The board and leadership at Good Foods Co Op is undertaking a capital-raising drive with member-owners with the goal of retiring a fiscal deficit, and securing enough working capital to sustainably continue operations.
Facing rising costs, increasing competition, and unexpected repair bills, their problems have not gone unnoticed. A Lexington Reddit thread began posing questions about the seemingly imperiled 50-year-old market six months ago, asking “Is everything ok?” — a thread responding to equipment outages and intermittent closings in the cafe and at the hot bar. Hot sandwiches were unavailable for a time when the oven was out of commission.
A few months later, a followup Reddit thread asked, “Good Foods, what is happening?”
Rent is reported to be among the highest per sq ft of any Co-Op in the country.
The Herald-Leader published a May 28 article headlined, “Good Foods Co-op needs investments to stay afloat. It’s looking to owners for help.”
Founded in 1972, the Co-Op moved to Southland Drive from Woodhill in 1986, adding a Cafe in 2002, and a major expansion 2010.
Good Foods recently celebrated its 50th anniversary in 2022.
Owner rewards points were discontinued over the winter. A Reddit rallying cry from longtime owners and customers was, “Bring back the points and new member incentives!”
The Good Foods Board shared a letter on May 30, 2024. The board wrote that it has “become essential for us to make some adjustments to reduce our operating expenses and keep our co-op viable,” and two issues were shared substantively:
- “The first change is that some reduction of workforce will be considered. This will bring our operating costs more into line with our revenues”.
- “The second change is that the current practice of providing a once-monthly 10% discount as an owner benefit will be suspended beginning June 3, 2024. We will reinstate this benefit as soon as it is financially responsible to do so.”
The Board expresses that they have had “an encouraging initial response to our Owner Loan campaign, but we have a long way to go to reach our goal of raising $200,000 for working capital. Please consider being a part of this effort if you have not already done so. (Please note that contributions are not tax-deductible.)”
Board members stress that “Good Foods Co-op has been an important asset for the culture and economy of Lexington and the region for over fifty years.
—signed, The GOOD FOODS BOARD
This info appears in Ace Eats Out in the June 2024 issue of Ace. Click here to page through the digital edition of the June 2024 print issue. To subscribe to digital delivery of Ace’s print edition each month, click here. Click here to join the Ace Eats Out Facebook.
