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2008: Davis Food Co-op to study second store idea
The Davis Food Co-op Board of Directors has created an expansion task force to more closely examine the feasibility of the Co-op opening a second store, possibly in West Davis.
DAVIS, Calif. -- June 24, 2008 -- The Davis Food Co-op Board of Directors recently announced the formation of a task force to more closely study the possibility of opening a second store, possibly in West Davis. Davis Advocates for Neighborhood Groceries (DANG) has been urging the Co-op to consider expanding into the vacant market in the Westlake Plaza Shopping Center.
The recent Co-op elections, two DANG members, Kevin Wolfe and Russell Snyder, were elected to the Co-op Board, as first alternate and second alternate, respectively. Both campaigned on the importance of an impartial and detailed examination of the feasibility of the Davis Food Co-op operating a satellite store in West Davis.
The Co-op Board of Directors previously considered the expansion idea, but rejected it in favor of focusing on a multimillion-dollar remodel of the main Co-op store near downtown Davis. Recently, however, the board has heeded calls to re-examine the issue.
Wolfe was appointed to the Co-op expansion task force, and has already begun the process of gathering information from multiple sources to get a better picture of the economics of a West Davis market and what type of grocery store would best succeed. The area west of Highway 113 in West Davis has been without a full-service market since 2006 when the former Food Fair closed its doors. DANG has collected signatures from more than 700 Davis residents who are opposed to a proposal by the landlord of the Westlake Plaza shopping center to convert most of the former market space to offices.
DANG has also been working with the City of Davis Economic Development Department in the hopes of retaining the services of a consultant to do a market study to gain more information about the potential viability of a West Davis superparket.
DFC has not created a task force to explore a second store in West Davis!
Currently, there is no such task force, the Board made no such announcement and Kevin Wolfe has not been appointed to any such task force. Kevin submitted an agenda item to form this task force on the day of the September meeting but due to a full agenda, it was not approved to be added to the agenda. This item is currently on the agenda for the October 6th meeting.
Doreen Pichotti Davis Food Co-op Board President
DFC expansion votes
According to the minutes of the meeting, the Davis Food Co-op Board of directors, in May of 2008, unanimously approved a motion to explore another store location. The Westlake Plaza location was one of the locations that has been discussed as a possible site for a second DFC. In June of 2008, the Davis Food Co-op Board of Directors voted to extend the expansion task force authority.
As with any expansion, there is significant cost. The focus must be on what the co-op can do to rapidly ramp up revenues to cover the expansion. co-op's often look at exapansion and forget you may go from 25,000 sq. ft. to 50,000 sq. ft., your cost increases dramatically but revenue often trails until business increases - costs stair step up immediately and revenues increase incremetally on an upward sloping curve. This also requires looking at changes to the financial structure and a potential and likely need to raise additional capital from member owners and new members. A renovation like Davis is doing can make good sense and investment, it is less tramatic and may set the stage for expansion later into a second or more location.