Rainbow Whole Foods Grocery, Inc.
Board of Directors Meeting
5:33pm  November 21, 2006

Board Members Present: Luke Lundemo, Ann Herlihy, Barbara Scobee, John McNeal, Nicole Jenkins, Amy Breckenridge.
Absent:  Karen Parker (Karen was present immediately before the meeting was called to order but was called away on a medical emergency)
Also present: Steve Whitlow.
A quorum was present.

Minutes: October minutes were approved without changes. 

 

Member Input: none

 

Managers Report: Steve Whitlow reported.  Sales for the first fiscal quarter did not meet expectations although November is going well and will probably reach its target. Some of the causes of falling short of expectations appear to be: 1) Last year there was increased sales due to so many Katrina evacuees in Jackson, 2) We now have significant direct competition from Wal-mart and Kroger, 3) we had very little bakery goods to sell while Amy was in New York getting training and 4) there are not enough parking spaces for more customers. Concerning rental space, Cano will be vacating his space and catching up on past due rent.
Rainbow has doubled it’s insurance coverage to now include the whole value of the inventory, fixed assets and emergency payroll to keep the staff together if the building us unusable for a time.

 

Financial Report: Barbara Scobee reported.  Sales for October fell about $10,000 short of expectation. Expenses were cut back as well, allowing Rainbow to essentially break even for the month. Cash flow is down just slightly ($1,200) from the beginning of the fiscal year. Amy asked for a report that showed departmental sales per square foot and Steve said those numbers could be generated and available next month.

 

Old Business:

General Manager Evaluation Procedure: Steve and Luke presented the results of their meeting on evaluation criteria for the period ending in April, 2007. The agreed upon criteria are as follows:

 

Financial:

1.      Sales Growth. We expect total sales of Rainbow Grocery to exceed the sales of the previous year.

2.      Profitability. We expect expenses to be controlled so that Rainbow Grocery is profitable in this period.

3.      Meet All Chapter 11 Obligations. We expect that all financial obligations arising out of the Chapter 11 procedure be met or exceeded.

 

Membership:

1.      Total Membership Number Increases. We expect the total number of Rainbow members to increase in this period.

 

Staff:

1.      Staff Wage and/or Benefit Increases. We expect the average wage of Rainbow employees to increase toward the industry average. We expect job benefits for Rainbow employees to increase.

2.      Lower Turnover Rate. We expect the Rainbow staff turnover rate to decrease or at least be lower

 

Steve has outlined more aggressive goals for himself. Luke pointed out that all these criteria are quantifiable and suggested that for the March meeting we look at the beginning and ending values for each of these criteria. The board unanimously approved these evaluation criteria.

 

Parking: We are in the process of getting agreement from all store owners on a limit to employee parking. There are four more businesses we need to get signed on. Navarro-McLean Interiors will not sign on at least until some issues with the alley are addressed. We will be posting a sign and telling recyclers to park to one side of the alley to allow other vehicles to be able to pass. We will be giving other shop owners a schedule of when the big trucks are scheduled to unload. And we will do all we can to speed the process of getting the trucks unloaded as quickly as possible.

Regarding finding more off lot parking for employees, we are still waiting for an answer from St. Luke’s about getting access to more parking spaces in their lot and we are pursuing getting more access to parking from the Dinkins behind the Conoco station. There is also ample free parking on Duling Avenue.

Regarding support for the Fondren Trolley, we are trying to get businesses to cooperate on a joint ad. We have gotten the price of the ad reduced but it is still a difficult sell for some business owners. The trolley can bring 300-500 more people into Fondren each day without adding to the traffic and parking congestion.

 

Plaza Improvements: Work is scheduled to start on Saturday at 5:00pm with wall cleaning and taping. At 7:00pm we will begin painting and removing the steel posts. More volunteers are needed. Daniel is helping recruit help through his emails.

Next week we will explore a contract with Foliage Design to maintain large plants in the plaza. Also next week we will be working with a sound abatement engineer to improve sound quality initially in the restaurant but also later in the plaza.

 

Board Development: Nicole will compile the results of the SWOT (Strength, Weakness, Opportunity, Threat) surveys the board has completed and distribute it before the next meeting. Each board member was asked to be thinking about candidates, skills and qualities for board candidates and bring some suggestions to the next meeting.

 

Board Assistant: To further explore the idea of hiring a board assistant, Luke prepared and distributed an outline and job description for a possible part time position that would assist the board in accomplishing its goals.

 

High Noon Promotion: Luke distributed two pages of links to websites that list restaurants and let viewers add reviews. High Noon is now listed on nearly all such sites and has at least one positive review at each site. It was suggested to get the list to Daniel and have him pass it along to his email list.

 

Annual Meeting: Steve and Ann were asked to find a date that would work for an annual meeting at the Cedars. Probably in late April.

 

Energy Consumption: Luke asked Steve to get with Bruce and compile a baseline of energy use for the past two years. For electricity, gas and water we would need both the monthly amount consumed and the cost. This would be the first step in a comprehensive energy audit to save money on utilities. This led to a discussion about incorporating alternative energy. Amy and Nicole will research sources for grants and grant writing to help in obtaining a solar rooftop array to provide some of our energy needs.
Meeting adjourned at 7:03.  Minutes are submitted by Charlotte Lundemo.