smok signflz
DECEMBER 1, 2019
9
Weekly farmer’s market idea being circulated
GRAND RONDE continued
from page 8
with our housing, cut risks as much
as possible and see what you can do
as a solution in the meantime. Find
out what is reasonable now and in
the long term. Population is what
drives development.”
This opinion is shared by the
Housing Department officials as
well, who told Smoke Signals in a
previous interview that the com-
munity had everything it needs in
the way of basic services except a
grocery store, and that maybe when
enough housing units are built and
filled it would be something that
the Tribe could support fully.
Another possibility would be to
site a smaller store that caters to
rural areas, such as IGA. Current-
ly, the nearest one is 10 miles away
in Willamina, which is a 15-minute
drive or nearly 30-minute bus ride
from Grand Ronde.
Unlike the chain store business
model, IGA operates as a franchise
through stores that are owned sep-
arately from the brand.
Many of these stores operate in
small-town markets and belong to
families who manage them. There
are more than 1,100 IGA grocery
stores in the United States.
West Coast Area Director Doug
Walter says one of the first things
he does when potential store own-
ers reach out to him is see where
the closest supplier to the store
is located. Currently, the nearest
supplier to Grand Ronde would be
located in Portland, but that site
is expected to close soon, making
Centralia, Wash., the next closest
location.
“The thing to look at next is do-
ing a site survey to determine its
viability,” Walter says. “Sometimes
there are a lot of tax breaks that
are available, so it can be a great
opportunity.”
Convenience store options
Besides having a potential expan-
sion of Grand Ronde Station, other
ideas that have been circulated
include a weekly farmer’s market
and having local convenience stores
stock fresh fruits and vegetables,
along with other grocery basics like
milk and eggs.
A recent survey of available fresh
items revealed that American Mar-
ket, American Market 2 and Grand
Ronde Station all carry items that
one would not typically expect to
see in a convenience store. Howev-
er, one store employee noted that
the fresh items “don’t move very
fast.” This could be due to those
Photos by Timothy J. Gonzalez
Grand Ronde Station tries to help out local shoppers by offering a selection
of produce, milk, bread, dairy products.
How much does it cost to start a
grocery store in a small town?
• Registering the business – $750.
• Legal expenses for obtaining licenses, permits and accounting services
(software, POS machines) – $3,300.
• Marketing expenses for grand opening – $3,580.
• Hiring a business consultant – $2,500.
• Insurance (general liability, worker’s compensation and property/casu-
alty) coverage at a total annual premium – $2,400.
• Rent for 12 months (Based on $1.76 per square foot in the total amount
of $105,600).
• Store remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses (stationery, phone and utility deposits) – $2,500.
• Operational cost for first three months (employee salaries, bills, etc.)
– $60,000.
• Cost for start-up inventory (stocking with a wide range of groceries from
different brands) – $100,000.
• Storage hardware (bins, rack, shelves, food case) – $3,720.
• Counter area equipment (counter top, sink, ice machine, etc.) – $9,500.
• Store equipment (cash register, security, ventilation, signage) – $13,750.
• Purchase/installation of security cameras -- $10,000.
• Furniture and other hardware (computers, printers, phone, TVs, sound
system, tables, chairs) – $4,000.
• Website creation – $600.
• Grand opening party – $2,000.
• Miscellaneous: $5,000.
Total average cost: $349,200.
These numbers are for a medium-scale but
standard single grocery store.
Source: www.provitableventure.com
items being less affordable than at
a grocery store.
American Market, located at the
intersection of Highway 18 and
Grand Ronde Road, offers milk,
eggs, butter, cheese, yogurt, sour
cream, lunch meat, potato salad,
limes, mushrooms, tomatoes, po-
tatoes, garlic, onions, carrots and
lettuce.
American Market 2, a half-mile
west on Highway 18, has cottage
cheese, yogurt, milk, eggs, ba-
con, frozen corn,
shredded cheese,
lunch meat and
butter.
Grand Ronde
Station sells ba-
nanas, cheese,
lunch meat,
cream cheese,
bread, milk,
eggs, butter and prepared salads,
along with a selection of healthy
snacks.
Not surprisingly, a majority of
the items are higher priced than in
grocery stores.
During the 2017 survey, respon-
dents indicated that they would
shop locally if more options were
available at prices that were com-
petitive with stores such as Wal-
Mart and WinCo. In a Marion-Polk
Food Share hunger study, many
clients indicated that they lacked
regular access to a car and either
carpool to get groceries or rely on
local convenience stores.
Other grocery options
Grocery delivery services are on
the rise, with companies from Ama-
zon to Uber getting in on the action.
Some say grocery delivery to Grand
Selections of dairy products offered for sale at The
American Market on Grand Ronde Road. The market tries
to help local shoppers by offering a selection of produce,
milk, bread, dairy products and meat.
Ronde might be an effective tempo-
rary solution until demand is high
enough to sustain a physical store.
Thomas says alternative solu-
tions, such as the Social Services
Department coordinating grocery
store transport, is another idea.
“Not everything needs to cost $1
million,” he says. “There are other
ways.”
Thomas adds that Tribal grocery
delivery services also should be
considered.
“The cost of delivery would be far
less than the Tribe having a grocery
store,” Thomas says.
George agrees that delivery ser-
vice is something that should be
researched.
“Because of its financial situa-
tion, the Tribe has the ability to be
creative,” he says. “We can look into
options now and in the long term.”
A partnership that has worked
in other rural areas is the Raley’s
Food for Families Program. Since
1986, the Sacramento-based gro-
cery store has raised more than $36
million for local food banks, which
in turn have provided more than 40
million meals to those battling hun-
ger. There are 74 Food for Families
food bank partners across central
and northern California and Neva-
da. The food banks identify what’s
most needed in their communities
and Food for Families provides
them with the items.
Julie Rollofson Teel, Food for
Families board member, says the
partnership works well because
Raley’s absorbs all the overhead
costs of the program, and uses
its wholesale purchasing power
and product donations to have a
greater effect.
“One hundred percent of every
donation goes directly toward feed-
ing the hungry,” she says. “We send
everything to the food banks direct-
ly from our store. What we found
is by doing that, we are feeding
more people this way. Not everyone
wants to go to a huge food bank or
has the ability to do so.”
Another suggestion Teel has is
establishing a food co-op.
A food co-op is a grocery store that
is owned by those who shop there.
Members decide which foods and
products will be offered, where they
are purchased from and what kinds
of quality standards the products
must meet.
Typically, co-ops also try to offer
high-quality foods at fair prices for
both customers and producers. Ac-
cording to an article in tasteofhome.
com, doing business this way helps
keep money in the community by
supporting local farmers, fishers
and other vendors, and creates jobs.
“What is great about co-ops is
that it provides jobs, creates food
literacy and typically offers cook-
ing classes and budgeting tips,”
Teel says. “It brings people in the
community together and you have a
better ‘buy in’ when those who shop
there also own it.”
She adds that lack of access to
fresh foods is something that can
happen anywhere.
“Food deserts can exist in a vari-
ety of circumstances,” she says. “It’s
up to us to help make it better.”
