Before the inception of an ongoing and messy lawsuit and the impending arrival of mega supermarket Whole Foods, West Toledo staple Phoenix Earth Food Cooperative knew the real cause of its current pain: road construction.
“Sylvania Avenue was totally torn down and rebuilt for three years, and it almost killed us,” said Sean Nestor, Phoenix board president. “That put us in a really tough financial spot. Now, we need to recover from that financial trouble of the past.”
No plans to fly the coop
Phoenix recognizes that it’s going to take some much needed marketing to recuperate, and as a member-owned food grocer heavily involved in the community, the co-op is banking on the increasing popularity of crowdfunding to stay afloat.
Pheonix plans to raise $5,250 for marketing and a new rewards program, especially needed during the traditionally slow months of summer. Phoenix even designed a new fundraising logo modeled after legendary punk band The Ramones, an emblem which will be prominently featured on shirts and buttons, sold through the fundraising initiative.
Too many days in court
The ongoing court battle revolves around an original loan from a past supporter and, now deceased, Toledoan. Phoenix directors contend that the note evidencing the loan was redrafted, obviating continued payments. Heirs from out-of-town disagree and have sued, and the court process is expected to take a year or two.
Nestor knows it’s extremely hard for independent grocery stores to remain viable, and having “wealthy out-of-town people suing a small business that doesn’t have a lot of money,” is a life and death issue for the now 23-year old food cooperative.
“This business has gone through some hard times, but there’s a community here who wants to support it,” Nestor said. “It’s a real interesting business model. Right now with the lawsuit, and with Whole Foods coming to town, we’re trying to let [people] know how this business works.”
The whole story
Cooperatives are actually nothing new, but they do remain rare in today’s capitalistic economy. Phoenix is a member-owned and operated business, which elects a democratically run board of directors. Members are also entitled to one vote at meetings, and topics include “the store's finances, happenings at the store, and the status of member-driven initiatives,” said Nestor.
Anyone can shop at Phoenix, but those who make a one-time $72 equity payment— $36 every year thereafter— receive a 10 percent, once-a-month discount, according to Helen Elden, assistant manager. That lifetime equity entitles members to a portion of any year-end profits.
While Whole Foods will effectively supersize what Phoenix already offers, Nestor believes that overall, the popular chain’s arrival is a positive for Northwest Ohio.
“With Whole Foods coming to town, it’s great because it makes organic foods more available,” he said. “But, the kind of people that are drawn to the co-op will come to Phoenix because it’s locally run, they can have a voice in it, and because it’s always been in Toledo. We had all those ‘Whole Foods’ options before it caught on [and became a positive trend].
Nestor also hopes that the co-op’s strong commitment to community will draw plenty of backers for Phoenix’s impending online fundraising.
“There’s this renaissance where a lot of people are taking more pride in their city, and they’re supporting local businesses. As we talk about trying to make this a lively town where people want to go to unique cultural hot spots, we do need support from the community.”
For crowdfunding efforts, visit Phoenix Earth Food Co-op at 1447 W. Sylvania Ave. 10am-6pm, daily.
419-476-3211. phoenixearthfoodco-op.com
