UpLift Solutions final paper
Leading Nonprofits
12/21/10
UpLift Solutions final paper
R.J. Bernocco, Rebecca Cashman, and Ian Cohan-Shapiro
UpLift Solutions: a Solution to the Food Desert Epidemic
Introduction to UpLift Solutions
UpLift Solutions is a registered non-profit based out of Philadelphia. Though it was only recently established it has tremendous potential to effect positive change in the area of food accessibility and nutrition in underserved communities. UpLift was the vision of businessman, grocer and entrepreneur Jeff Brown, who, through strong collaborations with local businesses and non-profits, has developed a strong foundation for UpLift. Mr. Brown is CEO of Brown's Super Stores; he has opened and currently oversees operations in ten such stores in the greater Philadelphia area under the ShopRite name. Brown's Super Stores have been successful in low-income food deserts that lack access to fresh and affordable food. Despite skepticism and challenges, Brown has proven that with careful planning, strategic partnerships, humility, creativity and persistence, developing supermarkets in food deserts not only satisfies some of community members' unmet needs, but can also be a successful business venture. Brown's model for creating supermarkets in these particular areas has tried to be replicated nationwide, but in order to augment the number of stores that open, UpLift Solutions may have a crucial role to play. UpLift Solutions' consulting services are a platform for which Brown and his team will guide other grocers and entrepreneurs across the country in opening and operating fresh food supermarkets in food deserts and communities without access to affordable fresh food. By forming UpLift, Brown hopes to have his model translate more readily to other areas, and thereby help lead a national response to some of the challenges faced by lower-income communities surrounding food access.
The Landscape and Problems
Two-thirds of Americans, over 190 million individuals, are overweight or obese. Obesity and diet-related diseases such as diabetes are major public health problems in the United States today. According to a 2009 report to Congress sponsored by the United States Department of Agriculture, these problems may be worse in U.S. communities that lack access to affordable and nutritious foods. The same report reveals that there are 23.5 million people living in low-income areas that are more than one mile from a supermarket or large grocery store: these communities are known as food deserts (USDA 2009). Typically, food deserts in low-income areas also have a high number of small corner stores that are more expensive than larger supermarkets; these stores rarely offer fresh food options. Fast food chains such as McDonalds, Burger King and Wendy's are also prolific in these communities. Such food desert characteristics are contributing factors to why cardiovascular disease and cancer-related death rates per 1,000 people were 2 and 1.5 times as high, respectively, in food desert areas as in areas where healthy food choices are readily available (Philadelphia Social Innovations 2010).
Steven Gray, a Time magazine contributor, described the issue of food deserts and limited food access succinctly in a piece he published in 2009, "Simply put, people eat what is convenient and affordable - and if it's fat-heavy fast food, that's what they'll chow down on" (Time Magazine, 2009). Gray's observation relates to exceptionally high rates of overweight and obesity in the U.S.; the trend has been that such rates are even higher among particular minority groups as compared to the general population. As Dr. Bill Dietz, Director of the Division of Nutrition, Physical Activity, and Obesity at the Centers for Disease Control and Prevention stated in a congressional testimony, while the overall prevalence of obesity among American youth was 16.3% in 2006, it was 28% among non-Hispanic Black females between 12-19 and 20% among Mexican-American females (Centers for Disease Control 2009). As individuals' weight increases to a point of overweight or obese, they are at increased risk for a multitude of health problems. Among these include hypertension, stroke; osteoarthritis; breast, colon and endometrial cancers; type 2 diabetes; and coronary health disease (Centers for Disease Control 2009).
In addition to morbidities related to food and diet, there are other problems in low-income food deserts that do not stem directly from food access and availability. Rates of both unemployment (United States Department of Labor 2010) and crime (Bureau of Justice Statistics 2000) across the U.S. are even more pronounced in urban areas and are also prevalent in many low-income food deserts. Placing affordable supermarkets that offer nutritious food options in these communities will not only help address the public health catastrophe that results from a lack of access to fresh food, but it can also help these communities deal with important social issues through providing employment opportunities and safe, welcoming environments for families (The Food Trust 2010).
In 1999 a national study showed that Philadelphia had the second lowest number of supermarkets per capita of major cities in the United States. Lack of fresh food access was an acute problem in low-income neighborhoods and was linked to high rates of diet-related diseases such as obesity and diabetes. Five year later, in 2004, nearly 228,000 Philadelphia residents categorized the quality of the groceries available in their neighborhood as fair or poor. One in three low-income adults in Philadelphia, representing 66,700 residents, reported having fair or poor quality groceries in their neighborhoods compared to 17.8% of non-low-income adults (The Food Trust 2010). As of June 2010, the Fresh Food Financing Initiative provided funding for 88 fresh-food retail projects in 34 Pennsylvania counties, creating or preserving more than 5,000 jobs (The Food Trust 2010).
What is Being Done?
Local & National Models:
In response to the health crisis surrounding overweight and obesity, in 2001, the Surgeon General's "Call to Action to Prevent and Decrease Overweight and Obesity" identified multiple action steps for various entities to take in order to help prevent and decrease overweight and obesity. Among the recommended steps for communities to adopt were: promote healthier choices including at least 5 servings of fruits and vegetables a day, encourage the food industry to provide reasonable food and beverage portion sizes, and encourage food outlets to increase the availability of low-calorie, nutritious food items (Centers for Disease Control 2009). The last action step directly relates to the work of Jeff Brown and other innovative and socially-minded grocers.
As stated, Jeff Brown's ShopRite stores have been successful in neighborhoods not traditionally selected for similar business ventures. Brown recognized the opportunity to confront the food desert problem in Philadelphia ten years ago, when the city had the second lowest number of supermarkets per capita of major cities in the U.S. (The Food Trust 2010). Though a fourth generation grocer, Jeff would need to harness the creativity, resources, intelligence and dedication of others to succeed in his goal of running profitable supermarkets in communities that were previously food deserts. His success has stemmed partly from his collaboration with non-profits and government agencies, including The Reinvestment Fund (TRF), The Food Trust, and support from the above mentioned Pennsylvania Fresh Food Financing Initiative (FFFI). The Food Trust, in conjunction with TRF and the Greater Philadelphia Urban Affairs Coalition, manages the FFFI. The initiative is a state program that was designed to increase the number of supermarkets in underserved areas by financially supporting supermarket operators seeking to open stores in those neighborhoods. Such financial assistance is critical in areas where infrastructure costs and credit needs cannot be satisfied fully by common financial institutions. State Representative Dwight Evans offered essential support and guidance for getting Pennsylvania to prioritize supermarket development in underserved communities. With his leadership, the State appropriated $30 million for the FFFI; TRF also committed $90 million through private sources, leveraging the initial 3-year investment to a total of $120 million--the pool that is now available for financing grocers in underserved areas in Philadelphia.
The FFFI program decreases food retailers' perceived risks and challenges associated with operating a grocery store in food deserts. Grocers have traditionally perceived low-income urban areas as unsuitable or difficult for grocery store operation given the high up-front costs that include the need to renovate a facility, pay high taxes, and invest in security and training. The FFFI makes it easier for food retailers to invest in opening and operating stores in food deserts through technical and financial assistance. The program offers grants, loans and tax credits to retailers located in food deserts; these financial services can be designated for an array of necessary operations and up-front costs, including employee training, equipment and renovations. With the FFFI, grocers in Pennsylvania who have been excluded from economic development programs are being offered financial assistance to open supermarkets in food deserts (Philadelphia Social Innovations 2010).
By supporting fresh food grocers in food deserts, the FFFI makes it easier for community members to access affordable healthy foods, helps tackle community-wide health issues, prompts job growth in low-income areas, and contributes to improving the community through the creation of a safe, clean, community-oriented space. The FFFI's role in creating healthier, stronger communities is multi-faceted. An increased number of fresh food grocers translates to more people with access to affordable healthy food options, which helps avoid the onset of obesity in food deserts. With fewer obese individuals, the number of community members with obesity-related diseases, including heart disease and diabetes, will decrease. In turn, in terms of benefits to the community overall, healthcare costs associated with obesity-related disease will also decrease and worker productivity will increase. In addition, as a substantial employer in underserved areas, supermarkets in food deserts will lead to jobs and will help revitalize the local economy while keeping wealth in the community. The FFFI's significant social return on investment (SROI) is visually represented below:

A further breakdown of this formula results in the following calculations for the Pennsylvania FFFI
A further breakdown of this formula results in the following calculations for the Pennsylvania FFFI program:



(Philadelphia Social Innovations 2010)
The FFFI program has become a national example for communities seeking to increase food access in food deserts and tackle the public health issues associated with them. The FFFI, along with Brown's successful grocery stores and leadership, attracted the President and First Lady Obamas' attention. They recognized the value of Pennsylvania-based activities as models for ways to address food deserts nationally. Having committed to developing initiatives to improve nutrition and decrease obesity, the President and First Lady sought Brown's input for how to tackle food deserts on a national level. The President adopted the FFFI as the template for a national program, the Healthy Food Financing Initiative (HFFI), which allocates over $400 million to combat food deserts.
The HFFI aims to bring grocery stores and other healthy food retailers to underserved areas across the country. The initiative is a partnership among the Departments of Treasury, Agriculture, and Health and Human Services. The Treasury Department supports private sector financing of healthy foods options in distressed communities through the New Markets Tax Credit (NMTC) and the financial assistance to Treasury-certified nutritious foods by spurring private sector investments. The Department of Agriculture's aim is to improve access to healthy foods through nutrition assistance programs, and create business opportunities for American farmers and other programs that promote economic development. The Department of Health and Human Services (HHS) role is to aid community-based efforts to improve the economic and physical health of people in distressed areas. Like the FFFI, it is meant to develop and provide resources to grocery stores, small businesses and retailers selling healthy food in communities without healthy food options. Through this new multi-year initiative and engagement with the private sector, the Obama Administration is working to ultimately eliminate food deserts across the country within several years. The initiative seeks to expand healthy food options into one-fifth of the country's food deserts and to create thousands of jobs in communities nationwide (Department of Health & Human Services 2010).
General Challenges
Challenges confronting grocers in food deserts:
Despite the start-up capital that the HFFI will allocate for supermarket development in food deserts, many challenges remain for grocers attempting to open stores in these areas. Few grocers applying for HFFI funds will have experience dealing with the complex challenges associated with the proposed business venture. Jeff Brown is one of few entrepreneurs who has successfully brought supermarkets to food deserts. One of the main challenges that grocers and entrepreneurs will confront is garnering community support and buy-in (Jeff Brown 2010). Food desert communities may include diverse religious and ethnic populations, respected local political leaders, powerful informal community leaders, and influential law enforcement personnel, all of whom could have different visions for the supermarket. While seeking local support for supermarket development, the grocer will need to partner with each specific community group to ensure that the store will be mutually beneficial to all. Such a task may be a formidable challenge for grocers and entrepreneurs who lack experience working closely with community groups.
To cultivate these relationships, the grocer/entrepreneur will need to commit to engaging in open dialogue with each group and to ensuring that there is a mechanism for ongoing feedback from the community through the supermarket's operation. Engaging a diverse range of community groups to create a supermarket that meets local demands in its functions and offerings is an essential task for a grocer starting a business in a food desert. Properly assessing community demand in food deserts through working with community groups poses a unique challenge to grocers, making outside help from fresh food grocers with experience working in food deserts critical. Another important component of partnering with the community is bringing businesses inside the supermarket itself, both through selling local businesses' products and making space available in supermarkets for local vendors. These initiatives will help increase community buy-in for the supermarket's presence. Working with local businesses is important, and collaborating in a way that is profitable for a grocer requires sustainable models and pre-drawn up agreements that are challenging to create (Jeff Brown 2010).
A second major challenge relates to the lack of services in many of these communities, which grocers may need to address in order to ensure a strong customer base (Jeff Brown 2010). There are often few and/or insufficient health care clinics and financial services in low-income food desert areas. Depending on community needs and support from local institutions, it might be necessary and feasible to incorporate one or more of these services inside the supermarket, thereby offering community members a central location where they can accomplish more than grocery shopping. Creating a supermarket that offers additional support services is not straight-forward. Traditional supermarkets do not incorporate these services. Partnering with non-profits and for-profit organizations to successfully incorporate these services may be difficult for grocers.
A third challenge is the potential lack of sufficient qualified employees in food desert areas (Jeff Brown 2010). Many community members in these areas may have limited experience working in retail, in customer service, or in the food industry. Determining on what to base the decision to hire someone, what kind of training individuals need, how best to train new employees, and at what costs, are all difficult questions that grocers will need to answer before they can open supermarkets in food deserts. Grocers will also need to determine how much capital to invest in training community members to become supermarket employees.
The Solution
UpLift Solutions' Response:
Brown's success with financing and operating stores in disadvantaged communities has attracted attention from visitors across the U.S. who seek to learn about and replicate his approach. Brown knew that he could not personally expand his business to other cities and started UpLift Solutions as a way to help lead a national response to eliminating food deserts across the country. UpLift Solutions is a public 501(c)(3) nonprofit that offers a variety of support services and technical assistance to governments, supermarket operators and manufacturers, entrepreneurs, non-profits and community organizations interested in the movement for widespread access to fresh, affordable foods and the elimination of food deserts. UpLift Solutions' mission is to create synergies between government agencies, non-profits and businesses to utilize resources for improving 'at-risk' communities. UpLift Solutions strives to address problems of limited food access, substandard education, inadequate safety, and unequal opportunities in order to overcome challenges experienced by many in these communities (UpLift Solutions, 2010). UpLift Solutions' mission is multi-faceted, addressing the problem of food deserts while also considering solutions to other complex related social problems.
UpLift Solutions offers consulting services that guide aspiring food desert grocery operators in how to engage meaningfully with a range of community members whose input and support is essential in all phases of establishing successful stores. When Brown and his team are considering the possibility of opening a store in a specific neighborhood, they typically start reaching out to community members as much as 12 months prior to store development in an effort to secure community buy-in and approval. Among the groups whose support is needed are a) law enforcement officials who understand the safety concerns of the area, b) community members of various ethnic and religious backgrounds who have specific product preferences and needs, c) community leaders who understand their constituents' lifestyle and desires regarding new business development, and d) local small business owners whose goods could be sold in new grocery stores. Additionally, based on Brown's experience with his ShopRite stores, UpLift Solutions is well-poised to guide grocers operating in food desert areas in how to incorporate community needs into supermarket functions, what precisely they offer, and how exactly they present and market their services and products. Brown's team has experience with product selection and research, which is an integral component of creating successful and profitable businesses that respond to community priorities. Brown's team has extensive experience engaging local leaders in a grassroots effort to learn about where preferred products originate, from what local bodegas to acquire them, and then contacting the manufacturers directly to identify the local supplier (Mike Basher 2010).
Additionally, Brown's team has expertise in figuring out which local businesses would be appropriate partners and whose products could be sold in which supermarkets. During community meetings, Brown and his co-workers are experienced in leading discussions that engage local businesses and local attendees about possible partners. Brown's team has consistently had success finding new small businesses and start-up businesses whose founders have great ideas but would benefit from collaboration with a supermarket. Once specific businesses and items are identified, they are highlighted in sale circulars that are mailed to community members, and also displayed prominently in the store itself. To further promote new products, Brown and his colleagues organize guest appearances by the owner or creator of the product, as well as free samples in order to create excitement (Mike Basher 2010).
UpLift Solutions can also assist grocers in creating a safe, clean, and welcoming store environment; in exhibiting community-appropriate pricing for all goods; in offering ethnically-specific products; and in actively and visibly managing a community-accepted system for processing and reviewing community feedback. In addition, UpLift Solutions supports grocers in their planning and execution of comprehensive job training and subsequent employment for local residents, including ex-offenders, and other community members who do not have extensive job experience.
Finally, UpLift is well-positioned to aid grocers in their plan to assess the demand for, and include where necessary, non-traditional functions inside supermarkets such as financial services and healthcare clinics. These services meet more of community members' needs, and if housed within the supermarket, can be accessed all in one convenient location. The financial services office functions as a place where customers can receive assistance paying bills and guidance regarding what social services they qualify for and how to enroll in them. A health care clinic located within the store could satisfy customers' primary care needs, as well as prescription drug benefits and referrals (Jeff Brown 2010).
Including other types of service within the store not only helps community members but also increases the amount of time they spend in the store and thus how much they shop. Providing these services will increase general sales revenue. In a middle class area, people who use retail health clinics spend an average of $45.00 more in the store on products ranging from prescriptions to groceries. Based on that statistic, a grocer in an area that was previously a food desert will benefit from a peak in revenue from in-house health clinics, even if the sum is a lower amount than what is typical in a middle-class area (Tine Hansen-Turton 2010).
Due to UpLift Solutions' unique connection to Brown's Super Stores-- some of the most successful profitable supermarkets in food deserts in the country--UpLift employees are prepared to counsel and guide those seeking to open a supermarket in an underserved food desert area. UpLift Solutions will help to promote Brown's model for viable supermarkets in urban, poor areas that both meet community members' needs and are profitable ventures as well.
Costs Associated with Supermarket Operations
Part of the process of establishing a successful shopping center is determining the costs associated with the venture. Utilizing Brown's SuperStores model, which UpLift Solutions promotes, there are standard costs as well as location-specific costs that should be considered. Important figures on probable costs are detailed below:
Start-up:
In terms of the preliminary start-up costs, a common scenario is that an interested landlord will be financially responsible for building the store's space, and the store operator would pay for the store equipment package. As a point of reference, the building cost is approximately $9.5 million. The approximate start-up cost for the grocer or entrepreneur is $5.5 million. Brown's stores are generally between 65-70,000 square feet. This is considerably larger then the national average of 45-55'000 size (Jeff Brown 2010). The start-up costs are based on a store of approximately this size


(Mike Basher 2010).
The total approximate start up total is $16,730, 000.00.
Healthcare & Financial Services component:
The builders should be mindful to include the proper specifications for a financial services center into their supermarket construction plans. Including the center in the construction plans means that the costs associated with the financial services component will be largely payroll-based. If it is necessary to build beyond the original store space or to have the financial services center take over space previously-allocated for groceries, additional costs will apply. The costs associated with payroll for the financial services center will vary by store, and including fringe costs, will total approximately $170,000, fee income of $138,000 with a net loss of $32,000 per year.
UpLift Solutions advises supermarkets to include healthcare and financial services centers within their stores; the costs associated with these services are primarily related to build-out and construction. Build-out cost for two exam rooms, a modest waiting area, and a financial services office is approximately $150,000. Traditionally, the healthcare tenant is responsible for the cost for build-out, and either pays the costs up-front or the cost can be distributed over a 5-year rental agreement (Mike Basher 2010).
Job Training Services:
The cost associated with UpLift Solutions' model of staff recruitment, extensive staff preparation and training amounts to approximately $1 million per inner city supermarket. As we have discussed, many individuals living in food desert areas are also affected by challenging social issues. One of the overwhelming problems is poverty and a lack of access to viable employment. UpLift Solutions' model prioritizes hiring employees from the community where the supermarket will be located and whose members it will be serving. Ex-offenders should be included among community members to be considered for hiring and training. Reentering law-abiding society once free from incarceration is an uphill battle, a struggle made more difficult by limited employment opportunities. UpLift Solutions can help grocers nationwide to assume an important role in confronting and alleviating social ills that are interconnected with the job of combating food deserts (Mike Basher 2010).
The major cost components for the UpLift Solutions model are the grocery store, financial services, healthcare services, and job training. There are numerous cost differences based on region and particular need, but these base level costs provide a solid planning foundation.

The total approximate cost of $18,050,000 million for each UpLift Solutions' model store has the power to return a staggering social return on investment (SROI). Earlier we referenced the FFFI's SROI:

By accounting for just .1 percent of these factors the FFFI can tally an impressive SROI:

(Philadelphia Social Innovations 2010)
As an extension of FFFI locally and HFFI nationally, UpLift Solutions has a proven model for addressing food deserts. Uplift Solutions is a complementary service and tool that the FFFI and HFFI can use to aid them in addressing this problem. For the approximate cost of $18,050,000, UpLift Solutions' solidifies that staggering 2.33 billion in social return on investment.
Millions of U.S. residents live in food deserts and lack access to affordable, fresh and healthy food. In turn, problems of overweight/obesity, malnutrition, and associated chronic and deadly health outcomes persist across the U.S. and greatly influence entire communities' quality of life. Individuals such as Jeff Brown have not only raised awareness about the food desert crisis, but have also designed effective ways to begin to remedy the problem. Brown's model for supermarkets in food desert areas is one that has shown to be successful in responding, in a culturally appropriate way, to the particular community's preferences, while also ensuring that individuals are offered healthy and affordable foods. Importantly, Brown's stores are not only places where community members enjoy shopping and congregating, but they are viable businesses as well. As Brown has also garnered support for the FFFI and the HFFI, he has a clear vision of how regional and national programs that provide financial assistance to grocers and entrepreneurs can translate to thriving stores that produce a meaningful SROI. Such initiatives to support store creation in food deserts are critical in terms of providing the financial capital needed to develop a store, but grocers who are new to store management in underserved areas may still need guidance. UpLift Solutions, with Brown's leadership and experienced and passionate board members, is capable of assuming an important role in combating food deserts on a national level. UpLift Solutions can offer the technical assistance and range of consulting services that committed, socially-minded grocers may need when they are challenged by the task of operating a successful store in areas traditionally deemed difficult for such ventures. With his determination, experience and positivity, Brown is an appropriate leader to guide UpLift Solutions, and the organization is well-positioned to promote his model to grocers and entrepreneurs nationwide, thereby decreasing the prevalence of food deserts and chipping away at the associated health problems plaguing the nation.
Works Cited
Mike Basher (2010), email interview by R.J. Bernocco, Rebecca Cashman, and Ian Cohan-Shapiro, November 2010, transcript.
Jeff Brown (2010), email interview by R.J. Bernocco, Rebecca Cashman, and Ian Cohan-Shapiro, December 2010, transcript.
Jeff Brown (2010) interview by R.J. Bernocco, Rebecca Cashman, and Ian Cohan-Shapiro, October 2010.
Bureau of Justice Statistics (2000) Urban, Suburban, And Rural Victimization, 1993-98 HYPERLINK "http://bjs.ojp.usdoj.gov/index.cfm?ty=pbdetail&iid=812" http://bjs.ojp.usdoj.gov/index.cfm?ty=pbdetail&iid=812 (Accessed December 2010)
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Philadelphia Social Innovations (2010) The Food Trust and the Fresh Food Financing Initiative: Eliminating "Food Deserts" HYPERLINK "http://www.philasocialinnovations.org/site/index.php?option=com_content&view=article&id=177:the-food-trust-and-the-fresh-food-financing-initiative-eliminating-food-deserts&catid=21:featured-social-innovations&Itemid=35&showall=1" http://www.philasocialinnovations.org/site/index.php?option=com_content&view=article&id=177:the-food-trust-and-the-fresh-food-financing-initiative-eliminating-food-deserts&catid=21:featured-social-innovations&Itemid=35&showall=1 (Accessed October 2010)
Time Magazine (2009), Steven Gray, "Can America's Urban Food Deserts Bloom?" HYPERLINK "http://www.time.com/time/nation/article/0,8599,1900947,00.html" http://www.time.com/time/nation/article/0,8599,1900947,00.html (Accessed October 2010)
Tine Hansen-Turton, 2010, email interview by R.J. Bernocco, Rebecca Cashman, and Ian Cohan-Shapiro, November 2010, transcript.
United States Department Of Agriculture (2009), Access to Affordable and Nutritious Food: Measuring and Understanding Food Deserts and Their Consequences HYPERLINK "http://www.ers.usda.gov/Publications/AP/AP036/AP036.pdf" http://www.ers.usda.gov/Publications/AP/AP036/AP036.pdf (Accessed October 2010)
United States Department Of Labor (2010) Unemployment Rates for Metropolitan Areas HYPERLINK "http://www.bls.gov/web/metro/laummtrk.htm" http://www.bls.gov/web/metro/laummtrk.htm (Accessed December 2010)
UpLift Solutions (2010) UpLift Solutions Mission HYPERLINK "http://www.upliftsolutions.org/uplift-solutions-mission" http://www.upliftsolutions.org/uplift-solutions-mission (Accessed October 2010)

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