Market on the Green nonprofit supermarket from ProMedica Health System, Toledo

Market on the Green is located in the ProMedica Ebeid Institute building, which is in a low income neighborhood, separate from but near some of the system's hospitals.

I was re-reading a past blog entry on hospital planning in the Salt Lake City area ("Hospitals as urban anchors/revitalization levers, not usually, but with great potential to serve communities in important ways: Examples are two forthcoming projects by Intermountain Health and University of Utah Health") and among the best practices it mentioned for activating the first and second floors beyond traditional medical series, I listed the "Market on the Green" supermarket in Toledo.  

I must have found out about it from this Wall Street Journal article, "Take Two Aspirin—and a Serving of Kale." 

Given that supermarkets run by cities--proposals in Chicago, New York City, and DC--are all the rage it's important to look at what works and what doesn't.  This piece discusses the failure of urban markets ("Grocery stores in cities: the failure of the "15 minute grocery store"").  Also the opportunity of food cooperatives as an alternative model ("Revisiting Takoma Junction and the Takoma Co-op development issue | A chance to start over").

Yard sign announcing a household's support for the Wasatch Community Food Co-op.

Food coops do need initial capital and that can be hard to raise.  

The Wasatch Community Food Co-op finally opens this month--they've spent 15+ years organizing, raising capital, and finding and building out a space.

And there is the public market model ("Eastern Market DC's 150th anniversary last weekend | And my unrealized master plan for the market").  

In distressed areas I think that model is adaptable and adoptable as a way forward because you divide the various functions into departments, called "market stands," and from an entrepreneurial standpoint they can be run by individuals rather than "the city," and with fewer capital requirements compared to running a grocery store as a single operator.

City-run supermarkets.  I am skeptical about city-run markets because the profit margins are so low--I tried to get a creative donation from the supermarket business cooperative in the Intermountain States, along with some of their local affiliates, and they lamented their extremely low margins of 1.5% or less, and that was before the effect of tariffs and now the War with Iran which impacts both transportation costs and consumer spending even more.

And because cities aren't known for innovative management in governmental matters.  Running a retail business is a stretch beyond that, although it can be addressed by hiring people with industry experience.  But letting people with a retail background act like retailers is still a tough decision for a city government.

Public markets are a truly rare form of public-nonprofit management.  Most public markets are owned  by the city but operate with independent management.  For those that don't, half are probably successful and dynamic, like Reading Terminal Market and Lancaster Central Market, and the others, and I would include Eastern Market DC where I served on the board for 13 years, static--even though Eastern Market seems to always be rated highly in consumer voting contests ("Shop, savor, and stroll these 10 must-visit public markets," USA Today).

Managerially, one of my favorite examples is the Milwaukee Public Market.  

It was built by the city and run by a nonprofit, but the nonprofit was overwhelmed and management shifted to the Milwaukee Downtown Business Improvement District, and it gets high ratings ("Milwaukee Public Market gets back to business," "From one market to another: Milwaukee Public Market’s advice for Brookfield," Milwaukee Business Journal).

Reading the second article, archive.ph version for those without access, you can tell they really get it.

"I think taking this as a model and plopping it anywhere, it's not always going to work in every setting, every environment, every city," Schwartz said. "These are not always easy operations."

We've had the benefit of time, reputation and experience. We've also developed this into not just a place where people can get food, but we can host regular events and cooking classes. We embrace an outdoor element for experiences, whether it's the Palapa at St. Paul Fish Co. or a beer truck outside. So, I think you have to be multi-dimensional.

At Eastern Market in DC there is zilch innovative design associated with the individual stands.  

Not so for St. Paul Fish Company at Milwaukee Public Market.  

Brand promise is communicated and strengthened by a strategic choice of seafood creature sculptures.

Turnover and new tenants is not always a bad thing. It's sometimes a mutual, "Hey, I'm gonna do this for a few years, experience it, and then I'm gonna concentrate on another brick-and-mortar." There's a level of rotation that adds freshness and newness. It can be beneficial. Probably 34% of our tenants are originals. We always try to find a mix of not only the right food products, but also ownership, representation and businesses that will help add something from the neighborhood, not just the market.

If you are a true destination for residents and people from out of town, I think you need to embody as many types of experiences as possible and cast a wide net, whether it's for families who are coming in from out of town or somebody who lives in a condo that's popping over here to have a glass of wine, grab a steak and make it at home.

One of the problems with ratings is the tension between selling prepared food, more typical of what are called food halls, and fresh food to prepare at home, and maybe with some prepared food vendors.  A lot of the other markets do fresh food better, and most that specialize in it, like Reading Terminal Market in Philadelphia or Grand Central Market in Los Angeles, do way better.  And Pike Place Market in Seattle didn't even make the top 10!

Why has Market on the Green been successful, when similar ventures fail?  

Compared to many nonprofit grocery initiatives, it's still standing after years, when many have failed long before that kind of tenure.  

It's not a grim space.  It has positive design qualities.  While it's one tenth the size of a for profit supermarket, it offers the same array of goods, even beer and wine.

It was funded by a donation from the lead philanthropist supporting the ProMedica System.  It's located in the Uptown neighborhood which is defined by USDA as a "food desert" and where they started their community development program ("Seaway standing strong," Toledo Blade). 

Originally the market didn't have a more traditional (and hopefully outdoor sign.  Now they do.

The building is owned by the health system, and the second floor has a teaching kitchen, other community services, and workforce training (two more floors for other stuff).  

They support local vendors and stock and market their products ("Farmers First Coffee release party at Market on the Green" and "Beer Sampling at Market on the Green," Toledo City Paper)--the beer sampling up in the teaching kitchen with better access controls.  

And they're innovative, unlike a lot of public markets, they offer online ordering and delivery ("Market on the Green offers online shopping and delivery," Toledo City Paper).  

I tried to have that done at Eastern Market and you wouldn't believe the pushback--"Eastern Market is all about the face-to-face experience" they said.  For some it is, for others it isn't.  Maximizing your ability to reach multiple market segments in the face of ever increasing competition is key.

The store has been open for 11 years, which is a great run so far.--and it's still going.

But it may have taxed managerial resources, because in 2023 outsourced management to a local grocery store operator ("ProMedica grocery store in UpTown Toledo gets new local management," Toledo Blade).  

As a whole the hospital system has run some  deficits and this saves them not just money, but "managerial burden," involved in running the store ("ProMedica scraps new Monroe hospital as losses mount," Toledo Blade).  Since they've cut back on plans for new buildings, sold off their nursing home division, and ended event and venue sponsorships.

Success factors for Market on the Green.  I think the key elements are (1) philanthropic donation to provide capital, (2) and to buy the building, (3) which means they can be patient, (4) because they have "patient capital" to support the business, (5) without interest fees (6) and probably no rent, (7) so, as long as it doesn't lose money on operations, (8) because of the high degree of management and board commitment separately (9) and as a key element of their place-based community development initiative, Ebeid Neighborhood Promise.

Initiatives at other hospitals include food stands within the hospital's first floor, food pantries offering free food to people in need ("Micro-markets inside health centers could be just what the doctor ordered," Grocery Dive), community gardens, and farmers markets held on campus.  St. Joseph Mercy Hospital in Ypsilanti, Michigan goes even further, allotting 25 acres on its campus to a local produce farmer, using some of the food in their food service program, donating to food banks, etc.

Social determinants of health.  The justification is what are called "social determinants of health," how lifestyle and other factors like place contribute to people's health/problems and providing food access reduces income hindrances that can make it hard to buy healthier and fresh foods.

According to Next City ("Why Health-Care Systems Are Funding (Or Building) Grocery Stores") such stores funded by, supported by, or run by hospital systems support both personal and community health, so it may help them when preparing their Community Health Assessment Plans required as one element of Obama Care.  From the article:

There’s been a lot of talk and research about the importance of access to healthy food as a social determinant of health. Obesity, diabetes, heart disease — all are linked to diet. So putting a full-service grocery store in the heart of low-income, under-resourced neighborhoods, where health disparities are high and persistent, seems like a sensible thing.

City incentive programs.  Rather than open and operate stores, many cities like DC and even states, like Pennsylvania (although it's not much money, especially when you consider how big the state is) have tax incentives and other programs to subsidize the cost of putting stores in less economically well off areas. This Reddit entry is great, listing the five incentive programs in DC.

There are also programs to expand the array of healthy foods available in corner stores and bodegas, who might not normally carry such products because of spoilage and other concerns, and familiarity as they mostly sold non-fresh foods.  

In NYC Shop Healthy NYC, formerly the Healthy Bodegas Initiative, is a city program.  In Philadelphia and Camden, New Jersey programs are coordinated by the nonprofit Food Trust.  In a study of bodegas in New York City:

Most consumers shopped at the bodega because it was close to their home (52%). The majority (68%) reported shopping at the bodega at least once per day. The five most commonly purchased items were sugary beverages, (29.27%), sugary snacks (22.34%), coffee, (13.99%), sandwiches, (13.09%) and non-baked potato chips (12.2%). Nearly 60% of bodega customers reported their purchase to be healthy.

It would have been even cooler, but more expensive if the outdoor sign rendered the more detailed logo, in neon.

Conclusion.  While I think these initiatives are great, as the Milwaukee Public Market director said:

"I think taking this as a model and plopping it anywhere, it's not always going to work in every setting, every environment, every city," Schwartz said. "These are not always easy operations."

pertains here too.  The reason(s) for success of Market on the Green rather than failure is because the factors that are key to their success are usually opposite the conditions faced of other ventures, for example:

• patient capital versus impatient capital
• no interest on financing versus interest on financing
• no rent versus paying rent
• knowledge and skill in operations versus good intentions
• organizational commitment versus bottom line focus

are all key factors.  Government can be a source of patient capital, but they definitely lack operational expertise.  And government grant programs come with lots of strings and reporting requirements, and usually have more demand than funds.

ProMedica has tapped Summit Foods and owner Ed Beczynski to manage its Market on the Green grocery store in UpTown.  Mr. Beczynski is a local restaurateur whose family has run Summit Foods for 25 years.  Toledo Blade photo.

Because people have to eat, whether or not a store is immediately close by, even in food store deprived areas, people have developed ways to provide access and a means to travel to existing supermarkets (Lack of access doesn't deter shoppers from visiting large grocery stores," FoodDive,  "The Influence of Foodstore Access on Grocery Shopping and Food Spending," Economic Research Service, USDA).

Retail trade areas.  Plus people's complaints of lack of immediately accessible food stores runs into the retail trade area issue--an RTA radius for a supermarket in a city is up to 5 miles, even more for specialty stores.

Granted it presumes use of a car.  But an RTA of say 3 mile radius is still an area of 28 square miles.  That's almost half the size of Washington, DC.

A three mile radius or retail trade area, drawn with 6500 Piney Branch Road NW as the central point.

During our unsuccessful fight against Walmart entering DC ("Walmart closing one of its three DC stores," with links to 11 other blog entries, and my op-ed in the Washington Business Journal, "Temper Walmart Glee With Planning") the then planning director talked about the areas they wanted to locate being food deserts.  

They weren't except in SE DC, and they ended up not even opening that store even though they "promised."  

At that time, within the radius of the store for Georgia Avenue, there were at least four Giants, three Safeways, multiple ethnic markets (I used to cycle to them at University Boulevard and New Hampshire Avenue to the great Latino market), a Save-a-Lot (since closed), at least two Shoppers Food Warehouse stores, two Aldis, a Price Rite (the cheap brand for Shoprite), and one Whole Foods.  Plus others on the west side of Georgia Avenue, and on the east further into Prince George's County.

There are even more options now, including an Aldi at Fort Totten, Lidl in Columbia Heights, a Whole Foods at Walter Reed, Wegman's on Wisconsin Avenue NW.

15 Minute City.  The reason the "15 Minute [Walking] City" concept bugs me isn't the aspiration--that most everything you want is within 3/4 mile walking distance which for able bodied people is about 15 minutes--it's because the provision of retail and services don't work, at least if you want them to be cost competitive at such distances.

Note that a "15 Minute Bicycling City" makes way more sense.  That's a 2.5 mile area radius riding at 12mph and an area of 19 square miles.  Pushing it out just a bit further, our Manor Park house is accessible to so many places, not just in DC, but across the border in Maryland like Silver Spring, University Boulevard, and the University of Maryland College Park, and 5 or so miles to Downtown DC, Union Station, etc.

About food stores on the nonprofit side, there are at least five motivations, a lack of stores (without regard to retail trade area), campaign promises, ideology, good intentions, and market reality.

Balancing amongst them, and creating a store that remains successful in the long term is tricky.