissatisfaction with the way things aregoing, you can change the constituents of the Board of Directors to a more owner-friendly group this May. Democracy is a participatory institution and I urge you to research the issues and ABOVE ALL, VOTE!!!
Also, we do need the Briarpatch to survive financially while we work out the kinks. I urge you to continue to shop there and to voice your praises and your concerns loudly. Also, though board meetings can be frustrating due to the lack of cross-talk, you can still exercise your cooperative democratic freedoms by speaking out at the Public Comment times. And, we are more likely to see changes become realities if we ARE the change rather than if we abandon the ship.
I have done a survey of the price issue by skulking around all 4 healthfood stores and the SPD to see if the perception of higher costing goods at the Briarpatch is accurate. Sometimes, bright and shiny stores convey a sense of expensiveness rather than the actuality of higher prices. Below, you will see that, in general, NaturalSelections wins the prize for lower prices, but not always. For those of you who feel that shopping at Grocery Outlet gives you huge savings, please check out the origins of their produce, the freshness dates of pre-packaged foods and even their management practices. Certainly, the owner of California Organics has a reputation of archaic management practices and pays employees very low wages with no question of definitely firing them “at will”.
I hope this article stimulates much discussion. I am positive we can find solutions to the above problems as the democratic cooperative that we are.
Cecilie Hooper
All products are organic except Way Yum Sushi.
L/G Brown Rice Bulk Walnuts Way Yum Sushi Smith Cabernet
BPatch $1.34/lb $10.05/lb $5.75/5 oz. any type $15.39
Cal Org $1.59/lb $--- $ ---- $13.99
SPD $--- ----- $5 / 5 oz. any type $14.99
Nat. Vly $1.34 $10.38 $5 / 5 oz, any type -------
Nat. Sel $1.29 $9.45 $5 non-fish, $12.55 $5.50 w/ fish
Green Forest T/P Tomatoes Bananas
BP $1.49 on sale $2.79 / lb $.99C/Org $ ----- $1.89 $.89
SPD $1.79 not on sale $3.39 $.99
Nat Va $ --- $3.21 $.99
Nat Sel $1.69 “ $2.45 $1.05
Tuesday, March 11, 2008
Suggestions for Making the BriarPatch more Profitable
A really good idea could begin right here in this blog. Really good ideas always begin as something silly and out of touch because they break the pattern. They often come from a voice that is usually silent in an environment of listening and respect. Then another voice will build on that idea, and then another, each making it larger and wiser. Do your part and speak your thoughts and contribute to other thoughts and really great ideas will move into reality.
You are invited to come to Google Groups, give your ideas and comment on others!
http://groups.google.com/group/friendsofbriarpatch
You are invited to come to Google Groups, give your ideas and comment on others!
http://groups.google.com/group/friendsofbriarpatch
Why am I a BriarPatch Co-op Member?, and what is my vision for the co-op?
I hope every person reading this blog will write a comment. Without including everyone's vision the Briarpatch is only a store yet by including all of you it will become a truly great place where we can learn and grow and find community and that's what it's really all about.
You are invited to come to Google Groups, give your ideas and comment on others! http://groups.google.com/group/friendsofbriarpatch
You are invited to come to Google Groups, give your ideas and comment on others! http://groups.google.com/group/friendsofbriarpatch
Thursday, February 28, 2008
Briar Patch Update 2/26/2008
The Board of Directors had their regular meeting Monday night, 2/25/06. The tone of the meeting was definitely more cooperative and civil than one month ago. Unfortunately, it appears that the Jaffee Report is never going to see the light of day from this Board. And, it appears that Briar Patch still has essentially adopted a “circle our wagons approach,” and presumes that admitting that there is a crisis over board squabbling and financial issues will cause harm to Briar Patch, rather than adopting a stance that reaching out to the general Briar Patch community and owning their problems and asking for help would be a more positive way to go.
Paul Harten, the Manager, delivered am updated Finance Report, instead of the Finance Manager, Mark Warner. The biggest revelation is that Paul said that there was an error in their previous Finance Report of October/November 2007 when they stated that the net loss for the year was anticipated to be $500,000. At the meeting he stated that the projected operating loss should have read $804,000, and that the actual operating loss for 2007 was between $827,000 and $877,000. One has to wonder why neither the Financial Manager, the General Manager, or any Broad or Finance Committee member did not pick up this error for several months!
Interestingly enough, the capital expenditures were 3.25 Million Dollars in 2007 on a building that Briar Patch does not own, and further has not turned out to be “Green” in terms of utility costs. “The building will be extremely energy efficient....” according to Paul Harten back in October/November of 2006. Yet, now we are told by the Finance Director that, “the utilities and related upkeep costs on the new facility have been almost $10,000 per month higher than estimated.”
While Briar Patch keeps stating that sales need only go up a little more (Paul stated that the break even point for Briar Patch is 1.1Million Dollars of sales per month). Reality is that sales have averaged 1 Million Dollars per month between July 1, 2007 through December 31, 2007. Yet, the losses during that period of time were approximately $482,000. Paul did state that they have cut labor costs by about $1,000 per week, which would be $4,300 a month, or 2/10ths of one percent of their apparent $220,000 a month average in labor costs.
When queried of what the contingency plan of action was in the event that sales do not turn around and that the general economic downturn effects sales, what I saw was a blank look on Paul’s face.
My observation is that BP has a closed system currently. The newsletter is filled with recipes for cooking rather than recipes for change and innovation. Instead of inviting comments and suggestions, the newsletter and public statements are very one-sided, all is ok, these losses were projected, and to voice questions in public, is seen as attacks against the institution. In short, BP is not conducting itself in a democratic manner.
In response, with the help of Anna Haynes, Michael Brackney and Greg Zaller, a website/blog, called friendsofbriarpatch.org, has been set up. Your General Manager and Finance Manager have been expressly invited to correct any misinformation, or get out their point of view. To date neither has availed themselves of that opportunity. Hopefully this website will develop into a forum for free and open discussion of the issues facing BP. Comments will only be monitored for civility, and towards that end, persons posting comments will be asked to sign their names. Exceptions will be made for employees who fear possible retaliation.
Another possible use will be to use it as a forum for persons running for the upcoming election, who can post a “position paper” or “platform,” and then members can post comments to that, pose questions to the candidates, etc.. In short, create a truly democratic, uncensored and open dialogue. And maybe someday, BP’s own website can be transformed into an open forum. I hope for that.
Paul Harten, the Manager, delivered am updated Finance Report, instead of the Finance Manager, Mark Warner. The biggest revelation is that Paul said that there was an error in their previous Finance Report of October/November 2007 when they stated that the net loss for the year was anticipated to be $500,000. At the meeting he stated that the projected operating loss should have read $804,000, and that the actual operating loss for 2007 was between $827,000 and $877,000. One has to wonder why neither the Financial Manager, the General Manager, or any Broad or Finance Committee member did not pick up this error for several months!
Interestingly enough, the capital expenditures were 3.25 Million Dollars in 2007 on a building that Briar Patch does not own, and further has not turned out to be “Green” in terms of utility costs. “The building will be extremely energy efficient....” according to Paul Harten back in October/November of 2006. Yet, now we are told by the Finance Director that, “the utilities and related upkeep costs on the new facility have been almost $10,000 per month higher than estimated.”
While Briar Patch keeps stating that sales need only go up a little more (Paul stated that the break even point for Briar Patch is 1.1Million Dollars of sales per month). Reality is that sales have averaged 1 Million Dollars per month between July 1, 2007 through December 31, 2007. Yet, the losses during that period of time were approximately $482,000. Paul did state that they have cut labor costs by about $1,000 per week, which would be $4,300 a month, or 2/10ths of one percent of their apparent $220,000 a month average in labor costs.
When queried of what the contingency plan of action was in the event that sales do not turn around and that the general economic downturn effects sales, what I saw was a blank look on Paul’s face.
My observation is that BP has a closed system currently. The newsletter is filled with recipes for cooking rather than recipes for change and innovation. Instead of inviting comments and suggestions, the newsletter and public statements are very one-sided, all is ok, these losses were projected, and to voice questions in public, is seen as attacks against the institution. In short, BP is not conducting itself in a democratic manner.
In response, with the help of Anna Haynes, Michael Brackney and Greg Zaller, a website/blog, called friendsofbriarpatch.org, has been set up. Your General Manager and Finance Manager have been expressly invited to correct any misinformation, or get out their point of view. To date neither has availed themselves of that opportunity. Hopefully this website will develop into a forum for free and open discussion of the issues facing BP. Comments will only be monitored for civility, and towards that end, persons posting comments will be asked to sign their names. Exceptions will be made for employees who fear possible retaliation.
Another possible use will be to use it as a forum for persons running for the upcoming election, who can post a “position paper” or “platform,” and then members can post comments to that, pose questions to the candidates, etc.. In short, create a truly democratic, uncensored and open dialogue. And maybe someday, BP’s own website can be transformed into an open forum. I hope for that.
Tuesday, February 26, 2008
Elk Grove Case Study
FYI: Lessons from the recent failure of a coop in Elk Grove, Sacramento -
http://www.cooperativegrocer.coop/articles/index.php?id=769
http://www.cooperativegrocer.coop/articles/index.php?id=769
Tuesday, February 19, 2008
letter to editor from Ken Odom and Richard Burton
This is a letter to the Union submitted shortly after the Bd meeting which has not been published.
The Board of Directors of Briar Patch held a standing room only, overflow crowd meeting on Monday, January 28th. They went through a dozen or so committee reports, and spent over 4 hours in bickering between the majority on the Board and its two minority members. Their general and finance managers attended and spoke at length. Not one of them mentioned the elephant in the living room. The Briar Patch is hemorrhaging at the rate of $25,000 to $70,000 per month, having lost over $760,000 in the ten months since their move. Neither the Board, nor its managers, has a plan that they discussed publicly.
Clearly the Board is wracked by dissension and an inability to grapple with this crisis, at least at this meeting. The majority is refusing to release to the members (who ultimately pay for everything) a report prepared by an outside consultant, Paul Jaffe, as to the dynamics on the Board, and making suggestions and comments as to what needs to be done to start to heal this dysfunction. The majority's excuse to bar release is that the report contains inaccuracies and some misquotes. There is not a report ever submitted to court, or a newspaper article that would ever see the light of day under that claim. Trust us, the report appears fair, thorough and balanced, and does not paint any Board member as a saint. This coupled with the refusal of the majority of the Board to authorize full access to the financial reports, or a current audit, to the minority Board members, has left many in the community untrusting of this Board. The Board must be willing to look at itself and work to look at what is not working and look to the community for help on fixing the problems. This is what a CO-OP is all about.
There must be a clear picture presented to all Board members, employees, shareholders and the public as to the true financial conditions of Briar Patch. There must be a return to the founding principles of openness and honesty in all of its dealings that have allowed Briar Patch to grow into the organization it is today. Briar Patch has to return to the sound financial and ethical standards upon which it was founded. We cannot allow it to continue to hemorrhage like this.
All avenues must be explored to reduce costs and increase sales. We need to come together with a plan to reduce the deficit that the store is currently running. The Briar Patch Board must work with all parties if the store is to be sustainable.
The Board must seek help from employees, the community, and management to help in that effort to foster team work and put the Briar Patch back on the right path.
There must be immediate action in order to save this unique asset to the community, which began with $500.00 total pledged by five people in 1980. The vision was to make available healthy food at low cost to people in the community who were encouraged to devote volunteer labor to the endeavor in exchange for a 15% discount on the food.
One immediate step that the Board of Briar Patch needs to take is to spread the word to the members that the CO-OP is actively encouraging volunteers.
We feel that the Board needs to call on the Briar Patch community to actively engage in re-examining the founders' goals of providing affordable, healthy food to the community, encouraging volunteers, and be a voice in the community promoting locally grown where possible, and sustainable food, and a place which makes itself a focal point for community.
Richard Burton (265-8888) and Ken Odom (743-3605)
(Richard was a long-time volunteer attorney for Briar Patch, and Ken Odom is a Financial Broker by trade)
The Board of Directors of Briar Patch held a standing room only, overflow crowd meeting on Monday, January 28th. They went through a dozen or so committee reports, and spent over 4 hours in bickering between the majority on the Board and its two minority members. Their general and finance managers attended and spoke at length. Not one of them mentioned the elephant in the living room. The Briar Patch is hemorrhaging at the rate of $25,000 to $70,000 per month, having lost over $760,000 in the ten months since their move. Neither the Board, nor its managers, has a plan that they discussed publicly.
Clearly the Board is wracked by dissension and an inability to grapple with this crisis, at least at this meeting. The majority is refusing to release to the members (who ultimately pay for everything) a report prepared by an outside consultant, Paul Jaffe, as to the dynamics on the Board, and making suggestions and comments as to what needs to be done to start to heal this dysfunction. The majority's excuse to bar release is that the report contains inaccuracies and some misquotes. There is not a report ever submitted to court, or a newspaper article that would ever see the light of day under that claim. Trust us, the report appears fair, thorough and balanced, and does not paint any Board member as a saint. This coupled with the refusal of the majority of the Board to authorize full access to the financial reports, or a current audit, to the minority Board members, has left many in the community untrusting of this Board. The Board must be willing to look at itself and work to look at what is not working and look to the community for help on fixing the problems. This is what a CO-OP is all about.
There must be a clear picture presented to all Board members, employees, shareholders and the public as to the true financial conditions of Briar Patch. There must be a return to the founding principles of openness and honesty in all of its dealings that have allowed Briar Patch to grow into the organization it is today. Briar Patch has to return to the sound financial and ethical standards upon which it was founded. We cannot allow it to continue to hemorrhage like this.
All avenues must be explored to reduce costs and increase sales. We need to come together with a plan to reduce the deficit that the store is currently running. The Briar Patch Board must work with all parties if the store is to be sustainable.
The Board must seek help from employees, the community, and management to help in that effort to foster team work and put the Briar Patch back on the right path.
There must be immediate action in order to save this unique asset to the community, which began with $500.00 total pledged by five people in 1980. The vision was to make available healthy food at low cost to people in the community who were encouraged to devote volunteer labor to the endeavor in exchange for a 15% discount on the food.
One immediate step that the Board of Briar Patch needs to take is to spread the word to the members that the CO-OP is actively encouraging volunteers.
We feel that the Board needs to call on the Briar Patch community to actively engage in re-examining the founders' goals of providing affordable, healthy food to the community, encouraging volunteers, and be a voice in the community promoting locally grown where possible, and sustainable food, and a place which makes itself a focal point for community.
Richard Burton (265-8888) and Ken Odom (743-3605)
(Richard was a long-time volunteer attorney for Briar Patch, and Ken Odom is a Financial Broker by trade)
Monday, February 18, 2008
Briar Patch Finances
(This is the personal opinion of Richard C Burton)
Here's what we know based upon reviewing BP's published records for 2007-08,and interviews with persons knowledgeable with their former finances; BP has lost $850,000+ in 2007, and we are being told by their financial manager that such losses were anticipated ,so don't worry. Yet in their Oct/Nov 07 publication BP projected a loss for the year of $500,000! BP appears to blame the loss on not enough sales, and claims a 2% drop may have been due to negative publicity in the press.They had lost $345,000 in the first 6 months of 2007, so in reality the loss is getting more and can not be attributed to start up costs!
At the Brunswick store, under the tutelage of the then finance manager Warren Zimmerman, they had been able to turn around a situation where they were originally so far behind in bills(aprox $100,000) that Mountain People's Warehouse was insisting on cash, plus $1000 per order.Thanks to a loan from Michael Funk, that was resolved, and over the years BP-Brunswick started earing $100,000 per year, and prior to the move had amassed nearly $1,000,000 in savings! BP now is nearly $4,000,000 in debt, its losing money at the rate of between $25,000-$70,000 per month, and it is clearly no longer significantly cheaper than any other health food store. It has gone from a small,easily accessible grocery store, to a large combination grocery/restaurant store, in a location not handy for many. Many people have noticed how the deli appears to be overstaffed , especially in the evenings, and full time employees now have health, dental, and vision coverage, plus massage and chiropractic! In addition, employees get 15% off regular purchases, and 30% off deli food .
The markup on most food items at the old store was approximately 38%, and the cost of labor was kept to between 21-22%. Their current financial manager claims that the markup has not changed, and from their published financial data the cost of labor is now between 26-28%.(a 25% increase).Given the current high cost of food at BP(which often is as much or more than Calif Organics) its hard to believe that the markup has not changed, or that the buyers are not being very innovative in light of a changed market. At Brunswick, competition in the health food arena was much lighter. Now Raley's and Safeway have their own house brands of organic foods, and SPD too has a good selection of organic foods at competitive prices.
BP has moved away from low-medium cost healthy foods to the higher end-witness steak and ahi tuna being featured at BP recently for $16-$20 per pound! And the deli/restaurant....a notoriously risky business, one which BP knew nothing about, is undoubedly contributing to the financial problems, although BP cleverly doesn't break out the losses by department. It is a high end food bar, with potentially the ability to have losses due to spoilage, etc- and one wonders how they can break even giving employees a 30% discount, unless it is carefully monitored so as to sell off food before it spoils.
Another concern; how can BP be experiencing utility costs of $10,000 more per month than anticipated, when this was built as a "green store". Apparently the heating/air is not functioning properly, some sensors aren't working properly, and apparently BP is not insisting that the original contractor/manufacturer fix the problem, but has instead, disconnected part of the system, and has turned to another contractor. What?! Why the heck would they not insist that the original installer/contractor, or the manufacturer fix the problem right??
As a starting point, BP needs to totally open up their books to their fellow board members, without restriction. Secondly, their finance manage needs to report directly to the Board, and not to their general manager. Thirdly, they immediately need to bring in an outside consultant savvy of running a deli/grocery combo,and give that person walking orders that nothing is sacrosanct, and get beyond their bickering to getting on top of a floundering ship!
My personal opinion,not necessarily that of others. Richard C Burton
Here's what we know based upon reviewing BP's published records for 2007-08,and interviews with persons knowledgeable with their former finances; BP has lost $850,000+ in 2007, and we are being told by their financial manager that such losses were anticipated ,so don't worry. Yet in their Oct/Nov 07 publication BP projected a loss for the year of $500,000! BP appears to blame the loss on not enough sales, and claims a 2% drop may have been due to negative publicity in the press.They had lost $345,000 in the first 6 months of 2007, so in reality the loss is getting more and can not be attributed to start up costs!
At the Brunswick store, under the tutelage of the then finance manager Warren Zimmerman, they had been able to turn around a situation where they were originally so far behind in bills(aprox $100,000) that Mountain People's Warehouse was insisting on cash, plus $1000 per order.Thanks to a loan from Michael Funk, that was resolved, and over the years BP-Brunswick started earing $100,000 per year, and prior to the move had amassed nearly $1,000,000 in savings! BP now is nearly $4,000,000 in debt, its losing money at the rate of between $25,000-$70,000 per month, and it is clearly no longer significantly cheaper than any other health food store. It has gone from a small,easily accessible grocery store, to a large combination grocery/restaurant store, in a location not handy for many. Many people have noticed how the deli appears to be overstaffed , especially in the evenings, and full time employees now have health, dental, and vision coverage, plus massage and chiropractic! In addition, employees get 15% off regular purchases, and 30% off deli food .
The markup on most food items at the old store was approximately 38%, and the cost of labor was kept to between 21-22%. Their current financial manager claims that the markup has not changed, and from their published financial data the cost of labor is now between 26-28%.(a 25% increase).Given the current high cost of food at BP(which often is as much or more than Calif Organics) its hard to believe that the markup has not changed, or that the buyers are not being very innovative in light of a changed market. At Brunswick, competition in the health food arena was much lighter. Now Raley's and Safeway have their own house brands of organic foods, and SPD too has a good selection of organic foods at competitive prices.
BP has moved away from low-medium cost healthy foods to the higher end-witness steak and ahi tuna being featured at BP recently for $16-$20 per pound! And the deli/restaurant....a notoriously risky business, one which BP knew nothing about, is undoubedly contributing to the financial problems, although BP cleverly doesn't break out the losses by department. It is a high end food bar, with potentially the ability to have losses due to spoilage, etc- and one wonders how they can break even giving employees a 30% discount, unless it is carefully monitored so as to sell off food before it spoils.
Another concern; how can BP be experiencing utility costs of $10,000 more per month than anticipated, when this was built as a "green store". Apparently the heating/air is not functioning properly, some sensors aren't working properly, and apparently BP is not insisting that the original contractor/manufacturer fix the problem, but has instead, disconnected part of the system, and has turned to another contractor. What?! Why the heck would they not insist that the original installer/contractor, or the manufacturer fix the problem right??
As a starting point, BP needs to totally open up their books to their fellow board members, without restriction. Secondly, their finance manage needs to report directly to the Board, and not to their general manager. Thirdly, they immediately need to bring in an outside consultant savvy of running a deli/grocery combo,and give that person walking orders that nothing is sacrosanct, and get beyond their bickering to getting on top of a floundering ship!
My personal opinion,not necessarily that of others. Richard C Burton
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