St. Roch Community Partner draft plan

8/14/2019 St. Roch Community Partner draft plan

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ST. ROCH COMMUNITY PARTNERS, INC.

A PLAN TO OPERATE THE HISTORIC ST. ROCH MARKETFOR THE BENEFIT OF THE PEOPLE OF NEW ORLEANS.

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VISION....................................................................................................................3POTENTIAL VENDOR LAYOUT................................................................................4EXECUTIVE SUMMARY...........................................................................................5DESCRIPTION OF BUSINESS.................................................................................7 Sustainability and Affordability...............................................................................8 Ownership/Governance........................................................................................9

PRODUCTS & SERVICES OFFERED.....................................................................10 Vendors (Criteria, Types).....................................................................................10 Restaurant..........................................................................................................10 Community Outreach..........................................................................................11 Consumer Education.........................................................................................11 Community Engagement....................................................................................11

MARKET ANALYSIS..............................................................................................12 Location.............................................................................................................12 Primary Customer Base.....................................................................................12 Secondary Customer Base.................................................................................12 Incidental Traf c........... ............. ............... .............. ............... ............... .............. .13 Additional Customer Sources..............................................................................13 Tourist Traf c............ .............. ............... .............. ............... .............. ............... ....13 Competitive Considerations.................................................................................14

INDUSTRY ANALYSIS...........................................................................................15 Competitive Environment....................................................................................15 Suppliers.............................................................................................................16 Customers..........................................................................................................16 Barriers to Entry..................................................................................................16 Substitutes.........................................................................................................16

STRATEGY AND IMPLEMENTATION....................................................................17 Market Entry Strategy.........................................................................................17 Marketing Strategy.............................................................................................17 Local Alliances...................................................................................................18 Internet Strategy.................................................................................................18

RISK ANALYSIS.....................................................................................................19 Competition.......................................................................................................19 Shifts in Consumer Demand...............................................................................19 Environmental.....................................................................................................19 Capitalization......................................................................................................19 Execution............................................................................................................19

MANAGEMENT AND PERSONNEL.......................................................................20

FINANCIAL MODEL...............................................................................................21 Development Budget..........................................................................................22 Monthly Operating Budget.................................................................................23 15 Year Operating Budget..................................................................................24 Income Assumptions..........................................................................................25 Expense Assumptions.........................................................................................26 Break Even Analysis............................................................................................27

T A B L E O F C O

N T E N T S


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VISIONSt. Roch Community Partners, Inc.will operate a public market for

the benefit of the neighborhoodand the city of New Orleans.Individual vendors of locallysourced produce, meat, seafood,dairy and staples will be selected

based on their ability to providean AFFORDABLE alternative toexisting options. Vendors willbe regularly assessed basedon their pricing. All profits wil lbe reinvested in the market.


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POTENTIALVENDORLAYOUT


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MISSION AND VISIONSt. Roch Community Partners, Inc. (SRCP) will operate thehistoric St. Roch Market as a public market for the publicgood by supplying fresh, healthy, and locally producedfood. As a non-pro t entity, SRCP will manage the day-to-day operation of the Market, serve as the primary vendor forproduce and staples, and lease individual stalls to for-pro tvendors committed to providing high-quality locally sourcedproducts.

ORGANIZATIONAL STRUCTURESRCP is a 501(c)(3) non-pro t corporation. It is run by thecollaboration of local business owners including a baker, abutcher, a cheese monger, and a preservationist developer.

PRODUCTS AND SERVICES There are 12 stalls in the Market. Two of the stalls will beused by SRCP to sell fresh produce and staples (e.g. rice,our, sugar, spices) at low prices. Any pro ts from the SRCPstalls will be reinvested in the Market to reduce overheadand keep rent lower throughout the Market. The remaining10 stalls will be leased to for-pro t vendors selling seafood,meat, bread, cheese, etc. The Market will only lease tolocal vendors providing locally produced or locally sourcedproducts. The rear of the Market will include a full service sit-down restaurant with both indoor and outdoor dining space. Arestaurant operator will be selected by SRCP with preferencegiven to a) any restaurant serving as job & life skills trainingprogram (similar to Caf Reconcile or Libertys Kitchen), b)restaurants featuring fresh seafood and c) restaurants with ademonstrated ability to provide low-cost, high-quality meals.

COMMUNITY OUTREACHIn addition to high-quality, fresh food at fair prices, the Marketwill offer educational opportunities in the form of cookingdemonstrations, healthy recipes, and a schedule of freeseminars for adults and children on topics such as nutrition,budgeting and meal planning. The Market will also providespace for community events and meetings.

EXECUTIVE SUMMARY //////////////


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The objective of St. Roch Community Partners (SRCP) is tobe an asset to the community, with the goal of providing thehighest quality and best selection of goods at fair prices. SRCPwill operate the Market by leasing individual stalls to non-pro tand for-pro t vendors. SRCP will operate the produce stall for itsown account, and proceeds from the operation of the producestall will be invested into the Market. By operating one stall forits own account, as opposed to leasing it to a vendor, SRCPcan ensure access to micro-vendors who wish to operate in theMarket. People who want to sell produce or related wares in the

Market may not have the ability or desire to lease a stall on along-term basis, but they may be able to sell products within theexisting, SRCP-run stall. Operating this stall will also allow SRCPto regulate prices on necessities and staple goods. By reinvestingpro ts from the produce & staples stall, SRCP will also be able tolower overhead and keep rents down across the Market allowingvendors to offer affordable prices.

By developing a community based non-pro t, SRCP can utilizethe ever-growing small farm market, providing commerce for theMarket-ready vendors and much needed and wanted affordable

fresh food supply for the surrounding neighborhood andcity at large.

SRCP has the understanding, ability, and connections in theindustry to make this public market a viable option for theneighborhood and city and to purchase locally sourced andregionally grown and produced food. Unifying their talents,SRCPs goal is to be the leaseholder and operator of the Marketfor a term of 30 years.

Members of the board of Directors who wish to be vendors will

lease an individual vendor stall at the prevailing rate from SRCP,thus ensuring a personal and nancial stake in the success of theMarket. Support facilities will include cold and dry storage andareas for educational programs and demonstrations, creating afull-service public market and neighborhood gathering place.

The directive of the Partners is entirely community based. Allpro ts will be invested back into the Market, its suppliers, and thecommunity. By eliminating the need for pure pro t making by thestakeholders, the SRCP can create incentives for vendors such aslow stall rents, resulting in affordable goods, and offer educationalprograms and classes to customers and the community.

DESCRIPTION OF BUSINESS //////////


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SUSTAINABILITY AND AFFORDABILITYSt. Roch Community Partners strives to make The Market an integral part of the surrounding community. This meansattracting vendors who can offer the community affordable everyday groceries and healthy food options. Although in orderto make the St. Roch Market a viable marketplace, SCRP believes it will need to attract customers from other communitiesin New Orleans at the same time. The ideal vendor for The Market would be able to offer affordable grocery staples for thecommunity and also offer higher-end products and services customers would be willing to travel across the city for.

SRCP has approached several vendors with established businesses in other parts of the city who believe they can offersuch a range of products and services. For these vendors, St. Roch offers a unique opportunity since many of them operatein parts of New Orleans also served by traditional grocery stores which occupy the lower end of the market. In order todifferentiate themselves in the marketplace, they ll a niche in the upper end of the market not served by traditional grocery

stores. St. Roch allows these vendors to explore the lower end of the market without having to overcome the tremendousmarket dominance of an established grocery store in the community. These vendors will offer more affordable lines ofproducts along side the higher priced products they currently sell at their other locations and will likely adjust their selection asthe customers and community dictate. The variety of vendors SRCP intends to attract will also allow The Market as a wholeto approximate all of the products and services of a traditional grocery store using independent vendors.

SRCP will expect all vendors to follow similar practices and the management of The Market will enforce the rules andregulations of the market to ensure vendors are offering quality products at fair prices. SRCP will require all food vendors toaccept WIC and SNAP bene ts. SRCP also expects that vendors will follow these policies on their own as a vendor who does

not effectively attract and maintain a customer base will not have a sustainable business on an ongoing basis and ultimatelyfail. We also expect vendors to take into consideration existing businesses in the community as competition when decidingwhether to enter The Market. SRCP will give preference to vendors the board views as lling unserved or underserved

aspects of the community.

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OWNERSHIP/GOVERNANCESRCP is a New Orleans-based 501(c)(3) entity made up of local business owners who specialize in creating and providingthe highest quality foods and products. Each partner operates their businesses independently; they are forming SRCP tocombine their food service knowledge to bring the freshest possible foods at fair-market prices to areas that currently havelimited access to such products.

RICHARD SUTTON, St. James Cheese Company

Rich and his wife Danielle opened shop in New Orleans in 2006 with the goal of providing artisanal cheeses, charcuterie, andgourmet grocery items to all. Seven years in, the shop and the Suttons have proven that quality products and knowledgemake them the Big Cheeses of the Big Easy.

SETH HAMSTEAD, Cleaver & Co. A degree in Chemistry doth a butcher make? Apparently so. Seth Hamstead opened Cleaver & Co. in 2012 after realizingthe reaction he was truly interested in was that of customers to high quality and custom cuts of meat. His vision of local,sustainable sourcing combined with outstanding service has created a comfortably professional meeting place.

GRAISON GILL, Bellegarde Breads

Leaving L.A. for LA, Graison Gill established himself solidly in the New Orleans baking community in 2012 with the openingof Bellegarde, a wholesale purveyor of hand crafted breads. Gill made a name for his wares at the Crescent City FarmersMarket; his success there has parlayed into his breads being broken at many of New Orleans nest restaurants and grocers.

CATHERINE MARKEL,Faubourg WinesCatherine opened her boutique wine shop and wine bar on St. Claude Avenue in 2012. Providing a laid-back atmosphere andhigh-quality, low-production wines, with many selections priced under $15, the shop instantly earned many fans within thesurrounding neighborhoods. Today, neighbors, visitors and folks from all over the city sip and shop at this Friendly & FearlessNeighborhood Wine Shop.

NEAL MORRIS, Redmellon Restoration and DevelopmentNeal is a mission-driven real estate developer who has rehabilitated over 400 units of blighted housing in New Orleans,including the former Marquer Drugs (now housing the Shadowbox Theater) at 2400 St. Claude Ave. He is a Loeb Fellow atthe Harvard Graduate School of Design where his research has focused on neighborhood redevelopment. He is an AdjunctInstructor of Sustainable Real Estate Development at Tulane School of Architecture. Neals rm, Redmellon Restoration andDevelopment, is working with SRCP on the St. Roch Market as a civic venture and any fees earned will be donated to theMarket. Either Neal or his designee will serve as a Director of SRCP.

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A survey prepared in November 2010 prepared by St. Claude Main Street, the Faubourg St. Roch Improvement Association,the Faubourg Marigny Improvement Association and the St. Roch Project indicated that the communitys preferred use for themarket was fresh food, especially locally grown fruits & vegetables, seafood, baked goods and fresh butcher meats.

SRCP agrees that an excellent selection of fresh produce, seafood, baked goods and meats should be the foundation of theMarket. Given our states natural resources and the history of the St. Roch Market venue, seafood should be showcased asmuch as possible. Fresh and prepared seafood such as raw oysters, seafood poboys, and a variety of fresh Gulf sh will beavailable. SRCP will select a quality seafood vendor with the ability to provide the widest variety of local products.

Vendors secured thus far include a butcher, cheese monger, and a baker. SRCP will operate a produce & staple goods stallstocked with fresh, local produce. SRCP is currently seeking a seafood vendor and a restaurant operator. As fresh, local

seafood will be a focus in the Market, SRCP will take special care to select a seafood vendor with the ability to provide thewidest range of fresh, local products at the lowest prices. SRCP will select other vendors who can provide high-quality, locallysourced & produced goods at fair prices.

Vendors will be selected according to their ability to provide quality at an affordable price. As a not-for-pro t organization,SRCP can and will rent stalls with an eye toward maximizing public bene t, not pro ts. Rents charged will be the minimumamount required to attract the optimum mix of vendors. Vendors are expected to pass savings along to consumers. SRCPwill not audit the books of Vendors, but SRCP will conduct an annual review of Vendor pricing and Vendors whose pricingis not affordable based on competitor benchmarks will not have their leases renewed. SRCP will engage the community tond out what other products are wanted. Residents will be surveyed at community meetings and an on-line survey will becirculated to allow neighbors to weigh in. SRCP will consider the community input when selecting appropriate vendors.

PRODUCTS & SERVICES OFFERED ///

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COMMUNITY OUTREACHCONSUMER EDUCATIONIt will be the responsibility of the individual vendor to provide informed andpassionate employees, whose knowledge and involvement in artisanalproduction will re ect the Market as a whole. The closer we are to themethods of production, literally or intellectually, the more we as a market

will educate the consumer. Such intimate proximity to the creation of theproduct will be the de ning aspect of the St. Roch Market: it will be, in away, both the Market and the farm. When purchasing food atSt. Roch Market, each consumer will have the opportunity to learnabout the origins of that product from its respective vendor.

SRCP will strive to promote quality of ingredients to create a locally,often hand made product. We will emphasize the importance of sellinga product, not its packaging, and we will relentlessly stress the qualityof freshness only available at St. Roch Market. At every stall, with everyvendor, the consumer will participate in production through an educated

shopping experience narrated by the producers and artisans.

COMMUNITY ENGAGEMENT Through a series of innovative and thoughtful programs, SRCP will havea deep presence in St. Roch, the Faubourg Marigny, Bywater and NewOrleans as a whole. By thoroughly immersing the St. Roch Marketinto the fabric of the neighborhood through educational platforms,culinary events, and special monthly events, we will maintain constantcommunication with the community. SRCP will be, so to speak, both thegarden and the harvest.

Such a presence will be established through the following:

Classes in conjunction with organizations like NOCCA and TulaneMedical School - An educational and vocational class teachingcommunity members how to shop and cook. Classes can be held bothin our facilities and those of NOCCA.

Monthly Pairing Classes A journey through a certain avor, region,process, tradition, or product by a market vendor/producer.

St. Claude Art Walk A connection to local art through offeringthe Markets walls as a venue, a food art show, or simply stayingopen during the monthly Art Walk.

Neighborhood restaurant spotlight month - A specially cateredmenu by an area restaurant highlighting products and vendors of theSt. Roch Market. Potential venues/like-minded establishments, all withina 3/4 mile radius, include The Joint, Elizabeths, Mimis in the Marigny,Suis Generis, Three Muses, Sugar Park, Borracho, Siberia (Kukchnya),Bootys, Maurepas, Pizza Delicious, Bacchanal, Fatoush, Feelings Caf,Mariza, Ruby Slipper, and Satsuma.

Miscellaneous ideas , to be developed as needed For example,a weekly chefs-only farmers market on the back gallery, vendorspotlight month, EBT program, etc.


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As the decision to rebuild the St. Roch Market as a retail food venturehas already been made by the city, it is not necessary to further argueits merits. However, we have taken the following into consideration toensure the Market serves the communitys needs, protects the citysinvestment, and creates a nancially viable business that will allowthe Market and its vendors to thrive as a local and regionalfood destination.

LOCATIONSt. Roch Market is located in the geographical and cultural centerof an ethnically and nancially diverse neighborhood. The historicbuilding dates from 1875 and is located on St. Claude in the neutralground formed by St. Roch Street. The Market, along with the ColtonSchool, the New Orleans Healing Center, the Whitney Bank, andnumerous other small business and services, is the hub of activity forthe surrounding neighborhoods. The return of the streetcar line to thearea will solidify its position.

PRIMARY CUSTOMER BASE The St. Roch Markets primary customer base resides in the

neighborhoods of the Faubourg Marigny, Bywater, and Upper NinthWard. These neighborhoods have a population of approximately17,271, which resides primarily in owner occupied single-family andduplex dwellings. These neighborhoods are economically diverse,with Area Median Incomes that range from to $9,009 to $106,389.Given the wide economic mix of the area, we seek to make the goodssold as broadly nancially accessible as possible, while still adheringto our quality standards. We anticipate shoppers from this area willvisit the Market regularly for their food needs, on average two or moretimes a week.

SECONDARY CUSTOMER BASE The St. Roch Market will offer a unique array of fresh foods that willbe compelling enough to attract regular shoppers from the FrenchQuarter, Treme, and Esplanade neighborhoods. These neighborhoodscomprise an additional 10,814 residents, with Area Median Incomesof $9,148 to $178,874. With continued redevelopment throughout

Treme and the French Quarter, particularly along Rampart Street andEsplanade, we believe that the area will continue to see a growth inresidents in the coming years. We believe shoppers from these areasmay visit the Market on average once a week.

MARKET ANALYSIS //////////////////

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INCIDENTAL TRAFFIC The St. Claude Corridor is a major feeder into the Lower NinthWard and River Parishes and a designated truck route. There wereapproximately 23,215 vehicle trips per day in 2008 on this route, whichpasses immediately in front of the Market, making it a convenientstopping point en route to or from work. The number of vehicle tripsper day continues to rise as the surrounding neighborhoods movecloser to pre-Katrina population. The anticipated number of visitors inthis category is dif cult to measure.

ADDITIONAL CUSTOMER SOURCES The population within a 3-mile radius of the Market is estimated at152,170. Within this radius are numerous af uent neighborhoods,including the Warehouse District, the Lower Garden District, Mid City,Broadmoor and Uptown. The unique mix of specialty foods on offer atthe St. Roch Market will be a strong attraction to predisposed residentsin these areas, who will make the St. Roch Market a destination oncea month.

TOURIST TRAFFIC While the primary focus of the Market is to provide fresh foods to residents, it cannot be ignored that New Orleans is a worldfamous food destination, and visitors to the city seek out its culinary treasures. In 2012 there were 9.01 million visitors to thecity. The historic nature of the Market and the neighborhood will be a strong draw to some of these tourists, particularly onthe weekends. Additionally, the specialty food industry is the fastest growing segment of the retail food industry, worth $20.3billion in 2011, averaging 3% growth in the 5 years prior. Artisan foods are in high demand and are a destination in their ownright. The anticipated number of visitors in this category is dif cult to measure, but it is not unreasonable to assume that within12-18 months of operation the St. Roch Market will become a must see destination for visitors eager to obtain an authenticNew Orleans experience.

ECONOMIC PROSPECTS The last several years have seen signi cant growth in the local retail landscape, withnumerous new independent businesses opening. Many of these businesses are inthe restaurant sector catering to casual but af uent diners and shoppers, particularlyin the Marigny and Bywater neighborhoods. Our professional contacts with thesebusinesses have revealed to us that they thrive on both local and tourist traf c.

Across St. Claude, the Lower Ninth Ward also continues to grow,with increased population and new or renovated businessesapparent along the St. Claude Corridor. There is increasing nighttraf c to numerous clubs and restaurants; there is a vibrant artisticcommunity; the Healing Center is thriving; and there is a monthlyarts market that draws visitors from around the city. The locationof the St. Roch Market at the center of this activity will ensurehigh visibility amongst residents and visitors, which will assist us inquickly accessing the previously mentioned customers. In addition,with the return of the streetcar anticipated in 2015, we believe thesehistoric neighborhoods will continue to attract new residents andtourists from within and beyond the boundaries of Orleans Parish.

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COMPETITIVE CONSIDERATIONS The comparative landscape in retail food industry in New Orleans continues to be underserved by both large and small grocers.

In the immediate environment of the St. Roch Market, the leading retail food businesses are The New Orleans Food Co-op, located near the St. Roch Market, and Mardi Gras Zone, about 7 blocks away. Those ventures are both well traf cked, but

each offers only limited fresh foods. Most goods are packaged, shelf stable, or prepared foods. Some categories of foodsthat will form the core of the St. Roch Market, including fresh meat, bread, cheese, and seafood, are virtually absent.

There are approximately 12 small convenience stores in a 12-block radius. These stores sell primarily packaged preparedfoods, beverages and snack foods, with few fresh food options.

Beyond the immediate neighborhood, there are three small groceries in the French Quarter, two of which (Rouses and Verti Marte) offer a traditional array of grocery items alongside a limited selection of fresh foods. The third (Central Grocery) offers

more specialized goods but also draws heavily on prepared food traf c. The French Market in the French Quarter offers a limited selection of fresh food items; however, its primary business is to

service tourist traf c with prepared foods, beverages, and souvenirs.

Larger supermarkets in the New Orleans market include Rouses, Whole Foods Market, Winn-Dixie, Wal-Mart, FreshMarket, and Roberts Fresh Market. With some signi cant overlap, each company targets slightly different demographics.Of particular interest to this venture is Whole Food Market and Rouses. Both retailers were indicated as primary sourcesfor fresh foods by residents, according to the St. Roch Market Survey conducted in 2008. Both Rouses and Whole FoodsMarket do a good job of offering quality fresh foods, fair prices, and reasonable support of local producers. While neither

has a presence in the immediate vicinity of the St. Roch Market, we expect they will be our primary source of competition.

There are several farmers markets operating in New Orleans on a regular basis. While the quality of the foods at these

markets is high, most operate no more than once a week, and selection is limited. It is not our desire to sti e existingfarmers markets but to enhance the model in this particular neighborhood by operating daily and offering a morecomprehensive array of fresh foods.

CUSTOMER BEHAVIOR The specialty food industry has seen tremendous growth in the last 10 years. Consumers have become increasinglyconscious of the nature and quality of the food they eat. While this differentiation has been seen in higher income brackets forsome time, consumers across all incomes are starting to make choices based on how and where products are sourced. Thedemand for locally sourced goods continues to grow. Our selection of vendors will be strongly in uenced by clear consumerdemand for high quality, nutritious, responsibly produced fresh foods.


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The St. Roch Market is positioned uniquely within the industry, as it providesa venue and marketplace for independent operators in addition to physicalreal estate. Therefore, SRCP competes within the industry at several levels.Independent operators are both customers and suppliers to the Market,depending upon perspective. Competitors also exist at many levels. Withinthis section, we will discuss how the St. Roch Market is positioned within theindustry and the competitive environment it faces.

COMPETITIVE ENVIRONMENT The St. Roch Market is positioned within several industries. At one level, theMarket is a real estate venture providing space and shelter to independent

vendors to operate their businesses. In this capacity, the Market competes withany vacant storefront in the area as a location for a business to operate. Whatmakes the Market unique in this sense is the curated collection of businessesthat the Market will house multiple vendors under one roof, providing customerconvenience and opportunities for cross promotion currently unseen in the localretail food industry. In this sense, the Market is analogous to what shoppingmalls like Lakeside Mall and shopping districts such as Magazine and BroadStreet offer retail stores and restaurants.

At another level the Market acts as a marketplace for consumers and vendors and competes with other public markets, suchas the French Market Corporation, Market Umbrellas Crescent City Farmers Market, and various smaller farmers markets andart markets around the city. With the exception of the French Market, all of the competitors are occasional markets, operating

one or two days a week in a given location. The French Market is open seven days a week and offers vendors permanent ortemporary stalls and utilities for a fee, although the location is not convenient for most residents of the city and the vendorslargely cater to the tourist trade with very limited fresh food options.

The Crescent City Farmers Market operates three farmers markets around the city; each market operates for one day aweek at one location using temporary shelters and facilities. Other farmers markets and art markets exist throughout thecity, including the Sankofa Market in the Ninth Ward, the Algiers Point Market, and the Frenchman Art Market, and like theCrescent City Farmers Markets, these operate one day a week using temporary facilities. Unlike any of these markets, theSt. Roch Market will operate seven days a week as a fresh food-centered public market of independent vendors vetted andoverseen by SRCP.

At another level, the Market as a collection of independent stores is an approximation of a grocery store or food market to

consumers. As what some would consider a food desert, the St. Claude Corridor has few high quality options for consumers.Most food retailers in the neighborhood are small Mom and Pop stores, operating neighborhood convenience stores out ofsmall storefronts or former residential properties. The only full service grocery stores in the neighborhood are Mardi Gras Zoneand the New Orleans Food Co-op. Mardi Gras Zone started as an outlet for beads, boas, and other trinkets until the ownersrealized the need for a food retailer in the neighborhood Post-Katrina and added packaged foods and deli items to the store.

The New Orleans Food Co-op is a relatively new addition to the neighborhood and is located in the New Orleans HealingCenter, across St. Claude Avenue from the Market. The New Orleans Food Co-op operates as a cooperative grocer, wherethe consumers can purchase shares of the store and participate in its operation. As it runs today, the Co-op operates asa full-service grocery store but has struggled to consistently stock fresh food items such as those we plan to offer at theMarket. We believe the Market will compliment the currently existing food retailers in the neighborhood and bring fresh foodinto a market that currently has few options.

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SUPPLIERS The Market will be dependent on independent vendors to ll the stalls and offer high quality fresh foods to the community. The Market will allow current businesses located in other neighborhoods of the city the opportunity to expand into the St.Claude Corridor and edgling entrepreneurs a venue to start new businesses. In operating the Market, SRCP will vet thesevendors on quality of products offered and business viability to ensure consistency in the Market. Vendors will be reviewedperiodically by the management to ensure they are maintaining the expected levels of quality and affordability. The Marketinfrastructure will be designed to minimize disruption in the event of vendor turnover if a vendor chooses to vacate or is askedto leave the Market. We believe that the number of current businesses and potential vendors for the Market will be suf cientto ll the Market with high quality vendors offering a diverse array of products and expect a competitive process forselecting vendors.

CUSTOMERS The Market will draw retail consumers locally from the St. Claude Corridor, Bywater and Marigny neighborhoods and morebroadly from the Greater New Orleans area. While we believe the Market will draw customers from the local neighborhoodswho are currently in an underserved food market, we also believe that the unique mix of high quality vendors at the Market willdraw from a larger geographic region. Customers from around New Orleans will be able to shop at many of the citys premiervendors all under one roof. We think the diversity of vendors and products available in the Market will attract a signi cantretail customer base from a local and broad region.

In addition, Market vendors will also be able to serve customers wholesale. Many restaurants in the Bywater and Marignyneighborhoods must travel to other parts of the city to procure high quality products. We anticipate many of these restaurantscould instead pick up products from similar, if not the same, vendors through the Market. This will allow the Market to becomemore engrained in the local business community.

BARRIERS TO ENTRYGiven the historic nature of the Market building, the geographic location in an underserved market, and the breadth andquality of vendors involved, we believe the Market is a unique project that cannot be imitated within the area served. If acompeting market did emerge, it would face several signi cant barriers to entry. A competing market would need to nd alarge parcel of land, vacant building, or group of vacant storefronts suf cient in size, condition,and con guration to accommodate this new market in a dense urban environment. Given thecompeting market was able to obtain such real estate, it would need to recruit vendors fromthe same pool of vendors available to the St. Roch Market. Beyond that, given the assumptionof the successful execution of this business plan for the St. Roch Market, few investors wouldbelieve there would be room in the economic market for a competing public market around theSt. Claude Corridor.

SUBSTITUTESFor consumers, the natural substitutes to the Market would be full-service grocery stores,farmers markets, the New Orleans Food Co-op, and the many local corner markets. For

consumers in the neighborhood, the ability to obtain high quality fresh food relies on owninga car and driving to other neighborhoods. Options within the neighborhood are either poorquality processed foods or high prices. The Sankofa farmers market does operate close tothe Market but only once a week and in various locations. Emerging substitutes, for vendorsand consumers, are online marketplaces and delivery services, such as Good Eggs, whichcould potentially compete with the Market but cannot substitute for the experience of smelling,touching, and selecting fresh food in person.

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MARKET ENTRY STRATEGYUpon securing nancing and obtaining a lease on the St. Roch Market, SRCP will begin renovations on the physical buildingto nish the space and start recruiting local vendors to ll the stalls. As an incentive to entice high-quality vendors, SRCPwill offer discounted rent for the rst six months until shopping traf c at the Market stabilizes to normal levels. SRCP will alsoengage the community with free public events to commemorate the opening of the Market with our local partners. Theseevents will bring potential shoppers into the Market and give local media outlets events to cover, allowing the Marketfree press.

MARKETING STRATEGY

SRCP will rely initially upon free press generated by the interest and curiosity surrounding the St. Roch Market to publicizethe return of the Market to commerce. SRCP will also stage free public opening events to engage community members andpotential customers while obtaining additional press coverage for these events. After the initial urry of media coverage hassubsided, SRCP will begin traditional and social media marketing en force. SRCP will use non-pro t underwriting rates withWWNO and WWOZ to advertise the Market and feature individual vendors, as well as print media outlets such as The Gambit.

SRCP will coordinate with community organizations to co-promote events and marketing campaigns to increase the reach ofour marketing to larger customer bases. SRCP will become a greater part of the community by hosting and participating inlocal events, such as community meetings and coordinated gallery openings, to engage the neighborhood. The Market willalso host periodic farmers markets on the patio and perimeter of the building to allow small producers and organizations inthe community to sell their wares.

SRCP will make full use of Internet resources to promote the Market and create a community of customers. In addition tocreating a website containing pertinent information on the Market, SRCP will create a Facebook page, a Twitter account, andother social media services to create a community of engaged consumers and promote market activities. Whenever possible,SRCP will design social media campaigns to produce direct and measurable results, in order to validate successful socialmedia tactics and abandon unsuccessful campaigns.

STRATEGY AND IMPLEMENTATION ///

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LOCAL ALLIANCESSRCP will work with other businesses and organizations in the community with similar visions and goals to coordinate effortsand build a community of support for the St. Roch Market. These local alliances will include local businesses, such asFaubourg Wines, Gerkins Bikes, St. Coffee, Shadowbox Theatre, and Caf Istanbul, and local governmental entities, such asthe Alvar Branch Library, NOCCA, and the Colton School. SRCP will also work with other non-pro t organizations, such asMarket Umbrella (operator of the Crescent City Farmers Market), Hollygrove Market & Farm, Sankofa CDC, and Slow Food, topromote proper nutrition and access to local vendors and producers. INTERNET STRATEGYSRCP and the St. Roch Market will maintain a strong Internet presence both autonomously and through its individualvendors. Such outlets as Facebook, Twitter, Flickr, and Instagram will keep customers and vendors alike informed, inspired,and in-the-know about products, events, and news from St. Roch Market.

In addition to our social media presence, we will have an informative website. SRCP will also canvas local mediawith whomindividual vendors already have a healthy rapportto maintain a constant media presence. Such venues include: Nola.eater.com, The Times-Picayune/nola.com, The Advocate, and The Gambit.

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There are several risks involved in any business. The following are the major risks we have identi ed during the conceptionand operation of this business. While we believe we have given these risks much thought, we also expect unforeseen risksand challenges to make themselves apparent during the execution of this business plan.

COMPETITION There is a risk that currently identi ed competitors may change their business model to directly compete with the St. RochMarket and its vendors or use their pricing power to preclude the establishment of a sustainable business. There is also therisk that an unforeseen competitor or new market entrant may move into our market to serve our customers. We believethat current identi ed competitors would have already changed their business models if they were pursuing this market andestablishing good relationships with our vendors and customers will either preclude new market entrants or raise the barrier ofentry into the Market.

SHIFTS IN CONSUMER DEMANDConsumer diets change with the seasons. Foods go in and out of fashion. Movements come and go. Consumer demand forlocally-sourced and sustainably-raised products and independent vendors could take a drastic and unforeseen downturn withlittle notice and leave the St. Roch Market with an unsustainable business model. We believe we have designed the businessmodel to be exible enough to respond to these shifts in consumer demand.

ENVIRONMENTAL The St. Roch Market is located in, and is dependent upon suppliers, vendors, and customers within, the Gulf Coast regionof the United States, an area vulnerable to tropical storms and hurricanes. While we expect occasional business interruptionsdue to storm evacuations, there is also a risk of a major storm hitting New Orleans or one of our source farms and causing

signi cant damage. Climate change and coastal erosion also pose risks to ourbusiness, suppliers, and customers in the future.

CAPITALIZATIONWhile we have conservatively forecasted our nancial models, there will always be a riskthat we have over or under estimated any variable. If we signi cantly overestimated ourrevenue and underestimated our costs, there is a risk that the business becomes undercapitalized and runs out of money prematurely. To reduce this risk, we have taken aconservative approach to our estimations, although we cannot alleviate this risk entirely.

The Directors have committed considerable funds to the non-pro t thus ensuring anancial stake and continued commitment to the project.

EXECUTIONWhile we have diligently prepared our business plan, there is a risk that execution ofthe plan is not suf cient to build a pro table business. Internal and external factorscontribute to this risk as unforeseen events may occur and management may not becapable to react in a manner to maintain the business. During our formation of thisbusiness plan, we have taken steps to prepare ourselves for as many of these eventsas we can and developed our skills to react in a timely manner to minimize this risk.Collectively the Directors have committed to invest signi cant funds into the Market.

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NON-PROFIT LEGAL STRUCTURESt. Roch Community Partners is a 501(c)(3) non-pro t organization. Directors will not stand to gain personally form theorganizations activities. It is important to the members of the Board that the organizations function be a community-drivenentity, so any pro t accrued by the running of the Partner-established produce stall is to be funneled back into the Market foroperations, educational programs and cooking classes, and vendor incentives.

The Members will be directly involved in the operations of the Market: as vendors with individual market stalls, asadministrators reviewing applications for quali ed vendor-tenants, ensuring the hiring of managerial personnel, and overseeingthe development of the facility.

One individual will be designated as the liaison between the New Orleans Building Corp and the Market.

PROJECT STAFF POSITIONSWhile the Board of Directors of SRCP will provide leadership and oversight, SRCP will also hire an Executive Director and 4other full time equivalent positions.

MARKET GENERAL MANAGER A full-time position, $45,000 salary. Plans and directs the day-to-day operations of the Market. Contributes to developingstrategies to improve service, sales and pro tability. Assists in selecting vendors and negotiating lease agreements. Ensuresvendor and customer needs are met; complaints are resolved. Assesses and hires employees and interns (produce manager,

janitorial support, sales support for produce stall) and handles payroll duties.

Candidate will have at least 3 years experience in the eld or related eld and will be familiar with a variety of concepts,practices and procedures relating as such. Provided support and reports directly to the Board of Directors.

PRODUCE MANAGER A full-time position, $30,000 salary. Oversees the Market-run produce stall, includes stocking saleable goods, interactingwith retailers and customers, has knowledge of the products and the Market. Assists the General Manager, acts as GeneralManager during any extended absence from the Market, and reports directly to the General Manager.

JANITORIAL AND MAINTENANCE SUPPORT1.2 full-time equivalent positions, $12.00/hour wage. Maintains general cleanliness and neatness of the Market service areas,conduct preventative maintenance, perform repairs as needed,. Will maintain bathroom supplies and cleanliness, keep aislesclutter-free, remove refuse from the Market areas and put out for sanitation, keep outdoor areas of market clutter and trash-free. Reports directly to the Manager.

FLOOR STAFF1 full-time equivalent employee (2-3 part-time employees), $20,000/year allotted for wages. These employees will operate theproduce stall, work with customers, collaborate with and report directly to the Produce Manager.

MANAGEMENT AND PERSONNEL

Documents

St. Roch Community Partner draft plan