Two Food Co-ops Seek Funding
Info on Lombard's Prairie Food Co-Op and Chicago Market
Two Chicago-Area Food Co-ops Seek Funding
Food cooperatives, better known as co-ops, are important contributors to efforts to build a better food system. Nearly all feature better-for-you, better-for-the planet food and other natural products, with local sourcing a priority.
And they are more than grocery stores. By becoming an owner and investing in the future of a co-op, you will have a say in the products it stocks, how it is managed and how it interacts with the community around it.
Prairie Food Co-op in Lombard, a western suburb of Chicago, and Chicago Market in the city’s Uptown neighborhood, are under development — and both have launched fundraising campaigns to get their planned stores much closer to opening. We love co-ops, so we are sharing the information they sent us about their efforts.
Prairie Food Co-op to Raise $2.2M In Community Investment Program
Prairie Food Co-op (PFC) will launch Phase II of their Community Investment Program (CIP) in its bid to raise $4.4M to fund the buildout of its mission-based grocery store located at 109 S. Main St in Lombard. The first CIP in Spring 2021 raised just over $1 million in nine weeks, and PFC has since secured a $1.2M loan currently being underwritten. This round aims to raise the remaining $2.2M needed to fund the building of their grocery store.
Prairie Food Co-op has been organizing since 2012 to open a community-owned, full service grocery store that will focus on selling local, sustainable food and supporting the community and economy in which it is located. In late 2020, PFC signed a lease for 109 S. Main St. in Lombard, owned by Holladay Properties. Holladay Properties purchased the land in June of 2020 and has broken ground on construction of a multi-level apartment building and a separate 10,000 sq. foot store that will house Prairie Food Co-op.
Like other food co-ops, Prairie Food Co-op asks members of their community to become owner-members for a one time fee of $200 in exchange for perks and discounts when the store is open. Prairie Food Co-op currently has over 1,500 Owners from all over DuPage County. It is common practice for co-ops to ask owners to contribute capital to build and fund the store through the purchase of preferred shares, owner loans, or donations. Through the initial CIP and bank loan, PFC has already secured half of the $4.4 million needed - but they cannot open their doors without additional investment from owners.
“We are proud that over 30% of our Owners pledged more than $1M in our initial campaign,whereas most food co-ops have about 20-25% of their community participate. On the other hand, we are still short of our goal,” said Kathy Nash, PFC co-founder and board President.
While not uncommon for food co-ops to fall short of their funding goal in the initial funding push, co-ops today need to raise more money to build their stores than other co-ops have traditionally. It’s also important they have enough cash on hand to sustain operations while establishing their customer base once opened.
“This just means we have to work harder. The math tells us that if every Owner contributes $2,000, we will reach our goal. We know that not every PFC Owner can participate at that level, but we need those that can to do so. We also need those who have participated, to consider increasing their contributions. We welcome all levels of participation, recognizing that every dollar helps. We have every confidence that our Owners and community will come together to help us open our store.”
PFC is also seeking other sources to meet their goal, including applying for various grants and working with local village and county leaders.
“In the past, food co-ops could rely on the 25% of their owners who would fund the store, but nowadays almost all recently opened food co-ops have received grants or loans from local or state entities in recognition of their strong economic benefit to the community.” Nash added.
PFC will be launching Phase II of the CIP on September 24 to raise the additional funding. A CIP kickoff celebration is scheduled for October 1st for all PFC Owners and their guests.
Chicago Market Announces Capital Campaign
As our capital campaign launch approaches in the coming weeks, we will be asking our Owners to help us Build a Better Market by investing in real food and real people.
A ‘better market’...? Better than what?
A ‘better market’ means that the status quo of corporate grocery stores may be the current default, but there’s a better model — one that the community builds to fulfill unmet needs. Corporate grocery stores exist to earn profits for shareholders; Chicago Market, as a cooperative, prioritizes sustainability, transparency, and economic impact for us.
Getting real
Investing in ‘real food’ and ‘real people’ may be something you’ve heard other organizations claim in the past. The all-too-common practice of greenwashing and local-washing might have made those words feel almost meaningless. Chicago Market’s prioritization of local — whether that’s food grown nearby, products crafted across town, or employees that live down the street — will create major impacts on lives and businesses. Chicago Market won’t just sell their food, we’ll tell their story. And every person who invests to ‘build a better market’ will become part of stories like these:
How a micro business was able to hire their first employees.
How a small producer could scale up their operations and pay their staff a living wage.
How joining the staff of the Co-op meant a well-paying job which led to financial self-sufficiency.
These powerful impacts ripple out into our community in exponential ways. And they’re what investors and donors will create by funding our Co-op and showing Chicago what ‘a better market’ truly looks like.
As our capital campaign launch approaches in the coming weeks, we will be asking our Owners to help us Build a Better Market by investing in real food and real people.
A ‘better market’...? Better than what?
A ‘better market’ means that the status quo of corporate grocery stores may be the current default, but there’s a better model — one that the community builds to fulfill unmet needs. Corporate grocery stores exist to earn profits for shareholders; Chicago Market, as a cooperative, prioritizes sustainability, transparency, and economic impact for us.
Getting real
Investing in ‘real food’ and ‘real people’ may be something you’ve heard other organizations claim in the past. The all-too-common practice of greenwashing and local-washing might have made those words feel almost meaningless. Chicago Market’s prioritization of local — whether that’s food grown nearby, products crafted across town, or employees that live down the street — will create major impacts on lives and businesses. Chicago Market won’t just sell their food, we’ll tell their story. And every person who invests to ‘build a better market’ will become part of stories like these:
How a micro business was able to hire their first employees.
How a small producer could scale up their operations and pay their staff a living wage.
How joining the staff of the Co-op meant a well-paying job which led to financial self-sufficiency.
These powerful impacts ripple out into our community in exponential ways. And they’re what investors and donors will create by funding our Co-op and showing Chicago what ‘a better market’ truly looks like.
SAVE THE DATE: The Build a Better Market campaign will launch at our Annual Meeting on September 23 at 7:00 PM on Zoom. If you are a Chicago Market member, RSVP today to be the first to:
Hear more details about this investment opportunity and request your investment packet.
See the first interior drawings of our new store.
