Even co-ops have to make a profit and gain customers. If a grocery store in the private sector has few customers, it closed. Maybe this co-op needs to consider the lack of members shows the lack of interest.
“The Isla Vista Food Co-op is facing a financial crisis that could result in closed doors unless it sees a 10-15% increase in sales, or raises $200,000 over the next few weeks, owners say.
The community-owned grocery store at 6575 Seville Road has seen a 35% decrease in sales over the past two years and is struggling with the increased costs of insurance, payroll taxes, and utilities.
Insurance costs. Payroll taxes. Utilities. All too high—and caused by government policy. Literally the Sacramento Democrats are killing off this food co-op. They need to complain to Newsom and vote Republican.
Isla Vista Food Co-op at Risk of Closing Due to Financial Crisis
Rising costs, decreased sales, and shifting demographics after the pandemic have had a big impact on the store’s operations
by Rebecca Caraway, Noozhawk, 1/18/25 https://www.noozhawk.com/isla-vista-food-co-op-at-risk-of-closing-due-to-financial-crisis/
The Isla Vista Food Co-op is facing a financial crisis that could result in closed doors unless it sees a 10-15% increase in sales, or raises $200,000 over the next few weeks, owners say.
The community-owned grocery store at 6575 Seville Road has seen a 35% decrease in sales over the past two years and is struggling with the increased costs of insurance, payroll taxes, and utilities.
Lisa Oglesby, president of the co-op’s Board of Directors, said they’ve seen a major demographic shift, with students spending less on groceries, and with older shoppers moving out of Isla Vista since the COVID-19 pandemic.
“What we’re trying to do is increase participation in the co-op,” Oglesby said. “Ten to fifteen percent (increase) is actually all we really need to get us back into a balanced budget, slowly building cash, and slowly being able to build towards the future. We’re close, but we’re not close enough.”
The loss in revenue means the co-op has had to spend reserves on maintaining operations, leaving them with a cash flow problem, she said. If it doesn’t get the funds it needs, the Isla Vista store would have to close after 50 years of operation.
“We have the solvency to maintain the business, but when you run out of cash to pay bills quickly, that impacts how quickly you can restock, it impacts what you’re able to do for your organization, and obviously it impacts the vendors who we need to pay,” Oglesby said.
The co-op has been a staple in Isla Vista since 1972. It’s one of the few places where residents can buy produce, healthy snacks, bulk items, and deli items.
“We’re one of the few outlets in Isla Vista that has real food, not just snacks or prepared food,” Oglesby said. “Isla Vista is sometimes referred to as a food desert or being under food apartheid, and the students are absolutely under stress.”
Neal Singh, the co-op’s board treasurer, said they’re struggling to compete with big stores like Trader Joe’s, Costco and Albertsons.
“These are huge stores that can offer a lot more products to their customers and really take advantage of the different niches that the modern consumer has,” Singh said. “People have a lot of different tastes. They want all sorts of different products all the time.”
Last January, the Isla Vista food Co-op opened a new location in downtown Santa Barbara in an effort to help increase sales, and it has — just not enough.
“The increase in sales, while not overly increasing the expense of running it, allowed us to kind of stop the bleed that was happening in Isla Vista, because Isla Vista sales had gone down so much,” said Oglesby.
While the new location has helped to increase sales, it’s not enough to make up for the loss of revenue at the Isla Vista location.
To face this financial crisis, the co-op’s board of directors launched a campaign to raise $200,000 in the next six weeks with the goal to get $25,000 a week.
Oglesby launched a GoFundMe in December, which so far has raised $1,500. Oglesby said they also wanted to use this as an opportunity to get feedback and suggestions from customers.
The co-op kicked off its campaign last week by inviting the community to learn more about the store’s financial hurdles and share feedback.
Some customers said that the store felt like a shadow of its former self, recalling times when they could go to co-op for a cup of coffee or social events on the patio. Oglesby said they tried to bring back events in 2022 but struggled to bring people in.
“Something we have noticed acutely in these last two years is that these students don’t want to hang out,” Oglesby said. “They don’t get up and go out and do things in the same way that people used to; I think that’s a post-pandemic shift.”
Additionally, Oglesby said that they stopped making and selling coffee in the store because they were only selling two cups a day.
Despite these challenges, Oglesby said they are looking for ways to re-engage with the community at both locations and get feedback from customers.
“We’re all in this together,” Oglesby said. “Hopefully we can grow in a way that is sustainable and will stay for a few years and be able to fund and nourish the co-op.”
The co-op has 1,700 members for both locations. Members or owners buy into the co-op for $150, which can be paid in installments, and get access to discounts and a loyalty program.
