Self-Supporting Food Service for Those In Need

Business Acumen

Employee Retention & Staffing

Fair wages with good benefits are essential to retaining employees. Our model budgets for a 30% addition to wages to cover a robust benefits package.

Reasonable working hours are also part of living a good life. The staffing model is designed for this:

• Core Staff (2): Two main employees work a 35-hour week, with overlapping shifts during the day to cover all hours. They also work five hours on one weekend day.
• Trainee Path (2+): Trainees, funded by workforce grants, can reach part-time status and assume more responsibility, building a career path.

Competition & Training

The proposed wage and benefits package is designed to be highly competitive, attracting and retaining high-quality staff.

In summary: The wage is competitive enough to get people in the door. The benefits package is what will make the best people stay.

To support this, the business will provide annual wage increases to cover inflation, as well as increases for new responsibilities and skills. All employees will receive ongoing management and skill training.

Customer Retention

You have to work hard to keep customer interest, especially when the general public can be fickle. This means:

• Maintaining a perfectly clean and attractive establishment.
• Adding or changing menu items every month so people don't get bored. This also applies to items for sale in the store.
• A $1.00 discount coupon for every $10.00 spent. This has been shown to keep people coming back regularly and is already accounted for in the business budget.
• The pricing scheme is attractive to paying customers. For example, a "pie and coffee, or donut and coffee counter, priced at $3.00 to 3.50" is a very attractive price and the model is based on this kind of pricing.
• Specialty item pricing, such as in gas stations, can be higher for things like coffee or certain beverages.
• Many homeless prefer takeout items.
• Legal raffles, by charitable and religious organizations, in exchange for $1.00 coupons has been shown to retain customers. Each coupon with the submitters name is an entry. Usually these are legal if under $5000.00 and no more than four a year (every three months). Post winner initials and the amount or value of goods on the raffle board so people know it's legitimate.
• Circulate 15% off coupons in local papers and on the Internet, such as Groupon. Put the papers in a basket just inside the restaruant. Make them very available.
• Form the organization as a 501(c)(3), nonprofit status. Use a lawyer because this status is more difficult to attain and easy to break. But it has a better public image.
• Court local business owners. You want them to be supportive and not antagonistic. Offer them and their employees 30% off coupons. Especially good for morning coffee and donuts.
• This business model is based on low-prices to get good, repeat customers. Don't raise prices until the economy or situation requires it. You have the advantage of not having the weight of high business overhead like many for-profit businesses.
• Be careful what you name your business. Labels are messages that are linked to success or failure. If you create a name that is too targeted at those in need, others won't come for fear of using their resources. The general public is key to the success of this mission. A name like "Wholesome Foods for everyone," would be much better than "Feeding the poor." Think of a clever name that creates a smile or is heartwarming. And don't separate people inside as if there are poor and others sections - this is likely to created a stigma. (I work with social psychology and the effect of people on others' attitudes.)

Cost control

Costs can easily get out of control and hurt the business.

• Use the founders in an overview role, not a direct management role. Possibly pay them an honorarium or a small fee. Delegate management and supervision to the two full-time employees, and trained in modern management and supervision. Not everyone has these skills and they drive away employees, create a workplace where no one wants to be, and customer retention suffers because of the poison atmosphere.
• Consider offers from suppliers like Walmart who have a deli that can supply roasted chicken, donuts, etc. so that you don't have early morning production hours.
• Keep your nose to the ground for the best deals on food sources. Buy in bulk from suppliers and discounters. Ask for discounts because of your nonprofit status.
• When possible, give excess food to the local food pantry or through charity services.
• Late teen and early adults are available during late afternoon hours. Give them minimum wage for a few hours work each week to supplement staff.
• Trust but verify. Make sure people are aware that cameras monitor the registers.
• Restaurants and stores go out of business regularly. There is always a lot of used equipment on the market. Watch for these to get started or for replacement equipment.
• Environment renewal should be an ongoing process. Don't cut corners or you will lose customers.
• Use the cafeteria serving model to limit use of staff. To control portions, place individual servings on paper plates, cups, or bowls.
• Don't retain people with attitude or drug and alcohol problems. You can't resolve them and they only hurt the business.
• To cut down on kitchen work, use paper products for serving as much as possible. This way only the trays need cleaned.
• Environment renewal should be an ongoing process. Don't cut corners or you will lose customers.
• Invite business school students to take part in management, presentations, finding products, cost-cutting, and work-study. Allow professors to add this to their curricular field experiences.

The Vendor / "Store-in-a-Store" Model

This is a fantastic scaling strategy. You are essentially "renting" shelf space or acting as a consignment partner.

• How it Scales You: You instantly increase product variety (fresh bread, local eggs, milk) with zero preparation labor and zero inventory risk.
• Revenue Model: You would typically take a percentage of sales (e.g., 20-30%) or charge a flat monthly "slotting fee" for the display.
• Benefit: This alleviates your team from managing those items, allowing them to focus on your high-margin prepared foods and bakery items
.

Additional Scaling Strategies

A Strategy for Fundraising & Partnerships

Your financial model is your single best fundraising tool. You can walk into a business and say, "We aren't asking for a handout. We have a sustainable plan. We just need help launching."

Step 1: In-Kind Donations (Cutting Costs)

This is the easiest "ask" and often more valuable than cash.

• The Ask: "We don't need your money; we need your expertise."
• Who to Ask:
• Commercial Realtors: "Help us find our 10,000 sq ft space, and in return, you'll be our 'Founding Real Estate Partner.'" (They may reduce their commission or find a landlord willing to offer a first-year discount).
• Lawyers: Pro-bono help to file for 501(c)(3) non-profit status.
• Accountants: Pro-bono help to set up your payroll and tax systems.
• Food Distributors: "Can you commit to donating $1,000 in surplus food per month?" This directly reduces your $1.25/meal food cost.
• Community churches.

Step 2: Sponsorships (Covering Fixed Costs)

This is where you ask businesses for cash to cover specific, tangible assets.

• The Ask: "We need to raise $140,000 to cover our first year's rent. We want to call it the '[Local Bank] Community Building.'"
• Other ideas:
• "Sponsor the Kitchen" (for a restaurant supply company)
• "Sponsor the Delivery Van"
• "Sponsor a 'Free Meal Day'" ($1,125 for a local business)

Step 3: Grant Applications

This is for programmatic funding.

• The Ask: You'll use this to fund things like the "Workforce Training" program or the "Subsidized Bulk Meal" program.
• Who to Ask:
• Community Foundations: Every county has one. Their entire purpose is to fund local-impact projects like this.
• Local Bank Foundations: (e.g., a local bank's charitable trust)
• National Grants (e.g., Feeding America, USDA): These are more complex but possible once you're established.

The combination of a 50% margin target and the "store-in-a-store" model creates a much more resilient and scalable business.