Yelm Co-op Beats the Odds to Break $1 Million in Sales

yelm food co-op
Kate Morgan is one of three managers, including Jutta Dewell and Debbie Burgan, who run the Yelm Food Cooperative under the leadership of General Manager Barnaby Urich Rintz.
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By Heidi Smith

awesome rvIf the Yelm Food Cooperative were a children’s story, it would probably be The Little Engine That Could.  This, after all, is an organization that opened in 2007 – with just $26,000. “That’s a very small amount to start any retail, let alone a grocery store that has a lot of inventory and equipment,” say General Manager Barnaby Urich Rintz. “Most will start with ten times that amount before they get a brick and mortar location.”

yelm food co-op
Kate Morgan is one of three managers, including Jutta Dewell and Debbie Burgan, who run the Yelm Food Cooperative under the leadership of General Manager Barnaby Urich Rintz.

Manager Debbie Burgan puts it more bluntly. “We were insane,” she says. “I was sent to three different seminars to find out what you needed to start a co-op. Every single one said you needed a minimum of $1 million.”

All the more remarkable, then, that the Co-op recently broke $1 million in sales and continues to grow.

Their story could be a case study in how to create success with minimal resources. Among the store’s managers, a consensus exists around key factors that have led to where they are now.

Loyal Members and Customers

“One critical factor is our shoppers and the support we received from Yelm and the community in general including customers ranging from Rainier to east of Lacey, Clearwood, and more,” says Rintz. Manager Jutta Dewell agrees. “We have a very dedicated group of members and customers,” she says. “They shop here first. They only go somewhere else if we don’t have what they need.”

Ingenuity

The Co-op was started by an all-volunteer group back in 2005. “Especially in the early stages, there was a lot of ingenuity among those people to find the kind of equipment they needed, to set up critical expenses like insurance that was cost effective,” says Rintz. “They used the membership dues as wisely as possible and picked the most practical location in light of such a small budget.”

Location

yelm food co-op
When the new store first opened in 2012, eager customers explored the aisles.

For the first five years of its existence, the Co-op resided in a small commercial building where anyone attempting to navigate an aisle would literally rub elbows with someone coming the opposite direction.  “It was important to open a storefront in order to begin building a history and reputation within this community,” says Rintz.

But in 2012, the store moved to its current – and much larger – location at 308 Yelm Avenue, which it shares with local landmark Gordon’s Garden Center. “Moving here was really important,” says Dewell. “We could never have dealt with $1 million in sales in the old store.”  Rintz adds, “This location is much better equipped to handle a higher volume of sales, in terms of space and atmosphere.”

Leadership

Originally, the co-op was a member-owned corporation. In 2012, the board of directors asked the membership to vote on becoming a non-profit community service organization with a focus on education and food. The idea was a hit; 96% of the members who voted favored the new vision. Rintz credits the board with “moving to reevaluate operations and make the next step in growth.”

Part of that growth was hiring Rintz, who joined the Co-op in December 2012. “We really, really needed a general manager who knew the business and could change things that needed to be changed,” says Dewell, who has been with the store since its inception. “Having Barnaby has made a huge difference.”

yelm food co-op
The Wine Cellar of Yelm has been a highly successful department within the Yelm Co-op, with regular wine tastings on Saturdays and during special events.

Burgan echoes that sentiment. “Barnaby has been such a strong manager,” she says. “He’s brought a lot of experience and a world of understanding of how co-ops run. He’s bringing a level of professionalism that I’ve always wanted us to have. I can see that changes are working.”

Products

As they’ve grown, the co-op has surveyed its customers, analyzed buying patterns, and adjusted accordingly. “We offer products that are hard to find in the Yelm area – non-GMO, organic, and local items,” says Rintz.  “Our success has proven that the demand from the consumer is large enough to support the store.”

“We’re moving diligently to promote GMO awareness in our products, ask questions about our vendors and eliminate items that include RBST, because that’s what our customers want,” says Burgan.

The Future

While reaching $1 million was significant, reaching $2 million would make a world of difference for the store and its members. “We want to offer improved services, specifically prepared foods, a deli, and a meat department that has fresh meat instead of frozen,” says Rintz. For that, they need equipment which is beyond their current budget.

yelm food co-op
Co-op employees and working members enjoy the ambiance and elbow room provided by the store’s location at 308 Yelm Ave. in downtown Yelm.

Breaking the $2 million threshold would also be the first step in allowing the store to apply for membership with the National Grocers Association, which would provide multiple benefits, including buying power. “If we can get the buying power that other co-ops have, our buying structure changes,” says Burgan. “That benefit would get passed on to our members.”

She doesn’t believe that reaching the new goal will take long. “We just need all our members to be buying 80% of their groceries from us,” she says. “If we’re not carrying what you want, let us know about it.”

Given what this small group from a modest rural town has achieved so far, the odds are in their favor.

As a non-profit organization, the Yelm Food Cooperative gladly accepts donations from anyone who shares their vision of a sustainable, food-wise community.  Contact General Manager Barnaby Urich Rintz at yelmfoodcoop@gmail.com.

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