Renovation2007 Master Plan Summary

The Co-op is about to embark on a master plan to renovate its building and property. The building was constructed in 1959, and last underwent a major remodel in 1997. The Co-op experiences over 2,000 visitors each day, and the wear and tear on the facility is evident. It is necessary to renovate to improve customer service, ensure workplace safety, maintain competitive parity and replace aging equipment.

A master plan was developed to approach renovation in a thoughtful manner. As solutions to specific problems were identified, each solution produced an effect on adjacent areas. Because of this domino effect, the approach had to be holistic. It became apparent that professional design help was needed, and a search was initiated. Sutti Associates of Burlingame was selected because they specialize in grocery store design and renovation. They have years of experience, and clients include Nugget Markets, Whole Foods, Draeger’s, and Molly Stone’s.

The planning process began with a survey of shoppers created by Sutti Associates, handed out by cashiers in February 2006. Concurrently, a Renovation Plan Committee met with designer John Sutti. Committee work included tours of bay area stores designed by Sutti that were similar to the Co-op in size and product mix. Sutti also met with other staff, and a laundry list of traffic flow bottlenecks, safety needs, customer service improvements, competitive parity, and lack of space issues were identified. From this information, Sutti Associates created a plan that addressed all identified issues. Staff worked on several budget scenarios to identify how much of a renovation the Co-op could sustainably afford. From this work, a master design plan was created.

The plan consists of four phases. View phasing diagram here. Phase 1 includes the Deli, Cheese, Produce, and Health and Beauty sections of the store. Phase 2 includes the meeting room, the Yolo Federal Credit Union office, warehouse areas, and employee break areas. Phase 3includes refrigeration mechanicals, packaged grocery, meat and seafood, dairy, frozen foods and bulk foods. Phase 4 includes checkout. Overarching each phase is a store wide integrated pest management (IPM) approach to pest and fly control.

The Phase 1 plan detailed equipment list and budget projection has been completed. The other three phases have been conceptualized and include equipment lists and budget estimates. Because of the time and cost to create detailed equipment lists, this work will begin when the membership approves debt beyond the bylaws loan limit.

There is still some fluidity in planning the scope and details of phases 2, 3, and 4 to ensure that the total budget does not exceed sources of funds. There may a postponement of some parts of phases 2, 3, and 4 to ensure budget compliance. There is also some fluidity in the placement of elements of each phase. The goal of minimizing disruption and delivering good service may result in changes. Construction timeline estimates are estimated for each phase, and phases may overlap.

In order to minimize disruption, construction and equipment installation will occur primarily at night. Sutti Associates has years of experience with night projects, and informs that the Co-op will not need to close. It is also anticipated that no department will need to close. Because construction can involve unanticipated complications, there can be no guarantees concerning disruption or closure. Sutti averages 40 grocery renovations per year, and has a very good reputation for ensuring minimal disruption.

Phase 1

Phase 1 converts the Demo Kitchen into the cheese cutting prep area, allowing cheese cutters to interact with members. The amount of cheese display space increases, and a self-serve olive and antipasto bar is added. The single deck produce cases along the wall are replaced with multi-deck cases, allowing space for more products. Bakery tables will display artisan breads, near the deli, creating a solution for the existing bread area bottleneck. The health and beauty section receives new space efficient shelving, providing a 20% increase in shelf space. The products will be reset to ease shopping through more logical placement. As the budget allows, a sink will be placed next to the bulk soaps and lotions.

The deli gets a complete makeover. In addition to the existing sushi and roasted chickens, new self-service hot buffet and salad bars are added. Self service “grab and go” space expands, allowing all single serve chilled beverages to be in one location, and allowing packaged ready to eat meat, meat alternatives, hummus, and spreads to be near the service deli counter.

The service counter includes a juice/smoothie station (the scope of juicing options is subject to Health Department approval and product liability concerns). The energy inefficient bakery oven is replaced by 2 Rationale® gas ovens. Rationale brand ovens from Germany provide short cook times and great versatility in cooking techniques. To enhance variety, Sutti Associates has begun helping the Deli Team source new products from bay area vendors.

The grocery warehouse will see the removal of low false ceilings to allow more space for back stock, and the preparation area for product samples relocates to the former cheese prep area. In addition, the parking lot and drinking fountain will be upgraded to current ADA standards.

Phase 1 Benefits

Phase 1 greatly improves the shopping experience for cheese and prepared foods, and space is used much more efficiently in produce and health & beauty. The cheese selection greatly expands, with a goal to reverse the recent trend of declining cheese sales at the Co-op. Severe lack of back stock space in the dairy/cheese walk in cooler is somewhat eased by relocating cheese stock to the new cheese prep area.

The expansion of hot buffet and salad bar offerings combined with a new olive bar and juice/smoothie bar positions the Co-op as a viable option for lunch and prepared foods. This strategy has been generally quite successful for other Sutti clients.

Artisan bakery products move near the Deli, allowing the bottleneck at the intersection of bread and dairy to be eased. Additionally, the island cheese case near the bottleneck will no longer be necessary.

Produce display will be much more vibrant, and the 60% increase in refrigerated produce display will allow for improvements in cross merchandising of chilled product. Currently, chilled packaged products such as hummus, vegetarian meat alternatives, pesto, spreads, pasta, etc. are scattered throughout the store. By grouping these products near deli and produce, shopping is meant to be simpler, and space is freed up in the back of the store.

Phase 1 Budget and Timeline

The Phase 1 budget is summarized below based on the master plan. Construction, installation, and equipment costs for the Deli are listed separately and Cheese, Produce, and Health and Beauty General Merchandise costs are combined as CPHB. The budget is based on actual equipment cost and contractor estimates. If the scope of work changes, the budget will change. An allowance of 10% plus or minus variance may increase or decrease cost by approximately $130,000. The phasing of the master plan allows control at each phase to ensure that total renovation cost does not exceed budget.

Deli Construction	$272,000
CPHB Construction	$426,855
Deli Refrigeration Installation	$12,860
CPHB Refrigeration Installation	$87,627
Deli Equipment	$239,200
CPHB Equipment	$300,115
Deli total	$524,060
Phase 1 total	$1,338,657

Phase 2

Phase 2 includes an expansion of the store’s warehouse area, the addition of a meeting room/cooking classroom, relocation of the Yolo Federal Credit Union, and upgrades to the employee break room,

The warehouse expansion calls for relocation of the loading dock. The existing grade would be filled, new grade excavated, and new concrete poured. The building would expand into the old dock area. This will allow pallets of product to be received and handled in a more orderly and efficient manner.

A larger meeting room replaces the former credit union space and includes a dedicated teaching kitchen. Cooking, tasting, and children’s classes are very popular and well attended. This space allows a popular member /community benefit to grow as demand merits. The Credit Union would relocate, at their expense, into an L shaped addition to the building at the location of the current cashier offices adjacent to checkout.

Half of the patio is to be enclosed to relocate offices from current warehouse space, and to create an improved break room. (Phase 4 includes additional seating adjacent to the check stands, replacing the lost patio area.)

Phase 2 Benefits

The ability to receive, break down, and stock large deliveries will be greatly improved through warehouse renovation. This is important to accommodate current delivery volume, and even more critical should sales growth reaches new levels.

A teaching kitchen allows the co-op to please members with popular classes, and enhances our ability to fulfill E1 and E3.

Phase 3

Phase 3 focuses on the packaged grocery, wine & beer, bulk, frozen, dairy, and meat & seafood areas. New shelving will add about 20% more shelf space for packaged grocery. The aisles will be straightened to improve traffic flow. New wine shelving will add space to cross merchandise chocolates, wine glasses, and house ware items. New dairy cases will be easier to shop and will improve safety conditions for our stockers. The meat & seafood area will receive new wall coverings, the fish case will be replaced, and frozen seafood offerings will increase. New floor covering and lighting are included as well. The bulk bins are to be retrofitted with ergonomic lifts to enhance safety, and a carbonated bulk water dispenser is added.

The compressor room equipment moves to the roof, replaced by a state of the art energy efficient system. The roof will be structurally reinforced, and the compressor room will be used to expand frozen back stock. Additional freezer space will greatly improve workplace safety conditions.

Phase 3 Benefits

Efficient shelving in the packaged grocery section will create space for new product and allow more facings of popular products. The reconfiguration of aisles helps eliminate traffic bottlenecks, and the wine display will create space to linger. Currently, wine shoppers find themselves in a perimeter thoroughfare, competing with bread shoppers for space.

New lighting will improve the aesthetics of the darker, low ceiling area of the sales floor. The meat/fish area will benefit from aesthetic improvements such as replacing plastic wall covering with tile.

Energy efficiency is a benefit of replacing the old technology found in the ageing compressor system. The new technology runs compressors on an as need basis; the old system runs continuously. North Coast Co-op experienced a 10-15 % energy reduction in their new Eureka store compared to the similarly sized Arcata store with older technology.

The ability to expand frozen back stock will greatly improve workplace safety conditions, and will reduce out of stocks that result from shortage of storage space.

Phase 4

Phase 4 brings new check stands and replacement of the seating lost in phase 4. The plan provides that all lanes are fully functional (Lane 2 currently is dysfunctional) and adds a customer service counter. An additional check stand is a goal, but staff has concerns about the concept of stacked check stands as found at Target or Wal Mart. This configuration is space efficient and would allow an extra lane but some shoppers do not like the concept.

The design will incorporate additional check stand(s) as space allows, with no or minimal use of stacking.

Phase 4 Benefits

Phase 4 improves the checks out experience for customers and employee. At the very least, the Co-op will have 8 fully functional registers, and a customer service counter will provide opportunity for shoppers to handle special orders, membership questions, returns and product questions separate from checkout. Ergonomic improvements will help ensure that cashiers perform job functions safely.

The Credit Union, a Yolo County Co-op, will have the opportunity to have an improved branch at the Davis Food Co-op

Total Renovation Budget Summary

Why is the total budget so high when we've said we're investing
$3 to 4 million in the renovation? As stated above:

DFC Renovation 2007

Renovation Master Plan Summary